Latest news with #VijayManthripragada
Yahoo
12-06-2025
- Business
- Yahoo
MEG Q1 Earnings Call: Organic Growth, Regulatory Tailwinds, and Margin Expansion Drive Results
Environmental services provider Montrose (NYSE:MEG) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 14.5% year on year to $177.8 million. The company's full-year revenue guidance of $760 million at the midpoint came in 0.7% above analysts' estimates. Its non-GAAP profit of $0.07 per share was significantly above analysts' consensus estimates. Is now the time to buy MEG? Find out in our full research report (it's free). Revenue: $177.8 million vs analyst estimates of $167.8 million (14.5% year-on-year growth, 6% beat) Adjusted EPS: $0.07 vs analyst estimates of -$0.09 (significant beat) The company reconfirmed its revenue guidance for the full year of $760 million at the midpoint EBITDA guidance for the full year is $106.5 million at the midpoint, above analyst estimates of $104.5 million Operating Margin: -5.9%, in line with the same quarter last year Organic Revenue rose 6.6% year on year (1.1% in the same quarter last year) Market Capitalization: $776.7 million Montrose's first quarter performance was shaped by broad-based demand for environmental services across its core segments, with leadership emphasizing organic revenue gains and momentum in high-growth areas. CEO Vijay Manthripragada highlighted that the Measurement and Analysis and Remediation and Reuse segments each contributed to the company's expansion, citing cross-selling efforts and successful execution on large client projects. Management noted that clients, particularly in the private sector, are maintaining their commitment to compliance and sustainability goals despite regulatory and political uncertainty. CFO Allan Dicks further pointed to operational efficiencies and normalization of segment margins as factors supporting higher adjusted EBITDA, reflecting a consistent focus on both top-line growth and profitability. Looking ahead, Montrose's outlook is anchored by expectations of continued organic growth, margin improvement, and resilience against regulatory volatility. Manthripragada stated that emerging state-level environmental policies and ongoing federal activity around PFAS (per- and polyfluoroalkyl substances) regulation are expected to fuel demand, while the company's proprietary PFAS treatment technology positions it well for future projects. Management also pointed to limited exposure to federal spending and minimal anticipated impact from tariffs or macroeconomic shifts, reinforcing confidence in the company's guidance. As Manthripragada explained, 'We are well on track for high single-digit organic revenue growth, and we continue to enhance EBITDA margins, which is evident from our raised EBITDA guidance.' Montrose's leadership attributed the quarter's performance to increased demand in key service areas, client stability amid regulatory changes, and strategic execution on cross-segment opportunities. Measurement and Analysis strength: The Measurement and Analysis segment saw robust demand across both laboratory and field services, with management crediting sustained client requirements for compliance and risk mitigation. Manthripragada explained that broad-based demand, rather than a single driver, propelled the segment's performance, and higher-margin business lines contributed to improved segment profitability. PFAS-related services growth: The company recorded its fifth consecutive quarter of growth in PFAS (per- and polyfluoroalkyl substances) services, which are used to address emerging contaminants in water, air, and soil. Management cited recent federal policy actions as reinforcing long-term demand, and noted that Montrose's proprietary treatment solutions can be adapted to evolving regulatory thresholds. Remediation and Reuse momentum: Revenue in the Remediation and Reuse segment increased, benefiting from organic growth in treatment technologies and support from recent acquisitions. CFO Allan Dicks highlighted that margins in this segment are expected to improve throughout the year as business mix and project timing normalize. Segment margin normalization: Management reported that segment margins are converging toward stated long-term targets through process optimization, automation, and leveraging existing infrastructure. These efforts have contributed to improved operating efficiency and are expected to drive further margin expansion in 2025. Minimal tariff and macroeconomic impact: The company does not expect tariffs or broader macroeconomic conditions to meaningfully affect margins or demand, given the essential nature of its services and the long-term planning cycles of its primarily private sector clients. Montrose's exposure to federal spending is limited, further reducing risk from potential regulatory or budgetary shifts. Montrose's forward outlook is underpinned by consistent demand for environmental compliance solutions, state and federal regulatory developments, and ongoing operational improvements. State-level regulatory drivers: Management believes that increasing influence and activity by U.S. state governments in environmental policy will create new opportunities, particularly for PFAS remediation and water contamination projects. States are expected to play a larger role in setting and enforcing standards, supporting recurring demand for Montrose's services. Margin expansion initiatives: The company is pursuing margin improvement through process automation, operating leverage, and aligning segment-level profitability with long-term targets. The Remediation and Reuse and Measurement and Analysis