Montrose Environmental Group Inc. of North Little Rock (NYSE: MEG) on Monday announced it had won a five-year, $249 million contract to provide environmental quality support to the U.S. Army Corps of Engineers.
The contract is with the Corps’ Mobile District in the South Atlantic Division, which is headquartered in Atlanta and covers all or part of Florida, Georgia, Mississippi, Alabama, South Carolina and North Carolina, as well as Puerto Rico and the U.S. Virgin Islands.
The Mobile District’s Environmental Quality Program supports various military, civil and federal agencies including the U.S. Army, U.S. Air Force, U.S. Marine Corps, U.S. Navy, Defense Logistics Agency and other Department of Defense components domestically and abroad.
Montrose will provide solutions and remedial plans with an emphasis on air and water quality compliance, per-and polyfluoroalkyl (PFAS) substances known as “forever chemicals,” pollution prevention, hazardous waste, sustainability and other environmental compliance support, the company said in a news release.
“As our market presence expands and awareness increases related to our unique integration of environmental consulting, analytical services, engineering and next-generation technology, we are excited to partner with the U.S. government to tackle complex environmental challenges – including addressing issues such as PFAS, with greater effectiveness and innovation,” Vijay Manthripragada, president and CEO of Montrose, said in a statement.
Montrose stock jumped more than 14% on Tuesday’s announcement, rising to $26.89 per share. Year to date, shares were down nearly 16%.
Montrose reported record quarterly revenue for the second quarter, but the environmental services firm’s losses widened due to higher interest and income-tax expenses. The loss came to $10.2 million, larger than the loss of $7.2 million it reported in the second quarter of 2023.
The company in April completed a public offering of 3.45 million shares of its common stock, raising about $122.4 million. The company is using the money for general corporate purposes and acceleration of strategic growth initiatives, including research and development, repayment of debt, and acquisitions or business expansion.
The company has completed six acquisitions this year. Most recently, it announced the purchase of Origins Laboratory LLC of Denver, Colorado, a firm that specializes in testing water, soil and air for contaminants.
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