Montrose Environmental Group Q2 Earnings Call Highlights

Montrose Environmental Group NYSE: ONT , which rebranded as Onterris Inc. on April 21, reported lower second-quarter revenue amid historically low environmental emergency-response activity, while cost optimization helped lift adjusted EBITDA margins and supported a narrower reduction in its full-year earnings outlook. Onterris reported second-quarter revenue of $186.7 million, down $47.9 million from the prior-year period. Adjusted EBITDA totaled $31.9 million, compared with $39.6 million a year earlier. However, adjusted EBITDA margin increased to 17.1% from 16.9%, which President and Chief Executive Officer Vijay Manthripragada attributed to ongoing cost optimization. Get ONT alerts: Sign Up

The company noted that the second quarter of 2025 included approximately $53.6 million in revenue from a single environmental emergency-response event and subsequent recovery work. Excluding that event, Manthripragada said second-quarter 2026 revenue grew.

Updated 2026 Outlook Onterris reduced its full-year revenue outlook to a range of $740 million to $790 million. The revised forecast reflects lower expected pass-through revenue, lower emergency-response revenue and other revenue impacts, including temporary regulatory waivers affecting certain air-testing services. Chief Financial Officer Allan Dicks said the revised revenue outlook incorporates: $35 million to $55 million of lower pass-through revenue; $35 million to $45 million of lower emergency-response revenue; and $15 million to $25 million of other lower revenue. At the midpoint, the company said lower pass-through revenue is expected to reduce EBITDA by approximately $4.5 million, while reduced higher-margin emergency-response activity is expected to lower EBITDA by about $10 million. Those impacts are partly offset by a net $5.5 million benefit from cost optimization and operating efficiency. Onterris now expects full-year adjusted EBITDA of $117 million to $120 million, a $9 million reduction at the midpoint from its prior outlook. The company said every outcome within the new range would represent a record adjusted EBITDA result. At the midpoint, the outlook implies an adjusted EBITDA margin of 15.5%, approximately 150 basis points above the prior year and 50 basis points above the company’s original 2026 guidance. For the third quarter, Onterris expects revenue of $190 million to $210 million and an adjusted EBITDA margin of 17% to 18% at the midpoint of that revenue range. Dicks said third-quarter revenue is expected to decline year over year because the 2025 period included significant recovery revenue tied to the prior-year environmental event, while third-quarter EBITDA and margin are expected to increase.