Montrose Environmental reports Q4 EPS (50c), consensus (23c)

Reports Q4 revenue $139.514M, consensus $141.24M. Montrose Chief Executive Officer and Director, Vijay Manthripragada, commented, "I am grateful for the efforts of my colleagues that have resulted in another incredible year for Montrose. Despite the anticipated decline in CTEH COVID-19 revenues, which were down approximately $125.0 million compared to 2021, our revenue, excluding CTEH, grew a record 26% organically year-on-year. As a result, our total revenue held steady year-on-year though we started the year expecting it to be down. The growth in our business, apart from CTEH, was broad-based and reflected strong organic growth across all of our segments. In particular, PFAS water treatment technology, greenhouse gas measurement and mitigation, and renewable energy services remain strong growth engines. We increased customer revenue retention1 to approximately 96% and nearly doubled cross-selling2 activity to roughly 35% of revenue in 2022. The strength of our business is also evident in our operating cash generation which remains robust. Our acquisitions and investments in our business in 2022 were funded by cash generated from operations.