Enviri (NVRI) Q2 2026 earnings summary

Executive summary

• Harsco Environmental and Rail segments outperformed expectations, delivering strong quarterly results despite subdued end-markets.

• Completed the sale of Clean Earth, now reported as discontinued operations, marking the first quarter as a new public company post-spin.

• Exited two major European ETO contracts (Deutsche Bahn & Network Rail), reducing future risk and cash outflows.

• Broad restructuring and self-help initiatives underway, including operational efficiency, cost discipline, and workforce reductions.

• 2026 outlook for both segments reaffirmed, with limited short-term impact from EU steel trade measures.

Financial highlights

• Q2 2026 adjusted revenues were $324M, up 2% year-over-year after adjusting for Rail contract exits.

• Adjusted EBITDA rose 22% year-over-year to $34M, driven by growth in Harsco Environmental.

• Adjusted diluted loss per share was $0.63 for the quarter.

• Adjusted free cash flow was negative $9M, improved from $(39)M in Q2 2025.

• GAAP net loss from continuing operations was $297M, impacted by contract exit and restructuring charges.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: Harsco Environmental adjusted EBITDA $170M–$180M; Rail adjusted EBITDA $(26)M to $(19)M.

• Q3 2026 guidance: Harsco Environmental adjusted EBITDA $43M–$47M, modestly above prior year; Rail $(7)M–$(10)M, below prior year.

• Harsco Environmental expects modest growth from higher demand, new sites, and improvement initiatives.

• Harsco Rail outlook reflects lower equipment demand and manufacturing inefficiencies, partially offset by cost reductions.

• Adjusted free cash flow expected to be modestly negative in Q3.