Montrose Environmental Group (NYSE:MEG) Shares Gap Up on Better-Than-Expected Earnings

Montrose Environmental Group, Inc. (NYSE:MEG) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $23.38, but opened at $25.35. Montrose Environmental Group shares last traded at $27.8640, with a volume of 160,189 shares traded.

The company reported $0.35 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.11. Montrose Environmental Group had a positive return on equity of 4.45% and a negative net margin of 0.10%.The firm had revenue of $193.27 million during the quarter, compared to analysts’ expectations of $186.24 million. During the same quarter in the previous year, the business earned ($0.90) EPS. The company’s quarterly revenue was up 2.2% on a year-over-year basis.

More Montrose Environmental Group News

Here are the key news stories impacting Montrose Environmental Group this week:

• Positive Sentiment: Q4 beat and record 2025 results — Montrose reported Q4 EPS of $0.35 (above consensus) and revenue above estimates; the company said 2025 delivered record revenue, earnings and cash flow, underscoring operational momentum. Montrose Environmental Group Reports Record Revenue, Earnings and Cash Flow in 2025; Increases 2026 Guidance
• Positive Sentiment: $40M share repurchase and 10% EBITDA growth target — Management launched a $40 million buyback and set an objective to grow EBITDA ~10% in 2026, both shareholder-friendly items that support earnings per-share upside. Montrose targets 10% EBITDA growth and launches $40M share repurchase while expanding AI-driven opportunities in 2026
• Positive Sentiment: Raised 2026 revenue guidance — Management increased FY2026 guidance to a revenue range of roughly $840M–$900M, above or roughly in line with consensus, giving more visibility to top-line growth for the year. Montrose Environmental Group Reports Record Revenue, Earnings and Cash Flow in 2025; Increases 2026 Guidance
• Neutral Sentiment: AI and service expansion cited as growth drivers — Management highlighted investments in AI-driven capabilities and service expansion as sources of margin and efficiency improvement; these are strategic positives but execution/timing remain to be proven. Montrose targets 10% EBITDA growth and launches $40M share repurchase while expanding AI-driven opportunities in 2026
• Neutral Sentiment: High trading volume and market attention — Volume spiked well above average on the news, indicating strong investor interest; that can amplify moves in either direction depending on follow‑through. Press Release / Slide Deck
• Negative Sentiment: Analyst stance and margin profile may cap upside — Several analysts still rate MEG around a “Hold” and the company’s net margins remain thin/variable, which could limit multiple expansion absent sustained margin improvement. Montrose Environmental Group, Inc. (NYSE:MEG) Receives Consensus Rating of “Hold” from Analysts
• Negative Sentiment: Execution risks and leverage — Analysts and coverage pieces note key metrics and operational comparisons to watch (margins, free cash conversion, and leverage) that could pressure the stock if growth or margin targets slip. Montrose Environmental (MEG) Reports Q4 Earnings: What Key Metrics Have to Say

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Wall Street Zen downgraded shares of Montrose Environmental Group from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Needham & Company LLC upped their target price on Montrose Environmental Group from $31.00 to $32.00 and gave the company a “buy” rating in a research note on Thursday, November 6th. Finally, Barclays raised their price target on Montrose Environmental Group from $35.00 to $36.00 and gave the stock an “overweight” rating in a research note on Friday, November 7th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $33.67.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Bamco Inc. NY raised its position in Montrose Environmental Group by 2.5% during the 2nd quarter. Bamco Inc. NY now owns 2,764,395 shares of the company’s stock valued at $60,513,000 after purchasing an additional 68,713 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Montrose Environmental Group by 3.0% in the fourth quarter. Vanguard Group Inc. now owns 1,986,620 shares of the company’s stock valued at $49,328,000 after acquiring an additional 57,437 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in Montrose Environmental Group by 128.9% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,733,003 shares of the company’s stock worth $43,030,000 after acquiring an additional 975,770 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Montrose Environmental Group by 14.1% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,457,574 shares of the company’s stock worth $36,192,000 after acquiring an additional 179,855 shares during the period. Finally, Alliancebernstein L.P. grew its holdings in Montrose Environmental Group by 3,407.7% during the 2nd quarter. Alliancebernstein L.P. now owns 1,282,769 shares of the company’s stock worth $28,080,000 after acquiring an additional 1,246,199 shares in the last quarter. Institutional investors own 87.87% of the company’s stock.

Montrose Environmental Group Stock Up 22.6%

The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 0.70. The firm has a market cap of $1.01 billion, a PE ratio of -119.41, a P/E/G ratio of 1.65 and a beta of 2.02. The business’s 50-day simple moving average is $23.97 and its 200 day simple moving average is $26.22.

Montrose Environmental Group Company Profile

Montrose Environmental Group (NYSE: MEG) is a global provider of environmental technical and monitoring services, delivering solutions for site assessment, remediation, compliance and long-term environmental stewardship. The company serves a broad range of industries, including energy, manufacturing, chemicals, mining and government agencies, supporting clients with risk management strategies, regulatory permitting and environmental permitting.

Montrose’s core offerings encompass environmental consulting, engineering design, field sampling and laboratory analysis, plus innovative digital monitoring platforms.