Financial Data and Key Metrics Changes - The company achieved record first-quarter revenue of $177.8 million, a 14.5% increase from $155.3 million in the prior year [19] - Consolidated adjusted EBITDA reached $19 million, a 12.5% increase compared to $16.9 million in the prior year, with an adjusted EBITDA margin of 10.7% [20] - Diluted adjusted net income per share was $0.07, down from $0.16 in the prior year, primarily due to higher interest and tax expenses [21] Business Line Data and Key Metrics Changes - In the Assessment, Permitting and Response (APNR) segment, revenue decreased to $53.1 million from $58.6 million, with adjusted EBITDA margin dropping to 19.9% [22] - The Measurement and Analysis segment saw revenue increase by 29.8% to $59 million, with adjusted EBITDA margin improving to 23.3% [24] - The Remediation and Reuse segment's revenue increased by 28.2% to $65.7 million, although adjusted EBITDA margin declined to 9% [25] Market Data and Key Metrics Changes - The company reported strong demand across all geographies, particularly in the U.S. where private sector clients are increasing industrial activity [9] - International operations thrived, with a recent award from a major public mining company in Australia [12] Company Strategy and Development Direction - The company announced a temporary pause in acquisitions to focus on organic revenue growth, enhanced EBITDA margins, and balance sheet optimization [8] - The full-year 2025 EBITDA guidance was raised to a range of $103 million to $110 million, reflecting confidence in continued growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained demand despite regulatory changes, noting that clients are maintaining their course [34] - The company expects to see continued growth in the Remediation and Reuse segment, with margins at or above previous levels [62] Other Important Information - The company redeemed $60 million of Series A-two Preferred stock and plans to redeem the remaining $62 million in 2025 [15] - A stock repurchase program of up to $40 million was approved by the Board [15] Q&A Session Summary Question: Discussion on environmental deregulation and its impact - Management highlighted that while there are proposed deregulatory actions, the legal complexities make quick changes unlikely, and clients are largely staying the course [34] Question: Insights on the Measurement and Analysis business performance - Management noted strong demand across multiple business lines, contributing to the segment's robust performance [42] Question: Clarification on margin expansion drivers - Management indicated that sustained demand and improved operating effectiveness across all segments are key drivers for projected margin expansion [49] Question: Impact of potential tariff changes on business - Management expects minimal impact from tariffs, with clients remaining constructive in discussions regarding pricing adjustments [50] Question: Performance of PFAS-related revenue - Management confirmed that PFAS-related revenue continues to grow and is additive to organic growth, supported by regulatory clarity [60] Question: Project delays due to macro uncertainty - Management stated that macroeconomic factors have not significantly impacted project timelines, maintaining optimism for growth in the Remediation and Reuse segment [62]

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved record revenue of $177.8 million, a 14.5% increase from $155.3 million in the prior year [19] - Consolidated adjusted EBITDA reached $19 million, a 12.5% increase compared to $16.9 million in the prior year, with an EBITDA margin of 10.7% [20] - Diluted adjusted net income per share was $0.07, down from $0.16 in the prior year, primarily due to higher interest and tax expenses [21] Business Line Data and Key Metrics Changes - Assessment, Permitting and Response (APNR) segment revenue decreased to $53.1 million from $58.6 million, with adjusted EBITDA margin dropping to 19.9% [22] - Measurement and Analysis segment revenue increased by 29.8% to $59 million, with adjusted EBITDA margin improving to 23.3% [23] - Remediation and Reuse segment revenue rose by 28.2% to $65.7 million, although adjusted EBITDA margin declined to 9% [24] Market Data and Key Metrics Changes - The company reported five consecutive quarters of revenue growth from PFAS services, which account for 10% to 15% of total revenue [60] - International operations thrived, with a recent award from a major public mining company in Australia, reflecting the growing demand for sustainable practices [11] Company Strategy and Development Direction - The company announced a temporary pause in acquisitions to focus on organic revenue growth, enhanced EBITDA margins, and balance sheet optimization [7] - Increased full-year 2025 EBITDA guidance to a range of $103 million to $110 million, reflecting confidence in continued demand and operational efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand cycle sustaining despite potential regulatory changes, noting that clients are maintaining their course [35] - The company anticipates continued strong demand driven by private sector clients and state government initiatives [10] Other Important Information - The company redeemed $60 million of Series A-two Preferred stock and plans to redeem the remaining $62 million in 2025 [14] - A stock repurchase program of up to $40 million was approved by the Board to address the disconnect between strong performance and public stock valuation [14] Q&A Session Summary Question: Discussion on environmental deregulation and