Montrose Environmental Group Inc (MEG) 2025 Q1 法說會逐字稿

Good morning and welcome to the Montrose Environmental Group's first quarter 2025 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press then 1 on your touch tone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Adrianne Griffin, senior Vice President, Investor Relations and treasury. Please go ahead.

早安，歡迎參加蒙特羅斯環境集團 2025 年第一季財報電話會議。所有參與者將處於只聽模式。如果您需要協助，請按星號鍵然後按 0 向會議專家發出信號。今天的發言結束後，將有機會提問。若要提問，您可以按按鍵電話上的 1。若要撤回您的問題，請按星號，然後按 2。請注意，此事件正在被記錄。現在，我想將會議交給投資者關係和財務高級副總裁 Adrianne Griffin。請繼續。

Thank you, operator. Welcome to our first quarter 2025 earnings call. Joining me on the call are Vijay Manthripragada, our President and Chief Executive Officer, and Allan Dicks, our Chief Financial Officer. During our prepared remarks today, we will refer to our earnings presentation, which is available on the investors section of our website. Our earnings release is also available on the website. Moving to slide 2, I would like to remind everyone that today's call will include forward-looking statements subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to known and unknown risks and uncertainties that should be considered when evaluating our operating performance and financial outlook. We refer you to our recent SEC filings, including our annual report on Form 10-K for the fiscal year ended December 31, 2024, which identify the principal risks and uncertainties that could affect any forward-looking statements and our future performance. We assume no obligation to update any forward-looking statements.

謝謝您，接線生。歡迎參加我們的 2025 年第一季財報電話會議。與我一起參加電話會議的還有我們的總裁兼執行長 Vijay Manthripragada 和我們的財務長 Allan Dicks。在今天的準備好的發言中，我們將參考我們的收益報告，該報告可在我們網站的投資者部分找到。我們的收益報告也可在網站上查閱。前往投影片 2，我想提醒大家，今天的電話會議將包括受 1995 年《私人證券訴訟改革法案》安全港條款約束的前瞻性聲明。在評估我們的經營業績和財務前景時，應考慮已知和未知的風險和不確定性，因此實際結果可能存在重大差異。請您參閱我們最近向美國證券交易委員會 (SEC) 提交的文件，包括截至 2024 年 12 月 31 日的財政年度的 10-K 表年度報告，其中列出了可能影響任何前瞻性陳述和我們未來業績的主要風險和不確定性。我們不承擔更新任何前瞻性陳述的義務。

On today's call, we will discuss or provide certain non-gap financial measures such as consolidated adjusted EBITDA, adjusted net income, and adjusted net income per share. We provide these non-GAAP results for informational purposes, and they should not be considered in isolation from the most directly comparable GAAP measures. Please see the appendix to the earnings presentation or our earnings release for a discussion of why we believe these non-GAAP measures are useful to investors, certain limitations of using these measures, and a reconciliation to their most directly comparable GAAP measure. With that, I would now like to turn the call over to Vijay beginning on slide 4.

在今天的電話會議上，我們將討論或提供某些非差距財務指標，例如合併調整後 EBITDA、調整後淨收入和調整後每股淨收入。我們提供這些非 GAAP 結果僅供參考，不應將其與最直接可比較的 GAAP 指標分開考慮。請參閱收益報告或收益發布的附錄，以了解我們為何認為這些非 GAAP 指標對投資者有用、使用這些指標的某些限制，以及與最直接可比較的 GAAP 指標的對帳。現在，我想從第 4 張幻燈片開始將電話交給 Vijay。

Thank you, Adrian, and welcome to everyone joining us today. I will provide you with an update on the health of our business, explain our strengthened outlook and raise guidance and speak generally about the first quarter presentation shared on our website. Allen will provide the financial highlights and following our prepared remarks we will host a question-and-answer session.

謝謝你，阿德里安，歡迎大家今天加入我們。我將向您提供我們業務健康狀況的最新情況，解釋我們加強的前景和提高指導，並概括介紹我們網站上分享的第一季報告。艾倫將提供財務亮點，在我們準備好的演講之後，我們將舉辦問答環節。

Before I begin, I'd like to acknowledge the exceptional work of our approximately 3,400 colleagues around the world. The Montrose team's dedication to leading environmental science and technology furthered our mission of helping to protect the air we breathe, the water we drink, and the soil that feeds us. Montrose continues to demonstrate that we can protect our environment while simultaneously driving economic value and development. As we discuss our results today, I want to remind everyone that our business is best evaluated on an annual basis since demand for environmental science-based solutions does not follow consistent quarterly patterns. This is how we manage our operations and how we recommend viewing our performance. With that, I'm extremely pleased to discuss our outstanding first quarter.

在開始之前，我想對我們全球約 3,400 名同事的出色工作表示感謝。蒙特羅斯團隊致力於引領環境科學和技術，進一步推動了我們的使命，即幫助保護我們呼吸的空氣、我們飲用的水和養育我們的土壤。蒙特羅斯繼續證明，我們可以保護環境，同時推動經濟價值和發展。在我們今天討論業績時，我想提醒大家，我們的業務最好按年度進行評估，因為對基於環境科學的解決方案的需求並不遵循一致的季度模式。這就是我們管理營運的方式以及我們建議查看績效的方式。我很高興能夠討論我們出色的第一季。

In the first quarter we achieved revenue of USD177.8 million. Consolidated adjusted EBITDA of USD19 million and operating cash flow of USD5.5 million. These record results mark our highest ever performance metrics for a 1st quarter, setting new standards for our future achievements. These accomplishments underscore a growing universal demand for clean air, clean water, and clean soil, an opportunity that spans across all of our geographies. There are differing opinions on how to achieve these essential goals, and we believe that such market dislocations create opportunities for us. Our team is strategically positioned to navigate these complexities and capture a disproportionate share of growth which will further our leadership position in the environmental industry.

第一季我們實現營收1.778億美元。合併調整後 EBITDA 為 1,900 萬美元，經營現金流量為 550 萬美元。這些創紀錄的業績標誌著我們第一季的業績指標達到了歷史最高水平，為我們未來的成就樹立了新的標準。這些成就凸顯了人們對清潔空氣、清潔水和清潔土壤日益增長的普遍需求，這項機會遍及我們所有地區。對於如何實現這些根本目標，有不同的意見，我們認為這個市場錯位為我們創造了機會。我們的團隊具有戰略優勢，能夠應對這些複雜情況並獲得不成比例的成長份額，這將進一步鞏固我們在環境產業的領導地位。

In November 2024, we announced a temporary pause in acquisitions to focus on consistent high single digit organic revenue growth. Enhanced EBITDA margins, improved cash flow generation and balance sheet optimization with ample liquidity. I am pleased to report on our progress. Given our strong first quarter results and confidence in our 2025 outlook, we are increasing our full year 2025 EBITDA guidance.

