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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.
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Q3 2025 earnings summary5 Nov, 2025

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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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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