Shares of Montrose Environmental Group (MEG) plunged 6.81% in pre-market trading on Friday, February 28, 2025, as the company's fourth-quarter earnings call raised concerns over potential project delays and cash flow issues.

During the call, Montrose's CFO Allan Dicks revealed that invoicing delays associated with a large project for the City of Tustin, California, led to a significant increase in accounts receivable and a lower-than-expected cash flow from operations in 2024. While the company expressed confidence in the full collectability of the outstanding balance of approximately $13.5 million, investors seemed concerned about the impact on Montrose's near-term cash position.

Additionally, some analysts questioned the company's ability to maintain its strong organic growth and margin expansion trajectory, given the potential impact of project timing changes and macroeconomic factors. While Montrose reiterated its guidance for 7-9% organic growth and EBITDA margin expansion in 2025, the uncertainty around project timelines and cash flow weighed on investor sentiment.