2024 年 11 月，我們宣布暫停收購，以專注於持續的高個位數有機收入成長。提高 EBITDA 利潤率，改善現金流生成，優化資產負債表，流動性充足。我很高興地報告我們的進展。鑑於我們第一季的強勁業績以及對 2025 年前景的信心，我們上調了 2025 年全年 EBITDA 預期。

We now expect consolidated adjusted EBITDA to be in the range of USD103 to USD110 million and increase from USD101 to USD108 million. We are reaffirming our full year revenue range of USD735 to USD785 million. This updated guidance represents continued consolidated adjusted EBITDA margin expansion. We further reiterate our organic growth expectation of 7 to 9%. This demand outlook is supported by strong tailwinds.

我們現在預計合併調整後的 EBITDA 將在 1.03 億美元至 1.1 億美元之間，並從 1.01 億美元增加到 1.08 億美元。我們重申全年收入範圍為 7.35 億美元至 7.85 億美元。此更新後的指引代表合併調整後 EBITDA 利潤率持續擴大。我們進一步重申 7% 至 9% 的有機成長預期。這項需求前景受到強勁順風因素的支持。

First, our private sector clients are increasing domestic industrial activity, a trend supported by President Trump's administration. This drives demand for our solutions. As one example, A public multinational energy company recently selected Montrose to support its emissions monitoring needs at scale. Montrose will deploy one of the largest air quality teams in North America across multiple operating basins in three US states. Our ability to provide this service is because of our unique strategy of integrated services and capabilities, and the project also highlights how our clients continue to stay the course despite federal US regulatory volatility. Our clients are staying the course because of the longer-term nature of their planning and because of the continued influence and consistency of state regulations.

首先，我們的私部門客戶正在增加國內工業活動，這一趨勢得到了川普總統政府的支持。這推動了對我們解決方案的需求。例如，一家跨國能源上市公司最近選擇了蒙特羅斯來支援其大規模排放監測需求。蒙特羅斯將在美國三個州的多個營運流域部署北美最大的空氣品質團隊之一。我們之所以能夠提供這項服務，是因為我們獨特的綜合服務和能力策略，該專案也凸顯了我們的客戶如何在美國聯邦監管動盪的情況下繼續堅持下去。我們的客戶之所以堅持這一方針，是因為他們的規劃具有長期性，而且國家法規具有持續的影響力和一致性。

Second, state governments in the United States are gaining more influence, which presents incremental opportunities for our success. We are actively collaborating with several states and clients to tackle some of the most challenging contamination issues in soil and the plumes affecting drinking water sources. We anticipate US Administrator Zeldin's recent PFOS policy announcement will further support these initiatives.

其次，美國州政府的影響力正在增強，這為我們的成功提供了越來越多的機會。我們正在積極與多個州和客戶合作，解決土壤和影響飲用水源的羽流中一些最具挑戰性的污染問題。我們預計美國行政長官澤爾丁最近宣布的 PFOS 政策將進一步支持這些措施。

Montrose invested in innovative PFOS treatment solutions long before PFOS was this widely recognized. Our proven patent protected technology and our subject matter experts have successfully reduced contamination levels to meet various state and local requirements, including to non-detect levels, which means for all PFOS, the state was monitoring, they could no longer detect it because our technology can be dialed up or dialed down as needed, we are well positioned regardless of where thresholds settle, and we are encouraged that this remains a priority for the current administration and for the states in which we operate. We are proud to report 5 consecutive quarters of revenue growth from our POs services from across our diverse offerings.

早在 PFOS 獲得廣泛認可之前，蒙特羅斯就投資了創新的 PFOS 處理解決方案。我們經過驗證的專利保護技術和我們的主題專家已成功降低污染水平以滿足各州和地方的要求，包括降至不可檢測水平，這意味著對於該州正在監測的所有 PFOS，他們無法再檢測到它，因為我們的技術可以根據需要調高或調低，無論閾值在哪裡，我們都處於有利地位，我們很高興這仍然是現任政府和我們開展業務的各州的優先事項。我們很自豪地報告，我們多樣化產品的採購訂單服務收入已連續 5 個季度實現成長。

Third, our international operations continue to thrive. We recently announced an award from a major public mining company in Australia supporting the world's growing demand for steel. This announcement reflects our expanding global footprint. Our commitment to helping our industry partners transition to more sustainable practices and continued demand for our services. Our long-term success fundamentally hinges on our ability to serve our over 6,000 clients. In discussions with many of our clients, one consistent theme emerges. The overwhelming majority are not changing course at this time, though they are closely monitoring policy and trade developments. We view our clients as embedded partners and aim to strengthen our relationships with them through our integrated business model, emphasis on cross selling, commitment to technology, and our focus on innovation. These elements are essential to our continued organic growth.

第三，國際業務持續蓬勃發展。我們最近宣布獲得澳洲一家大型上市礦業公司的獎項，以支持全球日益增長的鋼鐵需求。這項聲明反映了我們不斷擴大的全球影響力。我們致力於幫助我們的行業合作夥伴過渡到更永續的實踐並持續滿足我們的服務需求。我們的長期成功從根本上取決於我們為 6,000 多名客戶提供服務的能力。在與許多客戶的討論中，我們得到了一個一致的主題。儘管絕大多數國家正在密切關注政策和貿易發展，但目前它們不會改變方向。我們將客戶視為嵌入式合作夥伴，並致力於透過我們的綜合業務模式、強調交叉銷售、致力於技術以及專注於創新來加強與他們的關係。這些因素對於我們持續的有機成長至關重要。

As we think about the opportunities and risks that could drive us to either, end of the guidance range, we wanted to provide some additional context. We have considered the anticipated impacts of recent announcements from the US EPA. Changes in tariff policy and broader macroeconomic and geopolitical factors. We do not expect tariffs to meaningfully affect our margins, and our clients have been very constructive in discussions related to tariff policy. Additionally, our exposure to fluctuations in currency and interest rates is significantly hedged.

當我們思考可能促使我們達到指導範圍末端的機會和風險時，我們希望提供一些額外的背景資訊。我們已經考慮了美國環保署最近發布的公告的預期影響。關稅政策的變化以及更廣泛的宏觀經濟和地緣政治因素。我們預計關稅不會對我們的利潤率產生重大影響，我們的客戶在有關關稅政策的討論中也表現得非常有建設性。此外，我們對貨幣和利率波動的風險也得到了顯著的對沖。

Also, the impact of political dynamics on our international client relationships has been minimal and is expected to remain so thanks to our strong local presence and domestic workforce with unique technical capabilities. Based on our current visibility into 2025, we believe our guidance appropriately reflects all of these considerations. Transitioning now to prioritizing balance sheet optimization, in April, we redeemed USD60 million of the Series A2 preferred as we said we would, and we anticipate completing the redemption of the remaining USD62 million in 2025.

