Onterris (ONT) investor relations material

Executive summary

• Q2 2026 revenue was $186.7 million, down 20.4% year-over-year, mainly due to historically low environmental emergency response and recovery services.

• Net income for Q2 2026 was $1.4 million ($0.04 EPS), a significant decline from $18.4 million ($0.42 EPS) in Q2 2025, reflecting lower revenues and reduced emergency response activity.

• Adjusted Net Income was $19.6 million ($0.51 Adj EPS), down from $27.4 million ($0.60 Adj EPS) year-over-year.

• The Board initiated a comprehensive strategic review, including evaluation of acquisition interest and other value-creating transactions, and adopted a limited-duration stockholder rights plan.

• The company realigned its segments in 2026, combining Assessment, Permitting and Response with Remediation and Reuse into Consulting & Treatment.

Financial highlights

• Q2 2026 revenue declined by $47.9 million (20.4%) year-over-year; six-month revenue fell 13.9%.

• Consolidated Adjusted EBITDA for Q2 2026 was $31.9 million (17.1% margin), up from 16.9% year-over-year due to cost optimization.

• Net cash used in operating activities for the first half of 2026 was $5.5 million, compared to $27.4 million provided in the prior year.

• Repurchased 1.6 million shares for $30 million in the first half of 2026.

• Total available liquidity at June 30, 2026 was $160.8 million.

Outlook and guidance

• Full-year 2026 revenue guidance updated to $740–$790 million, down from $840–$900 million, reflecting lower pass-through and emergency response revenues.

• Full-year Adjusted EBITDA guidance revised to $117–$120 million, with margin at 15.5%, up from prior year.

• Third quarter 2026 revenue expected at $190–$210 million, with Adjusted EBITDA margin of 17–18%.

• Year-end 2026 leverage ratio expected at approximately 2.5x, consistent with prior year.

• Operating cash flow conversion expected at 60% of full-year Adjusted EBITDA.