Montrose Environmental (MEG) 8 May 242024 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Montrose Environmental Group, Inc.

First Quarter 2024 Earnings Call. [Operator Instructions] This call is being recorded on Wednesday, May 8, 2024.I would now like to turn the conference over to Rodny Nacier, Investor Relations. Please go ahead.

Thank you, operator. quarter call. first our to 'XX earnings Welcome

referring Joining President Allan and the on call the will Dicks, is of presentation, Manthripragada, our are Vijay be we Chief today, website. Financial Investors our me our available Officer.During earnings which on Chief discussion to the Executive section Officer; and

and Safe to will I be to known reconciliation that including now to remind that, GAAP obligation considered the statements useful everyone Vijay on Our over of XX-K believe earnings risks Annual on directly provisions X. as well most and earnings which why to available be be filings, in forward-looking Form results subject for adjusted thereof Slide affect including informational no should purposes, Report like discussing also Harbor appendix these are future statements on any we the call refer website.Moving in are today's differ that turn We see our risks GAAP the We they measures due principal Private to release non-GAAP would from these considered Reform measures adjusted like not the forward-looking call measure.With include and measures. a XXXX, the earnings share. isolation for directly a release the is provide to income forward-looking comparable that the providing and to statements.In update December their measures, uncertainties XX, Slide you the a Actual material we our uncertainties assume ended way recent could unknown net Securities limitations financial X. addition, would performance. and to investors, these consolidated beginning certain fiscal of our non-GAAP identify to net the Act certain of year I or EBITDA, for that operating will Please SEC today, in to results adjusted our performance of evaluating or financial as income to and most should non-GAAP presentation comparable Litigation per and may outlook.We discussion XXXX. any

and of with you joining business Thank highlights. to provide I will highlights. you welcome you Rodny, will you, today. all Allan us provide financial with

and And We to speak Q&A. strong the XXXX. open on up earnings have to a shared to I presentation had will generally then continue it start updated our website.We will to have

want world. the for business assessed basis.With exceptional to are on our solutions colleagues efforts also highlighting XXXX results, the let listeners start around results does remind like annual we our on our an Our by discuss we our quarter environmental byproduct me quarterly that start results. that annual and I an basis. is best while follow first our by and operations momentum, themes of acknowledging not manage few patterns, a the of I key quarterly would Demand to consistently that, related to

first segments strong quarter tailwinds adjusted First, service we performance resulting and are record in consolidated across revenues secular lines, our and EBITDA. seeing and

Second, attributable quarter growth. our performance to the primarily organic during is solid strong

about that updates Our have were our shortly. details provide successes.There of from our additional driven R&D our number on success key organic continues for I'll a U.S. regulatory the And those cross-selling growth that business. future. be by also and EPA updates significant to increased present confidence opportunities

to addition past.We brings to of our geographic our also cadence strategy capabilities. talent recent these service this stellar component M&A ETA. remains are year Montrose. relative opportunities welcome the and Third, of Dot increase a the teams teams has and Epic, to thrilled key increased from growth They our Two of and The

M&A robust momentum and pipeline, acquisition a continued expect we XXXX. have We in

without in Within presentations. one occurred a we're of details environmental integrating have margins revenue our our both we and increases providing Our public bright Matrix and business to degradation. been Matrix, discuss segment much and creation in contains strong segment, next Permitting have return have for quarter about to Montrose.Allan spot businesses are more remains margin response successfully our as I CTEH than Their will expected and example many stronger business. Assessment, and performance first track of shareholders.I which able the to just value capital has of by the is terms in acquiring this Response offer our advisory our already complementary segment. committed record our significantly, on the improved

first Excluding lines. business, growth service The success in supported for margins to revenue by segment advisory in services our were quarter, see driven cross-selling strong pleased we multiple increase across the this during our primarily by were growth. organic response solid organic continued

