NYSE$ONT

Montrose Environmental Group Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Montrose Environmental Group reported record fourth quarter and full year 2024 results, driven by strong organic growth, acquisitions, and improved operating efficiencies.

Montrose Environmental Group achieved record fourth quarter and full year 2024 financial and operating performance, with significant increases in revenue and Adjusted EBITDA. The company's success was attributed to continued demand for environmental expertise and technology, cross-selling, customer retention, improved operating efficiencies, and successful integration of acquisitions.

  • Record fourth quarter revenue of $189.1 million, a 14.1% increase year-over-year.
  • Record fourth quarter Consolidated Adjusted EBITDA of $27.2 million, up 55.8% from the prior year.
  • Full year 2024 total revenue reached a record $696.4 million, an 11.6% increase.
  • Full year 2024 Consolidated Adjusted EBITDA was a record $95.8 million, up 21.9%.

Headline financials

Total Revenue

$189M

Previous: $166M+14.1%
EPS (adj)

$0.29

Previous: $0.27+7.4%
Consolidated Adjusted EBITDA

$27.2M

Previous: $17.5M+55.8%
Adj EBITDA Margin

14.4%

Previous: 10.5%+37.1%
Capital Expenditures

-$2.7M

Previous: -$5.2M+48.1%
Net Income

-$28.2M

Previous: -$1.44M-1858.7%
Operating Income

-$22.8M

Previous: -$8.91M-156.4%
Gross Profit

$61.7M

Previous: $51.9M+19.1%

Revenue & EPS history

Montrose · Revenue · Quarterly

$189M

Q4 2024+14.1%vs Q4 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Montrose · $111M total across 2 segments · Q3 2023

  • Remediation and Reuse
    $60.5M
  • Measurement and Analysis
    $50.5M

Forward guidance

Montrose expects continued growth in 2025, with revenue projected to be between $735.0 million and $785.0 million, and Consolidated Adjusted EBITDA between $101.0 million and $108.0 million. The guidance does not include any benefits from future acquisitions.

Tailwinds

  • Revenue expected to be in the range of $735.0 million to $785.0 million.
  • Reiterates organic revenue growth expectations of 7% to 9% per year.
  • Consolidated Adjusted EBITDA expected to be in the range of $101.0 million to $108.0 million.
  • Focus on continued margin expansion.
  • Significantly improved operating cash flow expected.

Headwinds

  • Revenue and Consolidated Adjusted EBITDA outlooks do not include any benefit from future acquisitions.
  • Cannot reconcile projection of Consolidated Adjusted EBITDA to net income (loss) without unreasonable efforts due to unpredictable items.
  • Uncertainty regarding future impact of income tax, stock-based compensation, and fair value changes.
  • Variability of certain items could significantly impact reported GAAP financial results.
  • No specific negative factors were highlighted for 2025 guidance, but general market and policy shifts could create headwinds.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+2.5%

Avg return

Earnings day

+3.8%

Avg return

5 days after

+0.3%

Avg return

30 days after

48%

13 / 27 earnings

Positive

+32.6%

Q4 2024

Best reaction

-14.0%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+22.6%+21.4%-9.7%
Q3 2025+5.1%+0.3%+6.8%
Q2 2025+8.1%+20.7%+34.5%
Q1 2025+17.3%+23.6%+42.3%
Q4 2024+32.6%+6.9%-17.4%
Q3 2024-11.3%-18.5%-36.5%
Q1 2024-8.2%-6.9%-5.0%
Q4 2023+15.2%+9.4%+18.7%
Q3 2023+4.8%+4.6%+28.3%
Q2 2023+10.4%+3.9%-6.0%
Q1 2023+15.4%+16.4%+41.7%
Q4 2022-14.0%-26.4%-31.1%
Q3 2022-6.1%+18.7%+7.8%
Q2 2022+0.4%+9.7%+0.7%
Q1 2022-8.7%-9.5%-13.0%
Q4 2021-9.4%+3.2%+19.0%
Q3 2021+2.0%+1.6%-5.9%
Q2 2021+4.8%-3.8%+13.2%
Q1 2021-9.2%-6.6%-9.3%
Q4 2020+6.1%+8.7%+30.5%
Q3 2020-0.5%+11.6%-7.1%
Q3 2019-0.5%+11.6%-7.1%
Q1 2020-2.1%+0.5%-17.3%
Q2 2020-2.1%+0.5%-17.3%
Q1 2019-2.1%+0.5%-17.3%
Q2 2019-2.1%+0.5%-17.3%
Q4 2019-2.1%+0.5%-17.3%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q2 2013

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