Enviri Q3 earnings: $6M continuing-operations profit
Enviri raised both segments’ 2026 outlooks and targets approximately $40 million in earnings growth over the next two years.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Enviri Corporation reported third-quarter 2026 revenue of $325 million and GAAP income from continuing operations of $6 million, compared with a $21 million loss a year earlier. Adjusted EBITDA was $47 million, up 21%; adjusted diluted EPS was a loss of $0.16. Net cash used in operating activities was $7 million, versus $34 million provided a year earlier, and adjusted free cash flow was negative $18 million versus negative $41 million. Nine-month GAAP loss from continuing operations was $313.6 million, versus $71.2 million in 2025.
Enviri raised its 2026 Adjusted EBITDA outlook to $180 million to $184 million for Harsco Environmental and $(7) million to $(10) million for Harsco Rail. Its internal improvement program targets approximately $40 million in earnings growth over the next two years. Harsco Rail’s agreement with Deutsche Bahn released it from all obligations under the ETO contract; Rail repaid $73 million of prior customer advances and received $8 million from GBM for project assets, and expects to receive up to an additional $34 million in coming quarters.
3 points · 1 major1 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 segment outlooks were raised: Environmental $180–$184 million; Rail $(7)–$(10) million.
- Moderate pointAdjusted EBITDA reached $47 million, up 21% year over year.
- Moderate pointContinuing-operations GAAP income was $6 million, versus a $21 million loss.
Negative
- Major pointNine-month GAAP continuing-operations loss was $313.6 million, versus $71.2 million.
- Moderate pointOperating cash flow used $7 million, versus $34 million provided in Q3 2025.
Filing Explained
The added balance-sheet snapshot shows that as of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Q3 revenue: $325 million
GAAP income from continuing operations: $6 million
Adjusted EBITDA: $47 million
+5 more
8 metrics
Q3 revenue
$325 million
Third quarter 2026
GAAP income from continuing operations
$6 million
Third quarter 2026; compared with a $21 million loss in Q3 2025
Adjusted EBITDA
$47 million
Third quarter 2026; up 21% year over year
Adjusted diluted EPS from continuing operations
Loss of $0.16 per share
Third quarter 2026; compared with a loss of $0.59 per share in Q3 2025
Net cash used by operating activities
$7 million used
Third quarter 2026; compared with $34 million provided in Q3 2025
GAAP loss from continuing operations
$313.6 million
Nine months ended September 30, 2026; compared with $71.2 million in the prior-year period
Harsco Environmental 2026 Adjusted EBITDA outlook
$180 million to $184 million
2026 outlook
Harsco Rail 2026 Adjusted EBITDA outlook
$(7) million to $(10) million
2026 outlook; stated as above 2025
Key Terms
Adjusted EBITDA, Adjusted free cash flow, ETO contracts, LIFO
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA totaled $47 million in the quarter"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted free cash flow financial
"Adjusted free cash flow is a non-GAAP financial measure"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
ETO contracts technical
"the impact of exiting two ETO contracts"
LIFO financial
"lower cost of sales using LIFO"
An accounting method that assumes the most recently acquired inventory items are sold first, so the newest costs flow into cost of goods sold while older costs stay on the balance sheet. Imagine a stack of boxes where you take from the top; when prices are rising, that top-first approach produces higher reported costs and lower reported profits, which can reduce taxes and change profit margins. Investors watch LIFO because it affects reported earnings, tax liabilities, and how comparable a company’s performance is to peers.
Earnings Snapshot
Revenue: $325 million · Guidance included
Third quarter 2026
Revenue
$325 million
Compared with $325 million in Q3 2025
GAAP income from continuing operations
$6 million
Compared with a $21 million loss in Q3 2025
GAAP diluted EPS from continuing operations
$0.16 per share
Compared with a loss of $0.82 per share in Q3 2025
Adjusted EBITDA
$47 million
Up 21% year over year
Adjusted diluted EPS from continuing operations
Loss of $0.16 per share
Compared with a loss of $0.59 per share in Q3 2025
Net cash provided (used) by operating activities
$7 million used
Compared with $34 million provided in Q3 2025
Adjusted free cash flow
$18 million used
Compared with $41 million used in Q3 2025
Guidance
Raised 2026 Adjusted EBITDA outlook: Harsco Environmental, $180 million to $184 million; Harsco Rail, $(7) million to $(10) million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Enviri (NVRI) perform in Q3 2026?
Enviri reported $325 million in revenue, $6 million of GAAP income from continuing operations and $47 million in Adjusted EBITDA, up 21% year over year. GAAP diluted EPS from continuing operations was $0.16, while adjusted diluted EPS was a loss of $0.16.
What is Enviri’s 2026 Adjusted EBITDA outlook?
Enviri raised its outlook to $180 million to $184 million for Harsco Environmental and $(7) million to $(10) million for Harsco Rail. The company cited higher volume expectations and business improvements, including cost optimization and productivity initiatives.
What drove the change in Enviri’s adjusted free cash flow?
The company attributed the year-over-year change to lower working capital in Harsco Rail, including the impact of exiting two ETO contracts, and lower financing costs. These were partially offset by working capital timing in Harsco Environmental.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) | ||||||||||||||
| (Exact name of registrant as specified in its charter) | ||||||||||||||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
100-120 North 18th Street, 17th Floor | ||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code | ||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 5, 2026, Enviri Corporation (the “Company”) issued a press release announcing its earnings for the third quarter ended September 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
The information is being furnished in this report and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are furnished as part of the Current Report on Form 8-K:
| Exhibit 99.1 | Earnings press release dated November 5, 2026. | |||||||
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Enviri Corporation | |||||||||||
| Date: | November 5, 2026 | /s/ PETER F. MINAN | |||||||||
| Peter F. Minan | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
Exhibit 99.1
| Investor Contact | Media Contact | ||||
| David Martin | Karen Tognarelli | ||||
| +1.267.946.1407 | +1.717.480.6145 | ||||
| dmartin@enviri.com | ktognarelli@enviri.com | ||||
FOR IMMEDIATE RELEASE
Enviri Corporation Reports Third Quarter 2026 Results
•Revenues from Continuing Operations totaled $325 million, with strong growth at Harsco Environmental
•GAAP consolidated income from continuing operations of $6 million, including additional restructuring charges related to the Company's internal improvement program
•Adjusted EBITDA totaled $47 million, an increase of 21% YoY, with Harsco Environmental and Rail both exceeding expectations in the quarter
•GAAP diluted earnings per share from continuing operations of $0.16 and adjusted diluted loss per share of $0.16
•Internal improvement program underway, targeting $40 million in earnings benefits over the next two years
•Harsco Rail executes agreement with Deutsche Bahn that releases it from all obligations under ETO contract and Harsco Rail repaid prior customer advances of $73 million as anticipated; also, Harsco Rail received initial payment of $8 million from GBM for project assets under a previously disclosed agreement and Harsco Rail expects to receive up to an additional $34 million from GBM as part of this agreement in the coming quarters (see separate news release)
•Raises 2026 Adjusted EBITDA outlook for Harsco Environmental and Harsco Rail
PHILADELPHIA (Nov. 05, 2026) - Enviri Corporation (NYSE: NVRI) (the "Company") today reported third quarter 2026 results. On a GAAP basis, the third quarter of 2026 diluted earnings per share from continuing operations was $0.16, including restructuring costs in Harsco Environmental, a gain related to the initial payment received from GBM for project-related assets following Rail's Deutsche Bahn contract exit, a favorable adjustment to the exit reserve for the Deutsche Bahn contract due to the release of performance bonds, and additional expenses related to the sale of Clean Earth and spin-off of Harsco Environmental and Harsco Rail. The adjusted diluted loss per share from continuing operations in the third quarter of 2026 was $0.16. These figures compare with a third quarter 2025 GAAP diluted loss per share from continuing operations of $0.82, which included strategic expenses and restructuring costs, and an adjusted diluted loss per share from continuing operations of $0.59.
