Shares of Montrose Environmental Group Inc. of North Little Rock (NYSE: MEG) soared Thursday morning after the environmental services firm posted record fourth-quarter revenue.
Revenue in the period was $189.1 million, up 14.1% from $167.8 million a year ago. The company reported revenue growth from acquisitions and in two business segments: assessment, permitting and response, and measurement and analysis.
The environmental services firm reported a $28.2 million loss in the quarter, compared to a $1.4 million loss a year ago, which it attributed primarily due to a one-time charge of $18 million related to the cancellation of all executive stock appreciation rights.
Per share, the loss came to 90 cents.
Adjusted fourth-quarter income was $14 .7 million, or 29 cents per share.
For the full year, the company reported a loss of $62.3 million, or $2.22 per share. Revenue was reported as $696.4 million.
Investors were pleased with the results. The company’s stock jumped more than 33% to $23.20 on Thursday morning.
Montrose expects organic revenue growth of 7%–9% in 2025, with total revenue in the range of $735 million–$785 million. The company is projecting growth despite concerns in the environmental services industry that the Trump administration’s efforts to roll back energy regulations and withdraw EPA rules will affect demand. Some firms have projects in limbo after the administration froze funds earmarked for recycling and waste-related initiatives.
Montrose CEO Vijay Manthripragada doesn’t expect his business to take a hit.
“We believe the new U.S. administration and the expected political and policy shifts in our key markets will create more tailwinds than headwinds given our private sector focus and given potential increases in demand for our services due to onshoring and increased energy and industrial production,” he said in a statement.
CTEH, the Montrose-owned disaster response and recovery consultancy, has diversified in an era of frequent major storms and relentless wildfires, new President Chase Selby told Arkansas Business. In one major project, CTEH is helping south-central New Mexico recover from two weeks of wildfires followed by flash flooding and mudslides in June.
“Obviously with the wildfires, our disaster recovery business has been going crazy, as well as our toxicology, health sciences and public health business,” he said.
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