Enviri Corporation

What they do

Enviri operates two continuing businesses: Harsco Environmental, which provides environmental services and material handling to the steel and metals industry, and Harsco Rail, which supplies railway track maintenance equipment and engineered-to-order (ETO) rail contracts. The company's former Clean Earth environmental waste business was acquired by Veolia for $3.0 billion and is reported as discontinued operations. Enviri LLC, which holds the two continuing segments, is the successor to Legacy Enviri, and the company is now a separate public reporting entity.

Revenue drivers

• Harsco Environmental — Provides environmental and material handling services to steel and metals producers; management said it exceeded guidance in Q2 2026, though segment-level revenue figures were not disclosed in the excerpts.
• Harsco Rail — Supplies track maintenance equipment and engineered-to-order rail contracts; several European ETO contracts have been exited, removing associated revenue and cash outflows, and the segment exceeded Q2 2026 guidance.
• Continuing operations revenue — Total revenues from continuing operations were $187 million as reported in Q2 2026, or $324 million excluding ETO contract exit adjustments, a 2% increase over prior-year Clean Earth historical results.

Recent performance

Second quarter 2026 GAAP revenue from continuing operations was $187 million, down from $316 million in Q2 2025, but adjusted revenue was $324 million, up 2% versus the prior-year Clean Earth historical results. The GAAP consolidated loss from continuing operations was $297 million, or $10.70 per diluted share, driven by charges for exiting two European Harsco Rail ETO contracts and transaction-related items from the Clean Earth sale and spin-off. Adjusted diluted loss per share from continuing operations was $0.63, narrower than the $0.84 loss in Q2 2025. Adjusted EBITDA was $34 million, up from $27 million a year earlier, with margin expanding to 10.4% from 8.7%. Credit agreement net leverage stood at 1.9x under the new capital structure.

Strategy

Management has completed the spin-off and sale of Clean Earth, leaving Harsco Environmental and Harsco Rail as the continuing businesses. The company decided to exit two European Harsco Rail ETO contracts to eliminate future execution risk, uncertainty, and cash outflows tied to those contracts. It also concluded the initial stage of a comprehensive business review aimed at reducing complexity and driving operational excellence, and has begun implementing broad restructuring actions. Enviri reaffirmed its 2026 Adjusted EBITDA outlook for Harsco Environmental and Harsco Rail. The company is prioritizing initiatives intended to drive sustainable value creation for shareholders.

Risks

• ETO contract execution — Harsco Rail's engineered-to-order contracts have generated contract adjustments and losses, and the company is exiting two European ETO contracts to remove future execution risk, uncertainty, and cash outflows.
• Subdued end-markets — Management stated that end-markets have remained subdued, which could pressure demand for Harsco Environmental and Harsco Rail products and services.
• Restructuring and separation costs — The spin-off and Clean Earth sale have resulted in transaction-related unusual items, and the company is incurring additional costs as a standalone public company for functions such as internal audit, investor relations, stock administration, and regulatory compliance.
• Transition services dependence — Enviri provides transitional services to CE Holdings under a Transition Services Agreement for up to twelve months, creating potential operational or financial exposure if those services are not successfully transitioned.

Outlook

Management reaffirmed its 2026 Adjusted EBITDA outlook for Harsco Environmental and Harsco Rail. The company expects the exit from two European Rail ETO contracts to remove future execution risk, uncertainty, and cash outflows associated with those contracts. No specific revenue or earnings guidance figures were provided in the excerpts beyond the reaffirmed Adjusted EBITDA outlook. Restructuring actions are underway across the company.