The GAAP consolidated earnings from continuing operations for the third quarter of 2026 was $6 million, while Adjusted EBITDA excluding unusual items totaled $47 million in the quarter.
“We experienced continued momentum across both of our businesses in the third quarter, with Enviri delivering adjusted earnings growth of more than 20% for the second consecutive quarter and achieving better than anticipated results,” said Enviri President and CEO Russell Hochman. “Both businesses, in fact, reported their highest quarterly earnings in approximately two years, with this performance supported by strong operational execution. Based on these results, we have raised our full-year Adjusted EBITDA outlook.”
“In the third quarter, we completed the final assessment phase of our internal improvement program,” continued Hochman. “Based on our assessment, we expect to deliver approximately $40 million in earnings growth over the next two years through actions already underway and additional measures planned for the coming quarters as part of the program. These initiatives are designed to improve underlying performance across market cycles, while positioning the Company to deliver additional upside in healthier demand environments. Together, we believe these actions provide a strong foundation for sustainable earnings growth, cash flow generation and long-term shareholder value creation.”
2Enviri Corporation—Selected Third Quarter Results
| ($ in millions, except per share amounts) | Q3 2026 | Q3 2025 | ||||||||||||
| Revenues - GAAP | $ | 325 | $ | 325 | ||||||||||
| Operating income/(loss) from continuing operations - GAAP | $ | 24 | $ | (8) | ||||||||||
| Income (loss) from continuing operations - GAAP | $ | 6 | $ | (21) | ||||||||||
| Diluted EPS from continuing operations - GAAP | $ | 0.16 | $ | (0.82) | ||||||||||
| Adjusted EBITDA | $ | 47 | $ | 39 | ||||||||||
| Adjusted EBITDA margin | 14.4 | % | 11.9 | % | ||||||||||
| Adjusted diluted EPS from continuing operations | $ | (0.16) | $ | (0.59) | ||||||||||
Note: Adjusted diluted earnings (loss) per share from continuing operations, Adjusted EBITDA and Adjusted EBITDA margin presented throughout this release are adjusted for unusual items; in addition, adjusted diluted earnings per share from continuing operations is adjusted for acquisition-related amortization expense. See below for definitions of these non-GAAP measures and reconciliations to the most directly comparable GAAP financial measures.
Consolidated Third Quarter Operating Results
Consolidated revenues from continuing operations were $325 million. Harsco Environmental realized an increase in revenues compared with the third quarter of 2025, while revenues for Harsco Rail were lower year-over-year as anticipated.
The Company's GAAP consolidated earnings from continuing operations was $6 million for the third quarter of 2026, compared with a GAAP consolidated loss of $21 million in the same quarter of 2025. Meanwhile, Adjusted EBITDA totaled $47 million in the third quarter of 2026 versus $39 million in the third quarter of the prior year, with both segments realizing an improvement in results.
Note that prior period results exclude Clean Earth (reported as Discontinued Operations) and reflect that central costs previously allocated to Clean Earth ($1.9 million per quarter) are included in the Corporate segment.
Third Quarter Business Review
Harsco Environmental
| ($ in millions) | Q3 2026 | Q3 2025 | ||||||||||||
| Revenues | $ | 273 | $ | 261 | ||||||||||
| Operating income (loss) - GAAP | $ | 20 | $ | 13 | ||||||||||
| Adjusted EBITDA | $ | 50 | $ | 44 | ||||||||||
| Adjusted EBITDA margin | 18.2 | % | 17.0 | % | ||||||||||
3Harsco Environmental revenues totaled $273 million in the third quarter of 2026, an increase of 5% compared with the prior-year quarter. This revenue increase is attributable to higher volumes and services pricing. The segment's GAAP operating income was $20 million, and Adjusted EBITDA totaled $50 million in the third quarter of 2026. These figures compare with GAAP operating income of $13 million and Adjusted EBITDA of $44 million in the prior-year period. The year-on-year change in adjusted earnings reflects the above-mentioned factors as well as internal improvement actions. As a result, Harsco Environmental's Adjusted EBITDA margin increased to 18.2% in the third quarter of 2026 versus 17.0% in the comparable quarter of 2025.
Harsco Rail
| ($ in millions) | Q3 2026 | Q3 2025 | ||||||||||||
| Revenues - GAAP | $ | 52 | $ | 64 | ||||||||||
| Operating income (loss) - GAAP | $ | 19 | $ | (9) | ||||||||||
| Adjusted EBITDA | $ | 1 | $ | (4) | ||||||||||
| Adjusted EBITDA margin | 1.6 | % | (5.7) | % | ||||||||||
Harsco Rail revenues in the third quarter of 2026 totaled $52 million. The change in revenues compared with the prior-year period is attributable to lower volumes, including equipment volumes as a result of Rail exiting its contracts with Network Rail and Deutsche Bahn. The segment's GAAP operating income was $19 million, and Adjusted EBITDA was $1 million in the third quarter of 2026. These figures compare with a GAAP operating loss of $9 million and an Adjusted EBITDA loss of $4 million in the prior-year period. The year-on-year change in adjusted earnings is attributable to lower operating costs (including the impact of lower cost of sales using LIFO) and a more favorable business mix.
Cash Flow
Net cash used by operating activities was $7 million in the third quarter of 2026, compared with net cash provided by operating activities of $34 million in the prior-year period. Adjusted free cash flow was $(18) million in the third quarter of 2026, compared with $(41) million in the prior-year period (excluding Clean Earth and any transaction-related expenditures). The change in adjusted free cash flow compared with the prior-year quarter is attributable to lower working capital in Harsco Rail (including the impact of exiting two ETO contracts) and lower financing costs, partially offset by working capital timing in Harsco Environmental.
