Montrose Environmental Group Reports 35.3% Revenue Growth and Net Income Turnaround in Q2 2025

Montrose Environmental Group, Inc. reported significant financial improvements in its latest quarterly results, with revenues for the three months ended June 30, 2025, reaching $234.5 million, a 35.3% increase from $173.3 million in the same period last year. For the first half of 2025, revenues totaled $412.4 million, up 25.5% from $328.7 million in the prior year. The company attributed this growth primarily to a surge in emergency response revenues, which increased to $48.5 million from $12.9 million year-over-year, alongside strong organic growth and contributions from recent acquisitions.

The company also reported a net income of $18.4 million for the second quarter, a turnaround from a net loss of $10.2 million in the same quarter of 2024. This resulted in a net income per share of $0.48, compared to a loss of $0.39 per share in the prior year. For the six months ended June 30, 2025, Montrose recorded a net loss of $1.0 million, a significant improvement from a loss of $23.5 million in the same period of 2024. The company’s operational efficiency was reflected in a decrease in the cost of revenues as a percentage of total revenue, which fell to 56.6% from 60.1% year-over-year.

Montrose's operational metrics showed positive trends, with total assets increasing to $998.1 million as of June 30, 2025, compared to $990.4 million at the end of 2024. The company’s employee headcount rose to approximately 3,500, supporting its expansion across over 120 offices in the U.S., Canada, Australia, and Europe. The company did not complete any acquisitions in the first half of 2025 but continues to view strategic acquisitions as a key component of its growth strategy.

In terms of financial management, Montrose has been actively managing its debt, with total debt increasing to $273.2 million as of June 30, 2025, up from $222.7 million at the end of 2024. This increase was primarily due to higher borrowings under its revolving credit facility and the refinancing of its credit agreements. The company expects to continue funding its operations and potential acquisitions through cash generated from operations and available credit facilities.

Looking ahead, Montrose remains optimistic about its growth trajectory, driven by ongoing demand for environmental services and the potential for future acquisitions. The company is focused on maintaining its operational efficiency and leveraging its expanded service capabilities to capture a larger share of the growing environmental services market, which is estimated to be approximately $1.6 trillion globally.