GFL Environmental Q2 Preview: Divesting Environmental Services A Major Step, Initiate 'Hold'

  • I view GFL Environmental's Environmental Services divestiture as a positive move, improving capital allocation and enabling focus on core solid waste operations. The company's cost optimization and robust M&A pipeline should drive margin expansion and support growth in the North American waste market. Despite low operating margins and some share dilution risks, GFL's disciplined acquisition strategy and debt reduction enhance its investment case.