Did Montrose beat or miss consensus estimates last quarter?

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What is Montrose's gross profit margin?

What factors drove the changes in Montrose's revenue and profit?

What is the revenue and EPS growth rate for Montrose year over year?

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What were the key takeaways from Montrose’s earnings call?

What were the key takeaways from Montrose's earnings call?

- **Record 2025 Financials**: $830.5 million revenue (+19.3%), $116.2 million EBITDA (+21.3%), 14% margin. 
- **2026 Guidance**: $840-900 million revenue, $125-130 million EBITDA (10% growth). 15% margin target. 
- **Private Sector Resilience**: 90% clients unaffected by U.S. regulatory uncertainty. 
- **AI & Emerging Markets**: Water tech segment >10% growth, new opportunities in pharma, semiconductors. 
- **Cash Flow Strength**: 93% operating cash conversion, $87 million free cash flow. 
- **Share Buybacks**: $40 million program launched, 7-9% organic growth target.

**【CEO Summary Section】**
- **Record 2025 Performance**: Full-year revenue of $830.5 million (+19.3% YoY), consolidated adjusted EBITDA of $116.2 million (+21.3% YoY), and 14% EBITDA margin (vs. 12.2% in 2024). Organic growth of 12.7%, exceeding long-term target of 7-9%. 
- **2026 Guidance**: Revenue $840-900 million, EBITDA $125-130 million (midpoint +10% YoY). Target 15% EBITDA margin, 7-9% organic growth, and 60%+ operating cash conversion. 
- **Strategic Focus**: 
  - **Organic Growth**: Cross-selling success (53% to 62% of revenue), private sector demand (90% clients), and emerging markets (pharma, semiconductors, data centers). 
  - **Cash Flow**: $107 million operating cash flow (93% conversion), $87 million free cash flow. 
  - **Capital Allocation**: $40 million share buyback program, cautious M&A (small, accretive deals post-H1 2026). 
- **Regulatory Resilience**: 3% federal government revenue exposure, 90% private sector clients unaffected by U.S. regulatory uncertainty. 

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Revenue $193.3 million (+2.3% YoY), adjusted EBITDA $23.9 million (12.4% margin). Full-year GAAP net loss $0.8 million (-99% YoY), adjusted EPS $1.36 (+26% YoY). 
- **Segment Performance**: 
  - **Assessment, Permitting & Response**: $307.4 million (+43% YoY), driven by emergency response ($29 million) and cross-selling. 
  - **Measurement & Analysis**: $245.9 million (+9.6% YoY), 26.2% margin (vs. 22.5% YoY). 
  - **Remediation & Reuse**: $277.3 million (+7.8% YoY), 13.1% margin (impacted by renewables wind-down). 
- **Liquidity**: $225 million available cash, leverage 2.5x (vs. 3x target). 

**【Q&A Key Highlights】**
- **2026 Cadence**: 50-50 revenue split, 40-60 EBITDA split (H2 weighted). Q1 2026: $15-20 million emergency response, lower testing activity. 
- **AI Impact**: Using LLMs for efficiency (e.g., report generation), new revenue streams (sensor data analysis), and growth in tech client work (+15% 2025). 
- **Emerging Markets**: Pharma (GLP-1 manufacturing byproducts), semiconductors ( fabs), data centers (water treatment). Water tech segment expected >10% growth in 2026. 
- **M&A Strategy**: Small, accretive deals ($10-30 million EBITDA) in testing and consulting, targeting H2 2026. 
- **PFAS Growth**: 10-15% of revenue, double-digit growth driven by landfill leachate, AFFF remediation, and international standards.

Montrose Environmental Group, Inc. (MEG) Q4 2025 Earnings Call Transcript

- **Record Q3 Growth**: 26% YoY revenue growth to $224.9 million, with EBITDA up 19% to $33.7 million.
- **Strategic Shifts**: Exited renewables business to focus on higher-margin segments, generating $10.6 million in gains.
- **2025 Guidance Raised**: Full-year EBITDA expected to grow 20% YoY, with 2026 outlook of $125 million+ EBITDA.
- **AP&R Surge**: 75% YoY revenue growth in AP&R driven by cross-selling post-emergency responses.
- **Water Treatment Momentum**: 20%+ EBITDA margin target, supported by advanced technologies and expanding regulatory demand.
- **Balance Sheet Strength**: $38.8 million free cash flow year-to-date, delevering to 2.7x leverage ratio.