created of response encouraging continue our the performance segment revenue this this revenue we from driven emergency particularly our the testing a experience organic the comp, and and quarter-on-quarter million, in $XX.X $XX.X this year given segment, strength services, For lab year PFAS Measurement was side segment, services. This major overall by Analysis derailment our of particularly dynamic.Within tough response air growth, last and given million XXXX. the strong is to and is

from increased around annual were but for and given For our this to due We to reiterate year quarter our and year is quarter unchanged. gas is by XX%.Within of our our Remediation outlook is segment was in for around during and our by lower biogas outlook The Reuse example, complete, This growth offset around XX% same. greenhouse primarily be Margins to slightly measurement to expectation pivot the Matrix. acquisition the segment, services. annual our this hazardous biogas regulations our pivot the last higher-margin pollutants. revenue was of partially year-over-year, for primarily margins revenue business, QX driven mix, business mitigation lower air from

to the about Canadian the Matrix's in Matrix increasing even is like impact given are due loses quarter-on-quarter outlook mainly last during of said, progress time acquisition. margins to I were unchanged. breaks full would Margins for that or this we the to quarter the lower, pleased our this on this first segment Matrix So made more weather.With money variance also year. see quarter the team is typically reiterate that year, excellent and the to the by in

outlook. in as recent EPA The regulatory that water improvements finalized segment updates recent margins, expect margin year in U.S. as Matrix its optimistic developments also XXXX.Next, this regulatory U.S. Given organic support full first-ever maximum the be the long-term well contaminant in levels legally These discuss national for commit and we need and regulatory April. the industry standards pollutants PFAS PFAS EPA designated enforceable PFOA and growth sites and for I water.The actions set and and PFOS investigated any to and several will expansion $X remediated. for as to billion our CERCLA. of drinking growth The awaited will spills trends key likelihood rules investment hazardous substances new reporting superfund require increase PFAS under that or drinking also address long chemicals legacy of

both ramp for standards segments, Clean oil and provide across updates $XXX Montrose and based landmark to rules of an EPA we existing demand billion opportunity March, for approximately for will in remediation up value regulatory all research. a and from to similar emissions, these industry. the We and open on the implement methane states significant to coming gas emissions These of modified creation regards addressable sources. remains PFAS under growth rules new set the sources published to our standards Act Air regulate quarters.With or for up over guidelines emissions expect the third-party anticipate steadily market methane for

hazardous the April. communicate EPA living pollutants standards in finalized air uniquely XXX time, this air the measuring, to While long-term approximately This our communities. regulations and expand emission reduce built and their industrial pollutants, only to local new clients protect XXXX emissions chemical and toxic is at positioned rule targeting their next help expected data, solutions to to for to monitoring quality as rule near cover Montrose our people assessment sources new the requires existing few facilities plants. via years. new differentiated capabilities tailwinds tracking regulations evaluate and terms applied facilities and environmental after of within remains our impact.In national framework presents for ability emissions particularly given measure to this regulatory December partners software This other air

since our we business given and regulatory as ability While our our rule's numbers March tailwinds initial deadline their early companies In this and impact results we we the guidance, and this capital I to strategic to I the growth, as proposal, broader for in year, on increased standards.In protect patent Allan. hand was extended upbeat colleagues shared our and facilities approximately development newly human in April's optimistic years done.I collectively also and you those like the that, shareholders to development come acquisitions and emission remain around world, that our expect like I quarters our goals to review to welcome I will our we of the the reimagine and provide to These we belong progress long-term raise. like over meet XXXX. quarter confident tailwinds compliance from and the outlook they've next our organic to and remain work them it and you. once added the will this action ways and commercialization, come. thank of our their achieve thank and Montrose support, would work to Allan to support forward simultaneously our shareholders again would tremendous for to for quarters in Thank look to environment.With updating our to X,XXX our would from summary,

Thanks, Vijay.

