Shares of Montrose Environmental Group (NYSE: MEG) surged 7.24% on Wednesday, following the release of its first-quarter 2025 financial results that exceeded analyst expectations, the announcement of a new stock repurchase program, and increased full-year guidance.

The environmental services company reported quarterly adjusted earnings of $0.07 per share, significantly beating the analyst consensus estimate of $(0.48). Montrose's quarterly revenue also impressed, coming in at $177.80 million, surpassing the analyst estimate of $168.12 million and marking a 14.47% increase year-over-year. The strong performance was attributed to robust growth across the company's business segments.

Adding to investor optimism, Montrose Environmental Group announced its inaugural stock repurchase program of up to $40.0 million, signaling confidence in the company's financial position and commitment to enhancing shareholder value. Furthermore, the company reaffirmed its expected full-year 2025 revenue and increased its guidance, with adjusted EBITDA now projected to be in the range of $103-110 million. These factors combined to drive the substantial stock price increase, as investors responded favorably to the company's strong performance and optimistic outlook.