Montrose Environmental Group Inc
NYSE:MEG
Montrose Environmental Group Inc
Montrose Environmental Group, Inc. is an environmental services company, which engages in the provision of air measurement and environmental laboratory services. The company is headquartered in Irvine, California and currently employs 2,500 full-time employees. The company went IPO on 2020-07-23. The Company’s segments include Assessment, Permitting and Response segment, which is engaged in providing scientific advisory and consulting services to support environmental assessments, environmental emergency response and recovery, toxicology consulting and environmental audits and permits for current operations, facility upgrades, new projects, decommissioning projects, and development projects; Measurement and Analysis segment, which provides environmental testing and laboratory services, such as source and ambient air testing and monitoring, leak detection, and advanced multi-media laboratory services, including air, soil, stormwater, wastewater and drinking water analysis; and Remediation and Reuse segment, which provides clients with engineering, design, implementation and operations and maintenance services, primarily to treat contaminated water, remove contaminants from soil or create biogas from waste.
Montrose Environmental Group, Inc. is an environmental services company, which engages in the provision of air measurement and environmental laboratory services. The company is headquartered in Irvine, California and currently employs 2,500 full-time employees. The company went IPO on 2020-07-23. The Company’s segments include Assessment, Permitting and Response segment, which is engaged in providing scientific advisory and consulting services to support environmental assessments, environmental emergency response and recovery, toxicology consulting and environmental audits and permits for current operations, facility upgrades, new projects, decommissioning projects, and development projects; Measurement and Analysis segment, which provides environmental testing and laboratory services, such as source and ambient air testing and monitoring, leak detection, and advanced multi-media laboratory services, including air, soil, stormwater, wastewater and drinking water analysis; and Remediation and Reuse segment, which provides clients with engineering, design, implementation and operations and maintenance services, primarily to treat contaminated water, remove contaminants from soil or create biogas from waste.
Record Quarter: Montrose reported its third consecutive quarter of record performance, with strong revenue, EBITDA, and free cash flow exceeding expectations.
Revenue Growth: Q3 revenue grew 25.9% year-over-year to $224.9 million, driven by broad-based organic growth across all segments.
Margin Expansion: Consolidated adjusted EBITDA rose nearly 19% to $33.7 million in Q3, with margin accretion across consulting, testing, and water treatment businesses.
Raised Guidance: 2025 revenue guidance increased to $810–$830 million and adjusted EBITDA to $112–$118 million, reflecting optimism for continued growth into 2026.
Segment Highlights: Strong cross-selling from emergency response incidents boosted Assessment, Permitting and Response segment; Measurement and Analysis saw record margins; Remediation and Reuse margins impacted by renewables wind-down.
Strategic Decisions: Montrose is exiting its renewables service line due to unfavorable policy environment and will resume acquisitions in 2026.
Balance Sheet Strength: The company improved operating and free cash flow, reduced leverage to 2.7x, and completed the redemption of preferred stock ahead of schedule.
Positive Regulatory Tailwinds: State and international regulations, EU methane rules, and EPA's PFAS focus are creating new growth opportunities, especially in water treatment and emissions monitoring.
