VAUGHAN, ON - GFL Environmental Inc. (NYSE: NYSE:GFL) (TSX: GFL) has declared a quarterly cash dividend of US$0.014 per subordinate and multiple voting share for the third quarter of 2024. Shareholders on record by the close of business on October 16, 2024, will receive the dividend on October 31, 2024. This dividend has been classified as an eligible dividend for Canadian income tax purposes.
GFL, a leading North American diversified environmental services company, operates across Canada and in over half of the U.S. states. With a workforce exceeding 20,000 employees, GFL offers services including solid waste management, liquid waste management, and soil remediation.
The company's forward-looking statements indicate that future dividends are subject to change and are not guaranteed. The Board of Directors retains discretion over the declaration, timing, and amount of any future dividends. GFL emphasizes that these statements are not assurances of future performance and could differ materially due to various risks and uncertainties.
This information is based on a press release statement from GFL Environmental Inc.
In other recent news, GFL Environmental Inc. has reported substantial financial growth, with Q2 2024 revenue increasing by 11.1% year-over-year to $2.06 billion, and an improved adjusted EBITDA margin of 28.7%. The company also secured $210 million in Solid Waste Disposal Revenue Bonds, with the proceeds being loaned to a GFL subsidiary for solid waste disposal facilities in Florida. The move is part of GFL's strategy to transition its debt from secured to unsecured.
In addition, GFL announced the conversion of its Series A perpetual convertible preferred shares into subordinate voting shares, a transaction managed by HPS Investment Partners, LLC. Analysts at Jefferies maintained a Buy rating on GFL and raised their price target to $54.00, highlighting the company's strong business momentum and successful growth initiatives.
GFL Environmental has increased its full-year guidance for adjusted EBITDA to between $2.24 billion and $2.25 billion. The company also plans to invest between $250 million and $300 million into recycling and RNG infrastructure in 2024. These are among the recent developments for GFL Environmental.
InvestingPro Insights
GFL Environmental Inc.'s recent dividend declaration aligns with its consistent dividend growth strategy. According to InvestingPro Tips, GFL has raised its dividend for 4 consecutive years, demonstrating a commitment to returning value to shareholders. This trend is particularly noteworthy given the company's current financial position.
Despite not being profitable over the last twelve months, InvestingPro Data shows that GFL's revenue for the last twelve months as of Q2 2024 reached $5.58 billion, with a revenue growth of 3.23%. This growth, coupled with analysts' expectations of profitability this year, suggests that GFL is positioning itself for improved financial performance.
The company's strong return over the last five years, as highlighted by InvestingPro Tips, indicates resilience and long-term value creation for investors. This performance is particularly impressive considering the challenges faced by the environmental services sector.
It's worth noting that GFL's stock generally trades with low price volatility, which may appeal to investors seeking stability in their portfolio. However, potential investors should be aware that the company is trading at high EBIT and revenue valuation multiples, suggesting the market has priced in expectations for future growth.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights on GFL Environmental Inc. In fact, there are 10 more InvestingPro Tips available for GFL, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.