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An update from Montrose Environmental Group ( (MEG) ) is now available.
Montrose Environmental Group reported that for the full year 2025, ended December 31, it achieved record revenue of $830.5 million, up 19.3% from 2024, driven by 12.7% organic growth, stronger environmental emergency response work, and prior-year acquisitions. The company sharply reduced its net loss to $0.8 million from $62.3 million, grew Consolidated Adjusted EBITDA by 21.3% to $116.2 million with margins rising to 14.0%, generated $107.5 million of operating cash flow and $87.0 million of free cash flow, and lowered leverage to 2.5x following full redemption of its Series A-2 preferred stock in 2025.
Fourth-quarter 2025 revenue rose 2.2% year over year to $193.3 million, as strong organic growth in the Assessment, Permitting and Response segment offset weaker Measurement and Analysis results and lower emergency response revenue. Quarterly net loss improved to $8.2 million from $28.2 million, though Consolidated Adjusted EBITDA and margins declined due to segment mix and lower margins in Measurement and Analysis and Remediation and Reuse.
Management underscored that the 2025 performance exceeded major objectives, including 13% organic revenue growth, expanded EBITDA margins, and 75% free cash flow conversion, helping reduce year-end leverage roughly 0.5x below initial forecasts. The company also highlighted accelerated cross-selling, expansion of its IP portfolio, and talent additions as positioning it well for 2026 and beyond.
For 2026, Montrose issued guidance for revenue between $840 million and $900 million, implying about 8% organic growth at the midpoint and including $50 million to $70 million of expected emergency response revenue. It projected Consolidated Adjusted EBITDA of $125 million to $130 million, targeting roughly 15% EBITDA margin and about a 100-basis-point margin expansion versus 2025, excluding any benefit from future acquisitions.
The company plans to resume smaller, bolt-on, highly accretive acquisitions in 2026, subject to valuation, capital allocation priorities, and leverage constraints. Management intends to convert at least 60% of Consolidated Adjusted EBITDA to operating cash flow in 2026 and to deploy cash toward organic growth, capital expenditures, acquisitions, and share repurchases while maintaining a prudent balance sheet and leverage profile.
The most recent analyst rating on (MEG) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Montrose Environmental Group stock, see the MEG Stock Forecast page.
Spark’s Take on MEG Stock
According to Spark, TipRanks’ AI Analyst, MEG is a Neutral.
The score is primarily supported by improving financial fundamentals (stronger cash flow and reduced leverage) and a bullish earnings call with raised guidance and improved profitability trajectory. These positives are offset by weak technical conditions (price below major moving averages with negative MACD) and limited valuation support due to a negative P/E and no dividend yield.
To see Spark’s full report on MEG stock, click here.
More about Montrose Environmental Group
Montrose Environmental Group, Inc. is an environmental services company focused on protecting air, water, and soil while supporting economic development. The NYSE-listed firm provides measurement and analysis, assessment, permitting and response, and remediation and reuse services to a global client base, with an increasing emphasis on cross-selling and intellectual property-driven solutions.
Average Trading Volume: 333,992
Technical Sentiment Signal: Sell
Current Market Cap: $799.3M
For an in-depth examination of MEG stock, go to TipRanks’ Overview page.