42026 Outlook
The Company has increased its Adjusted EBITDA outlook for Harsco Environmental and Rail, reflecting higher volume expectations (including for services in HE and aftermarket in Rail) as well as business improvements. These improvements include cost benefits from structural cost optimization and productivity initiatives implemented in recent months. Key business drivers for each segment in 2026 are as follows:
Harsco Environmental Adjusted EBITDA of $180 million to $184 million, which is above prior-year results. Higher demand for services and products, along with new sites and improvement initiatives, are expected to be partially offset by site exits and certain 2025 items that are not anticipated to repeat in 2026, such as the recovery of certain sales tax expenses in Brazil.
Harsco Rail Adjusted EBITDA of $(7) million to $(10) million, which is above 2025 as a result of higher aftermarket contributions as well as cost optimization and productivity initiatives, partially offset by lower standard equipment and contracted services demand.
Conference Call
The Company will hold a conference call today at 9.00 a.m. Eastern Time to discuss its results and respond to questions from the investment community. Those who wish to listen to the conference call webcast should visit investors.enviri.com, or by dialing (800) 715-9871 or (646) 307-1963 for international callers. Please ask to join the Enviri Corporation call or Conference ID 1227167. Listeners are advised to dial in approximately ten minutes prior to the call. If you are unable to listen to the live call, the webcast will be archived on the Company’s website.
5Forward-Looking Statements
The nature of the Company's business, together with the number of countries in which it operates, subject it to changing economic, competitive, regulatory and technological conditions, risks and uncertainties. In accordance with the "safe harbor" provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, the Company provides the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the results contemplated by forward-looking statements, including the expectations and assumptions expressed or implied herein. Forward-looking statements contained herein could include, among other things, statements regarding the expected effects of the transactions consummated under the Merger Agreement and the Separation Agreement; statements about management's confidence in and strategies for performance; expectations for new and existing products, technologies and opportunities; and expectations regarding growth, sales, cash flows, and earnings, including those under "2026 Outlook". Forward-looking statements can be identified by the use of such terms as "may," "could," "expect," "anticipate," "intend," "believe," "likely," "estimate," "outlook," "plan," "contemplate," "project," "target" or other comparable terms.
Factors that could cause actual results to differ, perhaps materially, from those implied by forward-looking statements include, but are not limited to: (1) the possibility that the Merger and Separation may not ultimately achieve the expected benefits; (2) the Company's ability to effectively implement its business strategy and improvement initiatives and realize the expected benefits therefrom; (3) the Company's ability to successfully enter into new contracts and complete new acquisitions, divestitures, or strategic ventures in the time-frame contemplated or at all; (4) the Company’s inability to comply with applicable environmental and safety laws and regulations; (5) the Company’s inability to obtain, renew, or maintain compliance with its operating permits or license agreements; (6) various economic, business, and regulatory risks associated with the industries in which the Company operates; (7) the seasonal nature of the Company's business; (8) risks caused by customer concentration, fixed-price and long-term customer contracts, especially those related to complex engineered equipment and the competitive nature of the industries in which the Company operates; (9) the outcome of any disputes with customers, contractors and subcontractors; (10) the financial condition of the Company's customers, including the ability of customers (especially those that may be highly leveraged or have inadequate liquidity) to maintain their credit availability; (11) higher than expected claims under the Company’s insurance policies, or losses that are uninsurable or that exceed existing insurance coverage; (12) market and competitive changes, including pricing pressures, market demand and acceptance for new products, services and technologies; changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; (13) the Company's ability to negotiate, complete, and integrate strategic transactions and joint ventures with strategic partners; (14) the Company’s ability to attract and effectively retain key management and employees, including due to unanticipated changes to demand for the Company’s
6services, disruptions associated with labor disputes, and increased operating costs associated with union organizations; (15) the Company's inability or failure to protect its intellectual property rights from infringement in one or more of the many countries in which the Company operates; (16) failure to effectively prevent, detect or recover from breaches in the Company's cybersecurity infrastructure; (17) changes in the worldwide business environment in which the Company operates, including changes in general economic and industry conditions and cyclical slowdowns impacting the steel and aluminum industries; (18) fluctuations in exchange rates between the U.S. dollar and other currencies in which the Company conducts business; (19) unforeseen business disruptions in one or more of the many countries in which the Company operates due to changes in economic conditions, changes in governmental laws and regulations, including environmental, occupational health and safety, tax and import tariff standards and amounts; political instability, civil disobedience, armed hostilities, public health issues or other calamities; (20) liability for and implementation of environmental remediation matters; (21) product liability and warranty claims associated with the Company’s operations; (22) the Company’s ability to comply with financial covenants and obligations to financial counterparties; (23) the Company’s outstanding indebtedness and exposure to derivative financial instruments that may be impacted by, among other factors, changes in interest rates; (24) tax liabilities and changes in tax laws; (25) changes in the performance of equity and bond markets that could affect, among other things, the valuation of the assets in the Company's pension plans and the accounting for pension assets, liabilities and expenses; (26) risk and uncertainty associated with intangible assets; and (27) the other risk factors listed from time to time in the Company's SEC reports. A further discussion of these, along with other potential risk factors, can be found under the heading, "Risk Factors," of the Company's Information Statement, dated May 8, 2026, and attached as Exhibit 99.1 to the Company's Current Report on Form 8-K furnished to the SEC on May 11, 2026. The Company cautions that these factors may not be exhaustive and that many of these factors are beyond the Company's ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company undertakes no duty to update forward-looking statements except as may be required by law.
Non-GAAP Measures
Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-titled measurements employed by other companies. The most comparable GAAP measures are included within the definitions below and reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are included at the end of this press release.
7Adjusted diluted earnings (loss) per share from continuing operations: Adjusted diluted earnings (loss) per share from continuing operations is a non-GAAP financial measure and consists of diluted earnings (loss) per share from continuing operations adjusted for unusual items and acquisition-related intangible asset amortization expense. It is important to note that such intangible assets contribute to revenue generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. The Company’s management believes Adjusted diluted earnings (loss) per share from continuing operations is useful to investors because it provides an overall understanding of the Company’s historical and future prospects. Exclusion of unusual items permits evaluation and comparison of results for the Company’s core business operations, and it is on this basis that management internally assesses the Company’s performance. Exclusion of acquisition-related intangible asset amortization expense, the amount of which can vary by the timing, size, and nature of the Company’s acquisitions, facilitates more consistent internal comparisons of operating results over time between the Company’s newly acquired and long-held businesses, and comparisons with both acquisitive and non-acquisitive peer companies.
Adjusted EBITDA: Adjusted EBITDA is a non-GAAP financial measure and consists of income (loss) from continuing operations adjusted to add back income tax expense; equity income of unconsolidated entities, net; net interest expense; defined benefit pension income (expense); facility fees and debt-related income (expense); stock-based compensation expense; and depreciation and amortization (excluding amortization of deferred financing costs); and excludes unusual items. Segment Adjusted EBITDA consists of operating income from continuing operations adjusted to exclude unusual items and add back depreciation and amortization (excluding amortization of deferred financing costs). The sum of the Segments’ Adjusted EBITDA and Corporate Adjusted EBITDA (which is adjusted for all stock-based compensation expense) equals consolidated Adjusted EBITDA. The Company‘s management believes Adjusted EBITDA is meaningful to investors because management reviews Adjusted EBITDA in assessing and evaluating performance.
