Enviri Corporation (to be renamed from Enviri II Corporation) 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Enviri Corporation reported positive results for the second quarter of 2026 as a standalone public company following the sale of Clean Earth in June 2026.
- Second quarter revenues were $187 million, including a negative revenue adjustment of $136 million related to exiting two rail contracts.
- Adjusted EBITDA increased by over 20% year over year to $34 million, driven primarily by Harsco Environmental's improved steel market conditions and operational efficiencies.
- Harsco Environmental segment revenues were $266 million, up 3% year over year, with adjusted EBITDA of $46 million, a 15% increase from the prior year quarter.
- Rail segment revenues were $58 million, unchanged from the prior quarter, with an adjusted EBIT loss of $5 million, reflecting lower original equipment sales but higher aftermarket volumes and cost reductions.
- The company exited Deutsche Bahn and Network Rail equipment contracts, ceasing manufacturing and development activities, and transferred Deutsche Bahn contract obligations to subcontractor GBM.
- These legacy rail contracts consumed approximately $40 million of cash in 2025 and were expected to consume a similar amount in 2026, but exiting them improves Enviri's financial and cash flow profile.
- Unusual items totaling $247 million included $207 million related to contract exits, with $75 million in non-cash impairments and $133 million in incremental liabilities, plus $29 million in Clean Earth sale costs and $10 million in restructuring charges.
- Approximately 300 positions are being eliminated as part of restructuring, with expected annual margin uplift exceeding $15 million on a full run rate basis.
- Net debt at quarter end was approximately $290 million with a net leverage ratio of 1.9 times, reflecting significant improvement and a strong balance sheet foundation.
STOCKNOW INSIGHTS
Continue with outlook and guidance.
Log in to unlock executive comments and Q&A highlights.
Log in for the full summaryStockNow uses AI to translate and summarize earnings calls. Accuracy and completeness are not guaranteed.
Transcript
Preview the first five paragraphs, organized by speaker.
Good morning. My name is Chuck, and I will be your conference facilitator. At this time, I would like to welcome everyone to the Enviri Corporation Second Quarter 2026 earnings release conference call. All lines have been placed on mute to avoid any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star, then two on your telephone keypad. Also, this telephone conference 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 redistributions 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, Chuck, and welcome to everyone joining us this morning. With me today is Russell Hochman, our President and CEO, and Pete Minan, our Executive Vice President and CFO. This morning, we will discuss our results for the second quarter as well as our outlook. After our prepared remarks, we will take your questions. Our quarterly earnings release and slide presentation for this call are available on our website. During today's call, we will make statements that are considered forward-looking within the meaning of the federal securities laws. These statements are based on our current knowledge and expectations and are subject to certain risks and uncertainties that may cause actual results to differ materially from those forward-looking statements. For a discussion of such risks and uncertainties, see the Risk Factors section in our Form 10 information statement. The company undertakes no obligation to revise or update any forward-looking statement.
Lastly, on this call, we will refer to adjusted financial results that are considered non-GAAP for SEC reporting purposes. A reconciliation to GAAP results is included in our earnings release as well as the slide presentation. With that said, I will turn the call over to Russell to begin his remarks.
Thank you, Dave. It's great to be with you all this morning. It's an exciting time for the company with a lot of momentum underway, and I appreciate your interest in Enviri. This is our first earnings call since we completed the sale of Clean Earth in June, and we are pleased to report positive results for our first quarter as a new public company, building on the momentum of Q1. Harsco Environmental and Rail each performed well and exceeded expectations despite serving end markets that have yet to recover. We said that as a standalone company, we are continuing to move forward with urgency in taking action to strengthen our foundation and position the company to drive earnings, margins, and cash flow growth.
FULL TRANSCRIPT
Continue the full translated transcript in StockNow.
Log in to unlock every statement, the English original, and speaker-by-speaker history.
Log in for the full transcriptCall participants
7 people spoke on this call — only 2 are shown here.
PARTICIPANT LIST
View participant details in StockNow.
Log in to see executives and analysts, their roles, and complete speaking history.
Log in to view all participantsKeep exploring