Montrose Environmental Group Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tim Mulrooney - William Blair - Analyst : Vijay, Allan, Good morning. Good, well, thank you. You actually addressed a lot of the questions I had in the chamber. For the call today, you actually addressed a lot of them in your prepared remarks. So I'm actually going to move to a couple -- just more targeted questions. The first one is just on the, the Trump election win. I was wondering if you could, you know which of your businesses did well under his prior administration, if you could highlight some of those and what business lines would you expect to continue to perform well and thrive in this type of environment.

Question: Tim Mulrooney - William Blair - Analyst : No, it did answer my question. Thank you, Vijay. Another one I wanted to ask about was in your AK, I noticed in your AK that the COO, Joshua LeMaire is leaving the organization. I was just curious if you could share any more details about that decision and how that kind of impacts your organization?

Question: Tim Mulrooney - William Blair - Analyst : Got it. Okay. Thank you for the color on that. That's helpful. Just one more for me. I know you're pausing acquisitions but would just love to hear how some of these recent ones are going. Could you comment on origins and spirit in a little more detail? How are those going? Thank you, Vijay.

Question: Tim Mulrooney - William Blair - Analyst : Helpful color. Thank you, Vijay

Question: Durgesh Chopra - Evercore ISI - Analyst : Hey, team. Good morning. Thanks for giving me time.

Question: Durgesh Chopra - Evercore ISI - Analyst : Hey Vijay, good morning, Hey, just on this, deemphasizing acquisitions, and new equity. Can you just kind of help us with time? Like is this for a -- what time period is that over? Is what where I'm trying to go with? This is this first half of 2025, no equity, all of 2025. I get to the 2026. How should we think about that?

Question: Durgesh Chopra - Evercore ISI - Analyst : Got it now.

Question: Durgesh Chopra - Evercore ISI - Analyst : That's helpful guys. But just to be clear, you're not saying no acquisitions, all you're saying is you're probably, kind of manage within that leverage metrics, there will -- there could be still more acquisitions, but you're not tapping the equity market. Is that fair?

Question: Durgesh Chopra - Evercore ISI - Analyst : Okay, perfect. Thank you. I appreciate the time.

Question: Jim Ricchiuti - Needham & Company LLC - Analyst : Hi, good morning.

Question: Jim Ricchiuti - Needham & Company LLC - Analyst : Vijay, just a question on the decision regarding M&A, I'm just wondering, is there any risk that this decision, potentially could represent lost opportunities for you guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 1:30PM, MEG.N - Q3 2024 Montrose Environmental Group Inc Earnings Call

Question: Jim Ricchiuti - Needham & Company LLC - Analyst : Okay. And look, I know that this decision was obviously something that preceded the election. But, I'm also wondering, does this perhaps reinforce the decision on M&A leveraging. Just in -- until there's more clarity on how the regulatory environment might evolve if there's any change at all? And it doesn't sound like you think there is, but it's, do you feel more comfortable with this decision now?

Question: Jim Ricchiuti - Needham & Company LLC - Analyst : Got it. And just final question from me, I'm wondering how we should be thinking about this, your selection by the Army Corps of Engineers. Are there -- regarding that announcement, are there any expected milestone awards that you're tracking that are in the line of sight for the next year or two? I'm just wondering how we should think about the announcement. Thank you.

Question: Jim Ricchiuti - Needham & Company LLC - Analyst : Got it. Thank you.

Question: Aadit Shrestha - Stifel Financial Corp - Analyst : Hi Good morning. Thanks for taking my questions. Just going to sort of the outlook for four Q24. I think you talked about revenue growth being 10% to 15%. Could you just elaborate about how much of that is from acquisitions and emergency response? I think your guidance kind of improves s likely up 20% plus so for a strong quarter and then acquisitions looks like it at around 9% in 3Q, '24. Does this temper down slightly in four Q?

Question: Aadit Shrestha - Stifel Financial Corp - Analyst : Yeah, thanks a lot. And maybe if you could just elaborate on matrix margins, how did that perform in 3Q '24? I know you discussed, you remain on track of attaining mid-teens margin. Do you actually see --

Question: Aadit Shrestha - Stifel Financial Corp - Analyst : And then just as a follow up, are you seeing a strong organic growth within matrix too?

Question: Aadit Shrestha - Stifel Financial Corp - Analyst : All right, thanks a lot.