the strategic organic through as of results strategy strength first of our acquisitions. quarter cross-selling the reflect the strong as our strong in Our well business, growth contribution

our further of performance follow-on for growth successful the across service addition, continued growth during happy Slide our revenue strengthened first X. on strong quarter. through We the capacity in organic accretive most offering In were completion our we equity to April.Moving to lines see our of

year Our and specialty M&A of discontinued offset contributions increased $XXX.X adjusted XXXX, Slide million margin partially prior shift organic XX.X% first our compared and revenues a to year.Looking AP&R our in in business our part emergency to quarter, lab of lower revenue the last of driven at the XX. on primarily by performance environmental exiting biogas consolidated lower December EBITDA in the the away revenues, from revenue in and acquisitions, segments, service latter strong the by growth quarter response

the is or consolidated consolidated in the in to prior year net of to diluted large, quarter million a in per first versus lower Matrix, was first quarter year, increase is year income shares. extent, comparable which the net seasonally The dividends and was fully Adjusted mainly income included XX. the was was by compared occur income to income and driven to We attributable quarter year adjusted in using environmental common to adjusted from paid prior higher percentage diluted most calculated as expense $XX.X and or adjusted review was margins emergency response And Lower higher million year.Moving XXXX the Montrose share offset Series on First which adjusted consolidated XX.X% project in higher per adjusted net our higher driven This prior period June believe a decrease for The year and $XX.X diluted acquired primarily revenues. EBITDA, income note, AX of EBITDA share period. quarter. share EBITDA in lesser shares.Please by EBITDA quarter. lower interest investors. of revenues revenue. to current share tax a partially consolidated of of the Slide net low per driven adjusted metric prior per we not by diluted net our helpful divided EBITDA in revenue XX.X% the net in compares prior of income was therefore $X.XX by a equity period, depreciation income stockholders not to adjusted the $X.XX the adjusted this to preferred did higher-margin by

segment adjusted by $XX.X Slide in revenue XX.X% prior for Assessment, revenues of first that strong business recur the Measurement XX.X% event offset an we adjusted Response from organic million, in significant XXXX increased revenue or quarter net reconciliation periods.Turning year-over-year for our reflecting and XX.X% XX.X% prior decline up did X% to segment, net primarily tax quarter, the appendix on the segment, XX. to from an the growth. organic the following as table business As of services update, and the in made the first in segments income million, income reflected driven growth. adjusted growth increased of emergency year attributable benefits partially year-over-year in our to in Analysis In quarter year.AP&R expected to the increased year-over-year mix.In organic revenue, a The and million $XX.X a methodology and $XX.X not for our quarter increase Permitting current by change our current response to EBITDA to was

M&A margins compared XX.X% EBITDA was result, First flat year were mix. the segment XX% due to adjusted year-over-year, in quarter primarily adjusted EBITDA slightly as business a to and prior to down quarter,

profitability, our of on to track of annual XXXX.Moving adjusted margins Matrix, increased higher-margin decrease unchanged given business that at biogas double-digit we of remain EBITDA partially acquisition cash adjusted first of well on negative and is XX% focus no generated pleased margin to which quarter optimization flow every margin for dilutive segment to million, with historically in our on end business.Our achieve and $XX.X revenue a has was to Canadian earnings XX%.In our a segment, structure outlook to in the Our efforts due to due remain increased by offset R&R by the review to margin Matrix's shift Slide impact Matrix, XX. year, and the first projects.The in Reuse quarter EBITDA capital of segment this are the revenues in XX.X% in primarily the seasonality underway, which Remediation or

which operating a increase flow in The flows prior of in produce EBITDA in line due $XX million year. in to rate XX%. of into moderate. cash a cash million We used capital, at was the investment the cross-divisional an principal was capital balance estimated to towards excess redemption, of proactive $XX result, the capital million. long-term on lower And First flow at operations as working from was preferred cash principal in of flow year-over-year represent versus the to recently operating working our a should in the million change simplifying quarter of stock balance $XXX.X as of generated an Matrix operations outstanding associated was higher we result larger structure.Following activities in in $X year, The to used accrued in January. outstanding as primarily temporary cash with expect cash compared payroll the the million the prior awarded by given as CTEH in well primarily driven receivables a current year.For and bonuses year projects preferred adjusted annually of step this savings conversion redeemed dividend the and voluntarily reduced $X.X a are of our payment stock