此外，政治動態對我們國際客戶關係的影響一直很小，而且由於我們強大的本地影響力和擁有獨特技術能力的國內勞動力，預計這種影響將持續下去。根據我們目前對 2025 年的展望，我們相信我們的指導恰當地反映了所有這些考慮。現在我們轉向優先考慮資產負債表優化，4 月份，我們按照承諾贖回了 6000 萬美元的 A2 系列優先股，預計將在 2025 年完成剩餘 6200 萬美元的贖回。

Last night, we announced Montrose's inaugural stock repurchase program. Considering the ongoing disconnect between the company's strong financial and operating performance, near and long-term outlook, and public stock valuation, the board has approved up to USD40 million in stock repurchases. We will continue to carefully evaluate options for deploying capital to maximize returns to our stockholders.

昨晚，我們宣布了蒙特羅斯的首個股票回購計畫。考慮到公司強勁的財務和經營業績、近期和長期前景以及公開股票估值之間持續存在的脫節，董事會已批准高達 4,000 萬美元的股票回購。我們將繼續仔細評估資本部署方案，以最大限度地提高股東回報。

Next, I want to address our commitment to enhancing margins and our expectation for EBITA margin improvement this year. Our approach has 3 primary components. First, we expect to leverage our existing back-office infrastructure to support continued growth. Second, by optimizing processes and implementing automation, we expect to improve operating efficiency. Third, we expect segment margins to align with our stated long-term targets with most of the benefit coming from the remediation and reuse segment.

接下來，我想談談我們對提高利潤率的承諾以及對今年 EBITA 利潤率提高的期望。我們的方法有三個主要組成部分。首先，我們希望利用現有的後台基礎設施來支援持續成長。其次，透過優化流程和實施自動化，我們希望提高營運效率。第三，我們預期各部門的利潤率將與我們所述的長期目標保持一致，其中大部分收益來自修復和再利用部門。

In short, we delivered what we said we would. We reported strong 1st quarter results. We progressed our capital allocation strategy. We improved operating and cash flow generation. We are well on track for high single digit organic revenue growth. And we continue to enhance EBITDA margins, which is evident from our raised IBITA guidance. All this while remaining true to our vision for planet and for progress. 2025 is off to an excellent start, and we do expect momentum to continue. With that, I'll hand it over to Alan. Thank you.

簡而言之，我們兌現了我們的承諾。我們報告了強勁的第一季業績。我們推進了資本配置策略。我們改善了營運和現金流的產生。我們正朝著高個位數有機收入成長的目標穩步前進。我們將繼續提高 EBITDA 利潤率，這從我們提高的 IBITA 指導中可以看出。這一切都忠於我們對地球和進步的願景。 2025 年已經有了一個良好的開端，我們確實期待這種勢頭能持續下去。說完這些，我就把它交給艾倫。謝謝。

Thanks, Vijay. We delivered an exceptional performance in the 1st quarter as we continue to maintain our focus and deliver on our stated objectives. Our strong results were driven by robust organic growth from cross-selling momentum and expanding customer relationships, along with the positive contributions from our highly accretive M&A activities in the prior year. Moving to our revenue performance, our first quarter revenue increased to a first quarter record of USD177.8 million, a 14.5% increase compared to USD155.3 million in the prior year period. The primary drivers of growth in the 1st quarter were strong organic growth in our remediation and reuse and measurement and analysis segments, plus contributions from acquisitions.

謝謝，維傑。由於我們繼續保持專注並實現既定目標，我們在第一季取得了出色的業績。我們的強勁業績得益於交叉銷售勢頭和不斷擴大的客戶關係帶來的強勁有機增長，以及上一年高增值的併購活動帶來的積極貢獻。從我們的營收表現來看，我們第一季的營收增至創紀錄的 1.778 億美元，比去年同期的 1.553 億美元成長了 14.5%。第一季成長的主要動力是我們的修復和再利用以及測量和分析部門的強勁有機成長，以及收購的貢獻。

Partially offset by a reduction in assessment, permitting, and response segment revenue due to several larger projects in the prior year period, that did not repeat and lower environmental emergency response revenues. The consolidated revenue increase resulted in our highest ever first quarter consolidated adjusted EBITDA of USD19 million. A 12.5% increase compared to USD16.9 million in the prior year period. Consolidated adjusted EBITDA as a percent of revenue in the current year quarter was 10.7% compared to 10.9% in the prior year period.

部分抵消了由於去年同期幾個較大的項目導致的評估、許可和響應部門收入的減少，這些項目沒有重複並降低了環境緊急應變收入。合併收入的成長使我們第一季合併調整後 EBITDA 達到 1900 萬美元，創歷史新高。與去年同期的 1,690 萬美元相比成長了 12.5%。本季綜合調整後 EBITDA 佔營收的百分比為 10.7%，去年同期為 10.9%。

The 20-basis point difference was associated with normalized project margins in the APNR segment, offset by improved operating leverage in the M&A segment, and the benefit of acquisitions in 2024. I'll note that despite being lower in Q1, full year 2025 consolidated adjusted EBITDA as a percentage of revenue is expected to be above full year 2024 due to operating leverage in our measurement and analysis segment and continued marginal improvement in the remediation and reuse segment.

20 個基點的差異與 APNR 部門的正常化專案利潤率有關，但被併購部門的營運槓桿提高以及 2024 年收購帶來的好處所抵消。我要指出的是，儘管第一季有所下降，但由於我們測量和分析部門的經營槓桿以及修復和再利用部門的持續邊際改善，預計 2025 年全年合併調整後 EBITDA 佔收入的百分比將高於 2024 年全年。

In the first quarter of 2025, diluted adjusted net income per share was USD0.07, compared to USD0.16 in the prior year period. This was primarily due to higher interest and tax expenses, and a higher weighted average diluted outstanding share count in the current quarter, partially offset by improved operating income before non-cash items. Please note that our adjusted net income per diluted share attributable to common stockholders is calculated using adjusted net income attributable to stockholders divided by fully diluted shares. We believe this net income methodology is the most helpful net income metric for Montrose and common equity investors.

