Enviri Earnings Call Transcripts
Fiscal Year 2026
-
Second quarter results showed strong adjusted EBITDA growth and improved cash flow, driven by operational efficiencies and strategic exits from high-risk contracts. Both HE and Rail segments exceeded expectations, with guidance maintained despite ongoing market and geopolitical uncertainties.
-
Q1 revenue was $550M with adjusted EBITDA of $65M, as Harsco Environmental and Rail exceeded expectations. Clean Earth sale and New Enviri spin-off are on track, with unchanged 2026 guidance and a focus on margin growth and risk reduction.
Fiscal Year 2025
-
Clean Earth sale is on track for mid-2025, with New Enviri focusing on HE and Rail. 2025 revenues were $2.2B, and 2026 guidance projects stable HE performance and continued Rail challenges, with modest free cash flow expected.
-
Clean Earth will be sold for $3 billion, providing shareholders with a significant cash payout and ownership in a new public company, New Enviri, focused on environmental and rail businesses. The deal is structured for tax efficiency, targets mid-2026 closing, and positions New Enviri for future growth and deleveraging.
-
Q3 revenue and adjusted EBITDA reached yearly highs but missed expectations, mainly due to rail and environmental segment challenges. Clean Earth delivered record results, while guidance for Q4 and full-year was lowered. Strategic review and Clean Earth sale process are progressing.
-
Q2 revenue reached $562M with adjusted EBITDA of $65M, as environmental segments performed well but rail underperformed, prompting a $15M guidance reduction. A formal strategic review is underway, including a potential Clean Earth sale, while management expects segment improvements in H2.
-
Q1 saw strong execution with Clean Earth delivering record results and Harsco Environmental stable despite steel market headwinds. Guidance for 2025 remains unchanged, with Clean Earth expected to drive growth and rail segment risks reduced after a key contract amendment.
Fiscal Year 2024
-
Q4 2024 saw record results from Clean Earth, offsetting challenges in Harsco Environmental and Rail. 2025 guidance anticipates continued Clean Earth growth, improved free cash flow, and higher capital spending, with Rail risks expected to diminish as legacy contracts conclude.
-
Q3 saw record Clean Earth margins and EBITDA, but HE and Rail faced market and operational headwinds. Asset sales and credit facility renewals strengthened the balance sheet, while 2024 guidance was trimmed due to steel market weakness and rail delays. Free cash flow is expected to improve in 2025.
-
Q2 2024 saw 7% adjusted EBITDA growth and record Clean Earth margins, with all segments outperforming expectations. Leverage improved below 4x, asset sales neared $40M, and full-year guidance was reaffirmed despite FX headwinds and ongoing Rail contract adjustments.
-
Revised summary: The company has become a focused environmental services provider, with Clean Earth and Harsco Environmental driving growth, margin expansion, and strong cash generation. Clean Earth targets 17% margins by 2027, uses a capital-light, sustainable model, and leads in PFAS remediation. Leverage will decline, with strong organic and M&A growth opportunities.