**【Management Opening Remarks】**
- Adrianne Griffin welcomed participants and outlined the call structure, emphasizing forward-looking statements and non-GAAP financial measures. She highlighted the availability of the earnings presentation and reminded investors of the company's risk factors.

**【CEO Commentary】**
- **Revenue and Profit Growth**: Q3 2025 revenue grew 26% YoY to $224.9 million, with consolidated adjusted EBITDA up 19% to $33.7 million. Year-to-date revenue increased 26% to $637.3 million, and EBITDA rose 30% to $92.3 million.
- **Strategic Adjustments**: The company exited its renewables business to focus on higher-margin segments, resulting in a $10.6 million fair value gain from Series A preferred stock redemption.
- **2025 Guidance Update**: Raised full-year revenue to $810-$830 million (18% YoY growth) and EBITDA to $112-$118 million (20% YoY growth). 2026 outlook includes EBITDA of at least $125 million.
- **Key Drivers**: Cross-selling following emergency responses, water treatment growth, and mining sector expansion. AP&R segment revenue surged 75% YoY due to consulting and advisory services.
- **Market Positioning**: Resilience against federal regulatory uncertainty, with state and international regulations driving demand for emissions monitoring and water treatment services.

**【CFO Financial Commentary】**
- **GAAP Results**: Q3 2025 GAAP net income of $8.4 million ($0.21 EPS) vs. $10.6 million loss ($0.39 EPS) in Q3 2024. Year-to-date net income improved to $7.4 million ($0.08 EPS) from $34.1 million loss ($1.30 EPS).
- **Segment Performance**: 
  - **AP&R**: 75% YoY revenue growth to $91.1 million, driven by consulting and cross-selling post-emergency responses.
  - **Measurement & Analysis**: 7.5% YoY revenue growth to $63 million, with EBITDA margin expanding 460 bps to 27.5%.
  - **Remediation & Reuse**: 3.9% YoY revenue growth to $70.8 million, with EBITDA margin contracting 380 bps to 13.3% due to renewables wind-down.
- **Cash Flow**: Year-to-date free cash flow of $38.8 million (42% of EBITDA) vs. $1.4 million in 2024.
- **Balance Sheet**: Leverage ratio of 2.7x, with $198.5 million liquidity.

**【Q&A Highlights】**
- **AP&R Growth**: 75% YoY growth attributed to cross-selling post-emergency responses and consulting services. Some growth was pull-forward from Q4 expectations.
- **Water Treatment Optimism**: 20%+ EBITDA margin target, driven by advanced technologies applicable to multiple contaminants beyond PFAS.
- **M&A Strategy**: Restarting acquisitions in 2026, focusing on bolt-ons in high-growth segments like water treatment and mining.
- **Remediation Margins**: Excluding renewables, segment margins would improve, with water treatment leading margin expansion.
- **Mining & EU Opportunities**: Increased activity in Canada and Australia tied to rare earths and EU methane regulations, supporting long-term growth.


Montrose Environmental Group, Inc. (MEG) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 revenue up 35% YoY to $234.5M, driven by organic growth and $35M emergency response.
- **Margin Expansion**: EBITDA margin improved 340 bps to 16.9%, with all segments showing margin gains.
- **Guidance Raised**: 2025 revenue to grow 17% YoY, EBITDA +19%, reflecting margin expansion.
- **Balance Sheet Strength**: Leverage 2.5x (2.99x pro forma), $242.8M liquidity, and $16.7M free cash flow.
- **Resilience to Regulation**: Minimal impact from U.S. EPA changes, with 80% of work for private sector clients in regulated states.
- **Client Retention**: 96%+ retention rate, with cross-selling opportunities from emergency response projects.