2025年第一季，稀釋調整後每股淨收益為0.07美元，去年同期為0.16美元。這主要是由於本季利息和稅費支出增加以及加權平均稀釋流通股數增加，但非現金項目前營業收入的增加部分抵消了這一影響。請注意，我們調整後的歸屬於普通股股東的每股稀釋淨收益是使用調整後的歸屬於股東的淨收益除以完全稀釋股份計算得出的。我們相信，這種淨收入方法對於蒙特羅斯和普通股投資者來說是最有用的淨收入指標。

I will now discuss our first quarter performance by segment. In our assessment, permitting, and response segment, first quarter revenue was USD53.1 million compared to USD58.6 million in the prior year period. APNR segment adjusted EBITDA was USD10.6 million or 19.9% of revenue, compared to 27.8% in the prior year period. Prior year results included several larger high margin projects that did not repeat in the current year and approximately USD2 million lower emergency response revenue. Which will partially offset by a USD3 million contribution from an acquisition in 2024. Revenue and EBITDA comparisons normalized in subsequent quarters. And accordingly, we expect APNR revenue and adjusted EBITDA to be up year over year in the remaining quarters of the year. We expect long term and 2025 APNR segment adjusted even the margins to remain within a normalized 20 to 25% range.

我現在將按部門討論我們第一季的業績。在我們的評估、許可和回應部門，第一季的收入為 5,310 萬美元，而去年同期為 5,860 萬美元。APNR 部門調整後的 EBITDA 為 1,060 萬美元，佔營收的 19.9%，去年同期為 27.8%。去年的業績包括幾個較大的高利潤項目，這些項目在本年度沒有重複，緊急應變收入減少了約 200 萬美元。2024 年收購產生的 300 萬美元貢獻將部分抵銷此損失。隨後幾季的營收和 EBITDA 比較正常化。因此，我們預計今年剩餘季度 APNR 營收和調整後的 EBITDA 將年增。我們預計長期來看，2025 年 APNR 細分市場的利潤率即使經過調整也將保持在正常的 20% 至 25% 範圍內。

Turning to our measurements and analysis segment, revenue for the quarter increased 29.8% to USD59 million. We continue to experience strong organic growth across lab and field services, in addition to contributions from an acquisition in 2024. M&A segment adjusted EBITDA increased to USD13.7 million, or 23.3% of revenue, a 900-basis point margin improvement over the prior year period due to operating leverage across all business lines driven by significantly higher revenue and contributions from an acquisition in 2024. We expect long term M&A segment adjusted even the margins to remain within a normalized 18 to 22% range, with 2025 annual segment margins expected to remain elevated above the high end of the range, primarily due to business mix, project timing, and contributions from acquisitions.

談到我們的測量和分析部門，本季營收成長 29.8%，達到 5,900 萬美元。除了 2024 年收購帶來的貢獻外，我們在實驗室和現場服務方面繼續保持強勁的有機成長。併購部門調整後的 EBITDA 增至 1,370 萬美元，佔營收的 23.3%，利潤率較去年同期提高 900 個基點，這歸因於所有業務線的經營槓桿，這得益於 2024 年收購帶來的收入大幅增加和貢獻。我們預計長期併購部門調整後的利潤率仍將保持在 18% 至 22% 的正常範圍內，預計 2025 年年度部門利潤率仍將高於該範圍的高端，這主要歸因於業務組合、專案時機和收購的貢獻。

In our remediation and reuse segment, first quarter revenue increased 28.2% to USD65.7 million. Benefiting from strong organic growth in treatment technology revenue, and contributions from acquisitions in 2024 of USD5.1 million. These segments adjusted EBITDA increased to USD5.9 million, though adjusted EBITDA margin declined 80-basis points to 9%, primarily driven by business line mix in part driven by Q1 seasonality in our Canadian operations. We expect long term R&R segment adjusted EBITDA margins to be within a 20 to 25% range and are confident that R&R segment adjusted EBITDA margin will deliver year over year improvement for the balance of this year.

在我們的修復和再利用部門，第一季營收成長 28.2%，達到 6,570 萬美元。受惠於處理技術收入的強勁有機成長，以及 2024 年收購帶來的 510 萬美元貢獻。這些部門的調整後 EBITDA 增加至 590 萬美元，但調整後的 EBITDA 利潤率下降 80 個基點至 9%，這主要是受業務線組合的影響，部分原因是我們加拿大業務第一季的季節性影響。我們預計長期 R&R 部門調整後的 EBITDA 利潤率將在 20% 至 25% 的範圍內，並有信心 R&R 部門調整後的 EBITDA 利潤率將在今年剩餘時間內實現逐年改善。

Moving to our cash flow and capital structure. We achieved our highest ever first quarter net cash provided by operating activities of USD5.5 million compared to net cash used in operating activities of USD22 million in the prior year period. The significant USD27.5 million increase related to improvements in working capital, primarily accounts receivable and contract assets. I am pleased to report that we are on track to significantly outperform 2024 and expect to achieve cash flow from operations greater than 50% of consolidated adjusted EBITDA in 2025. We were also pleased with the strength of our balance sheet at quarter end, reporting a leverage ratio of 2.2 times and substantial liquidity of USD294.2 million following the refinancing of our senior credit facility in Q1, which, as you recall, is larger and on more favorable terms than the previous credit facility.

轉向我們的現金流和資本結構。我們第一季的營業活動淨現金達到了歷史最高水平，為 550 萬美元，而去年同期的營業活動淨現金為 2,200 萬美元。2,750 萬美元的大幅增加與營運資本的改善有關，主要是應收帳款和合約資產。我很高興地報告，我們預計將大幅超越 2024 年的表現，並預計 2025 年的營運現金流量將超過合併調整後 EBITDA 的 50%。我們也對季度末資產負債表的強勁表現感到滿意，報告顯示，在第一季對高級信貸額度進行再融資之後，槓桿率為 2.2 倍，流動性充裕，達到 2.942 億美元。您還記得，這次再融資比之前的信貸額度更大、條件更優惠。

Last quarter, we provided an update on the previously disclosed delayed refuvals from a large project related to a US Navy-owned facility fire for the city of Tustin, California. As of yesterday, the remaining amount Tustin owes Montrose is approximately USD7.5 million compared to USD13.5 million as reported in February of this year, with the difference of USD6 million being collected after the first quarter end and therefore was not included in the reported first quarter operating cash flow. We continue working collaboratively with Tustin and remain confident in the full collectability of the outstanding balance.

上個季度，我們提供了先前披露的與美國海軍所屬加州塔斯汀市設施火災有關的大型項目的延遲拒絕的最新消息。截至昨日，Tustin 欠 Montrose 的剩餘金額約為 750 萬美元，而今年 2 月報告的數字為 1350 萬美元，其中 600 萬美元的差額是在第一季末收取的，因此未計入報告的第一季度經營現金流。我們將繼續與 Tustin 合作，並堅信能夠完全收回未償餘額。

Subsequent to quarter end, we redeemed USD60 million of the Series A2 preferred stock in cash. Funded with cash on hand and borrowings under our credit facility. In the near term, we will continue to prioritize balance sheet simplification through the redemption of the remaining Series A2 preferred stock and subsequent deleveraging. While balancing potential stock repurchases. Optimizing our capital structure and leverage are integral parts of our strategy to maximize our financial flexibility.

