Montrose Environmental Group Reports 14.5% Revenue Growth in Q1 2025

Montrose Environmental Group, Inc. reported a revenue increase of 14.5% for the first quarter of 2025, reaching $177.8 million compared to $155.3 million in the same period last year. The growth was primarily driven by organic expansion in the Remediation and Reuse and Measurement and Analysis segments, which contributed $17.8 million, alongside $13.5 million from acquisitions. However, the Assessment, Permitting and Response segment saw a decline of $5.8 million due to the absence of several large projects that had been completed in the prior year. The company recorded a net loss of $19.4 million, widening from a loss of $13.4 million in the previous year, with a loss per share of $0.64 compared to $0.53.

In terms of operational metrics, Montrose's total assets increased slightly to $992.2 million as of March 31, 2025, from $990.4 million at the end of 2024. The company’s cash and cash equivalents rose significantly to $30.3 million, up from $12.9 million, reflecting improved liquidity. The employee headcount stood at approximately 3,400, consistent with the previous quarter, indicating stable operational capacity. The company also reported a decrease in accounts receivable, which fell to $139.7 million from $158.9 million, suggesting improved cash collection processes.

Montrose did not complete any acquisitions during the first quarter of 2025, although it continues to view acquisitions as a key growth strategy. The company has contingent earn-out payments of up to $26.7 million related to previous acquisitions, which may be paid in cash or stock. The filing also noted that the company incurred $0.7 million in transaction costs related to prior acquisitions, reflecting ongoing integration efforts.

The company’s financial structure was bolstered by a new $500 million credit facility established in February 2025, which replaced the previous credit facility. This new arrangement includes a $200 million term loan and a $300 million revolving line of credit, providing Montrose with enhanced liquidity to support its operations and growth initiatives. Interest expense for the quarter increased to $5.1 million, up from $3.3 million, primarily due to higher average debt levels and costs associated with the refinancing.

Looking ahead, Montrose Environmental Group anticipates continued revenue growth driven by both organic expansion and strategic acquisitions. The company remains focused on enhancing its service offerings across its three segments while managing costs effectively to improve profitability. However, it acknowledges potential challenges from market conditions, including inflationary pressures and the cyclical nature of the environmental services industry, which could impact future performance.