Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $830.5 million, a 19.3% increase compared to 2024, driven by organic growth of 12.7% [7][24] - Consolidated adjusted EBITDA grew 21.3% year-over-year to $116.2 million, with an EBITDA margin of 14%, representing a 180 basis points improvement since 2022 [8][25] - The company reported a net loss of $0.8 million for the full year 2025, significantly improved from a net loss of $62.3 million in 2024 [27][30] Business Line Data and Key Metrics Changes - The Assessment, Permitting and Response segment saw a revenue increase of 43% to $307.4 million, driven by organic growth and contributions from acquisitions [31] - The Measurement and Analysis segment's revenue grew 9.6% to $245.9 million, with a significant margin expansion to 26.2% [32] - The Remediation and Reuse segment's revenue increased by 7.8% to $277.3 million, despite a strategic wind down of renewable services impacting margins [34] Market Data and Key Metrics Changes - Approximately 90% of the company's clients are in private sector industries such as energy, utilities, and technology, indicating a diverse client base [10] - The company noted increased demand from sectors like mining, pharmaceuticals, and technology, particularly in air monitoring and water treatment [10][12] Company Strategy and Development Direction - The company aims for organic revenue growth and margin expansion, with a focus on cross-selling services to existing clients [17] - Strategic capital allocation will include investments in technology and potential acquisitions, with a strong emphasis on maintaining a simplified balance sheet [21][22] - The addressable market for water treatment exceeds $250 billion, positioning the company for long-term growth beyond just PFAS-related services [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro and regulatory environment, stating that demand for environmental services remains strong despite regulatory uncertainties [9][11] - The company anticipates continued strong organic growth driven by increased industrial activity and regulatory compliance needs [11][70] - Management highlighted the importance of their integrated service model and the resilience of their business model in various regulatory cycles [13][14] Other Important Information - The company achieved a record operating cash flow of $107 million in 2025, with a 93% conversion rate of consolidated adjusted EBITDA [35] - The company plans to initiate a $40 million share repurchase program, reflecting confidence in its business trajectory [22] Q&A Session Summary Question: Guidance on revenue and EBITDA expectations for 2026 - Management expects revenue to be split roughly 50/50 between the first and second halves of 2026, with EBITDA expected to be 40% in the first half and 60% in the second half [44][45] Question: Impact of AI on the business - Management believes that while AI may disrupt some sectors, their bespoke services are insulated from such disruptions, and they see opportunities to drive efficiency and revenue through AI [52][55] Question: Opportunities for organic growth - Management highlighted optimism in the water technology business and ongoing demand for testing and consulting services, particularly in mining and infrastructure [69][70] Question: PFAS revenue contribution - PFAS remains about 10%-15% of the business, with double-digit growth expected into 2026 [72][74] Question: M&A plans and timing - Management indicated that while there are no imminent acquisitions, they plan to pursue small, strategic acquisitions in the back half of the year [81][82]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $830.5 million, a 19.3% increase compared to 2024, driven by organic growth of 12.7% [7][24] - Consolidated adjusted EBITDA grew by 21.3% year-over-year to $116.2 million, with an EBITDA margin of 14%, representing a 180 basis points improvement since 2022 [8][25] - The company reported a net loss of $0.8 million for the full year 2025, significantly improved from a net loss of $62.3 million in 2024 [27][30] Business Line Data and Key Metrics Changes - The Assessment, Permitting and Response segment saw a revenue increase of 43% to $307.4 million, driven by organic growth and contributions from acquisitions [31] - The Measurement and Analysis segment's revenue grew by 9.6% to $245.9 million, with a significant margin expansion to 26.2% [32] - The Remediation and Reuse segment's revenue increased by 7.8% to $277.3 million, despite a strategic wind down of renewable services impacting margins [34] Market Data and Key Metrics Changes - Approximately 90% of clients are in private sector industries such as energy, utilities, and technology, indicating a diverse client base [10] - Demand for environmental services is expected to remain strong, particularly in the U.S., Australia, and Canada, with increased activity in mining and pharmaceuticals [10][12] Company Strategy and Development Direction - The company aims for organic revenue growth and margin expansion, with a focus on cross-selling services to existing clients [17] - Strategic capital allocation will include investments in technology and potential acquisitions, with a strong emphasis on maintaining a simplified balance sheet [21][22] - The addressable market for water treatment exceeds $250 billion, indicating significant growth potential beyond