Montrose Environmental secures 5-year contract with major energy firm

CALGARY - Montrose Environmental Group, Inc. (NYSE:MEG), a growing environmental services company with 17.78% year-over-year revenue growth and a market capitalization of $966 million, has been awarded a 5-year contract with one of the world’s largest energy companies to manage environmental remediation of legacy oil and gas assets across Western Canada, according to a press release statement. InvestingPro analysis suggests the company is currently undervalued, with strong financial metrics including a healthy current ratio of 1.78.

The contract involves dozens of sites throughout Western Canada, including aging gas fields, well sites, pipelines and decommissioned sour gas facilities, some dating back to the 1950s. Montrose will conduct site assessment, groundwater modeling, and reclamation work to address contamination from decades-old industrial activity.

"At Montrose, our work is about more than regulatory compliance—it’s about helping communities reclaim clean water, safe land, and a healthier environment," said Brian Lapos, Senior Vice President, Canada Consulting at Montrose Environmental Group.

The environmental services company has been working with the client since 2018 to transition its Canadian legacy oil and gas assets toward regulatory closure and environmental renewal, building on a relationship that spans more than 20 years. The company’s stock has shown remarkable momentum, posting a 54.57% return over the past six months, according to InvestingPro data, which offers 8 additional exclusive insights about MEG’s performance and prospects.

The remediation project aims to remove legacy hydrocarbon and salt contamination that can affect drinking water wells and agricultural lands. The work will also involve protecting native ecosystems and wildlife habitats.

As part of the project, Montrose will hire and support local Canadian subcontractors across rural and remote areas, potentially contributing to regional economic development.

Montrose Environmental Group employs approximately 3,400 people across more than 100 locations worldwide, providing services in air measurement, laboratory testing, regulatory compliance, emergency response, permitting, engineering, and remediation. While analysts expect improved profitability this year, investors seeking deeper insights can access the comprehensive Pro Research Report available exclusively on InvestingPro, offering detailed analysis of MEG’s financial health, growth prospects, and market position among 1,400+ top US stocks.

In other recent news, Montrose Environmental Group reported strong financial results for the second quarter of 2025. The company’s earnings per share (EPS) stood at $0.63, significantly outperforming the anticipated -$0.18. Revenue also exceeded projections, reaching $234.5 million, compared to the forecasted $188.72 million. This indicates a positive financial performance for Montrose. These developments come amid a period of increased investor interest, as evidenced by the stock’s reaction to the earnings announcement. Analysts had not anticipated such a robust performance, which underscores the company’s current financial health. The earnings results have drawn attention from various investment firms, though no specific upgrades or downgrades have been reported. These recent developments highlight Montrose’s ability to surpass market expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.