Enviri Corporation (NYSE:NVRI) shares slipped slightly in pre-market trading on Tuesday after the company reported a second-quarter adjusted loss, although adjusted EBITDA exceeded expectations and underlying revenue increased from a year earlier.
Enviri posted an adjusted diluted loss per share of $0.63, while adjusted revenue reached $324 million, representing year-on-year growth of 2%.
Shares were down 0.78% before the opening bell following the results.
Rail contract exits weigh heavily on reported results
Enviri generated adjusted EBITDA of $34 million, coming in above expectations despite subdued conditions across its end markets.
The company also announced a strategic decision to exit two European engineered-to-order contracts within Harsco Rail. The move is intended to remove future execution risk and associated cash outflows.
Reported revenue was $187 million after $136.5 million of adjustments connected with the Rail contract exits. Excluding those adjustments, revenue increased 2% from the comparable period last year.
On a GAAP basis, Enviri recorded a diluted loss from continuing operations of $10.70 per share. The result included charges associated with the Rail contract exits as well as transaction-related expenses linked to the Clean Earth sale and spin-off.
“During the second quarter, our team executed well, with Harsco Environmental and Rail each delivering results above the high end of our guidance ranges while end-markets have remained subdued,” said Enviri President and CEO Russell Hochman.
Harsco Environmental delivers higher margins
Harsco Environmental generated revenue of $266 million, an increase of 3% year on year, supported by higher volumes and improved services pricing.
Adjusted EBITDA increased to $46 million from $40 million a year earlier, while the segment’s adjusted EBITDA margin expanded to 17.2% from 15.5%.
Harsco Rail recorded adjusted revenue of $58 million, broadly unchanged from the prior-year period. The business remained loss-making, posting an adjusted EBITDA loss of $5 million.
The contrast between the two divisions leaves Harsco Environmental as the stronger earnings contributor while Enviri continues addressing risks within its Rail operations.
Enviri maintains 2026 segment EBITDA guidance
The company reaffirmed its full-year 2026 adjusted EBITDA forecasts for both businesses.
Harsco Environmental is expected to generate adjusted EBITDA of between $170 million and $180 million. The $175 million midpoint represents modest growth compared with the prior year.
Harsco Rail is forecast to report an adjusted EBITDA loss of between $19 million and $26 million.
Cash flow also improved during the quarter. Adjusted free cash flow was negative $9 million, compared with an outflow of $39 million a year earlier, reflecting higher cash earnings and improvements in working capital.
For investors, the quarter highlights improving performance at Harsco Environmental and substantially lower cash outflow, alongside continued challenges in Rail. The decision to exit the two European contracts could reduce future execution and cash flow risks, while the reaffirmed 2026 guidance puts the focus on whether Enviri can maintain its operational improvements through the remainder of the year.
Enviri Corporation stock price