PFAS [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro and regulatory environment, stating that regulatory changes have not materially impacted services [11] - The company anticipates strong organic growth driven by ongoing demand in key markets and sectors, with a 2026 revenue guidance of $840 million to $900 million [19][20] - Management highlighted the importance of maintaining operational efficiency and cash flow generation, with expectations of 60% operating cash conversion in 2026 [18] Other Important Information - The company achieved record operating cash flow of $107 million in 2025, with a 93% conversion rate of consolidated adjusted EBITDA [35] - The company fully redeemed its Series A-2 preferred stock, simplifying its capital structure and eliminating future dividends [35] Q&A Session Summary Question: Guidance on revenue and EBITDA outlook for 2026 - Management expects revenues to be split roughly 50/50 between the first and second halves of 2026, with EBITDA split 40% in the first half and 60% in the second half [44][45] Question: Impact of AI on business - Management believes that AI presents opportunities for efficiency improvements and revenue generation, particularly in environmental services for technology clients [52][55] Question: Opportunities for organic growth - Management highlighted optimism in the water technology business and ongoing demand for testing and consulting services, particularly in mining and infrastructure [69][70] Question: PFAS revenue contribution - PFAS remains about 10%-15% of the business, with double-digit growth expected into 2026 [72] Question: M&A plans and timing - Management plans to pursue small, bolt-on acquisitions in the back half of 2026, focusing on strategic and financially accretive opportunities [81][82]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $830.5 million, a 19.3% increase compared to 2024, driven by organic growth of 12.7% [6][24] - Consolidated adjusted EBITDA grew 21.3% year-over-year to $116.2 million, with an EBITDA margin of 14%, reflecting a 180 basis point improvement since 2022 [7][25] - The company reported a net loss of $0.8 million for the full year 2025, significantly improved from a net loss of $62.3 million in 2024 [27][29] Business Line Data and Key Metrics Changes - The Assessment, Permitting and Response segment saw a revenue increase of 43% to $307.4 million, driven by organic growth and contributions from acquisitions [31] - The Measurement and Analysis segment's revenue grew 9.6% to $245.9 million, with adjusted EBITDA margin expanding to 26.2% [32] - The Remediation and Reuse segment's revenue increased by 7.8% to $277.3 million, despite a strategic wind down of renewable services impacting margins [34] Market Data and Key Metrics Changes - Approximately 90% of the company's clients are in private sector industries such as energy, utilities, and technology, indicating a diverse client base [10] - The company noted increased demand from sectors like mining, pharmaceuticals, and technology, particularly in air monitoring and water treatment [10][12] Company Strategy and Development Direction - The company aims for organic revenue growth and margin expansion, with a focus on cross-selling services to existing clients [17] - Strategic capital allocation will include investments in technology and potential acquisitions, with a strong emphasis on maintaining a simplified balance sheet [21][22] - The addressable market for water treatment exceeds $250 billion, indicating significant growth potential beyond PFAS-related services [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro and regulatory environment, stating that demand for environmental services remains strong despite regulatory uncertainties [9][11] - The company anticipates continued organic growth driven by increased industrial activity and regulatory tailwinds [11][13] - Management highlighted the importance of their private sector focus, which constitutes 90% of their work, as a buffer against federal regulatory changes [13] Other Important Information - The company achieved a record operating cash flow of $107 million in 2025, with a 93% conversion rate of consolidated adjusted EBITDA [35] - The company plans to initiate a $40 million share repurchase program, reflecting confidence in its business trajectory [22] Q&A Session Summary Question: Guidance on revenue and EBITDA expectations for 2026 - Management expects revenue to be split roughly 50/50 between the first and second halves of 2026, with EBITDA expected to be 40% in the first half and 60% in the second half [46][50] Question: Impact of AI on the business - Management believes that AI presents both risks and opportunities, with potential for efficiency gains and new revenue streams, particularly in environmental services for technology clients [55][57] Question: Opportunities for organic growth - Management highlighted the water technology business and consulting services as key areas for organic growth, driven by increased demand in various sectors [71][73] Question: PFAS revenue contribution - PFAS revenues represent about 10%-15% of the business, with double-digit growth expected into 2026 [75] Question: M&A plans and timing - Management indicated that while there are no imminent acquisitions, they are looking at small, bolt-on acquisitions in the second half of the year [84][85]

