LITTLE ROCK, Ark. - Montrose Environmental Group, Inc. (NYSE: MEG) and Waste Connections (TSX/NYSE: NYSE:WCN) have announced the implementation of a patented treatment system to address per- and polyfluoroalkyl substances (PFAS) in landfill leachate at the Champ Landfill in Missouri.
This initiative comes as a proactive response to the Environmental Protection Agency's (EPA) Effluent Guidelines Program Plan 15, which aims to establish new standards for reducing PFAS in landfill leachate.
The collaboration between Montrose and Waste Connections involves the use of Montrose's subsidiary ECT2's FOAM-X™ treatment system, which is designed to treat PFAS in liquid waste effectively. The process involves injecting air to attract PFAS to the air-water interface, thus facilitating its removal from the water column. This system is noted for its low energy consumption, which results in reduced costs and carbon footprint.
The full-scale treatment facility at Champ Landfill is part of Waste Connections' commitment to environmental responsibility and aligns with the mission of its Sustainability Campus, which focuses on fostering a culture of innovation and reducing the environmental footprint of waste management.
A ribbon-cutting ceremony is scheduled at the Champ Landfill Sustainability Campus on August 6, 2024, to mark the significant progress in tackling PFAS contamination. The facility will also serve an educational purpose, offering public tours to raise awareness about PFAS and its treatment.
Montrose is a leading environmental solutions company that provides comprehensive services to commercial and government clients, including regulatory compliance and emergency response. Waste Connections is a premier provider of waste management services, emphasizing environmental quality and cost-effective solutions.
The information for this article is based on a press release statement.
In other recent news, Montrose Environmental Group has reported a strong start to 2024 with record revenues and robust growth projections. The company has seen a slight decrease in diluted adjusted net income per share to $0.16 due to higher interest and depreciation costs, despite an increase in EBITDA and lower taxes.
The company is optimistic about its future, expecting 10-12% organic growth for 2024, and is bolstered by strategic mergers and acquisitions, such as the acquisition of Matrix.
These recent developments also include successful follow-on equity offerings and an upsized credit facility to support growth. Regulatory changes, including new standards for PFAS pollutants and methane emissions, are seen as opportunities for Montrose. The company's remediation and reuse segment grew by 39.7%, primarily due to strategic acquisitions.
Montrose has reiterated its full-year outlook for 2024, with expected revenues between $690 to $740 million and consolidated adjusted EBITDA projected to be in the range of $95 to $100 million. The company expects a 1% increase in aggregate EBITDA margins and steady growth in its advisory and testing segments. Despite a slight decrease in net income per share, Montrose's strong organic growth and successful cross-selling efforts are driving revenue increases.
InvestingPro Insights
Montrose Environmental Group, Inc. (NYSE: MEG) has been in the spotlight for its innovative approaches to environmental management, particularly with its recent collaboration on PFAS treatment. As investors consider the potential of MEG, InvestingPro data provides a deeper look into the company's financial health and market performance.
InvestingPro Data indicates Montrose Environmental Group has a market capitalization of $1.14 billion USD. While the company has shown a robust revenue growth of 19.76% over the last twelve months as of Q1 2024, it's also notable that the company's stock has experienced significant volatility, with a 1-week price total return of -15.41% and a 1-month price total return of -27.84%.
Despite the recent downturn in stock price, analysts remain optimistic about Montrose's future profitability. An InvestingPro Tip highlights that net income is expected to grow this year. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a solid financial footing for near-term operations.
Investors should note that Montrose does not pay a dividend, which may influence investment decisions for those seeking regular income. Moreover, the stock is currently trading at a high EBITDA valuation multiple, indicating that it may be priced richly relative to its earnings before interest, taxes, depreciation, and amortization.
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