All financial information is in Canadian dollars.

• Economic outlook: GFL attributed revenue gains in the third quarter to pricing, growing volumes in environmental services and contributions from M&A. CEO Patrick Dovigi noted positives from the integration of Terrapure Environmental. This came in the face of the inflationary environment that’s persisted “far longer” than expected, said Dovigi, echoing sentiments from other industry executives. Headwinds during the quarter included lower commodity prices, costs related to trucks, weakness in the Canadian dollar, and fires at two MRFs in Canada.
• Spending and M&A strategy: Third-quarter capital expenditures totaled $209.4 million, including $11.2 million for development and construction of renewable natural gas projects. The company reported it continues to consider tuck-in deal opportunities and there are no multibillion-dollar deals in the works. M&A is not expected to impact efforts to delever its balance sheet — a much-discussed topic between analysts and executives on Thursday’s call.
• Environmental services: This segment had 37% organic revenue growth, to $364.4 million. GFL pointed to “the strength of industrial collection and processing activity at our facilities and an increased level of emergency response activity, as well as the impact of higher used motor oil selling prices” in it investor release.
• Looking ahead: GFL’s first set of ESG targets will be released later this month, Dovigi said, noting opportunities in MRFs and RNG projects. The company again increased full-year revenue guidance for 2022, now expecting it will fall between $6.6 billion and $6.65 billion. It maintained its previous guidance for adjusted free cash flow and earnings before interest, taxes, depreciation, and amortization. GFL anticipates price increases and its fuel surcharges program will help offset the roughly $50 million headwind from commodity prices going into 2023.