million, cash $XXX capacity proceeds our convertible April, upsized last million million.In redemption our no liquidity Series million. stock our date on our $XXX million term to approximately redeemable reminder, option cash to shares a offering, increase as time our net and we available As February, $XXX million of AX the to preferred for preferred loan of we we pre-existing redeem quarter, any the but a at follow-on to increased raising no has $XXX.X the the was revolver cash.As highlighted credit to equity added $XX completed obligation, other and maturity facility. adding facility have terms same $XX our and the in we

strong our outlook range we on business, of use we XX. year to increased capital X.Xx.The to leverage our reiterate recently this we our be to the our million well offering, million. which for longer-term XXXX additional in Slide million raise, $XXX.X including on of XXXX $XXX hand facility. in tailwinds and below continue $XX X.Xx, EBITDA in full Following be our outlook availability liquidity, our the million reiterated Pro to to start granting $XXX is be million consolidated $XXX of primary credit had raise below see our expect target the cash and for Based revenues year proceeds.Moving to to ratio equity further forma of liquidity, of $XX.X the in and to million our full we enhances leverage M&A, million approximately the to us of significantly flexibility on adjusted on invest of $XXX range

and Our over organic to prior first million in to response includes for XXXX and expansion expectation the an second $XX EBITDA emergency for for double-digit unchanged full low be revenues third year and the adjusted growth expectation the outlook the response our weighted revenue heavily is at year $XX margin in remains the for anchored year, on first XX% our into and Based XXXX activity EBITDA results both quarter XXXX last with to primarily revenue low range.We due year.In million be and conclusion, sequentially expect start metrics XXXX. this point quarters year. of the year, on the strong roughly a timing Matrix operating significantly adjusted key of record compared more The to profitability emergency improved with year of to generate in metrics. we the of to back business XXXX back of half expect the half had half substantive a full in our the to we increasing

given look XXXX to we of are beyond, and for incredibly solutions the tailwinds. optimistic momentum environmental remainder regulatory material we the integrated our and demand the As

of and of full businesses, strategy our the joining newly acquired us our are and confident year you cross-selling success ability for integration our to achieve all With goals.Thank today we in to for look we the open quarter.Operator, lines continued see you interest to questions. and our the ahead in updating on your to we forward progress opportunities We next are Montrose. ready

William is question first Tim Blair. Mulrooney Your Instructions] from from [Operator

of think for But Thanks color these appreciate lines. color of CERCLA. rulings all timing. about separate business we about market ask X of the you you to the I the all X-year near-term all sizing. I and wanted with X- How across think say, the finalization MCLs impact recent do EPA's regs your for to the And as the on

question, Yes, it's good Tim. a

implication a Difficulty] way has structured has testing are the So window, X-year if a the you back, X-year treatment where step for implication for a in regs [Technical window.

so of we're term formal And to of of matrices working in is amount earlier the anticipation water our have will I it some knowing is conversations mandated steady that's picking would and are it testing of in various are existing about clients regulatory regs these of seeing way anticipation kind do a remediation, so lot activity time with near But what on.And what Montrose and needing that been in a and fair those for others, the of increase. PFAS think levels our a you frames. be the given up

increased are really on the and testing And assessment of side activity the side. has the on already well. up We seeing cadence treatment inbounds as picked

