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Sep 30, 2025
Montrose Q3 2025 Earnings Report
Montrose Environmental Group reported record third quarter and first nine months results, leading to an increase in 2025 guidance.
Key Takeaways
Montrose Environmental Group achieved another record quarter in Q3 2025, with significant revenue growth and a return to net income profitability. The company's strong performance was driven by organic growth across all segments and improved operating leverage, leading to increased full-year guidance for both revenue and Adjusted EBITDA.
Revenue grew by 25.9% to $224.9 million in Q3 2025, a $46.2 million increase year-over-year.
Net income improved to $8.4 million, or $0.21 EPS, compared to a net loss of $10.6 million, or $0.39 LPS, in the prior year quarter.
Consolidated Adjusted EBITDA increased by 18.9% to $33.7 million, with a margin of 15.0% of revenue.
The company increased its full-year 2025 guidance for both revenue and Consolidated Adjusted EBITDA due to strong performance.
Revenue by Segment
Forward Guidance
Montrose Environmental Group increased its full-year 2025 guidance for both revenue and Consolidated Adjusted EBITDA, reflecting strong business momentum and outperformance. The company also provided a preliminary outlook for 2026, anticipating continued growth and margin expansion.
Positive Outlook
- Increased expected full-year 2025 Consolidated Adjusted EBITDA to a range of $112.0 million to $118.0 million, representing 20% growth at the midpoint over 2024.
- Increased expected full-year 2025 revenue to a range of $810.0 million to $830.0 million, representing 18% growth at the midpoint over 2024.
- Preliminary full-year 2026 Consolidated Adjusted EBITDA outlook is at or above $125.0 million.
- Expectation of continued attractive organic growth trajectory in 2026.
- Anticipated expansion of Consolidated Adjusted EBITDA as a percentage of revenue in full-year 2026 compared to 2025.
Challenges Ahead
- The Consolidated Adjusted EBITDA and revenue outlook do not include any benefit from future acquisitions.
- Reconciliation of projected Consolidated Adjusted EBITDA to net income (loss) is not provided due to the unpredictable nature of certain excluded items.
Historical Earnings Impact
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