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

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

What is the market's earnings forecast for Montrose next quarter?

What does Montrose do and what are its main business segments?

What is Montrose's latest dividend and current dividend yield?

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

What is Montrose's gross profit margin?

Did Montrose beat or miss consensus estimates last quarter?

- **Revenue & EBITDA Records**: 26% YoY revenue growth to $637.3M, 30% EBITDA expansion to $92.3M. Free cash flow $38.8M.
- **Cross-Selling Success**: AP&R segment +75% YoY, driven by post-emergency response cross-selling (e.g., energy client remediation).
- **Water Treatment Growth**: Advanced technology and PFAS regulation clarity fueling organic growth and 20%+ margins.
- **2026 Outlook**: $125M+ EBITDA target with margin expansion, supported by strategic M&A restart.
- **Liquidity Strength**: $198.5M cash, 2.7x leverage, on track for <3x by year-end.

**【CEO Summary Section】**
- **Record Q3 Performance**: Revenue grew 26% YoY to $637.3M (year-to-date), with consolidated adjusted EBITDA up 30% to $92.3M. Free cash flow reached $38.8M, exceeding expectations.
- **Organic Growth Drivers**: 1% margin accretion from strong organic growth and operating leverage in consulting, testing, and water treatment. Cross-selling post-emergency responses (e.g., energy client incident) drove downstream testing and remediation opportunities.
- **Strategic Adjustments**: Exited renewables business to focus on higher-return opportunities, with wind-down complete by end-2025. 2026 outlook includes $125M+ EBITDA target and margin expansion.
- **Market Tailwinds**: State and local regulations (e.g., EU methane rules) offset federal policy uncertainty, with demand from energy, waste, and semiconductor clients.

**【CFO Financial Commentary】**
- **Q3 Financials**: Revenue $224.9M (+25.9% YoY), GAAP net income $8.4M (vs. -$10.6M prior year). Adjusted EBITDA $33.7M (+19%), operating cash flow $55.5M (+65% YoY).
- **Segment Performance**: 
  - **AP&R**: $91.1M (+75% YoY), driven by cross-selling after emergency responses. Margin 22.4% (vs. 21.5% prior year).
  - **Measurement & Analysis**: $63M (+7.5% YoY), margin 27.5% (vs. 22.9% prior year).
  - **Remediation & Reuse**: $70.8M (+4% YoY), margin 13.3% (impacted by renewables exit).
- **Liquidity**: $198.5M available cash, leverage 2.7x, on track for <3x by year-end.

**【Q&A Highlights】**
- **AP&R Growth**: 75% YoY driven by cross-selling post-emergency responses (e.g., energy client incident). Some pull-forward from Q4 into Q3, but structural benefits remain.
- **Water Treatment Momentum**: PFAS regulation clarity and advanced technology enable broader contaminant applications. Organic growth and margin expansion expected.
- **M&A Strategy**: Restarting in 2026, focusing on large-cap private assets (17-20x EBITDA) and international expansion. Avoiding subscale bolt-ons in favor of self-help.
- **Remediation Margins**: Water treatment business (high teens margin) offsetting renewables exit. Full-margin contribution expected post-2025.
- **Market Trends**: Increased mining activity in Canada/Australia, EU methane rules, and state-level environmental regulations driving demand across segments.

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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MEG

MEG fundamentals

You can ask Aime