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Montrose Environmental Group (MEG) investor relations material

Montrose Environmental Group Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary7 Aug, 2025

Executive summary

  • Achieved record revenue and earnings in Q2 and first half 2025, with 35.3% revenue growth and net income of $18.4M, driven by strong organic growth, emergency response, and margin expansion across all segments.

  • Net income turned positive in Q2 2025, reversing a prior year loss, aided by a $10M fair value gain from Series A-2 preferred stock redemption.

  • Operating cash flow improved by $48.5M in the first half, supporting deleveraging and full redemption of Series A-2 Preferred Shares six months ahead of plan.

  • Strategic priorities included balance sheet simplification, organic growth focus, and the launch of a $40M stock repurchase program.

  • Adjusted Net Income and Adjusted EPS saw significant increases year-over-year, reflecting operational improvements and lower preferred dividends.

Financial highlights

  • Q2 2025 revenue grew 35.3% year-over-year to $234.5M; first half revenue up 25.5% to $412.4M.

  • Q2 net income was $18.4M ($0.42 EPS) vs. a net loss of $10.2M ($0.39 LPS) last year; first half net loss improved to $1.0M ($0.15 LPS) from $23.5M ($0.91 LPS).

  • Q2 Adjusted Net Income was $27.4M ($0.63 Adj EPS) vs. $10.8M ($0.20 Adj EPS) last year; first half Adjusted Net Income was $32.7M ($0.73 Adj EPS) vs. $19.3M ($0.37 Adj EPS).

  • Q2 Consolidated Adjusted EBITDA rose 69.8% to $39.6M (16.9% margin); first half Adjusted EBITDA up 45.7% to $58.6M (14.2% margin).

  • Operating cash flow for first half 2025 was $27.4M, up from a $21.1M outflow last year; cash on hand at June 30, 2025: $10.5M.

Outlook and guidance

  • Full-year 2025 revenue guidance raised to $795M–$835M (17% growth at midpoint); Adjusted EBITDA guidance increased to $111M–$117M (19% growth at midpoint), excluding future acquisitions.

  • Organic revenue growth expected at or above the 7%–9% long-term range; margin expansion expected to continue.

  • Cash flow from operations expected to exceed 50% of consolidated adjusted EBITDA in 2025.

  • Emergency response revenues are expected to remain volatile and difficult to predict.

  • Sufficient liquidity is anticipated to fund operations, acquisitions, and earn-out obligations.

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Frequently asked questions

Montrose Environmental Group, Inc. is an environmental services company that provides a wide range of solutions focused on air quality, environmental laboratory services, regulatory compliance, and sustainability. The company serves various industries, including energy, manufacturing, and government, helping clients address complex environmental challenges through consulting, testing, and technology-driven services. Montrose Environmental Group's offerings include emissions measurement, water treatment solutions, and environmental remediation. The company is headquartered in Little Rock, United States, and its shares are listed on the NYSE.

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