Adjusted free cash flow: Adjusted free cash flow is a non-GAAP financial measure and consists of net cash provided (used) by operating activities less capital expenditures and expenditures for intangible assets; and plus capital expenditures for strategic ventures, total proceeds from sales of assets and certain transaction-related / debt-refinancing expenditures. Adjusted free cash flow also excludes the impact of the Clean Earth business. The Company's management believes that Adjusted free cash flow is important to management and useful to investors as a supplemental measure as it indicates the cash flow available for working capital needs, repay debt obligations, invest in future growth through new business development activities, conduct strategic acquisitions or other uses of cash. It is important to note that Adjusted free cash flow does not represent the total residual cash flow
8available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements and settlements of foreign currency forward exchange contracts, are not deducted from this measure. This presentation provides a basis for comparison of ongoing operations and prospects.
# # #
About Enviri
Enviri is a global market leader providing environmental and operational solutions to the metal and rail industries. Based in Philadelphia, Pennsylvania, and operating in more than 30 countries, the company leverages over 170 years of industrial expertise to help customers improve operational performance, recover value from byproducts, enhance sustainability, and maintain critical infrastructure. Enviri's divisions, Harsco Environmental and Harsco Rail, combine deep operational capabilities with innovative technologies and global scale to deliver long-term value for customers, communities, and shareholders. Learn more at enviri.com.
9ENVIRI CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30 | September 30 | |||||||||||||||||||||||||
| (In thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Revenues from continuing operations: | ||||||||||||||||||||||||||
| Service revenues | $ | 261,272 | $ | 255,824 | $ | 777,398 | $ | 756,392 | ||||||||||||||||||
| Product revenues | 63,757 | 68,940 | 195,520 | 197,397 | ||||||||||||||||||||||
| Product revenues - Rail contract exit-related adjustments | — | — | (136,499) | — | ||||||||||||||||||||||
| Total revenues | 325,029 | 324,764 | 836,419 | 953,789 | ||||||||||||||||||||||
| Costs and expenses from continuing operations: | ||||||||||||||||||||||||||
| Cost of services sold | 211,221 | 210,894 | 638,944 | 624,608 | ||||||||||||||||||||||
| Cost of products sold | 49,041 | 64,026 | 171,444 | 184,743 | ||||||||||||||||||||||
| Cost of products sold - Rail contract exit-related adjustments | (11,511) | — | 59,379 | — | ||||||||||||||||||||||
| Selling, general and administrative expenses | 55,806 | 51,761 | 157,236 | 157,605 | ||||||||||||||||||||||
| Research and development expenses | 581 | 783 | 1,653 | 2,092 | ||||||||||||||||||||||
| Property, plant and equipment impairment charge | — | — | — | 7,386 | ||||||||||||||||||||||
| Other expense (income), net | (3,657) | 5,377 | 34,523 | 11,967 | ||||||||||||||||||||||
| Total costs and expenses | 301,481 | 332,841 | 1,063,179 | 988,401 | ||||||||||||||||||||||
| Operating income (loss) from continuing operations | 23,548 | (8,077) | (226,760) | (34,612) | ||||||||||||||||||||||
| Interest income | 2,539 | 552 | 3,577 | 1,420 | ||||||||||||||||||||||
| Interest expense | (7,796) | (8,873) | (24,562) | (26,318) | ||||||||||||||||||||||
| Facility fees and debt-related income (expense) | (162) | (133) | (700) | (703) | ||||||||||||||||||||||
| Defined benefit pension income (expense) | (3,919) | (5,490) | (11,773) | (16,246) | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in income | 14,210 | (22,021) | (260,218) | (76,459) | ||||||||||||||||||||||
| Income tax benefit (expense) from continuing operations | (7,804) | 793 | (53,498) | 5,118 | ||||||||||||||||||||||
Equity in income (loss) of unconsolidated entities, net | 31 | 39 | 104 | 111 | ||||||||||||||||||||||
| Income (loss) from continuing operations | 6,437 | (21,189) | (313,612) | (71,230) | ||||||||||||||||||||||
| Discontinued operations: | ||||||||||||||||||||||||||
| Income (loss) from discontinued operations | (1,396) | 155 | (109,568) | 4,908 | ||||||||||||||||||||||
| Income tax benefit (expense) from discontinued operations | (670) | (1,196) | 23,503 | (10,474) | ||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | (2,066) | (1,041) | (86,065) | (5,566) | ||||||||||||||||||||||
| Net income (loss) | 4,371 | (22,230) | (399,677) | (76,796) | ||||||||||||||||||||||
| Less: Net loss (income) attributable to noncontrolling interests | (1,904) | (955) | (4,516) | (3,214) | ||||||||||||||||||||||
| Net income (loss) attributable to Enviri Corporation | $ | 2,467 | $ | (23,185) | $ | (404,193) | $ | (80,010) | ||||||||||||||||||
| Amounts attributable to Enviri Corporation common stockholders: | ||||||||||||||||||||||||||
| Income (loss) from continuing operations, net of tax | $ | 4,533 | $ | (22,144) | $ | (318,128) | $ | (74,444) | ||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | (2,066) | (1,041) | (86,065) | (5,566) | ||||||||||||||||||||||
| Net income (loss) attributable to Enviri Corporation common stockholders | $ | 2,467 | $ | (23,185) | $ | (404,193) | $ | (80,010) | ||||||||||||||||||
| Weighted-average shares of common stock outstanding (a) | 28,169 | 26,888 | 27,828 | 26,848 | ||||||||||||||||||||||
| Basic earnings (loss) per common share attributable to Enviri Corporation common stockholders: | ||||||||||||||||||||||||||
| Continuing operations | $ | 0.16 | $ | (0.82) | $ | (11.43) | $ | (2.77) | ||||||||||||||||||
| Discontinued operations | (0.07) | (0.04) | (3.09) | (0.21) | ||||||||||||||||||||||
Basic earnings (loss) per share attributable to Enviri Corporation common stockholders (b) | $ | 0.09 | $ | (0.86) | $ | (14.52) | $ | (2.98) | ||||||||||||||||||
| Diluted weighted-average shares of common stock outstanding (a) | 28,631 | 26,888 | 27,828 | 26,848 | ||||||||||||||||||||||
| Diluted earnings (loss) per common share attributable to Enviri Corporation common stockholders: | ||||||||||||||||||||||||||