**【CEO Summary Section】**
- **Record Q2 Performance**: Revenue grew 35% YoY to $234.5 million, driven by organic growth across all segments and $35 million from environmental emergency response. Adjusted EBITDA rose 70% to $39.6 million (16.9% margin), with a 340 basis point margin improvement.
- **Strategic Priorities**: 
  - Organic growth (7-9% annually) and margin expansion remain core focuses.
  - Balance sheet simplification achieved 6 months ahead of schedule, with leverage below 3x post-redemption.
  - Guidance raised: 2025 revenue to grow 17% YoY, EBITDA up 19%.
- **Regulatory Resilience**: Minimal impact from U.S. EPA changes, as 80% of work is for private sector clients in regulated states.
- **Client Retention**: 96%+ client retention rate, with cross-selling opportunities from emergency response projects.

**【CFO Financial Commentary】**
- **Q2 Financials**: 
  - GAAP net income: $18.4 million ($0.42 EPS), vs. $10.2 million loss ($0.39 EPS) last year.
  - Year-to-date operating cash flow: $27.4 million, up $48.5 million YoY.
  - Free cash flow: $16.7 million (vs. -$36.4 million last year).
- **Segment Performance**: 
  - **AP&R**: Revenue doubled to $103.9 million (26.5% margin), driven by emergency response and organic growth.
  - **Measurement & Analysis**: Revenue +15% to $62.8 million (29.1% margin), up 660 basis points.
  - **Remediation & Reuse**: Revenue +4.1% to $67.8 million (14.8% margin), with treatment tech growth.
- **Balance Sheet**: $242.8 million liquidity, leverage 2.5x (2.99x pro forma post-redemption).

**【Q&A Key Highlights】**
- **Margins**: Measurement & Analysis segment operating leverage and project mix drove 660 basis point margin expansion; long-term target 18-22%.
- **Emergency Response**: $35 million Q2 response revenue; downstream air monitoring and remediation work started in Q3, with recurring nature similar to core business.
- **M&A Strategy**: Pause continues to demonstrate organic growth; no imminent restart, but pipeline remains active.
- **PFAS Treatment**: Expanding beyond PFAS with broader water treatment tech; state-level regulations driving demand.
- **Buybacks**: No commitment, but option to maximize shareholder value if opportunities arise.


Montrose Environmental Group, Inc. (MEG) Q2 2025 Earnings Call Transcript

- **Record Q1 Performance**: $177.8M revenue and $19M EBITDA, highest ever for a first quarter.
- **Enhanced Guidance**: EBITDA raised to $103-110M, targeting 7-9% organic growth.
- **Key Growth Areas**: Private sector projects, state PFAS initiatives, and international expansion.
- **Resilience**: Hedged against economic risks; clients maintain long-term planning despite policy changes.

**【Management Opening Remarks】**
- Adrianne Griffin introduced the executives and reminded participants of forward-looking statements and non-GAAP financial measures.
- The earnings presentation and release were referenced for additional details.

**【CEO Commentary】**
- **Q1 2025 Results**: Record revenue of $177.8 million, adjusted EBITDA of $19 million, and operating cash flow of $5.5 million.
- **Updated Guidance**: Full-year EBITDA raised to $103-110 million (from $101-108 million); revenue maintained at $735-785 million with 7-9% organic growth target.
- **Growth Drivers**:
  - **Private Sector**: Increased industrial activity, e.g., a large U.S. energy company project.
  - **State Governments**: PFAS policy initiatives; Montrose's 5 consecutive quarters of PFAS service growth.
  - **International**: Expansion in Australia with a major mining project.
- **Risk Management**: Tariffs, currency fluctuations, and political dynamics are hedged; clients remain committed despite regulatory volatility.

Montrose Environmental (MEG)-8 May 25-2025 Q1 Earnings call transcript

- **2024 Record Results**: $696.4M revenue, 8.3% organic growth, 13.8% EBITDA margin. Cross-selling at 53% of revenue, 96% retention rate.
- **2025 Guidance**: Revenue $735M-$785M, EBITDA $101M-$108M. Focus on balance sheet simplification and 7%-9% organic growth.
- **Resilience to Politics**: <1% federal exposure; 28 U.S. states regulate PFAS independently, driving treatment tech demand.
- **Cash Flow Confidence**: 2025 target of >50% EBITDA-to-cash conversion achievable with normalized collections.
- **Segment Strength**: Remediation segment EBITDA margin expanded 400bps to 17.5% in Q4, driven by Matrix integration.


