Montrose Environmental Group Inc. of North Little Rock (NYSE: MEG) on Tuesday again raised its guidance for 2025 after swinging to profitability on strong revenue growth in the third quarter.
The environmental services firm reported net income of $8.4 million, compared to a loss of $10.6 million a year ago. Per share, earnings came to 21 cents. Earnings adjusted for one-time gains and costs were 36 cents per share.
The results beat Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 33 cents per share.
The company posted revenue of $224.9 million in the period, up 25.9% from $178.7 million in the third quarter of 2024. The sum exceeded Street forecasts. Three analysts surveyed by Zacks expected $195.9 million.
Shares of the company closed at $24.63 on Tuesday, down nearly 2%, before jumping nearly 15% in after-hours trading.
Montrose attributed the increase in revenue to organic growth, particularly in its assessment, permitting and response segment. The segment posted revenue of $91.1 million, up 75.2% from $52 million a year ago. The measurement and analysis segment saw revenue rise 7.5% to nearly $63 million. In the company’s remediation and reuse segment, revenue rose 4.1% to $70.8 million.
“Demand for our services is elevated, driven by broader market forces, increased domestic industrial production in our key geographies and state and provincial regulations,” CEO Vijay Manthripragada said in a statement.
Through the first nine months of the year, revenue has grown by a $129.9 million increase, or 25.6%, to $637.3 million. Net income through the first nine months was $7.4 million, compared to a loss of $34.1 million a year ago.
Montrose raised its expected consolidated adjusted earnings before interest, taxes, depreciation and amortization to between$112 million and $118 million, up from $111 million-$117 million.
It raised its expected revenue to between $810 million and $830.0 million, up from $795 million and $835 million.
It’s the third straight quarter the company has raised its outlook.
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