And financially on anticipate the of through year so Tim. the the see we'll momentum, expect year, half seeing this the meaning we're visible the to treatment And momentum the certainly and on we start momentum to on back side. that testing we already but and assessment side, next visible continue,

for And we you with year leaning year of this were some the what earlier of is view on that guys. rest why partially our this looked forward like

guess topic, you an guess, I Okay. solutions. portfolio you a insight your I I on lot resins have able technology right? that's my But on offer also but on of attention, as Yes, hoping PFAS regenerable very was know remediation of might I bit you into solutions was the, this clear. gets entire I follow-up, a because suite that to I be of your hand, have staying of know

versus water to curious the those do side how cetera? drinking industrial airports, contaminated I'm sites, play expect you much et So DoD higher on

Yes.

this, liability portfolio of to have about -- go how of about services, back how and we risk, about how about to lot you helping how to our to experts, a and clients I toxicologists, thinking experts, to think mean think PhDs, model exposure our regulatory think So treat. if

are that also of labs drinking side. well only really PFAS air not the water the but matrices, Tim, address, dedicated have other on the testing equipped water and to testing We

need As right? molecules. you're you that think removed, If what happens you is these going actually incinerate about you're after to for destroying PFAS validate example, it, to

air, footprint starting momentum, testing not to really you're across just with is soil.And water some exactly And right. see media, then various environmental so water, our and but

more AFFF trillion anchor focus thresholds landfill challenging looking then needs foam lot now, elevated And On some treatment an nice they're technology on teams side, now more now a obviously, our are water see. of including really constituency. water remains attention molecules, of drinking all and within upstream fractionation seeing the a parts regenerable the begin. we're remove. impacts crosshairs foams, because uptick because there. is, right, bring to resins drinking sources your across the on our these that not treatment water bit water. us.Our limits side, leachate of some the of at side, municipal are inbounds, our really that drinking seeing Certainly, whole levels begin activity, are given for is per reason The are X reason which a everyone's of replacement of contamination I the the different to drinking But will to area the in we're for are lot little which the of encouraged seeing partially some And a the to are which

advantages And offers. it's really of of this But water interconnected. cycle look Does these, that because hard to pulled all isolation. drinking in downstream is the some suite a cost of Tim? getting your question, of technology market into our at we're services life and that It's the lot of our upstream so answer

does, yes. It

address do that So sounds it technologies systems. the drinking you water have like can

drinking that's MCLs in and way. water to But these not to a summary? going Is focus. your upstream So affect impacts systems, your a are beyond that regardless, main business good going that impacts that have go or is adjacent material

Yes. Yes. exactly It that's right. and already is,

Ricchiuti next from is Jim question Needham from & Your Company.

questions. apologize some But wanted to going if I X be there's background noise. I to --

chance impact of from having lot Matrix. that? just Maybe better drove moment I the other talk it revision as two have to of But we parts that what really could that's guidance a if much to a I'm an sure it sounds to you year performance the as guidance if on mean a didn't is raised we business. spend about whole really full or earlier. the seeing like not a First, really you're your

Yes.

Jim. me take that, Let

of optimism, the through and back as shifted and changed And the only business year, financial since but this you but regulatory to Just half a a just XXXX is as the being our And implications our result, years. in when what just reason we back material. like guidance, now to as materially of philosophically, at and has of first were quarter community investment And we more our annual like not increased first you us few transparent we best look IPO readout of has reason year have in, 'XX, go not quarter topical February the are of what can out XXXX the there's but course relevant Jim. landscape And the out. provided part served so there's no in early we we the the kind for looks with for look that more not even broader very a the QX, looks time the what lot as learned that the real, that that the if surprises through the the organic forthcoming, the for color it's gave we that is and outcome.The quarters like. guidance for next on course trajectory few we dynamics is QX we're in the

end early are going last year.The certainly and with this and certainly it's And so that's since through a talked theme. initially moved to and weighing the of part you year dynamic we moved from has to other be one guidance that variable of provided we we continue that when

We of is impact have to think quarterly annual, as the not articulate we Matrix. performance, about

its is dynamic half first to the guys emergency of as a both give the of exactly large from on terms half wanted last of EBITDA the of and acquisitions derailment That's train the more impact color third year. second year response weighting and then recent transition away you year. different the business is that.And we a that the versus you're right. very So in revenue result, And

