Onterris Restores Earnings Growth After Emergency-Response Drop

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue was $203.0 million as a $45.4 million prior-year recovery event did not recur, while Adjusted EBITDA hit a record $35.9 million.

Onterris, Inc. (ONT), a global environmental solutions company, reported third-quarter revenue of $203.0 million, down $21.8 million from $224.9 million a year earlier, as a single large environmental emergency-response and recovery event that generated $45.4 million of revenue in the prior-year quarter did not recur.

Excluding that event, the company said consolidated revenue increased approximately $23.6 million, or 13.1%. Net Service Revenue, which the company defines as revenue less subconsultants and non-labor direct costs, rose to $162.5 million from $160.5 million. Emergency response revenue was $17.0 million.

Profitability moved the other way. Income from operations increased to $12.3 million from $9.9 million, which the company attributed to higher margins from improved project mix and operating efficiencies, and to lower amortization and corporate costs, more than offsetting lower reported revenue. Net income rose to $9.0 million, or $0.24 a share, from $8.4 million, or $0.21 a share. Adjusted Net Income increased to $21.3 million, or $0.56 a share, from $14.2 million, or $0.36 a share.

Consolidated Adjusted EBITDA reached a record $35.9 million, or 17.7% of revenue, up from $33.7 million, or 15.0% of revenue, a 270-basis-point margin improvement the company tied to lower corporate and other costs and improved profitability in Consulting and Treatment. Sequentially, revenue rose from $186.7 million in the second quarter, and Adjusted EBITDA rose from $31.9 million, with the margin at 17.1% in that period.

Consulting and Treatment, the larger reportable segment, posted revenue of $142.0 million and segment Adjusted EBITDA of $30.8 million, versus $161.9 million and $29.8 million a year earlier. Measurement and Analysis revenue was $61.1 million, with segment Adjusted EBITDA of $16.0 million, versus $63.0 million and $17.3 million.

Third-quarter operating cash flow increased 46% to $40.9 million from $28.1 million, reducing leverage under the 2025 Credit Facility to 2.9 times from 3.2 times at June 30, 2026. Total available liquidity was $192.0 million, including $20.1 million of cash and $171.9 million of revolving-line availability.

The company completed three small tuck-in acquisitions in the second half of 2026 and said it expects to continue the acquisition strategy while maintaining leverage goals. President and Chief Executive Officer Vijay Manthripragada said the company now ranks fifth in ENR’s global ranking of top environmental firms and, based on commercial and operational initiatives underway, expects compound annual growth in revenue and Adjusted EBITDA of about 15% and about 25%, respectively, through 2030.

Onterris reiterated full-year 2026 guidance after cutting it in August. The company continues to expect at least 150 basis points of margin expansion versus 2025 at the midpoints, conversion of 60.0% of full-year Consolidated Adjusted EBITDA into operating cash flow, $30.0 million to $40.0 million of operating cash flow in the fourth quarter, and year-end 2026 leverage of approximately 2.5 times, including $13.9 million of acquisition funding, $30.0 million of share repurchases and $15.2 million of expected contingent consideration payments in 2026.

A Board-led strategic review announced August 5 remains ongoing. The company said it has engaged with a number of strategic and financial parties and has retained Evercore and AEC Advisors as financial advisors and Kirkland & Ellis as legal counsel. The board has not set a timetable, and Onterris said there can be no assurance the process will result in any transaction.