季度末之後，我們以現金贖回了 6,000 萬美元的 A2 系列優先股。資金來源包括庫存現金和我們的信貸額度下的借款。短期內，我們將繼續透過贖回剩餘的 A2 系列優先股和隨後的去槓桿來優先簡化資產負債表。同時平衡潛在的股票回購。優化我們的資本結構和槓桿是我們最大限度地提高財務靈活性的策略的重要組成部分。

Looking forward, we will be measured in how we allocate capital to stock repurchases, investments to drive organic growth, and future M&A, which remains a core part of our long-term growth story. Overall, we are very pleased with the momentum across our business and our strong start to the year. We remain focused on our strategic objectives to enhance our margin profile, generate strong cash flows, and continue to simplify our capital structure through the redemption of the remaining USD62 million of our outstanding preferred stock. Our increased guidance for the year reflects the confidence in our ability to continue driving value in our business and the many tailwinds we see. Thank you all for joining us today and for your continued interest in Montrose. We look forward to the opportunities we see ahead and updating you on our progress next quarter.

展望未來，我們將衡量如何將資本分配給股票回購、推動有機成長的投資以及未來的併購，這仍然是我們長期成長故事的核心部分。總體而言，我們對整個業務的發展勢頭和今年的強勁開局感到非常滿意。我們將繼續專注於我們的策略目標，以提高我們的利潤率，產生強勁的現金流，並透過贖回剩餘的 6,200 萬美元未償還優先股來繼續簡化我們的資本結構。我們提高今年的指導價反映了我們對繼續推動業務價值的能力的信心以及我們看到的許多順風因素。感謝大家今天的參與以及對蒙特羅斯的持續關注。我們期待未來的機遇，並在下個季度向您通報我們的進展。

Operator, we are ready to open the lines to questions.

接線員，我們已經準備好回答您的問題了。

Thank you. We'll now begin the question-and-answer session. Ask a question, you may press then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then 2. At this time, we'll pause momentarily to assemble our roster. And our first question comes from. Tim Mulroney from William Blair, please go ahead.

謝謝。我們現在開始問答環節。提出問題，然後按按鍵電話上的 1。如果您使用的是揚聲器電話，請在按下按鍵之前拿起聽筒。若要撤回您的問題，請按星號，然後按 2。此時，我們將暫時暫停以整理我們的名冊。我們的第一個問題來自。請威廉布萊爾 (William Blair) 的 Tim Mulroney 發言。

Vijay and Allen, good morning.

維杰和艾倫，早安。

Hey Tim, how are you?

嘿，蒂姆，你好嗎？

Doing well, thank you. So, a couple questions for me the first one, you know just want to have a broader conversation on this topic of deregulation. We recently saw Lee Zeldin's list of top priorities for environmental deregulation at the EPA. I guess I'm curious if you've had a chance to review those 31 proposed actions as well, things like reconsidering the quad regulations or the math regulations, for example. How do you think about the potential risks and maybe opportunities, associated with this list of priorities?

一切都好，謝謝。所以，我有幾個問題，第一個問題，你知道，我只是想就放鬆管制這個主題進行更廣泛的討論。我們最近看到了李‧澤爾丁 (Lee Zeldin) 列出的美國環保署放鬆環境管制的首要任務清單。我想我很好奇您是否也有機會審查這 31 項提議的行動，例如重新考慮四邊形規則或數學規則。您如何看待與該優先事項清單相關的潛在風險和機會？

Yeah, Tim, that's a great question. Why don't I take that in now and can certainly jump in? I think there's kind of two dynamics I want to make sure I highlight. The first is being able to understand and predict where the administration's going to go with the deregulatory agenda, and that's been a little bit of an interesting dance. The word reconsider, right, which is embedded in a lot of what was in that release is critical because what it suggests and what we know is that there is a significant amount of statutory support for a lot of these regulations and to unwind that is going to be quite challenging. And so, from a legal perspective, we don't believe that any of this is going to be quick. And I would pivot to a little bit of a more impactful dynamic that we are seeing, which is that as we engage with our clients who are intimately tied in to understanding and interpreting the deregulatory agenda, they are largely staying the course, and the reason for that, Tim, is the planning cycles tend to be longer. There's a clear understanding that this is still the law and as a result from a compliance and liability perspective, it's going to be important. And state regulations are increasingly meaningful. And so this is very consistent with a lot of what we talked about at the end of last year following the election of President Trump. Our general belief is that the demand cycle will sustain and that any changes, even with a pretty strong deregulatory emphasis, will take time. What we're really encouraged to see is that that is certainly manifesting. Even with the announcements, demands remain strong and our clients are staying the course, and you can kind of see that in our results. It's not just us saying it, but it's showing up in the financials. And candidly as we look out through the rest of 2025, we're expecting that demand cycle to continue.

是的，提姆，這是一個很好的問題。我為什麼不現在就接受這一點並立即採取行動？我認為有兩種動態是我想要強調的。首先是能夠理解並預測政府將如何實施放鬆管制議程，這是一個有點有趣的過程。「重新考慮」這個詞在新聞稿的許多內容中都有體現，它至關重要，因為它表明，而且我們知道，許多此類法規都得到了大量法定支持，而要取消這些法規將非常具有挑戰性。因此，從法律角度來看，我們認為這一切都不會很快完成。我想談談我們所看到的更有影響力的動態，那就是當我們與那些與理解和解讀放鬆管制議程密切相關的客戶接觸時，他們基本上會堅持到底，蒂姆，這是因為規劃週期往往更長。人們清楚地認識到這仍然是法律，因此從合規和責任的角度來看，它很重要。國家法規也越來越有意義。這與我們去年年底川普總統當選後談論的許多內容非常一致。我們總體上認為，需求週期將持續下去，任何變化，即使在相當強烈的放鬆管制的背景下，都需要時間。我們真正感到鼓舞的是，這確實正在顯現。即使發布了這些公告，需求依然強勁，我們的客戶也堅持到底，您可以從我們的業績中看到這一點。這不只是我們說說而已，而且財務數據也反映了這一點。坦白說，展望 2025 年剩餘時間，我們預期需求週期將會持續下去。

Yeah, that's really helpful caller. Thanks, Vijay, and it is good to hear that. What you were kind of expecting when Trump was first elected is kind of manifesting itself through the 1st 4 or 5 months of the year. So that's good to hear. I'm going to pivot to your T&M business which came in quite a bit stronger than I expected, for the first quarter on both a revenue and the margin front. I'm curious if there's anything to call out here, like any particular business line or and market that's really picked up lately, we just love to hear more about what's going on in this business.

