Onterris' (ONT) outlook weakened as the environmental-services company cut its 2026 EBITDA guidance, with deregulation and softer emergency-response activity likely to keep pressure on results, BofA Securities said Thursday in a report.

Federal and state regulatory waivers, along with fewer emergency-response events, drove the guidance reductions, and the current federal deregulatory environment may prompt private-sector clients to delay environmental-spending decisions, creating a tougher demand backdrop for consulting, testing and compliance work, the report said.

Emergency-response revenue remains volatile, and management has cited it as a drag in five of the past eight quarters, BofA said.

Onterris launched a board-led strategic review, including alternatives such as evaluating interest in the company and other value-creating transactions. It also adopted a stockholder rights plan in response to "significant undisclosed" purchases of its shares and derivatives.

"Past strategic reviews within our coverage have not always led to value creation," BofA said.

BofA downgraded its rating on Onterris stock to underperform from neutral and lowered its price objective to $18 from $31.

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