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Montrose Environmental Group (MEG) investor relations material
Montrose Environmental Group Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record Q3 and year-to-date revenue and net income, with Q3 2025 revenue up 25.9% to $224.9 million and net income of $8.4 million, driven by strong organic growth, acquisitions, and robust demand across industrial clients.
Raised 2025 guidance for revenue and Adjusted EBITDA for the third consecutive quarter, reflecting broad-based client demand and robust organic growth; preliminary 2026 outlook projects further EBITDA growth and margin expansion.
Strategic acquisition pause in 2025, with acquisitions expected to resume in 2026; capital structure simplified by redeeming all Series A-2 preferred stock.
Exited renewables service line within Remediation and Reuse segment due to policy changes and lower returns, with wind-down impact reflected in results and outlook.
Investments in sales, marketing, and talent enhanced brand visibility and cross-selling, supporting continued market-leading organic growth.
Financial highlights
Q3 2025 revenue grew 25.9% year-over-year to $224.9 million; year-to-date revenue up 25.6% to $637.3 million.
Q3 2025 net income was $8.4 million (21–24 cents per diluted share); year-to-date net income $7.4 million (8–9 cents per share), both improved from prior year losses.
Q3 2025 Adjusted EBITDA was $33.7 million (15% margin); year-to-date Adjusted EBITDA up 34.6% to $92.3 million (14.5% margin), a 100 bps improvement.
Free cash flow for the first nine months was $38.8 million, or 42% of Adjusted EBITDA; operating cash flow improved to $55.5 million.
Leverage ratio at quarter end was 2.7x, with available liquidity of $191.7–$198.5 million.
Outlook and guidance
2025 revenue guidance raised to $810–$830 million; Adjusted EBITDA guidance to $112–$118 million, representing 18–20% increases over 2024 at the midpoint.
2026 EBITDA expected to reach at least $125 million, with further margin improvement anticipated.
Long-term organic growth targeted at 7–9% annually, with EBITDA growth outpacing revenue.
Acquisitions expected to resume in 2026, adding to growth rates.
Remediation and Reuse renewables business to be fully wound down by year-end 2025.
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