Enviri Corp engages in providing a broad range of environmental services and related solutions. The company's current operations consist of three divisions: Harsco Environmental, Harsco Rail, and Clean Earth. The company serves a diverse customer base by offering critical recycle and reuse solutions for their waste streams, enabling customers to address their complex environmental challenges.
Performance Overview
Enviri Corp (NVRI, Financial) reported second-quarter revenues of $610 million, slightly below the analyst estimate of $613.65 million. However, the company achieved an adjusted diluted earnings per share (EPS) of $0.02, aligning with the analyst estimate.
GAAP operating income for the quarter was $31 million, while Adjusted EBITDA reached $86 million, marking a 7% increase over the prior-year quarter. Despite these gains, the company reported a GAAP diluted loss per share of $0.16, influenced by certain contract adjustments in Harsco Rail and other unusual items.
Segment Performance
Enviri Corp's performance across its three divisions was mixed:
| Segment | Q2 2024 Revenue ($M) | Q2 2023 Revenue ($M) | Q2 2024 Adjusted EBITDA ($M) | Q2 2023 Adjusted EBITDA ($M) |
|---|---|---|---|---|
| Harsco Environmental | 293 | 290 | 49 | 53 |
| Clean Earth | 236 | 231 | 38 | 35 |
| Harsco Rail | 81 | 89 | 7 | 2 |
Financial Achievements and Challenges
Enviri Corp's Clean Earth division achieved record quarterly earnings, driven by higher services pricing and volume growth. Harsco Rail also saw its highest adjusted earnings in recent times due to increased demand for equipment and contracting services. However, Harsco Environmental faced challenges with a less favorable business mix and higher administrative costs, resulting in a decline in its Adjusted EBITDA margin from 18.4% in Q2 2023 to 16.8% in Q2 2024.
Net cash provided by operating activities was $39 million, a significant improvement from the $9 million used in the prior-year period. Adjusted free cash flow also turned positive at $9 million, compared to $(51) million in Q2 2023.
Outlook
Enviri Corp maintains a positive outlook for 2024, with an expected Adjusted EBITDA range of $327 million to $340 million. The company anticipates stable economic conditions and growth initiatives to support earnings growth compared to 2023.
"Enviri again delivered growth and favorable quarterly results supported by consistent execution in each of our three business units," said Enviri Chairman and CEO Nick Grasberger. "Our positive outlook for 2024 is also intact. In total, I’m pleased with the momentum in our businesses, and I am confident that our strategic initiatives along with debt reduction and stronger cash flow will create significant value for shareholders in the future."
Conclusion
Enviri Corp's Q2 2024 results reflect a balanced performance with notable achievements in Clean Earth and Harsco Rail, despite challenges in Harsco Environmental. The company's focus on strategic initiatives and cash flow management positions it well for future growth, making it a compelling consideration for value investors.
Explore the complete 8-K earnings release (here) from Enviri Corp for further details.
