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Montrose is like Accenture for environmental solutions.

Montrose is like SGS, but focused exclusively on environmental testing, compliance, and remediation.

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• Assessment, Permitting, and Response Services: Provides environmental consulting, regulatory compliance, permitting, and emergency response solutions to help clients manage environmental risks and meet regulatory obligations.
• Measurement and Analytical Services: Offers air emissions testing, water and wastewater analysis, and laboratory services to quantify environmental contaminants and assess compliance.
• Remediation and Reuse Services: Delivers solutions for cleaning up contaminated sites, managing waste, treating water, and restoring ecosystems to enable safe and sustainable land and resource use.

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Montrose Environmental (MEG) sells primarily to other companies and government agencies. The company provides a diverse range of environmental services, including assessment, consulting, engineering, and remediation, to clients across various industrial, commercial, and governmental sectors.

Based on their latest financial disclosures (Form 10-K), Montrose Environmental has a highly diversified customer base. No single customer accounted for more than 10% of their consolidated revenues for the years ended December 31, 2023, 2022, or 2021.

Therefore, Montrose Environmental does not have specific "major customers" in the sense of individual companies that contribute a significant, reportable portion (e.g., >10%) of their total revenue. The company serves a broad array of clients in industries such as:

• Utilities
• Energy (including oil and gas)
• Mining
• Waste Management
• Pulp and Paper
• Aerospace
• Manufacturing
• Technology
• Consulting firms
• Various Government Agencies (federal, state, and local)

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Vijay Manthripragada, President and Chief Executive Officer

Mr. Manthripragada has served as President of Montrose Environmental Group, Inc. since September 2015 and as Chief Executive Officer since February 2016. Previously, he was the Chief Executive Officer of PetCareRx, Inc., a high-growth e-commerce company in the pet health industry. Prior to that, he was a Senior Vice President in the Investment Banking division of Goldman Sachs. He also held a Director position at the Advisory Board Company and was part of Johnson & Johnson's Management Development program. Montrose Environmental Group received investment from Oaktree Capital Management in 2018, indicating private equity backing.

Allan Dicks, Chief Financial Officer

Mr. Dicks is the Chief Financial Officer of Montrose Environmental Group, Inc. He has served as CFO at various companies, including a public Canadian healthcare company, a large privately held security services company, and billion-dollar divisions of Dole Food Company, Inc. and Land O' Lakes, Inc. He also held a VP Finance position at HD Supply, Inc. Mr. Dicks spent nine years with PricewaterhouseCoopers, working in both the assurance group and as a senior manager in the mergers and acquisitions group. His background includes experience with both public and private equity-backed companies, and he is noted for his deep experience with highly acquisitive companies.

Jose Revuelta, Chief Strategy Officer

Mr. Revuelta serves as the Chief Strategy Officer for Montrose Environmental Group.

Nasym Afsari, General Counsel and Secretary

Ms. Afsari holds the position of General Counsel and Secretary at Montrose Environmental Group.

Joshua LeMaire, Chief Operating Officer

Mr. LeMaire is the Chief Operating Officer of Montrose Environmental Group.

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The key risks to Montrose Environmental (MEG) include:

1. Regulatory Changes and Perception of Reduced Environmental Regulation: Montrose Environmental's business is significantly driven by environmental regulations. A key risk is the impact of regulatory shifts, such as the U.S. Supreme Court's July 2024 decision to strike down the Chevron Doctrine, which has raised concerns about the authority of federal agencies to enforce environmental regulations. This decision, along with investor perceptions of reduced regulation under future administrations, has negatively impacted the company's stock price and could affect demand for its services, particularly given its U.S.-centric client base.

2. Volatility of the Emergency Response Business: The company's emergency response business, primarily through its CTEH segment, introduces significant quarter-to-quarter volatility in its financial performance. Declines in CTEH's contribution and reduced demand for services like COVID-related work have led to disappointing revenue and EBITDA results, making overall financial projections less predictable.

3. Risks Associated with Acquisition Strategy: Montrose Environmental has historically grown through strategic acquisitions, which have been a catalyst for its expansion. However, this inorganic growth strategy is inherently risky and has been cited as a factor in the company's past share price underperformance. An increased pace of acquisitions can dilute profit margins, and management has sometimes paused acquisitions to emphasize organic revenue growth and cash flow generation, indicating ongoing challenges and strategic adjustments related to this approach.

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Montrose Environmental Group (MEG) operates across three main business segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The addressable markets for these services are substantial and span both the U.S. and global regions.

Assessment, Permitting and Response

• Montrose Environmental Group provides scientific advisory and consulting services, environmental emergency response, toxicology consulting, and environmental audits and permits. This aligns with the broader environmental consulting market.
• The global environmental consulting services market was valued at approximately USD 45.09 billion in 2024 and is projected to reach USD 76.59 billion by 2032.
• In the U.S. alone, the environmental consulting industry is estimated at USD 27.4 billion in 2025.
• The global environmental compliance services market, a component of this segment, was estimated at USD 5.8 billion in 2023 and is projected to reach USD 9.1 billion by 2032.

