Onterris Lowers Full-Year Guidance Amid Falling Emergency Response Revenue
The environmental services provider reduced its 2026 revenue forecast to a range of $740.0 million to $790.0 million
Onterris (ONT), an environmental services provider, reported a decline in second-quarter revenue and lowered its full-year financial outlook. The company attributed the results to a reduction in demand for environmental emergency response and related recovery services.
Revenue for the second quarter fell to $186.7 million from $234.5 million in the prior-year period, a decrease of $47.9 million. Net income dropped to $1.4 million, or $0.04 a share, compared to $18.4 million, or $0.42 a share, in the second quarter of 2024. Adjusted net income decreased to $19.6 million, with adjusted earnings per share falling to $0.51 from $0.60.
The decline was driven largely by the Consulting and Treatment segment, where revenue fell by $46.2 million year-over-year. The Measurement and Analysis segment also saw a decrease in revenue of $1.7 million.
Despite the drop in absolute EBITDA to $31.9 million from $39.6 million, the company's consolidated adjusted EBITDA margin expanded slightly to 17.1% from 16.9%. The margin improvement resulted from cost optimization efforts.
The company lowered its full-year 2026 revenue guidance to between $740.0 million and $790.0 million, down from a previous range of $840.0 million to $900.0 million. This adjustment reflects expected losses of $35 million to $55 million in pass-through revenue and $35 million to $45 million in emergency response revenue. Full-year consolidated adjusted EBITDA guidance was also reduced to a range of $117.0 million to $120.0 million.
At the midpoint, the company expects a full-year EBITDA margin of 15.5%, which represents a 150 basis point expansion over 2025 and 50 basis points above the original 15% guidance.
Cash flow from operating activities for the six months ended June 30 was a net use of $5.5 million, compared to $27.4 million provided in the same period last year. Bonus payments of $27.7 million for 2025 outperformance were the primary cause for the shift.
Onterris announced a Board-led strategic review of its business and portfolio and adopted a one-year limited-duration stockholder rights plan effective through August 4, 2027. The company also repurchased 1.6 million shares of common stock for $30.0 million during the first half of 2026.