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 Results: Montrose reported record revenue, adjusted EBITDA, and cash flow for 2025, with all major financial targets exceeded.
Revenue Growth: Full-year revenue reached $830.5 million, up 19.3% from 2024, surpassing initial guidance and driven by strong organic growth of 12.7%.
Margin Expansion: Adjusted EBITDA margin expanded to 14% for the year, marking the third consecutive year of improvement.
Cash Flow Strength: Operating cash flow hit a record $107 million (93% conversion), while free cash flow was $87 million (75% conversion).
Guidance Raised: 2026 revenue guidance set at $840–$900 million and adjusted EBITDA at $125–$130 million, targeting further margin expansion to 15%.
Regulatory Tailwinds: Management emphasized that regulatory changes, including those on methane and PFAS, are driving demand and not posing headwinds.
M&A and Capital Allocation: Acquisition activity to resume in the back half of 2026, with a focus on small, strategic deals; $40 million share repurchase program now active.
Strong Outlook: Management highlighted robust demand across key sectors (mining, pharma, semiconductors, data centers) and expects double-digit growth in water technology.