是的，這確實很有幫助，來電者。謝謝，維傑，很高興聽到這個消息。川普首次當選時你所期待的事情在今年前 4 或 5 個月就顯現出來了。聽到這個消息我很高興。我將把重點轉向您的 T&M 業務，該業務第一季的營收和利潤率都比我預期的要強勁得多。我很好奇這裡是否有任何值得關注的事情，例如最近真正復甦的任何特定業務線或市場，我們只是喜歡聽到有關這個行業正在發生的事情。

Yeah, you're talking about sorry when you say TNM Tim, you're talking about our measurement.

是的，當您說 TNM Tim 時，您是在說抱歉，您在談論我們的測量。

Yeah, our measurement analysis, yeah, thank you.

是的，我們的測量分析，是的，謝謝。

Yeah, sorry, yeah, I would, that is very much in line with what we just talked about, in terms of regulation, right, how our clients who are primarily private sector think about compliance and risks. And the long term nature of a lot of our relationships. There is actually no singular driver of this. We are seeing really nice demand across multiple lines of our business, particularly the parts that are higher margin, and you're starting to see that now in our measurement analysis segment as we think about a 5 year or 6 year outlook, Tim, we've always talked about that segment being around 20%, right, plus minus depending on. A service line mix and that long term outlook certainly holds, but the current performance is just a function of continued operating efficiency and sustained demand across effectively all levers within that business. So no, there is no one singular driver that is just sustained tailwinds.

是的，抱歉，是的，我會的，這與我們剛才談到的監管方面非常一致，對，我們的客戶主要是私營部門，他們如何看待合規性和風險。我們的許多關係都具有長期性。事實上，造成這現象的因素並不單一。我們看到我們業務的多個領域都有非常好的需求，特別是利潤率較高的部分，現在您開始在我們的測量分析部分看到這一點，當我們考慮 5 年或 6 年的前景時，蒂姆，我們一直在談論該部分的增長速度在 20% 左右，對吧，正負取決於。服務線組合和長期前景肯定成立，但當前的表現只是持續營運效率和該業務內所有槓桿的持續需求的函數。所以，不存在單一的驅動因素，也就是持續的順風。

Okay, thanks so much. I'll hop back into you.

好的，非常感謝。我會跳回你身邊。

Thanks Tim.

謝謝蒂姆。

The next question comes from Jim Richuddy from Needham. Please go ahead.

下一個問題來自尼德姆的 Jim Richuddy。請繼續。

Hi, good morning, this is Chris Grenga on for Jam. Okay Hi, you had mentioned, a few, drivers of the margin, expansion that you expect for the balance of the year just wondering if you could elaborate on those and. Just get a little bit more specific about which operational improvements, makeshift and trends you anticipate that to drive that projective margin expansion for the balance of 2025.

大家早安，我是 Chris Grenga，為 Jam 節目做報告。好的，您提到了一些預計今年剩餘時間利潤率會有所增長的驅動因素，能否詳細說明一下？請更具體地說明一下，您預計哪些營運改善、臨時措施和趨勢將推動 2025 年剩餘時間的預期利潤率擴張。

Yeah, as we think about Chris, as we think about long term margins and in particular kind of the outperformance in Q1 and our increased bullishness on the rest of the year, there's kind of two broad dynamics, I think that are important to highlight. One is that our demand cycles across multiple lines of our business, as I was mentioning to Tim, but across all segments, not just within our testing segment, remain very strong. And so whether it's our AP and our consulting, Business, whether it's our M&A testing business or remediation reuse on the treatment side, as there's increased regulatory clarity on the federal side as we're starting to see where the administration's going as states become more clear on how they're going to respond as our clients start to take A firmer positions on how they're going to plan going forward, we start to see the benefits of all of that. So I think part of our long term optimism is coming from the top line side, which is sustained demand. We are also seeing the benefits of improved operating effectiveness, whether that's in the realm of continued cross sell success, continued pricing optimization, continued operating leverage, and then the normalization of our segment margins towards what we would consider a long term.

是的，當我們考慮克里斯時，當我們考慮長期利潤率，特別是第一季的優異表現以及我們對今年剩餘時間的看漲情緒增強時，我認為有兩種廣泛的動態值得強調。一是，正如我向蒂姆提到的那樣，我們的需求週期涵蓋我們業務的多個領域，但所有領域（而不僅僅是測試領域）的需求仍然非常強勁。因此，無論是我們的 AP 和諮詢業務，無論是我們的併購測試業務還是治療方面的補救重用，隨著聯邦方面的監管越來越清晰，我們開始看到政府的走向，隨著各州越來越清楚他們將如何應對，隨著我們的客戶開始對如何規劃未來採取更堅定的立場，我們開始看到所有這些的好處。因此，我認為我們長期樂觀情緒的一部分來自於營收方面，也就是持續的需求。我們也看到了營運效率提高的好處，無論是在持續的交叉銷售成功、持續的定價優化、持續的營運槓桿，還是在我們考慮的長期目標範圍內實現部門利潤率的正常化。

Run rates, all of that is starting to come to fruition and as a result it's kind of a multifaceted benefit cycle for us, but we are feeling really good about what as a result what the rest of the year holds and why on the EBEDA side we're effectively projecting a higher EBITDA and therefore higher margins.

運行率，所有這些都開始實現，因此這對我們來說是一個多方面的利益週期，但我們對今年剩餘時間的前景感到非常滿意，為什麼在 EBEDA 方面我們有效地預測了更高的 EBITDA，因此利潤率也會更高。

Got it. Thank you. That's very helpful. And then it also it also mentioned that you're having constructive dialogue with your clients around their potential tariff exposure just curious which areas of the business or where in the areas where the clients are interfacing with you, where do they see the potential for tariffs to impact that interface, the most.

知道了。謝謝。這非常有幫助。然後它還提到，您正在與客戶就他們的潛在關稅風險進行建設性對話，只是好奇客戶在哪些業務領域或哪些領域與您進行交互，他們認為關稅在哪些方面對該介面的影響最大。

Yes, I think the way I would characterize that, Chris, is we expect tariffs to have a minimal de minimis impact on our business at this time, and all of our guidance, expectations, and the numbers we've provided incorporate our expectations on any potential impact of tariffs. So as a business, it is not really it's something we're paying a lot of attention to, but it is not something we expect will have a meaningful impact. The reason it's important to highlight our client perspectives is that they face. Many of them in the automotive, industrial, energy side, for example, among many others, are clearly very staying very close to changes in US policy and changes to policies in the countries in which we operate. And as a result, when I say we're, they're being very constructive, they are, they understand that the same pressures they face on predicting what the impact will be on price and cost are ones we may face, and it's been constructive in the sense that not only are they not changing course, but they understand that should we need to tweak pricing or pass through cost, that's an optionality we will need to keep, and they've been open to that as well.