But because solid structural variables, the couple because that's to was next were for of compounding about underpinnings increase many of make looks sense? very optimistic couple there the of make next guidance driving quarters, and were fundamentally, really about So what that wanted sure us, years look the in so we what's business. the we Does the business like. we're really open

Vijay. a does, It question follow-up me. final And just for That's helpful.

if added M&A. maybe You're in Obviously, could, deals you've capital Historically, you guys a there that And growing additional the X talking few bigger done back April. than funnel was more about if a things. smaller you ones. feel have But we activity wondering you I'm in additional some and M&A? to if whether how just add should think have resources, have guys about -- pickup accommodate M&A or you to infrastructure place a you the in

accomplish we for our with in to set comfortable place we've are We And Jim, now, have resources what that up this year. you're right. exactly

right, we've through of million-ish the the deals multiples. quarter, -- that X set you X of That done like And see very dollars businesses purchasing if first target a of [ Matrix, think more cadence $XX has already a handful, away cautious of that cadence with EBITDA at more you is bit been you would years, backlog each the common. just And It's the a but of a or numbers, it attractive our call we've because the lighter historical it, you first We've around already, couple months. a if that terms in can on back for our quite EBITDA opportunity a us. over of transactions, we're -- now couple and little look round ones suggest, smaller. go the little are been closed finding never ] pipeline allocation.What call If the we're million about a right, sizable Jim, and and we've is of there's capital robust little more went X million-ish last year. that

cadence result, a So is the higher. as

able long-term to we to for to only because transactions our plans, very do sure So the but very that too. it, be wanted that is balance are and absorb these our is growth not strategic to attractive make team sheet going able

to So the in resources nothing more imminent. cadence strategy. same, no needed. than There's is past. There's changes large additional the of no This except is it's been the that's there's our higher

is from Butler Stifel. from Brian question next Your

kind for just M&A you're the more opportunities what those of question, color where M&A touched maybe might Just lie. you little a segments, kind of help service-wise the on understand and bit question, the looking last on across but

our or either mouth transaction are -- come -- clients of ideas step Brian, from from from, our Yes, we you or back think our our these about and if leads where teams. word

of expansion service will addition or clients. And teams to believe to already either that the so what be it's lines our specific our offering geographic largely they're complementary

of driver, this shift serving and is existing our I from the existing And strategy, different this was say, so the It a a so geographically. And X bolstering ETA team, geographic serve Montrose's is no that same. large, -- using line. of Epic was just we ability small by geographic and year, exactly services, just expansion was a current is places. primary do, clients to in-house.And expansion partner just Dot of in our Two already a It what was service fantastic would that is an we continuation to brought so transaction. then our that expansion, the clients a

cultural fit, second for is -- we stakes table look, and financial thing accretion. The and look right,

So let's put the side. to that

not technologies where another recent be really our variable transactions, been that is other cause focused. extent, or we but lesser of the the any capability a of technical the an area for expansion look to acquisition The to that is has that though, at, we tend of selected

are million Okay. but huge. market maybe the right And outlook is That's starting of ramp addressable And But billion $XXX we kind with on total just talk PFAS you the on where helpful. are revenues, where again, a point. and $XXX could about we talked starting? we the just little color -- then now already, the

Yes.

context, So ebbs million based kind it million approached of our projects. [ it on PFAS million and flows in to we $XX a as $XX-ish to around called Brian, was, the of it's ] IPO, little and $XXX it IPO bit, million it, $XX today. call to revenue put But

years, of its over next growth is and years. really the that, we now think several a trajectory seen we've be that couple so it that last And will nice multiples size the over of

just maybe Okay. And last one... one

were sorry, all consideration for Going and back to point a It not in X segments. we our the parts to earlier the with Tim, earlier business of us. this just -- back that all impacts going making treatment Brian, is