| Continuing operations | $ | 0.16 | $ | (0.82) | $ | (11.43) | $ | (2.77) | ||||||||||||||||||
| Discontinued operations | (0.07) | (0.04) | (3.09) | (0.21) | ||||||||||||||||||||||
Diluted earnings (loss) per share attributable to Enviri Corporation common stockholders (b) | $ | 0.09 | $ | (0.86) | $ | (14.52) | $ | (2.98) | ||||||||||||||||||
| (a) | Weighted-average shares outstanding and earnings per share amounts for periods prior to the completion of the spin off have been retrospectively adjusted to reflect the impact of the Transactions on the Company's capital structure. | ||||
| (b) | Earnings (loss) per share attributable to Enviri Corporation common stockholders is calculated based on actual amounts. As a result, these per share amounts may not total due to rounding. | ||||
10ENVIRI CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||||||||
(In thousands) | September 30 2026 | December 31 2025 | ||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 226,307 | $ | 103,487 | ||||||||||
| Restricted cash | 50,352 | 21,677 | ||||||||||||
| Trade accounts receivable, net | 268,438 | 267,439 | ||||||||||||
| Other receivables | 33,865 | 43,627 | ||||||||||||
| Inventories | 132,272 | 171,718 | ||||||||||||
| Current portion of contract assets | 31,710 | 26,968 | ||||||||||||
Prepaid expenses | 41,323 | 52,521 | ||||||||||||
| Current portion of assets held-for-sale | — | 24,173 | ||||||||||||
| Other current assets | 18,576 | 9,256 | ||||||||||||
| Total current assets | 802,843 | 720,866 | ||||||||||||
| Property, plant and equipment, net | 399,570 | 424,099 | ||||||||||||
Right-of-use assets, net | 33,542 | 34,267 | ||||||||||||
| Goodwill | 373,517 | 379,381 | ||||||||||||
| Intangible assets, net | 14,102 | 16,095 | ||||||||||||
| Retirement plan assets | 57,579 | 55,743 | ||||||||||||
| Deferred income tax assets | 9,063 | 45,352 | ||||||||||||
Assets held-for-sale | — | 1,013,055 | ||||||||||||
| Other assets | 40,825 | 53,931 | ||||||||||||
| Total assets | $ | 1,731,041 | $ | 2,742,789 | ||||||||||
| LIABILITIES | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Short-term borrowings | $ | 403 | $ | 11,490 | ||||||||||
| Current maturities of long-term debt | 8,202 | 14,373 | ||||||||||||
| Accounts payable | 154,048 | 163,989 | ||||||||||||
| Accrued compensation | 53,197 | 43,130 | ||||||||||||
| Income taxes payable | 7,983 | 4,268 | ||||||||||||
| Reserve for contracts | 174,802 | 61,037 | ||||||||||||
| Current portion of advances on contracts | 8,376 | 7,982 | ||||||||||||
Current portion of operating lease liabilities | 11,056 | 11,654 | ||||||||||||
| Derivative liabilities | 11,398 | 20,839 | ||||||||||||
| Current portion of liabilities held-for-sale | — | 174,265 | ||||||||||||
| Other current liabilities | 113,652 | 121,182 | ||||||||||||
| Total current liabilities | 543,117 | 634,209 | ||||||||||||
| Long-term debt | 381,226 | 1,480,072 | ||||||||||||
| Retirement plan liabilities | 23,346 | 26,208 | ||||||||||||
Operating lease liabilities | 23,424 | 23,373 | ||||||||||||
| Environmental liabilities | 19,105 | 19,105 | ||||||||||||
| Deferred tax liabilities | 6,807 | 5,766 | ||||||||||||
| Liabilities held-for-sale | — | 214,314 | ||||||||||||
| Other liabilities | 38,588 | 44,155 | ||||||||||||
| Total liabilities | 1,035,613 | 2,447,202 | ||||||||||||
| ENVIRI CORPORATION STOCKHOLDERS’ EQUITY | ||||||||||||||
| Common stock | — | 149,519 | ||||||||||||
| Additional paid-in capital | 4,304 | 273,436 | ||||||||||||
| Accumulated other comprehensive loss | (490,483) | (514,481) | ||||||||||||
11| Retained earnings | 1,137,131 | 1,211,234 | ||||||||||||
| Treasury stock | (1,551) | (864,646) | ||||||||||||
| Total Enviri Corporation stockholders’ equity | 649,401 | 255,062 | ||||||||||||
| Noncontrolling interests | 46,027 | 40,525 | ||||||||||||
| Total equity | 695,428 | 295,587 | ||||||||||||
| Total liabilities and equity | $ | 1,731,041 | $ | 2,742,789 | ||||||||||
12ENVIRI CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||||
| Net income (loss) | $ | 4,371 | $ | (22,230) | $ | (399,677) | $ | (76,796) | ||||||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||||
| Depreciation | 28,105 | 39,358 | 104,943 | 113,701 | ||||||||||||||||||||||
| Amortization | 1,089 | 7,757 | 14,742 | 22,721 | ||||||||||||||||||||||
| Deferred income tax (benefit) expense | 2,720 | (6,267) | 13,139 | (14,266) | ||||||||||||||||||||||
| Equity in (income) loss of unconsolidated entities, net | (31) | (39) | (104) | (111) | ||||||||||||||||||||||
| Dividends from unconsolidated entities | — | 77 | — | 77 | ||||||||||||||||||||||
| Right-of-use assets | 2,459 | 8,201 | 17,526 | 23,328 | ||||||||||||||||||||||
| Property, plant and equipment impairment charge | — | — | — | 7,386 | ||||||||||||||||||||||
| Stock-based compensation | 3,624 | 5,747 | 15,097 | 15,507 | ||||||||||||||||||||||
| Contract exit charges | — | — | 74,969 | — | ||||||||||||||||||||||
| Other, net | (2,172) | (2,955) | (995) | (6,104) | ||||||||||||||||||||||
| Changes in assets and liabilities, net of acquisitions and dispositions of businesses: | ||||||||||||||||||||||||||
| Accounts receivable | (27,852) | 11,206 | (197,972) | (2,681) | ||||||||||||||||||||||
| Inventories | 1,366 | (319) | 17,992 | (7,602) | ||||||||||||||||||||||
| Contract assets | (4,337) | (7,045) | (8,854) | 5,368 | ||||||||||||||||||||||
| Accounts payable | (1,662) | 2,850 | (22,018) | 13,566 | ||||||||||||||||||||||
| Accrued interest payable | 4 | (7,670) | (11,419) | (7,131) | ||||||||||||||||||||||
| Accrued compensation | 12,433 | 5,913 | (4,284) | (5,520) | ||||||||||||||||||||||
| Advances on contracts and other customer advances | (419) | 863 | 115 | (17,461) | ||||||||||||||||||||||
| Operating lease liabilities | (2,616) | (8,149) | (17,246) | (23,227) | ||||||||||||||||||||||
| Retirement plan liabilities, net | 3,384 | 4,920 | 10,450 | 14,637 | ||||||||||||||||||||||
| Reserve for contracts | (13,987) | (3,089) | 115,532 | (9,566) | ||||||||||||||||||||||
| Other assets and liabilities | (13,389) | 5,306 | (4,248) | 17,182 | ||||||||||||||||||||||