Measurement and Analysis

• This segment includes services for testing and analysis of air, water, and soil to determine contaminant concentrations, as well as comprehensive air measurement and laboratory services.
• The global environmental testing market size was estimated at USD 11.07 billion in 2022 and is projected to reach USD 20.16 billion by 2030.
• Specifically for the U.S., the environmental testing market size was estimated at USD 2.20 billion in 2023 and is projected to grow to USD 3.65 billion by 2030.
• The global air quality monitoring market, a key offering, is estimated at USD 5.73 billion in 2025 and is expected to reach USD 8.35 billion by 2030.

Remediation and Reuse

• Montrose provides engineering, design, implementation, operations, and maintenance services for remediation and reuse. This includes environmental remediation and water treatment solutions.
• The global environmental remediation market was valued at USD 111.1 billion in 2023 and is projected to reach USD 227.7 billion by 2033. Another estimate places the global environmental remediation services market at USD 138.90 billion in 2025, expected to reach USD 238.21 billion by 2032.
• In the U.S., the market size for remediation and environmental cleanup services was USD 25.9 billion in 2024 and is projected to reach USD 26.3 billion in 2025.
• The global water and wastewater treatment market, encompassing various treatment services, was valued at USD 323.32 billion in 2023 and is projected to grow to USD 617.81 billion by 2032. North America held a 38.67% share of this global market in 2023.

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Montrose Environmental Group (NYSE: MEG) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market dynamics:

1. Robust Organic Growth

   Montrose Environmental anticipates continued strong organic revenue growth, with expectations at or above its long-term range of 7%–9% annually. This growth is broad-based across all three segments: Assessment, Permitting, and Response; Measurement and Analysis; and Remediation and Reuse. Particular strength is noted in laboratory and field services within Measurement and Analysis, and in treatment technology revenue in Remediation and Reuse. The company's investments in sales, marketing, and technology are expected to sustain this momentum.

2. Strategic Acquisitions (Resumption Post-Pause)

   While Montrose temporarily paused acquisitions to focus on balance sheet optimization and highlighting the strength of its core business, the company plans to restart acquisitions in 2026. These future acquisitions are intended to supplement organic growth and expand both capabilities and geographic reach, particularly in international and high-demand markets. Historically, acquisitions have been a significant contributor to revenue growth, with the company completing 26 acquisitions in the past, including 5 in 2024.

3. Increasing Demand Driven by Evolving Environmental Regulations and Client Needs

   Growing demand for Montrose's services is supported by increasingly complex environmental regulations at local, state, and international levels. This includes ongoing client focus on greenhouse gas identification, measurement, and mitigation, driven by state, international, and institutional requirements, despite potential shifts in U.S. federal policies. There is also significant demand for advanced solutions in emerging areas such as PFAS (per- and polyfluoroalkyl substances) and industrial water treatment.

4. Expansion of Proprietary Environmental Technologies and High-Margin Services

   Montrose's revenue growth is also expected to benefit from the expansion of its proprietary environmental technologies. This focus supports the delivery of higher-margin, differentiated services, particularly in areas like PFAS and industrial water treatment, which are in high demand. The company expects its water treatment business, for instance, to achieve margins near 20% and contribute significantly to overall profitability as it becomes a larger portion of the Remediation and Reuse segment.

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Share Repurchases

• Montrose Environmental Group announced an equity buyback program on May 7, 2025, authorizing the repurchase of up to $40 million worth of its shares.
• This repurchase program does not have a set expiration date.

Share Issuance

• In 2020, Montrose Environmental issued 17,500 shares of Convertible and Redeemable Series A-2 Preferred Stock, resulting in gross proceeds of $175.0 million. These warrants were fully exercised in July 2020.
• The company also received $121.776 million from the issuance of common stock in a follow-on offering in 2020.
• Proceeds from the issuance of common stock for exercised stock options amounted to $0.4 million in the first quarter of 2025, and $2.0 million for the first nine months of 2025.

Inbound Investments

• In 2020, Montrose Environmental received $175.0 million from the issuance of Convertible and Redeemable Series A-2 Preferred Stock.

Outbound Investments

• No specific information on Montrose Environmental making strategic outbound investments in other companies within the last 3-5 years is available.

Capital Expenditures

• Montrose Environmental's capital expenditures for the last 12 months were -$13.18 million.
• The capital expenditures margin averaged 2.6% for fiscal years 2020 to 2024, reaching a five-year peak of 4.7% in December 2023.
• Projected capital expenditures are $22 million for 2025 and $24 million for 2026, both estimated to be 3% of revenue.