All financial information below is in Canadian dollars.

• Financial picture: GFL Environmental’s margin for adjusted earnings before income, taxes, depreciation and amortization was 31.1%, its highest ever recorded. That result was achieved on the back of stronger-than-expected solid waste pricing and growing returns from investments in extended producer responsibility contracts and renewable natural gas, executives reported on the company’s earnings call Thursday. “The momentum from our exceptional first half continued into the third quarter,” CEO Patrick Dovigi said.
• Environmental services sale: Dovigi said GFL is expecting a higher return for the sale of its environmental services segment than originally forecast. The company now expects to receive at least $6 billion in cash proceeds, about $3.5 billion of which will go toward paying down debt, followed by share buybacks and other corporate expenses. Dovigi said roughly 40 buyers initially expressed interest, and GFL’s leadership team plans to carry out negotiations with four finalists. He also said the company was hoping to reach an agreement before its February earnings call.
• Solid waste: Volumes improved slightly on the quarter, ahead of expectations. Adjusted EBITDA margin in the segment expanded from 31.4% to 34.8% year over year. Executives are hoping to achieve “industry-leading margin expansion” in moving forward. GFL saw some softness in special waste volumes in the quarter, but reported strong business in collection and post-collection assets.
• Capital allocation: GFL continues to spend on newly secured EPR contracts and construction of RNG facilities. The company completed construction on two MRFs this year, with two more expected in early 2025. GFL will continue to pursue EPR contracts in Canadian provinces. The company also completed two RNG facilities in the quarter, with two more expected by the end of the year. Those investments will contribute a small amount of earnings this year, which is expected to ramp up in 2025. For that year, CFO Luke Pelosi said the company is expecting $35 million to $45 million in incremental contributions from EPR, and $25 million to $30 million in incremental contributions from RNG.
• Debt: GFL reported a 4.05x debt leverage ratio, which executives attributed in part to favorable foreign currency translation exchange in the quarter. The company is on track to achieve its goal of lowering the ratio to at most 3.85x by the end of the fiscal year. The sale of environmental services is expected to lower GFL’s debt significantly to the 3x to 3.5x range, where Dovigi said the company plans to stay moving forward. Its debt reduction strategy allowed the company to raise its first industrial revenue bond in the third quarter. Following the sale, GFL plans to ramp back up its M&A spending in the solid waste sphere.
• COO change: GFL also reported that Chief Operating Officer Greg Yorston will be stepping back from his role on Jan. 1. Yorston came to GFL in 2018 after it acquired Waste Industries, which Yorston led as president and COO. Billy Soffera, current executive vice president of solid waste operations, will assume the COO position, with Yorston staying on as an adviser. Soffera previously held roles at Advanced Disposal Services and Republic Services.