| Net cash (used) provided by operating activities | (6,910) | 34,435 | (282,312) | 63,008 | ||||||||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||
| Purchases of property, plant and equipment | (21,289) | (31,757) | (89,676) | (92,416) | ||||||||||||||||||||||
| Proceeds from CE Holdings Note | — | — | 1,724,804 | — | ||||||||||||||||||||||
| Deposit for commercial commitments | — | — | (25,000) | — | ||||||||||||||||||||||
| Proceeds from sales of assets | 4,459 | 2,051 | 11,478 | 5,815 | ||||||||||||||||||||||
| Expenditures for intangible assets | — | (63) | (208) | (114) | ||||||||||||||||||||||
| Net proceeds (payments) from settlement of foreign currency forward exchange contracts | 552 | (23) | 1,404 | (4,319) | ||||||||||||||||||||||
| Net cash (used) provided by investing activities | (16,278) | (29,792) | 1,622,802 | (91,034) | ||||||||||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||||||
| Short-term borrowings, net | 300 | (2,375) | (7,438) | 3,456 | ||||||||||||||||||||||
| Borrowings and repayments under Revolving Credit Facility, net | — | 20,000 | (526,000) | 82,000 | ||||||||||||||||||||||
| Repayments of Term Loan | — | (1,250) | (106,806) | (3,750) | ||||||||||||||||||||||
| Repayments of Senior Notes | — | — | (475,000) | — | ||||||||||||||||||||||
| Cash paid for finance leases and other long-term debt | (2,269) | (4,517) | (12,876) | (14,186) | ||||||||||||||||||||||
Proceeds from other long-term debt | — | 566 | — | 566 | ||||||||||||||||||||||
| Contributions from noncontrolling interests | 186 | — | 186 | — | ||||||||||||||||||||||
| Settlement of stock appreciation rights | — | — | (16,529) | — | ||||||||||||||||||||||
| Stock-based compensation - Employee taxes paid | (1,949) | (22) | (40,058) | (1,556) | ||||||||||||||||||||||
| Other financing activities, net | — | — | (2,802) | — | ||||||||||||||||||||||
| Net cash (used) provided by financing activities | (3,732) | 12,402 | (1,187,323) | 66,530 | ||||||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents, including restricted cash | 237 | 439 | (1,856) | 2,357 | ||||||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents, including restricted cash | (26,683) | 17,484 | 151,311 | 40,861 | ||||||||||||||||||||||
| Cash and cash equivalents, including restricted cash and cash included in Current portion of assets held-for-sale, at beginning of period | 303,342 | 113,535 | 125,348 | 90,158 | ||||||||||||||||||||||
| Cash and cash equivalents, including restricted cash, at end of period | $ | 276,659 | $ | 131,019 | $ | 276,659 | $ | 131,019 | ||||||||||||||||||
13ENVIRI CORPORATION REVIEW OF OPERATIONS BY SEGMENT (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||
| (In thousands) | Revenues | Operating Income (Loss) | Revenues | Operating Income (Loss) | ||||||||||||||||||||||
| Harsco Environmental | $ | 273,377 | $ | 19,519 | $ | 261,131 | $ | 13,234 | ||||||||||||||||||
| Harsco Rail | 51,652 | 18,605 | 63,633 | (8,634) | ||||||||||||||||||||||
| Corporate | — | (14,576) | — | (12,677) | ||||||||||||||||||||||
| Consolidated Totals | $ | 325,029 | $ | 23,548 | $ | 324,764 | $ | (8,077) | ||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||
| (In thousands) | Revenues | Operating Income (Loss) | Revenues | Operating Income (Loss) | ||||||||||||||||||||||
| Harsco Environmental | $ | 796,254 | $ | 42,524 | $ | 762,246 | $ | 27,558 | ||||||||||||||||||
| Harsco Rail | 40,165 | (205,438) | 191,543 | (21,821) | ||||||||||||||||||||||
| Corporate | — | (63,846) | — | (40,349) | ||||||||||||||||||||||
| Consolidated Totals | $ | 836,419 | $ | (226,760) | $ | 953,789 | $ | (34,612) | ||||||||||||||||||
14ENVIRI CORPORATION RECONCILIATION OF ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS TO INCOME (LOSS) FROM CONTINUING OPERATIONS, NET OF TAX, AS REPORTED (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30 | September 30 | |||||||||||||||||||||||||
| (in thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Income (loss) from continuing operations, net of tax, as reported | $ | 4,533 | $ | (22,144) | $ | (318,128) | $ | (74,444) | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
Change in provision for forward losses and other contract-related costs on certain contracts (a) | — | 1,627 | — | 7,029 | ||||||||||||||||||||||
Contract exits and GBM gain (a)(e) | (19,106) | — | 188,284 | — | ||||||||||||||||||||||
Strategic costs (b)(g) | 3,876 | 1,115 | 34,649 | 3,965 | ||||||||||||||||||||||
Restructuring and related costs (d)(g) | 6,412 | 5,435 | 16,971 | 8,768 | ||||||||||||||||||||||
Adjustment to contract termination charge (c) | — | (1,103) | — | (3,352) | ||||||||||||||||||||||
Site exit costs (f)(h) | — | — | — | 10,281 | ||||||||||||||||||||||
Income tax impact from adjustments above (i) | (916) | (1,553) | 32,340 | (4,848) | ||||||||||||||||||||||
| Adjusted income (loss) from continuing operations, including acquisition amortization expense | (5,201) | (16,623) | (45,884) | (52,601) | ||||||||||||||||||||||
Acquisition amortization expense, net of tax (j) | 614 | 819 | 2,266 | 2,008 | ||||||||||||||||||||||
| Adjusted income (loss) from continuing operations, net of tax | $ | (4,587) | $ | (15,804) | $ | (43,618) | $ | (50,593) | ||||||||||||||||||
| Diluted weighted average shares of common stock outstanding | 28,631 | 26,888 | 27,828 | 26,848 | ||||||||||||||||||||||
Diluted earnings (loss) per share from continuing operations, as reported (k) | $ | 0.16 | $ | (0.82) | $ | (11.43) | $ | (2.77) | ||||||||||||||||||
Adjusted diluted earnings (loss) per share from continuing operations (k)(m) | $ | (0.16) | $ | (0.59) | $ | (1.57) | $ | (1.88) | ||||||||||||||||||
| (a) | Classified in Total revenues, which included a $136.5 million decrease for the nine months ended September 30, 2026 and a $12.2 million increase for the nine months ended September 30, 2025, as well as in Cost of products sold, which included a $11.2 million decrease and a $59.7 million increase in expense for the three and nine months ended September 30, 2026, respectively, and a $1.6 million and $19.2 million increase in expense for the three and nine months ended September 30, 2025, respectively. | ||||
