Onterris

Onterris Inc. reported second-quarter results that missed expectations, slashed its full-year 2026 guidance, and adopted a one-year poison pill while launching a strategic review of the business. Revenue fell to $186.7 million from $234.5 million a year earlier, and net income dropped to $1.4 million, or $0.04 per share, from $18.4 million, or $0.42 per share. The company cut its full-year revenue guidance to $740 million to $790 million from $840 million to $900 million, and trimmed EBITDA guidance to $117 million to $120 million from $125 million to $130 million, citing a historically quiet period for environmental emergency response work. Despite the lower revenue outlook, Onterris maintained its operating cash flow guidance, expecting to convert 60% of EBITDA into cash and generate $70 million to $80 million in the second half of 2026. The board adopted the poison pill in response to what it called significant and undisclosed accumulation of its shares, and the strategic review has no stated timetable. Hedge fund ownership slipped to 14 funds from 16, while short interest stands at 10.22% of the float.

Onterris Inc., formerly Montrose Environmental Group, reduced its full-year 2026 revenue outlook to $740 million to $790 million and adjusted EBITDA outlook to $117 million to $120 million, citing lower pass-through and emergency-response revenue plus regulatory waivers delaying air-testing work. Second-quarter revenue fell to $186.7 million from $234.6 million, largely because the prior-year period included $53.6 million from a major environmental emergency-response event, while cost optimization lifted adjusted EBITDA margin to 17.1% from 16.9%. The board has begun a comprehensive strategic review that may include acquisitions, other value-creating transactions or continued standalone execution, with no decision or timetable established. Management still expects record adjusted EBITDA and materially stronger second-half cash flow, forecasting $70 million to $80 million of operating cash flow for the second half.

Conestoga Capital Advisors reported that Onterris, formerly Montrose Environmental Group, detracted from portfolio performance in the second quarter of 2026 after its first-quarter revenue fell short of the prior year. The environmental services company saw lower environmental emergency response activity and severe winter weather weigh on results, though management maintained full-year guidance and noted underlying demand remained healthy. Onterris shares closed at $15.09 on August 6, 2026, with a market capitalization of $529.81 million and a year-to-date gain of 14%, but the stock lost 42.25% over the past 52 weeks. Conestoga continues to believe Onterris's integrated environmental services platform and expanding client relationships support an attractive long-term outlook.

Environmental and facilities services stocks reported mixed first-quarter results, with the 11 companies tracked collectively missing revenue estimates by 0.9%. Veralto, spun off from Danaher in 2023, posted revenues of $1.42 billion, up 6.8% year on year and exceeding expectations by 1.6%, while also beating adjusted operating income estimates and issuing full-year EPS guidance slightly above consensus. Onterris, which provides air quality and environmental consulting services, saw revenues fall 5.2% to $168.5 million, missing estimates by 6.2% but beating on EPS and adjusted operating income. Perma-Fix, a hazardous waste treatment firm, delivered the weakest performance with revenues down 20.1% to $11.13 million, missing estimates by 14.4% and significantly missing adjusted operating income projections. Waste Connections, North America's third-largest waste management company, reported revenues of $2.37 billion, up 6.4% and beating estimates by 0.8%, while Republic Services met expectations with revenues of $4.11 billion, up 2.6%. On average, share prices across the group have declined 2.4% since the latest earnings results.