NVRI — Enviri Corporation

Enviri Corporation Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Total Revenue: $550 million, unchanged from the prior year.
• Adjusted EBITDA: $65 million.
• Adjusted Diluted Earnings Per Share: $0.10.
• Adjusted Free Cash Flow: Negative $6 million, with Rail contributing a negative cash flow of $18 million primarily due to ETO contracts.
• Harsco Environmental Revenue: $257 million, a 6% increase year-over-year, with adjusted EBITDA of $38 million.
• Rail Revenue: $67 million, with an adjusted EBITDA loss of $1 million.

2. Strategic Updates and Business Highlights:

• The sale of Clean Earth and the spin-off of New Enviri received shareholder and SEC approval, expected to close by June 1, 2026.
• New Enviri is anticipated to have a strong capital structure with reduced interest costs, allowing for improved margin growth.
• Key priorities include operational improvements, cost management, and a deep dive review of both Harsco Environmental and Rail to optimize performance.
• Focus on enhancing productivity, reducing complexity, and improving supply chain operations in Rail.

3. Forward Guidance and Outlook:

• Harsco Environmental Adjusted EBITDA Guidance: $170 million to $180 million for 2026.
• Rail EBITDA Loss Guidance: $19 million to $26 million for 2026.
• Anticipation of modest free cash flow for the year remains unchanged.
• Q2 expectations indicate Harsco Environmental performance comparable to Q2 2025, while Rail's EBITDA is expected to decrease due to lower volumes.

4. Bad News, Challenges, or Points of Concern:

• Rail's order book is not filled to historical levels, primarily due to OEM equipment demand issues in North America.
• Economic uncertainty, particularly related to geopolitical tensions in the Middle East and rising energy prices, poses risks to Harsco Environmental's performance.
• Rail continues to face challenges with ETO contracts, which are contributing to cash consumption.

5. Notable Q&A Insights:

• The order book for Rail is currently behind historical norms, with expectations for improvement in the second half of the year.
• Approximately 40% of Rail's revenue comes from aftermarket services, which are expected to remain strong and provide better margins compared to original equipment sales.
• Management emphasized the importance of derisking contracts and improving financial outlooks for ongoing projects, particularly in Rail.

This summary encapsulates the key financial metrics, strategic initiatives, and outlook for Enviri Corporation, while also addressing challenges and insights from the Q&A session.