Montrose Environmental Group Stock Earnings Reports

Montrose reported a very strong Q3 2025 and year-to-date performance with broad-based demand across its businesses. Key financials: revenue grew ~26% YoY (Q3 revenue $224.9M; YTD $637.3M), consolidated adjusted EBITDA rose ~19% in Q3 and ~30% YTD with 100 bps margin expansion, operating cash flow and free cash flow improved materially ($55.5M operating cash flow YTD; $38.8M free cash flow YTD), leverage was reduced to ~2.7x with ~$198.5M of available liquidity. Management raised full-year 2025 guidance to $810–$830M revenue and $112–$118M consolidated adjusted EBITDA and provided an early 2026 outlook targeting at least $125M in EBITDA and further margin improvement. Drivers of outperformance include strong organic growth (notably Measurement & Analysis and water treatment), cross-selling following emergency response work that boosted Assessment, Permitting & Response (AP&R), international mining and industrial activity, and favorable state/market regulatory trends (e.g., EU methane rules, clarified PFAS direction). Management is winding down the renewables/biogas service within Remediation & Reuse due to lower expected returns, expects the water treatment business to deliver high-teens/around-20% margins, and plans to resume strategic M&A in 2026 while continuing to invest in commercial/brand capabilities. Notable risk/context: federal exposure is modest (<~5% of revenue) and results remain subject to macro, policy and regulatory uncertainty.