| (b) | Classified in Selling, general and administrative expenses for costs incurred during the three and nine months ended September 30, 2026 and 2025. | ||||
| (c) | Classified in Selling, general and administrative expenses during the three and nine months ended September 30, 2025 | ||||
| (d) | Classified in Selling, general and administrative expenses during the three and nine months ended September 30, 2026. | ||||
| (e) | Classified in Other expense (income), net during the three and nine months ended September 30, 2026 for $7.9 million. | ||||
| (f) | Classified in Other expense (income), net during the nine months ended September 30, 2025. | ||||
| (g) | Classified in Other expense (income), net for costs incurred during the three and nine months ended September 30, 2026 and 2025. | ||||
| (h) | Classified in Property, plant and equipment impairment charge during the nine months ended September 30, 2025 | ||||
| (i) | Unusual items are tax-effected at the global effective tax rate before discrete items in effect during the year the unusual item is recorded. The nine months ended September 30, 2026 includes the $34.0 million deferred tax asset write-off as a result of the sale of Clean Earth. | ||||
| (j) | Pre-tax acquisition amortization expense was $0.6 million and $2.3 million for the three and nine months ended September 30, 2026, respectively, and $0.9 million and $2.2 million for the three and nine months ended September 30, 2025, respectively. | ||||
| (k) | Amounts above are rounded and recalculation may not yield precise results. | ||||
| (m) | The diluted weighted average shares used to calculate Adjusted diluted earnings (loss) per share from continuing operations was 28,169 for the three months ended September 30, 2026, which excludes the dilutive effect of stock-based compensation. | ||||
15ENVIRI CORPORATION RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS), AS REPORTED, BY SEGMENT (Unaudited) | ||||||||||||||||||||||||||
| (In thousands) | Harsco Environmental | Harsco Rail | Corporate | Consolidated Totals | ||||||||||||||||||||||
| Three Months Ended September 30, 2026: | ||||||||||||||||||||||||||
| Operating income (loss), as reported | $ | 19,519 | $ | 18,605 | $ | (14,576) | $ | 23,548 | ||||||||||||||||||
| Strategic costs | 88 | — | 3,788 | 3,876 | ||||||||||||||||||||||
| Restructuring and related costs | 3,051 | — | 3,361 | 6,412 | ||||||||||||||||||||||
| Contract exits and GBM gain | — | (19,106) | — | (19,106) | ||||||||||||||||||||||
| Operating income (loss), adjusted | 22,658 | (501) | (7,427) | 14,730 | ||||||||||||||||||||||
| Stock-based compensation | — | — | 3,501 | 3,501 | ||||||||||||||||||||||
| Depreciation | 26,602 | 1,287 | 216 | 28,105 | ||||||||||||||||||||||
| Amortization | 569 | 54 | — | 623 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 49,829 | $ | 840 | $ | (3,710) | $ | 46,959 | ||||||||||||||||||
| Revenues, as reported | $ | 273,377 | $ | 51,652 | $ | 325,029 | ||||||||||||||||||||
| Adjusted EBITDA margin (%) | 18.2 | % | 1.6 | % | 14.4 | % | ||||||||||||||||||||
| Three Months Ended September 30, 2025: | ||||||||||||||||||||||||||
| Operating income (loss), as reported | $ | 13,234 | $ | (8,634) | $ | (12,677) | $ | (8,077) | ||||||||||||||||||
| Strategic costs | — | — | 1,115 | 1,115 | ||||||||||||||||||||||
| Restructuring and related costs | 3,519 | 1,916 | — | 5,435 | ||||||||||||||||||||||
| Adjustment to contract termination charge | (1,103) | — | — | (1,103) | ||||||||||||||||||||||
| Change in provision for forward losses and other contract-related costs on certain contracts | — | 1,627 | — | 1,627 | ||||||||||||||||||||||
| Operating income (loss), excluding unusual items | 15,650 | (5,091) | (11,562) | (1,003) | ||||||||||||||||||||||
| Stock-based compensation | — | — | 9,420 | 9,420 | ||||||||||||||||||||||
| Depreciation | 28,047 | 1,151 | 225 | 29,423 | ||||||||||||||||||||||
| Amortization | 567 | 299 | — | 866 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 44,264 | $ | (3,641) | $ | (1,917) | $ | 38,706 | ||||||||||||||||||
| Revenues, as reported | $ | 261,131 | $ | 63,633 | $ | 324,764 | ||||||||||||||||||||
| Adjusted EBITDA margin (%) | 17.0 | % | (5.7) | % | 11.9 | % | ||||||||||||||||||||
16ENVIRI CORPORATION RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS), AS REPORTED, BY SEGMENT (Unaudited) | ||||||||||||||||||||||||||
| (In thousands) | Harsco Environmental | Harsco Rail | Corporate | Consolidated Totals | ||||||||||||||||||||||
| Nine Months Ended September 30, 2026: | ||||||||||||||||||||||||||
| Operating income (loss), as reported | $ | 42,524 | $ | (205,438) | $ | (63,846) | $ | (226,760) | ||||||||||||||||||
| Strategic costs | 2,353 | — | 32,296 | 34,649 | ||||||||||||||||||||||
| Restructuring and related costs | 5,536 | 8,074 | 3,361 | 16,971 | ||||||||||||||||||||||
| Contract exits and GBM gain | — | 188,284 | — | 188,284 | ||||||||||||||||||||||
| Operating income (loss), adjusted | 50,413 | (9,080) | (28,189) | 13,144 | ||||||||||||||||||||||
| Stock-based compensation | — | — | 7,675 | 7,675 | ||||||||||||||||||||||
| Depreciation | 81,936 | 3,668 | 680 | 86,284 | ||||||||||||||||||||||
| Amortization | 1,709 | 584 | — | 2,293 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 134,058 | $ | (4,828) | $ | (19,834) | $ | 109,396 | ||||||||||||||||||
| Revenues, as reported | $ | 796,254 | $ | 40,165 | $ | 836,419 | ||||||||||||||||||||
| Contract exits | — | 136,499 | 136,499 | |||||||||||||||||||||||
| Revenues, adjusted | $ | 796,254 | $ | 176,664 | $ | 972,918 | ||||||||||||||||||||
| Adjusted EBITDA margin (%) | 16.8 | % | (2.7) | % | 11.2 | % | ||||||||||||||||||||
| Nine Months Ended September 30, 2025: | ||||||||||||||||||||||||||
| Operating income (loss), as reported | $ | 27,558 | $ | (21,821) | $ | (40,349) | $ | (34,612) | ||||||||||||||||||
| Change in provision for forward losses and other contract-related costs on certain contracts | — | 7,029 | — | 7,029 | ||||||||||||||||||||||
| Strategic costs | — | — | 3,965 | 3,965 | ||||||||||||||||||||||
| Adjustment to contract termination charge | (3,352) | — | — | (3,352) | ||||||||||||||||||||||
| Site exit costs | 10,281 | — | — | 10,281 | ||||||||||||||||||||||