its impact - Management highlighted that while deregulation is a topic of interest, clients are largely staying the course due to long planning cycles and compliance needs [35] Question: Insights on the strong performance of the Measurement and Analysis business - Management noted that the strong performance is due to sustained demand across multiple business lines and improved operating efficiency [42] Question: Drivers of expected margin expansion for the remainder of the year - Management indicated that sustained demand, improved operating effectiveness, and normalization of segment margins are key drivers for margin expansion [48] Question: Impact of potential tariff exposure on business - Management expects minimal impact from tariffs and noted constructive dialogue with clients regarding pricing adjustments if necessary [50] Question: Seasonality in the Measurement and Analysis business - Management explained that the strong Q1 performance was a catch-up from a previous pause in activity and does not expect this trend to repeat [56] Question: Future growth of PFAS-related revenue - Management confirmed that PFAS revenue is additive to organic growth and is expected to continue growing due to regulatory clarity [60] Question: Project delays in the Remediation and Reuse segment due to macro uncertainty - Management stated that macroeconomic factors have minimal impact on the segment, and solid growth is expected [62] Question: Leverage ratio expectations post-preferred stock redemption - Management expects the leverage ratio to be below 3 after the redemption of preferred stock, targeting under 3.25 for future acquisitions [70]

Financial Data and Key Metrics Changes - The company reported revenue of $27.2 million for Q1 2025, a 25% increase compared to the prior year period, driven by a 13% growth in average selling price (ASP) and higher volumes [8][30] - Adjusted EBITDA for the quarter was approximately $4.1 million, a significant improvement from an adjusted EBITDA loss of $0.4 million in the prior year [31][32] - Net income was $200,000, compared to a net loss of $3.4 million in Q1 2024, indicating a turnaround in financial performance [32] Business Line Data and Key Metrics Changes - The PAC business has shown a sustained turnaround with four consecutive quarters of positive adjusted EBITDA, indicating a robust foundation for overall operations [6][11] - The gross margin for Q1 2025 was approximately 36.4%, consistent with the previous year, despite startup costs associated with the GAC line [10][30] - The company achieved its eighth consecutive quarter of double-digit year-over-year percentage growth in ASP, reflecting strong demand for PAC products [9][30] Market Data and Key Metrics Changes - Demand for PAC products remains robust, with a strategic diversification beyond mercury emission solutions to reduce exposure to coal-fired power plant demand fluctuations [9][24] - The company anticipates a supply-demand imbalance to persist through at least 2027 or 2028, which is favorable for its market position [26][100] - The recent EPA comments on PFAS regulation align with the company's mission, indicating strong customer momentum in PFAS mitigation adoption [24][78] Company Strategy and Development Direction - The company is focused on further cost optimization and strategic price management to enhance profitability in its PAC business while pursuing growth initiatives in GAC, asphalt, and rare earth minerals [6][28] - The introduction of a new Chief Financial Officer is expected to strengthen the finance organization and support future growth [36][39] - The company is exploring opportunities in domestic rare earth minerals and synthetic graphite, which aligns with government initiatives [28][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming commissioning challenges for the GAC production line, with full commissioning and first commercial production now estimated by the end of Q2 or early Q3 2025 [21][22] - Despite setbacks, management remains optimistic about the long-term potential of GAC and its role as a growth engine for the company [29][107] - The company is committed to keeping stakeholders informed of material developments as it progresses towards commercial production [42][108] Other Important Information - The company ended Q1 2025 with cash of $14.8 million, of which approximately $6.3 million is unrestricted, and reiterated its CapEx forecast of $8 million to $12 million for 2025 [35] - The company has identified additional opportunities to reduce operating costs and SG&A, which will further enhance profitability [10][33] Q&A Session Summary Question: Can you elaborate on the commissioning process and the root cause of the inconsistencies? - Management confirmed that the primary area of emphasis is related to optimizing the binding and shaping process in Zone 3, which has required adjustments to improve consistency and efficiency [45][48] Question: What gives you confidence that the new timelines will be met? - Management stated that the mechanical process works, and they have produced small-scale GAC, but they are focused on optimizing the speed and consistency of production to achieve full commercial production [51][72] Question: Are there any take or pay benefits in the quarter? - Management confirmed that there were no take or pay impacts to the Q1 results [62] Question: What percentage of Phase One production is currently contracted? - Management indicated that approximately 60% of Phase One production is contracted, with a focus on the RNG market due to higher margins [102]