是的，克里斯，我認為我會這樣描述，我們預計關稅目前對我們的業務的影響微乎其微，我們提供的所有指導、預期和數據都包含了我們對關稅任何潛在影響的預期。因此，作為一家企業，這並不是我們真正關注的事情，但我們也不指望它會產生有意義的影響。強調客戶的觀點之所以重要是因為他們面臨。例如，汽車、工業、能源等領域的許多企業顯然都非常關注美國政策的變化以及我們經營所在國家的政策變化。因此，當我說他們非常有建設性時，他們明白，他們在預測價格和成本的影響時面臨的壓力也是我們可能面臨的壓力，這是建設性的，因為他們不僅沒有改變方向，而且他們明白，如果我們需要調整價格或轉嫁成本，這是我們需要保留的一個選擇權，他們也對此持開放態度。

Great, thanks. I'll hop back in the queue.

太好了，謝謝。我會重新回到隊列中。

Again, if you have a question, please press star and then one oops sorry.

再次，如果您有疑問，請按星號，然後按“哎呀，抱歉”。

That's one to ask a question, and our next question comes from Andrew Obin from Bank of America. Please go ahead.

這是一個值得提出的問題，我們的下一個問題來自美國銀行的安德魯‧奧賓 (Andrew Obin)。請繼續。

Morning. This is David Ridley Lane on for Andrew Oban. Measurement morning your measurement and analysis business historically has had, a pretty pronounced seasonality, just, a weaker first quarter, that didn't happen this year. The results were very strong. I'm just wondering if there was something unusual this year in that segment.

早晨。大衛·里德利·萊恩 (David Ridley Lane) 為安德魯·奧班 (Andrew Oban) 報道。測量早晨，您的測量和分析業務歷史上具有相當明顯的季節性，只是第一季較為疲軟，但今年並沒有出現這種情況。結果非常強勁。我只是想知道今年該部分是否有一些不尋常的事情。

Yeah, I would say, David, it's a great question. What we are effectively seeing is a little bit of the unwind of the reticence following the election. So, as we entered the back half of 2024, as folks were trying to understand and predict who would get elected and what that would mean, there was a little bit of a pause and wait and see dynamic that was in play. And now that that clarity has increased, we're effectively back to business as usual. And so, some of this was just a catch up to the pause and wait dynamic, which is unwinding in Q1, which is certainly atypical, and we don't expect that type of unwind to occur again until the next. So, I would think of this as again a segment that should run around 20% margins for the year, but yes, we are very pleased with the sustained demand and with the performance of that segment in Q1 of this year.

是的，我想說，大衛，這是一個很好的問題。我們實際上看到的是選舉後沉默的逐漸消退。因此，當我們進入 2024 年下半年時，當人們試圖了解和預測誰會當選以及這意味著什麼時，出現了一些停頓和觀望的動態。現在，情況已經更加明朗，我們實際上已經恢復了正常業務。因此，其中一些只是對暫停和等待動態的追趕，這種動態在第一季度正在解除，這當然是不典型的，我們預計這種類型的解除要到下一季度才會再次發生。因此，我認為這個部門今年的利潤率應該在 20% 左右，但是，我們對持續的需求以及今年第一季該部門的表現感到非常滿意。

Thank you. And then you mentioned that your PFOS related revenue, which is 10 to 15% of total, continue to grow in the quarter I think you said fifth consecutive quarter, just wondering, was it additive to the organic growth of the total company and you still too much into your crystal ball, but would you say it is, additive to your organic growth for the for the foreseeable future?

謝謝。然後您提到，您的 PFOS 相關收入（佔總收入的 10% 到 15%）在本季度繼續增長，我想您說的是連續第五個季度，只是想知道，它是否會對整個公司的有機增長產生附加作用，而您仍然過於依賴水晶球，但您是否認為，在可預見的未來，它會對您的有機增長產生附加作用？

Yes, David, it was additive to our organic growth. Yes, it is additive for the foreseeable future, and the reason I'm saying that with a little bit more conviction is on April 28th you may have seen Administrator Zeldin's EPA PAS announcement. And in that you can see a clear conviction in continuing to regulate this family of compounds and molecules. And so there may be variants in the thresholds to which treatment requirements are effectively promulgated, but we are feeling really good about, and our clients are starting to see more certainty around the conviction around the regulation of these. POS compounds and as a result, whether it's on the consulting side as we think about risk and toxicology and permitting, whether it's on the testing side as our labs start to see not only on the water side but now on the air side. A PAS testing requirements and on the treatment side, which has historically been where most of Wall Street's attention has been, we are also seeing some really nice tailwinds there. We're feeling good in aggregate across all of our segments with the PFOS demand drivers, and we do expect that over the next couple of years to continue to grow nicely. I would again caution against extrapolating from any one quarter, but the long-term trends are really encouraging for us, and the recent announcement from President Trump's EPA candidly is giving us a lot of optimism and conviction.

是的，大衛，它對我們的有機成長有幫助。是的，在可預見的未來它具有附加作用，我之所以更有信心地說這一點，是因為在 4 月 28 日，您可能已經看到了管理員 Zeldin 的 EPA PAS 公告。從中你可以看出我們堅定地相信將繼續規範這一類化合物和分子。因此，有效頒布治療要求的門檻可能會有所不同，但我們對此感到非常高興，我們的客戶也開始對這些監管的信念更加確定。POS 化合物，因此，無論是在諮詢方面，當我們考慮風險和毒理學和許可時，還是在測試方面，我們的實驗室不僅開始觀察水方面，現在還觀察空氣方面。PAS 測試要求和治療方面歷來是華爾街的焦點，我們也看到了一些非常好的順風。總體而言，我們對所有受 PFOS 需求驅動的細分市場都感到滿意，並且我們預計未來幾年內該市場將繼續保持良好的成長勢頭。我再次提醒不要從任何一個季度進行推斷，但長期趨勢對我們來說確實令人鼓舞，而川普總統的環保署最近發布的聲明坦率地給了我們很大的樂觀和信心。

And the last one for me, remediation and reuse is probably your most project-based segment. Over other industrial companies and it does appear that there's just greater macro uncertainty. So maybe not tied to any specific regulatory or tariff, but just a broader macro uncertainty. Have you seen any sort of project delays, is that some consideration, for you?

對我來說，最後一個，修復和再利用可能是最基於專案的部分。與其他工業公司相比，似乎存在更大的宏觀不確定性。因此，這可能與任何特定的監管或關稅無關，而只是更廣泛的宏觀不確定性。您是否遇到過任何類型的專案延遲，這對您來說是一種考慮嗎？

No, so I would actually say macro uncertainty isn't that much more meaningful for that segment given the nature of our work, David. So no, we are not seeing that. And as I look at that segment and I look at 2024 versus 2025. Our expectation is that we will see solid growth in that segment and our margins will be at or above where they were last year. So, we are quite optimistic with that segment as well. And again, just anchoring in on our client conversations and our client dynamics, there isn't really. Much of a change in course. If you think about the type of work we do, whether it's making sure there's clean air or clean water for or clean soil for communities, macroeconomics tends to have less of an impact on the desire to get those goals, especially if contaminants are known to exist. So we've said this in the past, we're not really that exposed to economic or political fluctuations, and that is certainly manifesting as you can see in our numbers.

