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Montrose Environmental Group (MEG) investor relations material
Montrose Environmental Group Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record 2025 revenue of $830.5M, up 19.3% year-over-year, with 12.7–13% organic growth and strong performance across all segments.
Adjusted EBITDA rose 21.3% to $116.2M, with margin expansion for the third consecutive year to 14%.
Net loss improved significantly to $0.8M from $62.3M in 2024, with adjusted net income rising to $60.7M.
Completed full redemption of $122.2M Series A-2 Preferred Stock, reducing leverage to 2.5x and simplifying the balance sheet.
Entered 2026 with strong liquidity, robust demand, and plans to resume bolt-on acquisitions.
Financial highlights
2025 revenue was $830.5M (+19.3% vs. 2024); organic growth 12.7%.
Adjusted EBITDA: $116.2M (+21.3% vs. 2024); margin 14.0%.
Operating cash flow reached $107M (92.5–93% conversion of adjusted EBITDA); free cash flow was $87M (75% conversion).
Adjusted net income for 2025: $60.7M; diluted adjusted EPS: $1.36, up from $1.08 in 2024.
Leverage ratio reduced to 2.5x, with $225M in available liquidity at year-end.
Outlook and guidance
2026 revenue guidance: $840M–$900M; adjusted EBITDA: $125M–$130M, targeting 15% margin.
Organic revenue growth expected at ~8% at midpoint, at the high end of the 7–9% long-term range.
Second half of 2026 expected to contribute 60% of full-year EBITDA due to project timing.
Free cash flow and operating cash conversion expected at or above 60% in 2026.
Guidance assumes no acquisitions in 2026, but plans to resume smaller, accretive bolt-ons.
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