Onterris (ONT) 46th Annual William Blair Growth Stock Conference summary

Business overview and growth strategy

• Focuses on environmental science and technology, with core services in air, water, and soil assessment and treatment.

• Serves 6,000 clients with high retention, primarily in the US, Canada, and Australia, and employs 3,500 people.

• Achieved 24% annual growth since IPO, with 12% organic growth, outpacing industry averages.

• Growth is driven mainly by cross-selling to existing clients rather than acquiring new ones.

• Targets $1 billion in revenue within 3-4 years, assuming 7%-9% organic growth.

Market dynamics and industry trends

• Benefits from secular trends like increased domestic energy production, onshoring, and rising industrial activity.

• Water treatment and reuse, especially beyond PFAS, is a significant growth area.

• Regulatory complexity at state and local levels increases demand for consulting and compliance services.

• Operates in a $500 billion serviceable market with substantial white space for expansion.

Innovation, intellectual property, and technology

• Invests $2M-$3M annually in R&D, resulting in 31 in-house developed patents over the past 4-5 years.

• Proprietary technology, especially in water treatment, enables unique solutions and competitive differentiation.

• Double-digit growth in water treatment, with IP driving expansion into pharma, waste, energy, semiconductors, mining, and data centers.

• Software and technology adoption accelerated by regulatory changes, particularly in states like Texas.