segments are expected to be the primary contributors to adjusted EBITDA margin gains in 2025. Capital allocation and balance sheet priorities: After completing the redemption of preferred stock, management expects leverage to remain below its long-term target and is prepared to resume strategic M&A when conditions are right. The new stock repurchase program is positioned as an additional tool for shareholder returns, but growth investments and balance sheet optimization remain priorities. In the coming quarters, our team will be monitoring (1) the pace of state-level regulatory developments, especially regarding PFAS standards and remediation projects; (2) progress on operating margin expansion in the Remediation and Reuse and Measurement and Analysis segments; and (3) execution of the capital allocation strategy, including the completion of preferred stock redemptions and balance sheet simplification. Performance in these areas will be key indicators of sustained growth and profitability. Montrose currently trades at a forward EV-to-EBITDA ratio of 8.9×. Should you double down or take your chips? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. 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Associated Press
03-03-2025
- Business
- Associated Press
Montrose Environmental Group Selected by US Air Force as One of Top Environmental Firms for $1.5 Billion MATOC Contract
Montrose to support environmental restoration and planning work at Air Force installations worldwide over the next 10 years LITTLE ROCK, Ark., March 3, 2025 /PRNewswire/ -- Montrose Environmental Group (NYSE: MEG) is on a mission to help protect the air we breathe, the water we drink, and the soil that feeds us. The company has been selected as one of the top environmental firms by the United States Air Force for the Multiple Award Task Order Contract (MATOC). Under this contract, Montrose, in partnership with Tanaq Environmental —an Alaska Native Corporation and small, disadvantaged business—will work on various projects at Air Force installations worldwide over the next decade. The $1.5 billion MATOC contract includes projects that address environmental remediation of traditional and emerging contaminants, such as PFAS, and environmental planning and support services. 'We are honored to be selected by the United States Air Force to help safeguard the environment that supports those who protect us,' said Vijay Manthripragada, President and CEO of Montrose Environmental Solutions, Inc. 'Our deep expertise combined with industry-leading innovations deliver real-world impact and help us tackle some of the world's most pressing environmental challenges.' Several firms, including Montrose, were selected for the contract with Montrose expected to receive a portion of the total $1.5 billion contract value. Since the Air Force has not yet initiated purchase orders, no financial impact is anticipated in 2025, and the contract is not reflected in Montrose's 2025 financial guidance provided on February 26, 2025. Montrose Environmental Group is a leader in environmental solutions, delivering advanced, science-driven approaches to solve complex challenges, including emerging contaminants treatment, waste management, emissions, risk mitigation and regulatory demands. With a strong portfolio of patented technologies and ongoing research and development, we provide best-in-class remediation, testing, and compliance solutions that help industries and governments proactively address environmental risks. Our expertise spans the public sector, including projects with the Environmental Protection Agency (EPA), the Department of Defense, and state environmental agencies, reinforcing our trusted partnership in safeguarding public health. Montrose is committed to enabling economic progress while advancing environmental stewardship. We deliver scalable, cost-effective solutions that protect communities, ensure regulatory compliance, and drive sustainable outcomes. Learn more about our solutions for the Federal sector. About Montrose Montrose is a leading environmental solutions company focused on supporting commercial and government organizations as they deal with the challenges of today and prepare for what's coming tomorrow. With ~3,400 employees across 100+ locations worldwide, Montrose combines deep local knowledge with an integrated approach to design, engineering, and operations, enabling Montrose to respond effectively and efficiently to the unique requirements of each project. From comprehensive air measurement and laboratory services to regulatory compliance, emergency response, permitting, engineering, and remediation, Montrose delivers innovative and practical solutions that keep its clients on top of their immediate needs – and well ahead of the strategic curve. For more information, visit Follow us on LinkedIn. Forward–Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as 'intend,' 'expect', and 'may', and other similar expressions that predict or indicate future events or that are not statements of historical matters. Forward-looking statements are based on current information available at the time the statements are made and on management's reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company's control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Additional factors or events that could cause actual results to differ may also emerge from time to time, and it is not possible for the Company to predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2023, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement. Contacts Media Relations Tammy Hovey SOURCE Montrose Environmental Group, Inc.
