Overview

• US environmental solutions firm's Q1 revenue fell 5% yr/yr, missing analyst expectations

• Net loss narrowed on improved operating efficiency despite lower revenue

• Company reiterated full-year 2026 guidance and completed rebranding to Onterris

Outlook

• Onterris sees 2026 revenue between $840 mln and $900 mln, unchanged from prior guidance

• Company expects 2026 Consolidated Adjusted EBITDA of $125 mln to $130 mln, unchanged

• Onterris expects Q2 revenue between $190 mln and $210 mln

Result Drivers

• LOWER EMERGENCY RESPONSE REVENUE - Co said Q1 revenue decline was mainly due to reduced environmental emergency response activity

• SEVERE WINTER WEATHER - Co said unseasonably severe winter weather in North America limited field activity and delayed lab volumes

• OPERATING EFFICIENCY - Co attributed improved net loss to continued operating efficiency gains, especially in Consulting and Treatment segment

Company press release: ID:nBwby0yLa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the environmental services & equipment peer group is "buy"

• Wall Street's median 12-month price target for Onterris Inc is $35.00, about 58.6% above its May 5 closing price of $22.07

• The stock recently traded at 90 times the next 12-month earnings vs. a P/E of 38 three months ago

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