Brian Butler: Okay, great. And then, just one last one, I was just going to ask on the R&R business. X-Matrix, do you have a comparison on the EBITDA margin? I mean, was that margin up if you took Matrix out of the mix, or was there still some headwinds from the biogas?
Vijay Manthripragada: Yes, margins would have been down just slightly, Brian, and you’re exactly right. It’s the pivot in biogas. You’ll see that start to ramp really nicely, particularly in the back-half of the year. Margins in that segment will be up really nicely for the full-year, largely driven by the back-half. Yes, Brian, just stepping back, and this is why we keep really anchoring in on the quarters not being as meaningful as the full-year comparison. Just to put all this in perspective, but if you look at the midpoint of guidance, it assumes an approximately 100 basis point 1% increase in aggregate EBITDA margins. Obviously, our advisory business, we think margins will be steady in the mid-20s. On the testing side, that’s a mature business, 18% to 20%.
They’ll be steady. Really, that margin accretion you’re going to see coming from both increased operating leverage and a really nice margin accretion on the remediation reuse segment. We’ve got to watch this over time. The individual quarters will swing based on acquisitions and other variables.
Brian Butler: Great. Thank you very much for taking my questions. Nice quarter.
Vijay Manthripragada: Thanks, Brian.
Brian Butler: Thank you.
Operator: [Operator Instructions] Your next question is from Stephanie Yee from J.P. Morgan. Please ask your question.
Stephanie Yee: Hi. Good morning.
Vijay Manthripragada: Hey, Stephanie.
Allan Dicks: Hey, Stephanie.
Stephanie Yee: I was wondering if you can talk about what you think your normal cadence for – I know it’s hard, but just a sense of what organic revenue growth cadence should be for the next few years. I know historically you’ve talked about something like mid-single-digit to high-single-digit that people can expect in any particular year. I’m wondering with the regulations, especially on the PFAS side, whether we should be thinking about high-single-digit to low-double-digit being the new normal for Montrose going forward?
Vijay Manthripragada: Why don’t I take that, and then Allan, you should certainly jump in. Stephanie, just to remind everyone, the way we define organic growth is we exclude the impact of acquisitions entirely, and we also exclude the impact of our emergency response business. You’ve got to look at the core performance to really understand what the organic growth trajectory of the business looks like. When we went public, you’re exactly right, Stephanie, we talked about being at approximately 7% to 9% organic growth cadence. If we look, obviously there’s been some intro year variability, but as we look past this today, looking back to IPO, we’ve been growing closer to 15% a year on average organically. If you look at our guidance for this year, we are implying a 10% to 12% organic growth for 2024.
Obviously, if you just take those numbers and contrast that with a 7% to 9%, our signal for the near future is that we are at an elevated organic cadence relative to our recent past. As the business grows, obviously as revenue continues to accrete at 30-plus percent a year, as it has been, maintaining those levels on a dollar basis is more challenging. We’re not changing our outlook, but we do believe that we’re going to be this year at an elevated organic cadence. Certainly, the secular tailwinds in the industry are real and they’re going to continue to impact us positively, we believe, into the foreseeable future.
Stephanie Yee: That makes sense. That’s super helpful. I was wondering if you can talk more about what you’re doing in your biogas business now that you’ve anniversary the pivot. What kind of projects are you working on now? I think you mentioned that you do expect to see growth in the back-half of the year, but just any additional color on what’s going on with that business?
Vijay Manthripragada: The pivot’s complete, and so the quarter-on-quarter noise will certainly be there because the pivot was really finished in Q3 of last year. It’s all done, it’s behind us. As we look ’23 versus ’24, you’re going to see really nice revenue and margin growth in that business, we believe. That’ll manifest itself as part of the aggregated ECT2 footprint, which is a combination, obviously, primarily of biogas and our PFAS water treatment business.
Allan Dicks: The biogas, it’s not so much different projects, Stephanie, it’s the components of the projects that we’re servicing that is different; focusing on the higher margin design engineering installation as opposed to some of the other side of construction and equipment procurement.
Stephanie Yee: Okay, sounds good. Thank you.
Vijay Manthripragada: Thanks, Stephanie.
Operator: Thank you. There are no further questions at this time. I will now hand the call back to Vijay Manthripragada for the closing remarks.
Vijay Manthripragada: Thank you very much again for all of you for sharing your time with us this morning. We’re really excited about what the prospects look like for us, and we look forward to our Q2 update in the near future. Take care, everyone.
Operator: Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect.