| Restructuring and related costs | 6,852 | 1,916 | — | 8,768 | ||||||||||||||||||||||
| Operating income (loss), adjusted | 41,339 | (12,876) | (36,384) | (7,921) | ||||||||||||||||||||||
| Stock-based compensation | — | — | 17,391 | 17,391 | ||||||||||||||||||||||
| Depreciation | 80,602 | 3,234 | 761 | 84,597 | ||||||||||||||||||||||
| Amortization | 1,678 | 472 | — | 2,150 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 123,619 | $ | (9,170) | $ | (18,232) | $ | 96,217 | ||||||||||||||||||
| Revenues, as reported | $ | 762,246 | $ | 191,543 | $ | 953,789 | ||||||||||||||||||||
| Adjusted EBITDA margin (%) | 16.2 | % | (4.8) | % | 10.1 | % | ||||||||||||||||||||
17ENVIRI CORPORATION RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) | ||||||||||||||
Three Months Ended September 30 | ||||||||||||||
| (In thousands) | 2026 | 2025 | ||||||||||||
| Consolidated income (loss) from continuing operations | $ | 6,437 | $ | (21,189) | ||||||||||
| Add back (deduct): | ||||||||||||||
| Equity in (income) loss of unconsolidated entities, net | (31) | (39) | ||||||||||||
| Income tax expense (benefit) from continuing operations | 7,804 | (793) | ||||||||||||
| Defined benefit pension expense (income) | 3,919 | 5,490 | ||||||||||||
| Facility fees and debt-related expense (income) | 162 | 133 | ||||||||||||
| Interest expense | 7,796 | 8,873 | ||||||||||||
| Interest income | (2,539) | (552) | ||||||||||||
| Depreciation | 28,105 | 29,423 | ||||||||||||
| Amortization | 623 | 866 | ||||||||||||
| Stock-based compensation | 3,501 | 9,420 | ||||||||||||
| Unusual items: | ||||||||||||||
| Change in provision for forward losses and other contract-related costs on certain contracts | — | 1,627 | ||||||||||||
| Strategic costs | 3,876 | 1,115 | ||||||||||||
| Restructuring and related costs | 6,412 | 5,435 | ||||||||||||
| Contract exits and GBM gain | (19,106) | — | ||||||||||||
| Adjustment to contract termination charge | — | (1,103) | ||||||||||||
| Consolidated Adjusted EBITDA | $ | 46,959 | $ | 38,706 | ||||||||||
18ENVIRI CORPORATION RECONCILIATION OF ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) | ||||||||||||||
Nine Months Ended September 30 | ||||||||||||||
| (In thousands) | 2026 | 2025 | ||||||||||||
| Consolidated income (loss) from continuing operations | $ | (313,612) | $ | (71,230) | ||||||||||
| Add back (deduct): | ||||||||||||||
| Equity in (income) loss of unconsolidated entities, net | (104) | (111) | ||||||||||||
| Income tax expense (benefit) from continuing operations | 53,498 | (5,118) | ||||||||||||
| Defined benefit pension expense | 11,773 | 16,246 | ||||||||||||
| Facility fee and debt-related expense | 700 | 703 | ||||||||||||
| Interest expense | 24,562 | 26,318 | ||||||||||||
| Interest income | (3,577) | (1,420) | ||||||||||||
| Depreciation | 86,284 | 84,597 | ||||||||||||
| Amortization | 2,293 | 2,150 | ||||||||||||
| Stock-based compensation | 7,675 | 17,391 | ||||||||||||
| Unusual items: | ||||||||||||||
| Change in provision for forward losses and other contract-related costs | — | 7,029 | ||||||||||||
| Strategic costs | 34,649 | 3,965 | ||||||||||||
| Restructuring and related costs | 16,971 | 8,768 | ||||||||||||
| Contract exits and GBM gain | 188,284 | — | ||||||||||||
| Adjustment to contract termination charge | — | (3,352) | ||||||||||||
| Site exit costs | — | 10,281 | ||||||||||||
| Adjusted EBITDA | $ | 109,396 | $ | 96,217 | ||||||||||
19ENVIRI CORPORATION RECONCILIATION OF PROJECTED ADJUSTED EBITDA BY SEGMENT USING MID-RANGE POINTS FOR EACH TO PROJECTED OPERATING INCOME (LOSS) BY SEGMENT (Unaudited) | ||||||||||||||
| (Amounts in millions) (a) | Harsco Environmental | Harsco Rail | ||||||||||||
| Projected Twelve Months Ending December 31, 2026 | ||||||||||||||
| Projected operating income (loss) | $ | 63 | $ | (210) | ||||||||||
| Strategic costs | 2 | — | ||||||||||||
| Restructuring and related costs | 6 | 8 | ||||||||||||
| Contract exits and GBM gain | — | 188 | ||||||||||||
| Operating income (loss), adjusted | 71 | (14) | ||||||||||||
| Depreciation | 109 | 5 | ||||||||||||
| Amortization | 2 | 1 | ||||||||||||
| Projected adjusted EBITDA | $ | 182 | $ | (8) | ||||||||||
| Adjusted revenues | $ | 1,037 | $ | 231 | ||||||||||
| Adjusted EBITDA margin (%) | 17.6 | % | (3.6) | % | ||||||||||
| (a) | Amounts are presented above rounded in millions. As a result, minor differences may exist due to rounding. | ||||
20ENVIRI CORPORATION RECONCILIATION OF ADJUSTED FREE CASH FLOW TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30 | September 30 | |||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net cash provided (used) by operating activities | $ | (6,910) | $ | 34,435 | $ | (282,312) | $ | 63,008 | ||||||||||||||||||
| Less capital expenditures | (21,289) | (31,757) | (89,676) | (92,416) | ||||||||||||||||||||||
| Less expenditures for intangible assets | — | (63) | (208) | (114) | ||||||||||||||||||||||
| Plus capital expenditures for strategic ventures (a) | 347 | 194 | 687 | 1,329 | ||||||||||||||||||||||
| Plus total proceeds from sales of assets (b) | 4,459 | 2,051 | 11,478 | 5,815 | ||||||||||||||||||||||
| Plus transaction-related expenditures (c) | 5,680 | 741 | 141,948 | 741 | ||||||||||||||||||||||
| Plus repayment of revolving trade receivables securitization facility (d) | — | — | 160,000 | — | ||||||||||||||||||||||
| Clean Earth free cash flow deficit (benefit) | — | (46,653) | 8,089 | (91,722) | ||||||||||||||||||||||
| Adjusted free cash flow | $ | (17,713) | $ | (41,052) | $ | (49,994) | $ | (113,359) | ||||||||||||||||||
| (a) | Capital expenditures for strategic ventures represent the partner’s share of capital expenditures in certain ventures consolidated in the Company’s consolidated financial statements. | ||||
| (b) | Asset sales are a normal part of the business model, primarily for the Harsco Environmental segment. | ||||
| (c) | Includes expenditures directly associated with the Company's divestiture of Clean Earth. | ||||
| (d) | Includes the repurchase of accounts receivable related to the Company's revolving trade receivables securitization facility that was required to be terminated with the sale of Clean Earth. | ||||
21