Montrose Environmental Group, Inc. (MEG) Earnings
MEG has beaten EPS estimates in 6 of its last 12 reported quarters (average surprise +80.0% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 8, 2026 | $-0.07 | $-0.28 | -300.0% | $169M | -6.2% |
| Feb 26, 2026 | $0.24 | $0.35 | +45.8% | $193M | +3.6% |
| Aug 6, 2025 | $0.25 | $0.63 | +152.0% | $235M | +20.3% |
| Feb 26, 2025 | $-0.09 | $0.29 | +422.2% | $189M | +0.8% |
| Feb 29, 2024 | $0.10 | $0.27 | +170.0% | $166M | +3.3% |
| Feb 28, 2023 | $-0.24 | $-0.50 | -108.3% | $140M | -0.2% |
| Feb 28, 2022 | $-0.06 | $-0.19 | -230.4% | $144M | +17.9% |
| Aug 10, 2021 | $0.09 | $-0.13 | -244.4% | $136M | +0.0% |
| May 12, 2021 | $-0.07 | $-0.02 | +71.4% | $134M | -71.3% |
| Mar 24, 2021 | $0.15 | $-0.13 | -186.7% | $109M | — |
| Nov 12, 2020 | $0.15 | $-1.62 | -1180.0% | $85M | -96.4% |
| Aug 31, 2020 | $0.28 | $0.61 | +117.9% | $74M | -48.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q4 FY2025 · February 26, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- 2025 was a record year for Montrose in terms of revenue, EBITDA, cash flow, and margins. Revenue grew 19.3% vs 2024, driven by organic growth of 12.7%. Consolidated adjusted EBITDA grew 21.3% year over year and margin expanded to 14%. - Montrose's business is predominantly private sector with less than 3% of revenue from U.S. federal government. Private sector clients drive sustained demand. - Priorities for 2026 include organic revenue growth and margin expansion, strong cash flow generation with expected 60% operating cash conversion, and strategic capital allocation including organic investments, share repurchases, and accretive acquisitions.
Guidance
- 2026 revenue guidance is 840 million to 900 million, and consolidated adjusted EBITDA guidance is 125 million to 130 million. - Revenue is expected to be split roughly 50 - 50 front half and back half, with front half about 40% Q1, 60% Q2. EBITDA is expected to be split 40% first half, 60% second half, with first half about a third Q1 and two - thirds Q2. - Environmental emergency response revenue assumption is in the range of 50 million to 70 million. - Expect to generate approximately $180 million in cumulative operating cash flow between 2025 and 2026.
Segment performance
In 2025, the Permitting, Assessment, and Response segment had full - year revenue increase of 43% to $307.4 million, with segment adjusted EBITDA of $68.5 million, up from $48 million in the prior year. The Measurement and Analysis segment had full - year revenue growth of 9.6% to $245.9 million, and full - year segment adjusted EBITDA was $64.4 million, a 370 basis point margin expansion. The Remediation and Reuse segment had full - year revenue growth of 7.8% to $277.3 million, with full - year segment adjusted EBITDA of $36.3 million, mainly driven by the loss from the strategic wind - down of the renewable energy operations.
Analyst Q&A
Q: Please provide more color on the cadence of revenue and EBITDA as we move through 2026.
A: Revenues expected to be split roughly 50 - 50 front half, back half, with front half about 40% Q1, 60% Q2. EBITDA expected to be split 40% first half, 60% second half, with first half about a third Q1 and two - thirds Q2.
Q: How does Montrose think about the net impact from AI on its business?
A: AI presents opportunities for efficiency, revenue from data aggregation, and is a client for Montrose. There are nascent opportunities in areas like pharma, data center, semiconductor work.
Q: Where does Montrose see the biggest opportunities for organic growth?
A: Water technology business is a focus, core business of testing and consulting has ongoing demand, and there are opportunities in Australian, Canadian, and U.S. markets.
Q: Can you elaborate on M&A potential?
A: No imminent deals, looking at small bolt - on acquisitions, sensitive to leverage, likely to do in back half of 2026, focused on testing and consulting segments.
Q: What's driving the revenue outlook for the first quarter?
A: Primarily lower emergency response, with some project timing and tougher comparisons year over year