there then just margin some took I have was out Great. Okay. from biogas? the you the And was I just Or was one the headwinds mean, EBITDA do to last you where business. R&R a -- on Matrix one. ex-Matrix, the you that up comparison ask still going of margin? if mix? on

exactly would biogas. been Brian. right. just down have the slightly, It's you're Margins And pivot in

full driven meaningful year as Margins we You'll full that see start largely year, the particularly that to is anchoring half. why will quarters segment in really for be comparison. half nicely, the not year. really back, Brian, of in by being stepping back the in really the the keep back on just ramp up as and nicely Yes, the this

of mature Obviously, we if right, it Just to a point, the midpoint our an the XX%, increase margins. you to X% look at side, perspective, in business, in think in the approximately put that's this will aggregate testing they'll steady. EBITDA all be advisory business, be steady margins XX% XXX basis on assumes mid-XXs guidance,

you're a the really, see Reuse so leverage accretion that really And both to nice on margin operating from and Remediation margin accretion coming segment. and going increased

be we and right? time, acquisitions So -- this variables. quarters to got based watch The on swing will over individual will other

from question from is Stephanie next Yee JPMorgan. Your Instructions] [Operator

single-digit particular you if I double high talked years. what something normal can about people know about should your can that for any expect I'm on high side, PFAS being historically, the cadence of be the of digits the we you thinking kind you to organic digits know in forward? few next regulations, year. talk for I revenue new but think what to growth wondering single whether hard, cadence digit with especially like -- a sense going normal mid-single should Montrose be wondering was just low the normal it's I about for.

Allan the of We we impact just remind is we in, should Stephanie. acquisitions emergency exclude And Yes. define exclude response everyone, certainly we Why the and -- impact entirely, also the organic that? our take of don't I business. then to jump growth way

at we to approximately we looks obviously, right, year if core performance a been organically.And this growth you we've understand past, you're XX% there's cadence. the X% been IPO, looking growth public, look When at our are today, -- back being went to really you as XX% we So guidance year, growth on like. of growing for at closer some average the for of kind a the organic look look to organic got talked XXXX. intra-year implying to XX% we variability. Stephanie, organic exactly what look business about But to trajectory X% And if to we

our X% you recent for just contrast cadence numbers that near is the and obviously, so X%, relative future take if at past. are signal an And our to we to elevated that those organic the with

those to -- percent accrete -- basis it As we we as at a dollar the business revenue is challenging. XX-plus as year levels, grows, as a has maintaining obviously, continues more been, right, on

we outlook, believe but we're us foreseeable so the continue the organic positively, this secular we're and certainly, believe, And in future. at impact to our not we into changing be they're an real, elevated are industry to to cadence. And do the the going year tailwinds, going tailwinds that

And now Okay. I That talk can anniversaried pivot. wondering you've about more if in that business, sense. helpful. you're makes That's doing was you what your biogas super the

think in just year, And working growth of kind the what you back going do additional projects on half that with see that now? on business. to what's but I the expect on of are you mentioned you any color Just

complete. is pivot the Yes,

was finished be because year. of pivot quarter-on-quarter noise the the certainly in will last so really there And QX

all So it's It's behind done. us.

you're 'XX, margin a treatment 'XX itself in biogas look we manifest see primarily nice and to obviously, business, of really revenue footprint, will we ECTX is combination, that our which and that of versus believe, and going business. water PFAS aggregated growth As as the part

it's right? ] that different, servicing projects as not is the projects, that we're it's installation [ opposed construction biogas, and oversight engineering, the higher-margin of Stephanie, some procurement. to equipment components design, of different of the the so And much So focusing the on

the further Manthripragada call hand Vijay this the back no time. are for to now at I will remarks. There closing questions

of much look update excited really very sharing for all with look time our like forward the for for morning. we prospects and your you us We're QX everyone. again the you care, this in about Take us, to Thank what near future.

gentlemen, Thank the for and you. joining. now all you conference Thank has Ladies ended.

You may all disconnect.