不，所以考慮到我們工作的性質，我實際上想說宏觀不確定性對於這個部分來說並沒有那麼重要，大衛。所以，我們沒有看到這一點。當我觀察這個片段並比較 2024 年和 2025 年。我們預計該領域將穩健成長，利潤率將達到或超過去年的水平。因此，我們對該領域也非常樂觀。再說一次，僅僅關注我們的客戶對話和客戶動態，實際上並沒有。課程發生了很大變化。如果你考慮我們所做的工作類型，無論是確保社區擁有清潔的空氣、清潔的水或清潔的土壤，宏觀經濟學往往對實現這些目標的願望影響較小，特別是在已知存在污染物的情況下。所以我們過去就說過，我們實際上並沒有受到經濟或政治波動的影響，這一點從我們的數據中就可以看出來。

Understood, thank you very much.

明白了，非常感謝。

Thanks, David.

謝謝，大衛。

And the next question is a follow up from Tim Mulroney from William Blair. Please go ahead.

下一個問題是威廉布萊爾的蒂姆馬爾羅尼的後續問題。請繼續。

Yeah, thanks for fitting me back in. I just wanted to build on that last conversation you were having around the EPA. It was good to see the comments that they made around PFOS, but I was wondering if you've seen any efforts just as we think about the Trump administration's, EPA generally. Have you seen any impacts from the efforts to reduce the workforce at the EPA? Has this impacted environmental compliance behavior and any of your clients, and we saw the White House budget proposal for a 50% cut to the EPA budget. I'm just curious how you think these workforce reductions and potential budget cuts would would translate in terms of impacting your business.

是的，謝謝你讓我回來。我只是想在您上次關於 EPA 的談話基礎上再進一步。很高興看到他們對 PFOS 發表的評論，但我想知道您是否看到了川普政府和美國環保署所做的任何努力。您是否看到環保署裁員措施產生了任何影響？這是否影響了環境合規行為和您的任何客戶？我們看到白宮預算提案將 EPA 預算削減 50%。我只是好奇，您認為這些裁員和潛在的預算削減會對您的業務產生什麼影響。

It's a great question, Tim, and it's always tough to kind of predict based on hypotheticals, but I'll just anchor back on we have very little exposure to the US federal governments spend.

提姆，這是一個很好的問題，而且根據假設進行預測總是很困難的，但我只是想強調一下，我們對美國聯邦政府的支出了解甚少。

It represents low single digit percents of our revenue, and the EPA's reduction in workforce also means that changes to regulations, which is a lot of what you asked us about earlier regarding the March 12th announcement, are also harder to then promulgate, right? So, if you don't have the staff to make all of those changes and follow the statutory requirements, those changes go slower. And so, as we talk to our private sector clients, which is where most of our activity is, they are looking at both the state level dynamics, which talks to compliance requirements, and state requirements where they operate in addition to federal. And they think about the longer-term implications of making sure they follow the law and stay consistent with their compliance commitments. And so none of that has changed for them, and the EPA's reduction in workforce just makes it that much harder to make a lot of the changes that are in flight. And as a result, we haven't seen much change in behavior and we don't really candidly expect to see much of that as we look through the rest of this year and potentially next.

它只占我們收入的個位數百分比，而且美國環保署裁員也意味著法規的變更（您之前就 3 月 12 日公告詢問過很多內容）也更難頒布，對嗎？因此，如果您沒有足夠的員工來進行所有這些變更並遵守法定要求，那麼這些變更的進度就會比較慢。因此，當我們與私營部門客戶（我們的大部分活動都在這裡）交談時，他們除了關注聯邦政府的要求外，還會關注州一級的動態（涉及合規性要求）和他們運營所在地的州的要求。他們考慮的是確保遵守法律並始終履行合規承諾的長期影響。因此，對他們來說，這一切都沒有改變，環保署裁員只會讓正在進行的許多變革變得更加困難。因此，我們沒有看到行為上發生太大變化，坦白說，展望今年剩餘時間以及明年，我們也不指望會看到太多這樣的變化。

Okay, thank you. I wanted your perspective on that maybe since we haven't heard from Alan very much, I could throw one his way, Alan, we, after you pay off the remainder of the preferred instrument later this year, what do you expect the leverage ratio to be at the end of the year after that happens? And what is the leverage ratio target that you'd like to achieve you know before returning to the M&A market?

好的，謝謝。我想聽聽你對此的看法，因為我們很少聽到艾倫的消息，所以我可以問他一個問題，艾倫，在你在今年晚些時候還清優先工具的剩餘款項後，你預計到年底的槓桿率會是多少？在重返併購市場之前，您希望實現的槓桿率目標是多少？

Yeah, thanks, Tim. So, we expect we're going to be at 3 or under, leverage ratio by the end of the year, like the under 3, after the redemption of the final USD62 million of the prev. As we then look out long term, what we've said is our preference is to be below 3.25% with continuing acquisitions. We are willing to spike up above that up to 3.5 for a larger strategic deal, but that's not where we want to operate on an ongoing basis. So we're going to target under 3.25% with acquisitions. Cash flow generation will be strong this year. We expect it will continue to be strong as we look out over the next several years, and that will enable us to keep leverage low while getting back to the M&A trail.

是的，謝謝，提姆。因此，我們預計，在贖回之前的最後 6,200 萬美元後，到今年年底，槓桿率將達到 3 或以下，例如 3 以下。從長遠來看，我們傾向於將利率控制在 3.25% 以下，並持續進行收購。為了達成更大的策略交易，我們願意將比例提高到 3.5 以上，但這不是我們希望持續進行的水平。因此，我們的收購目標定為 3.25% 以下。今年的現金流產生將會強勁。我們預計，未來幾年它將繼續保持強勁勢頭，這將使我們能夠在重回併購之路的同時保持低槓桿率。

Okay. Thank you, guys.

好的。謝謝你們。

Thanks, Tim.

謝謝，蒂姆。

There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Vijay Manthripragada for any closing remarks.

隊列中沒有其他問題。我們的問答環節到此結束。我想將會議交還給 Vijay Manthripragada 並請他作最後發言。

Thank you very much and thank you to all of you for your interest in Montrose and for your continued support. We're feeling really good about the year and we're quite excited about continuing to share our progress and we look forward to the next quarterly update. Thanks again and be well.

非常感謝大家對蒙特羅斯的關注和持續的支持。我們對今年感到非常滿意，我們很高興能夠繼續分享我們的進展，並期待下一次季度更新。再次感謝並祝一切安好。

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。