Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Q4 2024 Earnings Presentation
24 slides from Onterris's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter 2024 Earnings Call
Fourth Quarter 2024 Earnings Call F E B R U A R Y 2 7, 2 0 2 5
Slide 2: Disclosures
Disclosures Safe Harbor Statements contained herein and in the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements
Slide 3: Key Updates
Key Updates
Slide 4: Record Performance Demonstrates Business Model Success & Resiliency
Record Performance Demonstrates Business Model Success & Resiliency Successfully Executing Our Integrated Environmental Solutions Strategy REVENUE FINANCIAL 2024 HIGHLIGHTS (2024 compared to 2023) $696.4M An Annual Record • 11.6% Revenue growth to a record $696.4M 11.6% Increase Over 2023 – 8.3% org
Slide 5: Demonstrated Growth and Resiliency During a Dynamic Decade
Demonstrated Growth and Resiliency During a Dynamic Decade Revenue & Average Annual Organic Growth ($ in millions) 7% Average Organic Growth COVID 13% Average Organic Growth $735-$785 4% Organic $696 Growth $624 $546 $544 $328 $234 $189 $138 2017 2018 2019 2020 2021 2022 2023 2024 2025E 1st Trump Ad
Slide 6: Strong Outlook Further Supported by Geographic Diversification
Strong Outlook Further Supported by Geographic Diversification ~6,300 unique clients Diversified Revenue1 Over Time by Geography 2021 2024 United States United States 96% | $524.2M 79% | $550.3M International $546M $696M Revenue ~7x growth, or International (Canada, International (Canada, $124.8M, A
Slide 7: Portfolio of High-Quality Customers Across An Array of End Markets
Portfolio of High-Quality Customers Across An Array of End Markets Expected Drivers of Near-Term Growth Diversified Customer Base & End Markets Trump Administration’s 2024 Top Customer Revenue by End Market1 Demand for consulting and energy independence & testing services expected to industrial acti
Slide 8: Continued Confidence In 2025
Continued Confidence In 2025 Full-year 2025 Guidance Ranges: $735M - $785M of Revenue and $101M - $108M of Consolidated Adjusted EBITDA1 • Montrose reiterates organic growth expectations of 7% to 9% per year • Focus on continued margin expansion and significantly improved operating cash flow • Envir
Slide 9: Long-Term Commitments
Long-Term Commitments Long-Term Capital Allocation Long-Term Growth Algorithm Strategy Unchanged is Unchanged Near-term priority is redemption of Series A-2 Expect long-term growth algorithm of 7% to 9% average preferred equity and subsequent deleveraging annual organic growth + acquired adjusted EB
Slide 10: Recent Shareholder Friendly Actions
Recent Shareholder Friendly Actions Board composition changed ü Vincent Colman joined Board of Directors and Audit Committee as an independent director ü Additional industry experts being considered in future Near term focus on simplifying financials to demonstrate underlying strength of business ü
Slide 11: Financial Overview
Financial Overview
Slide 12: 2025 Balance Sheet Priorities
2025 Balance Sheet Priorities Near-Term Priority Redemption of Preferred New bank facility provides incremental liquidity, Equity, Subsequent Deleveraging flexibility, and agility Focus on redemption of the Series A-2 Preferred Stock 2025 Credit Facility Highlights: • Near-term priority is cash rede
Slide 13: Ongoing Focus on Cash Flow Generation & Attractive Capital Structure
Ongoing Focus on Cash Flow Generation & Attractive Capital Structure Strong Operating Cash Flow (Adj. Operating Cash Flow as a % of Consolidated Adjusted EBITDA1) Consolidated Adj. EBITDA1 Adj. Operating Cash Flow1 (OCF) Adj. OCF as a % of Consolidated Adj. EBITDA1 ($ in millions) $120 50%+ 23% $100
Slide 14: Record Fourth Quarter Consolidated Performance & Improving Profitability
Record Fourth Quarter Consolidated Performance & Improving Profitability Financial Highlights (2024 Q4 compared to 2023 Q4) • Highest-ever quarterly revenue of $189.1M, or 14.1% growth, REVENUE primarily due to $189.1M A Quarterly - $18.0M in contributions from acquisitions, Record - $15.7M organic
Slide 15: Record Full Year 2024 Consolidated Performance & Improving Profitability
Record Full Year 2024 Consolidated Performance & Improving Profitability Financial Highlights (2024 compared to 2023) • Record revenue of $696.4M, or 11.6% growth, primarily from REVENUE - Contributions from acquisitions of $81.6M, $696.4M An Annual - Strong organic growth of $43.4M in our Assessmen
Slide 16: Assessment, Permitting and Response Segment Performance
Assessment, Permitting and Response Segment Performance Q4 2024 Results compared to Q4 2023 Q4 2024 Revenue and Segment Adj. EBITDA • Q4 revenue increased $0.7M as ($ in millions, % as Adjusted EBITDA margin) - Strong organic growth in consulting and advisory services and positive impact from acquis
Slide 17: Measurement & Analysis Segment Performance
Measurement & Analysis Segment Performance Q4 2024 Results compared to Q4 2023 Q4 2024 Revenue and Segment Adj. EBITDA • $11.5M, or 21.3%, revenue growth primarily driven by ($ in millions, % as Adjusted EBITDA margin) Strong organic growth across laboratory and field services $18.3 $65.5 • Incremen
Slide 18: Remediation & Reuse Segment Performance
Remediation & Reuse Segment Performance Q4 2024 Results compared to Q4 2023 Q4 2024 Revenue and Segment Adj. EBITDA • $11.2M, or 18.2%, revenue growth driven by: ($ in millions, % as Adjusted EBITDA margin) - $10.1M from acquisitions, partially offset by a decrease in $72.8 $12.7 $61.6 treatment tec
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to our results under GAAP, in this presentation we also present certain other supplemental financial measures of financial performance that are not required by, or presented in accordance with, GAAP, including, Consolidated Adjusted EBITDA, Consolidated Adj
Slide 21: Non-GAAP Financial Information
Non-GAAP Financial Information This presentation also includes Adjusted Operating Cash Flow, a non-GAAP measure which represents cash flow provided by (used in) operating activities less amounts paid for acquisition-related contingent consideration. Payments for acquisition-related consideration are
Slide 22: Reconciliation of Net Loss to Adjusted Net Income
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Adjusted Net Income (Unaudited) For the Three Months Ended December 31 For the Year Ended December 31 (In thousands) 2024 2023 2024 2023 Net loss $ (28,225) $ (1,441) $ (62,314) $ (30,859) (1) Amortization of intangible assets 10,322 7
Slide 23: Reconciliation of Net Loss to Net Loss Margin and Consolidated Adjusted EBITDA Margin
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Net Loss Margin and Consolidated Adjusted EBITDA Margin (Unaudited) For the Three Months Ended December 31 For the Year Ended December 31 2024 2023 2024 2023 2022 Net loss $ (28,225) $ (1,441) $ (62,314) $ (30,859) $ (31,819) Interest
Slide 24: Reconciliation of Net Cash Provided by Operating Activities to Adjusted Operating Cash Flow
Montrose Environmental Group, Inc. Reconciliation of Net Cash Provided by Operating Activities to Adjusted Operating Cash Flow For the Year Ended December 31 2024 2023 2022 Operating activities (Unaudited) Net loss (62,314) (30,859) (31,819) Adjustments to reconcile net loss to net cash provided by
Montrose Environmental Group — Q4 2024 Earnings Presentation on 6ix