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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.
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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