**【CEO Business Update & 2025 Guidance】**
- **Record 2024 Performance**: Revenue of $696.4M (+11.6% YoY), Adjusted EBITDA of $95.8M (+22.1% YoY), with 8.3% organic growth driven by cross-selling (53% of revenue) and 96% retention rate.
- **International Expansion**: 20% of revenue from Canada, Australia, and Europe, up from 4% in 2021. Matrix Canada exited Q4 at mid- to high-teen EBITDA margins.
- **Political Resilience**: <1% federal government exposure; 28 U.S. states independently regulate PFAS, driving demand for treatment technologies.
- **2025 Outlook**: Revenue $735M-$785M, Adjusted EBITDA $101M-$108M. Focus on balance sheet simplification (redemptions of $60M and $62M Series A-2 preferred stock) and organic growth (7%-9% CAGR).

**【CFO Financial Highlights】**
- **Q4 2024 Results**: Revenue $189.1M (+14.1% YoY), Adjusted EBITDA $27.2M (14.4% margin). Full year Adjusted EBITDA margin 13.8% vs. 12.6% in 2023.
- **Segment Performance**: 
  - **AP&R**: $50.8M revenue, 15.6% margin (Consulting growth offset by $8.4M decline in ER).
  - **M&A**: $65.5M revenue (+21.3%), 27.9% margin (lab services growth).
  - **Remediation**: $72.8M revenue (+18.2%), 17.5% margin (Matrix integration success).
- **Cash Flow**: Operating cash flow $22.2M (vs. $56M in 2023) due to $40.4M working capital increase. Pro forma liquidity $300M+ with 2.1x leverage.
- **2025 Guidance**: Operating cash flow >50% of EBITDA, driven by collections from City of Tustin ($13.5M outstanding balance expected to be fully collected).

**【Q&A Key Takeaways】**
- **Margin Expansion**: Remediation segment to benefit from scale; corporate cost leverage. 2025 EBITDA guidance reflects cautious outlook but accretion expected.
- **Cash Generation**: 2024 cash flow impacted by timing (Q4 revenue growth, Tustin collections). 2025 target of 50%+ conversion achievable with normalized collections.
- **Political Tailwinds**: Private sector activity resilient post-election; <3% federal exposure limits risk. State-level regulations (e.g., methane monitoring in 9 states) provide stability.
- **International Growth**: Canada, Australia, Europe stable at 20% mix. No major shifts expected; focus on organic expansion in existing markets.
- **ER Activity**: 2025 outlook $50M-$70M (similar to 2024). No material weather-related projects identified yet.


Actual	0.61	-2.99	-0.13	-0.62	-0.71	-0.07	-0.19	-0.39	-0.4	-0.33	-0.5	-0.63	-0.38	-0.39	-0.18	-0.53	-0.39	-0.39	-0.9	-0.64	0.42	0.21	-0.23
Forecast	-0.4446	0.054	-0.0085	-0.09	-0.055	-0.0374	-0.0263	-0.12	-0.24	-0.2878	-0.2136	-0.3085	-0.2668	-0.21	-0.288	-0.3875	-0.1875	-0.0825	-0.504	-0.3942	-0.1797	0.036	-0.1246
Surprise	+237.20%	-5637.04%	-1429.41%	-588.89%	-1190.91%	-87.17%	-622.43%	-225.00%	-66.67%	-14.66%	-134.08%	-104.21%	-42.43%	-85.71%	+37.50%	-36.77%	-108.00%	-372.73%	-78.57%	-62.35%	+333.72%	+483.33%	-84.59%

MEG

MEG fundamentals

MEG Q4 2025 Earnings

Earnings Call

You can ask Aime

MEG

MEG fundamentals

MEG Q4 2025 Earnings

Earnings Call

MEG Earnings Call Summary for Q4/20258:30 AM on Feb 26, 2026

MEG Earnings Call Summary for Q3/20258:30 AM on Nov 5, 2025

MEG Earnings Call Summary for Q2/20258:30 AM on Aug 7, 2025

MEG Earnings Call Summary for Q1/20258:30 AM on May 8, 2025

MEG Earnings Call Summary for Q4/20248:30 AM on Feb 27, 2025

You can ask Aime