2025 EARNINGS: FULL YEAR and 4Q RESULTS FEBRUARY 26, 2026 © Montrose Environmental Group, Inc. 1 DISCLOSURES SAFE HARBOR Statements contained herein and in the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as "intend," "expect", and "may", and other similar expressions that pr ...

Core Insights - Blackstone's energy transition arm has acquired Alliance Technical Group (ATG) from Morgan Stanley Capital Partners, enhancing ATG's capabilities in environmental testing and compliance services [4][5] - ATG, founded in 2000, operates over 60 offices in the U.S. and Canada, providing solutions for emissions reduction, waste abatement, and environmental consulting across various industries [3][5] - Morgan Stanley's investment in ATG has significantly scaled the company, positioning it as a leader in emissions testing and monitoring [4][5] Company Overview - ATG provides a range of services including compliance, auditing, reporting guidance, and on-site testing and emissions monitoring to help companies meet sustainability goals [5] - The company serves clients in diverse sectors such as building and construction, energy and power, food and consumer goods, oil and gas, and data centers [3] Investment and Growth - Morgan Stanley's private equity division acquired a controlling interest in ATG in 2021, which has facilitated substantial growth for the company [4] - Blackstone's acquisition aligns with its strategy of investing in energy transition-focused companies, leveraging its scale and resources to support ATG's growth in the power, energy, and industrial sectors [4][5]

Core Insights - Screendoor serves as a bridge between emerging venture capital managers and institutional LPs, aiming to support new managers before they establish a track record [2][4][6] - The venture capital landscape has become increasingly competitive, with a significant concentration of capital among top firms, making it challenging for emerging managers to secure funding [5][4] - Screendoor has successfully backed 100% of its VC managers who sought subsequent funds, indicating a strong track record in supporting emerging talent [6] Company Overview - Screendoor was founded in 2021 by Hunter Walk and Satya Patel during the zero interest rate policy era, with a focus on inviting new managers into the venture ecosystem [2][4] - The firm has institutionalized its operations since 2023, enhancing its support for emerging managers through mentorship and networking [7][8] Market Dynamics - In 2025, the top 30 venture firms captured 74% of all venture capital raised, with 12 firms accounting for 50% of that total, highlighting the challenges faced by emerging managers [4][5] - Only 33% of managers who raised their first funds in 2021 have successfully raised a second fund, reflecting the tough fundraising environment [5] Strategic Approach - Screendoor's strategy involves being among the first LPs to commit to emerging managers, providing them with essential resources to succeed [6][9] - The firm aims to back competitive emerging managers who have the potential to outperform established firms, rather than merely supporting less competitive entities [10]

Core Viewpoint - Montrose Environmental Group (MEG) is highlighted as a strong investment opportunity in the environmental services sector, benefiting from regulatory tailwinds and robust profit margins despite being in a less glamorous industry [1][2]. Company Overview - Montrose is a comprehensive environmental services platform that offers consulting, lab testing, air measurement, remediation, and renewable energy solutions [2]. - The company is actively involved in addressing environmental challenges such as PFAS contamination and methane monitoring, positioning itself at the forefront of sustainability trends [2][4]. Financial Performance - Analysts have raised earnings estimates for Montrose, with the current year's consensus estimate increasing from $0.66 to $1.34 and next year's from $0.83 to $1.36 [3]. - Montrose has consistently exceeded earnings expectations for four consecutive quarters, averaging a surprise of $0.15 [3]. - Revenue growth is projected to exceed 15% this year, driven by industrial demand and heightened regulatory enforcement [3]. Market Position - The environmental services sector, where Montrose operates, is relatively insulated from economic downturns, as compliance with environmental regulations remains a priority for industries [4]. - The increasing scrutiny on ESG (Environmental, Social, and Governance) practices is expanding Montrose's testing and remediation backlog [4]. Technical Analysis - The stock has shown strong recovery from recent lows, with the 50-day moving average providing significant support [5]. - Montrose's stock is currently approaching a swing high just above $31, indicating positive technical momentum [5].

Financial Performance - Revenue increased by 35.3% to $234.5 million in 2Q25 compared to 2Q24[12] - YTD25 revenue increased by 25.5% to $412.4 million compared to YTD24[14] - Net income improved by $28.5 million to $18.4 million in 2Q25[19] - Consolidated Adjusted EBITDA increased by 69.8% to $39.6 million in 2Q25[26] - Consolidated Adjusted EBITDA as a percentage of revenue increased by 340 bps to 16.9% in 2Q25[26] Strategic Priorities and Guidance - The company increased expected FY25 revenue range, expecting 17% growth over FY24[11] - The company increased expected Consolidated Adjusted EBITDA range, expecting 19% growth over FY24[11] - The company expects organic growth at or above 7% to 9% range in 2025[29] Segment Performance - Assessment, Permitting & Response segment revenue increased to $103.9 million in 2Q25[65] - Measurement & Analysis segment revenue increased to $62.8 million in 2Q25[68] - Remediation & Reuse segment revenue increased to $67.8 million in 2Q25[76]