Montrose Environmental Group
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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.
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Q4 2025 earnings summary26 Feb, 2026

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.

What acquisition criteria guide 2026 plans?
Reconcile Q4 margin decline with 2026 outlook.
Prioritize 2026 capital allocation.
AI's net impact on Montrose's operations?
Describe 2026 M&A focus and timing.
Which nascent opportunities excite Montrose most?
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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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