Q3 2024 Enviri Corp Earnings Call Transcript
Key Points
- Clean Earth achieved another record quarter in terms of EBITDA and EBITDA margin, with adjusted EBITDA increasing over 20% compared to Q3 of last year.
- The company successfully strengthened its balance sheet through asset sales and the renewal and extension of its revolver and other short-term credit facilities.
- Enviri Corp's sizable pension fund in the UK is now fully funded, reaching this milestone about a year earlier than expected.
- The company exceeded its goal of generating $50 million to $75 million of proceeds from asset sales, primarily from non-core businesses.
- Enviri Corp expects to yield EBITDA in excess of $400 million in 2027 with free cash flow of more than $150 million and net leverage of 2.5 times, providing greater strategic flexibility and optionality for value creation.
- Harsco Environmental faced headwinds due to a weakening steel industry, with excess capacity and weaker demand in China impacting customers in less protected markets.
- Harsco Rail continues to face operational challenges, including late deliveries from key vendors, global shipping disruptions, and bottlenecks in manufacturing processes.
- Hurricane Helene affected production and shipments at the end of the quarter from the primary manufacturing facility in Columbia, South Carolina.
- The company's free cash flow for the quarter was a deficit of $34 million, primarily due to the timing of working capital and capital spending.
- Enviri Corp's full-year adjusted EBITDA guidance was lowered, reflecting tempered expectations for Harsco Environmental and Rail, partially offset by a raised outlook for Clean Earth.
Good morning. My name is Asha, and I'll be your conference facilitator. At this time, I would like to welcome everyone to the Enviri Corporation's second quarter release conference call. (Operator Instructions)
Also, this teleconference presentation and accompanying webcast made on behalf of Enviri Corporation are subject to copyright by Enviri Corporation, and all rights are reserved. No recordings or redistribution of this telephone conference by any other party are permitted without the express written consent of Enviri Corporation. Your participation indicates your agreement.
I would now like to introduce Dave Martin of Enviri Corporation. Mr. Martin, you may begin your call.
Thank you, Danielle, and welcome to everyone joining us this morning. I'm Dave Martin, VP of Investor Relations for Enviri. With me today is Nick Grasberger, our Chairman and Chief Executive Officer; and Tom Vadaketh, our Senior Vice President and Chief Financial Officer. This morning, we will discuss
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