Financial Data and Key Metrics Changes - The company achieved a record third quarter performance with a 26% year-over-year revenue growth and a 19% increase in consolidated adjusted EBITDA [8][9] - Year-to-date revenue increased by 25.6% to $637.3 million, while year-to-date consolidated adjusted EBITDA rose by 35% to $92.3 million [26][27] - Positive GAAP net income of $8.4 million was reported, marking a significant turnaround from a net loss of $10.6 million in the prior year [27][28] Business Line Data and Key Metrics Changes - The Assessment, Permitting, and Response segment saw a 75% revenue increase to $91.1 million, driven by strong demand for non-response consulting and advisory services [31] - The Measurement and Analysis segment's revenue grew by 7.5% to $63 million, with adjusted EBITDA rising to $17.3 million, reflecting a 460 basis point margin improvement [32] - The Remediation and Reuse segment's revenue increased to $70.8 million, although adjusted EBITDA declined to $9.4 million due to losses from the wind-down of the renewables business [32] Market Data and Key Metrics Changes - The company noted that state and local governments are stepping in to fill gaps left by the U.S. Federal government, creating unexpected growth opportunities [12] - Increased industrial activity, particularly in the energy and mining sectors, is driving demand for the company's services [73] Company Strategy and Development Direction - The company plans to exit its renewable service line by the end of the year, reallocating resources to higher return opportunities [20][21] - Future growth is expected to be driven by organic growth of 7 to 9% annually, with EBITDA growth anticipated to outpace revenue growth [24] - The company aims to restart acquisitions in 2026, focusing on strategic fit and potential for outsized financial returns [24][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business's prospects, citing strong client demand and the resilience of the business model amid external economic factors [10][13] - The company is well-positioned to capture growth from regulatory changes and increased industrial activity, particularly in the U.S., Canada, and Australia [73] Other Important Information - The company achieved a leverage ratio of 2.7 times and reported substantial available liquidity of $198.5 million [34] - Operating cash flow for the first nine months of 2025 improved by $65.3 million compared to the prior year, representing a 60.2% conversion of consolidated adjusted EBITDA [33] Q&A Session Summary Question: What drove the strong growth in the APNR business? - The growth was largely attributed to excellent cross-selling following emergency responses, with both structural and one-time sales contributing to the performance [36][39] Question: Can you elaborate on the water treatment business's positive outlook? - The water treatment business is experiencing healthy organic growth and margin accretion, driven by advanced technology applicable across multiple contaminants, not just PFAS [41][45] Question: What is the impact of the wind-down of the renewable services business? - The wind-down is expected to significantly reduce revenue, but excluding this impact, segment margins would be up year-to-date [51][55] Question: How will the acquisition strategy evolve moving forward? - The company plans to focus on larger assets with strong cash flow generation and is evaluating opportunities in international markets [62][63]

Financial Data and Key Metrics Changes - The company achieved a record performance in Q2 2025 with a 35% year-over-year revenue growth, reaching $234.5 million, and a 70% increase in consolidated adjusted EBITDA to $39.6 million, representing a 16.9% margin [7][20] - Year-to-date revenues increased by 25.5% to $412.4 million, with year-to-date consolidated adjusted EBITDA rising 46% to $58.6 million, or 14.2% of revenue [20][21] - The company reported positive GAAP net income of $18.4 million, or $0.42 per diluted share, compared to a net loss of $10.2 million in the prior year [21][22] Business Line Data and Key Metrics Changes - In the Assessment, Permitting and Response segment, Q2 revenue nearly doubled to $103.9 million, with adjusted EBITDA of $27.6 million, or 26.5% of revenue [23] - The Measurement and Analysis segment saw a revenue increase of nearly 15% to $62.8 million, with adjusted EBITDA rising to $18.3 million, or 29.1% of revenue [24][25] - The Remediation and Reuse segment's revenue increased to $67.8 million, with adjusted EBITDA growing to $10 million and a margin of 14.8% [26] Market Data and Key Metrics Changes - 80% of 2024 revenue was generated from U.S. clients, primarily in the private sector, indicating strong demand across various industries [13] - The company noted increased regulatory influence from local and state governments in the U.S., which is expected to drive continued demand for its services [14][15] Company Strategy and Development Direction - The company is focused on driving strong organic growth, generating solid cash flow, and simplifying its balance sheet, with a long-term organic revenue growth expectation of 7% to 9% annually [11][12] - The strategic priorities include capital allocation to high-return opportunities, emphasizing scalable profitability, and increasing operating and free cash flow generation [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about current and future business prospects, citing ongoing client demand for environmental science-based solutions [17] - The company anticipates minimal impact from regulatory uncertainties related to greenhouse gas regulations, as most clients operate in states with active regulations [15][16] Other Important Information - The company completed the redemption of remaining preferred shares, bringing leverage below three times pro forma [11] - The company raised its guidance for 2025, expecting revenue to surpass 2024 by 17% and adjusted EBITDA to grow 19% [12] Q&A Session Summary Question: Margins across business lines - Management indicated that margins in the Measurement and Analysis segment are expected to remain in the 18% to 22% range long-term, despite current strong performance due to operating leverage and project mix shifts [30][31] Question: Emergency response business outlook - Management noted that emergency response work is seen as an upside opportunity, with core business growth continuing independently [45][46] Question: Customer concerns - Management acknowledged that customers are dealing with macroeconomic factors but noted that planning cycles remain stable, sustaining demand for services [59][60] Question: Acquisition strategy - Management confirmed that while acquisitions are currently paused, there is a robust opportunity for future consolidation in the market [62][63] Question: PFAS activity and treatment - Management expressed optimism about the PFAS treatment business, noting regulatory developments and a growing patent portfolio that expands service offerings [39][94] Question: Organic growth drivers - Management attributed organic growth to deepening relationships with existing clients and regulatory shifts, rather than acquiring new clients [100][101]

Core Insights - The article discusses the author's background as a private investor with extensive experience in corporate finance and a focus on capital markets, particularly Canadian small cap stocks [1]. Group 1 - The author has been investing since 2003 and transitioned to full-time capital markets involvement after 8 years in corporate finance with a Canadian telecom company [1]. - The author aims to showcase financial analysis and writing skills through contributions on Seeking Alpha, focusing on story-based trading opportunities [1]. - There is an interest in freelance opportunities related to Canadian or American listed stocks, indicating a proactive approach to investment analysis [1].