Solid Waste Stocks Are Attractive Options Should Market Strength Broaden Out

Research evidence excerpt

Solid Waste Stocks Are Attractive Options Should Market Strength Broaden Out

dustrial activity. Near-

had received inbound interest from buyout firms for a full or partial takeover and the term SKSS profitability appears poised to increase

G&M identified Apollo as one of the private equity firms. We estimate GFL's pro forma significantly from supply disruptions for base oil. With

enterprise value to be ~C$38B, or ~US$27B. Layering in a premium on the current equity financial leverage below its targeted range, CLH has

value, a potential GFL takeover would be among the largest LBOs on record. We believe a lot of dry powder to pursue growth opportunities

another option under consideration is for Apollo and/or others to acquire at least a while remaining active in its buyback program.

portion of the stake currently held by BC Partners, GIC and OTPP. We believe GFL has RSG (OP; TP: US$250) - RSG is expected to continue

been a strong investment for the current PE investors, but the holding period is currently generating industry-leading pricing growth and

>8 years and these firms collectively own ~100M shares. We expect GFL to provide an EBITDA margins in its solid waste division, and

update for investors with (or before) it reports Q2 results later this month. the benefits from its digital investments provide

Oil re-refining spreads have expanded. The conflict in the Middle East has disrupted further upside in 2027/2028. The ES business should

global base oil supply which has underpinned multiple price increases in the domestic benefit from improved industrial activity, with

market. Posted group II base oil prices are currently up >$2/gal from early 2026. growth expected to resume in H2/26. RSG also has