Montrose Environmental Group Fully Redeems Series A-2 Preferred Stock

LITTLE ROCK, Ark.--(BUSINESS WIRE)--Montrose Environmental Group, Inc. (the “Company,” “Montrose” or “MEG”) (NYSE: MEG), is on a mission to help protect the air we breathe, the water we drink, and the soil that feeds us, and aims to enhance environmental stewardship and economic development. Montrose today announced that on July 1, 2025, the Company fully redeemed all remaining issued and outstanding shares of Series A-2 Preferred Stock held by an affiliate of Oaktree Capital (“Oaktree”).

The Company used cash on hand and borrowings under its 2025 Credit Facility to redeem the outstanding stated value of Series A-2 Preferred Stock of $62.2 million and to pay $1.4 million of accrued and unpaid dividends thereon through the redemption date.

Following this redemption, no shares of the A-2 Preferred stock remain outstanding and Oaktree no longer has the right to appoint a member to the Company’s Board of Directors.

"The continued strength of Montrose's operating performance gave us the ability to voluntarily redeem this preferred equity instrument in order to minimize dilution to our stockholders almost a year ahead of Oaktree’s next conversion date, while maintaining our flexibility to continue investments in organic and inorganic growth. In November 2024, we conveyed strong confidence in our outlook, our desire to further simplify our balance sheet, and our intent to continue maximizing shareholder returns without deviating from our strategy. Today, we simplified our balance sheet ahead of original expectations, and we remain very confident in our outlook," said Vijay Manthripragada, President and Chief Executive Officer of Montrose. “We appreciate all of Oaktree’s support over the years, and we are grateful for their confidence in our management team and our strategy. With this redemption now complete, we are well-positioned to further invest in our business, drive strategic growth, and increase long-term value for our stockholders.”

About Montrose

Montrose is a leading environmental solutions company focused on supporting commercial and government organizations as they deal with the challenges of today and prepare for what's coming tomorrow. With ~3,400 employees across 120 locations worldwide, Montrose combines deep local knowledge with an integrated approach to design, engineering, and operations, enabling Montrose to respond effectively and efficiently to the unique requirements of each project. From comprehensive air measurement and laboratory services to regulatory compliance, environmental emergency response, permitting, engineering, and remediation, Montrose delivers innovative and practical solutions that keep its clients on top of their immediate needs – and well ahead of the strategic curve. For more information, visit www.montrose-env.com.

Forward‐Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as "intend," "expect", and "may", and other similar expressions that predict or indicate future events or that are not statements of historical matters. Forward-looking statements are based on current information available at the time the statements are made and on management's reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company's control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Additional factors or events that could cause actual results to differ may also emerge from time to time, and it is not possible for the Company to predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2024, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.