Montrose Environmental Group Reports Record Fourth Quarter and Full Year 2024 Results and Provides Strong 2025 Guidance

Core Insights - Montrose Environmental Group reported record financial and operational performance for both the fourth quarter and full year of 2024, driven by strong demand for its integrated environmental services and technology [2][3] - The company experienced significant organic growth, improved margins, and successful integration of acquisitions, which validate its strategic business model [2][3] - The outlook for 2025 remains positive, with expectations of continued revenue growth and margin expansion [2][5] Fourth Quarter 2024 Highlights - Total revenue reached $189.1 million, a 14.1% increase from $165.7 million in the same quarter of 2023, with contributions from acquisitions and strong organic growth [3][5] - Net loss was $28.2 million, or $0.90 per share, compared to a net loss of $1.4 million, or $0.18 per share, in the prior year, primarily due to a one-time charge related to executive stock appreciation rights [4][5] - Consolidated Adjusted EBITDA was $27.2 million, representing 14.4% of revenue, an increase of 55.8% from the previous year [5][7] Full Year 2024 Highlights - Total revenue for the year was $696.4 million, an increase of 11.6% from $624.2 million in 2023, driven by acquisitions and organic growth [8][11] - The net loss for the year was $62.3 million, or $2.22 per share, compared to a net loss of $30.9 million, or $1.57 per share, in the prior year [9][10] - Consolidated Adjusted EBITDA for the year was $95.8 million, or 13.8% of revenues, up from $78.6 million, or 12.6% of revenues, in 2023 [11] Financial Position and Cash Flow - As of December 31, 2024, Montrose had a leverage ratio of 2.1x and $296.7 million in liquidity, including $12.9 million in cash [13][14] - Net cash provided by operating activities for the year was $22.2 million, a decrease from $56.0 million in the prior year, primarily due to increased accounts receivable [12] - The company entered into a new $500 million Senior Secured Credit Agreement to enhance its financial flexibility [13] 2025 Guidance - Revenue is expected to be in the range of $735.0 million to $785.0 million, with organic revenue growth anticipated at 7% to 9% per year [5][8] - Consolidated Adjusted EBITDA is projected to be between $101.0 million and $108.0 million, reflecting continued margin expansion and improved operating cash flow [5][8]