Lawrence Stavitski

Speaking on behalf of Tim Moore, Lawrence Stavitski of Clear Street asked if any large pilots, aside from the one in Austin, were close to converting into contracts with meaningful revenue contribution, and requested more detail on organic growth expectations for the second half of the year.

Answer

CEO Robert Berman explained that he could not comment on specific customers that have entered the RFP stage due to procurement rules. However, he confirmed that many successful pilots have advanced to this stage and form a significant part of the pipeline. Berman expressed strong confidence in performance for the second half of the year, stating, 'we're confident that the company is turning the corner now.'

Lawrence Stavitski from Clear Street, on behalf of Tim Moore, asked if acquisition valuations have become more attractive and questioned if there have been any notable changes in state-level PFAS activity following recent EPA announcements.

Answer

President & CEO Vijay Manthripragada explained that Montrose's M&A approach, which is relationship-driven and focused on smaller businesses, is not typically subject to broader market valuation swings. He noted that while valuations for larger assets have seen some normalization, seller expectations remain high. On PFAS, he stated that the EPA's recent clarity has helped projects move forward, but there has been no major shift in state-level regulations that has materially impacted the business at this time.

Lawrence Stavitski, on behalf of Tim Moore from Clear Street, asked if M&A valuations have become more attractive and questioned if there have been any notable changes in state-level PFAS activity following recent EPA developments.

Answer

President & CEO Vijay Manthripragada clarified that Montrose's acquisition multiples tend to be stable as they are typically relationship-driven deals with smaller firms, making them less susceptible to broad market swings. For larger assets, he noted some valuation normalization, but seller expectations remain high. On PFAS, he stated that the EPA's clearer stance has helped advance projects, but there have been no major shifts in state-level regulations that have significantly impacted the business recently.