Core Insights - Enviri (NYSE: NVRI) faced increasing challenges throughout 2024, impacting its operational environment and overall performance [1] Company Overview - Enviri is categorized as an environmental services company, which had initially positioned itself well at the beginning of 2024 but encountered a deteriorating operational landscape as the year progressed [1]

Revenue Performance - Total revenues for 2024 were $2,342.6 million, a decrease of $23.4 million or 1.0% compared to 2023[169] - Harsco Environmental segment reported revenues of $1,111.5 million, down 2.6% from $1,140.9 million in 2023[169] - Clean Earth segment achieved revenues of $939.8 million, an increase of 1.2% from 928.3 million in 2023[169] - Harsco Rail segment revenues decreased by 1.9% to $291.3 million from $296.8 million in 2023[169] - Total revenues for 2024 decreased by $23.4 million, or 1%, to $2,342.6 million compared to 2023[185] Operating Income and Margins - Operating income from continuing operations was $31.7 million, a decline of 60.3% from $79.9 million in 2023[171] - Harsco Environmental's operating margin fell to 2.9% in 2024 from 6.8% in 2023[172] - Clean Earth segment's operating margin improved to 9.8% from 8.3% in 2023[172] - Harsco Rail segment reported an operating loss margin of (19.9)%, worsening from (10.7)% in 2023[172] Expenses and Impairments - Cost of services and products sold for 2024 decreased by $13.5 million, or 1%, to $1,902.6 million compared to 2023[186] - Selling, general and administrative expenses increased by $5.4 million, or 2%, to $359.4 million in 2024, driven by higher professional fees[187] - The company recorded impairment charges totaling $15.9 million related to goodwill and intangible assets in 2024[189] - The company recognized $23.4 million of impairment charges related to property, plant, and equipment in 2024[192] - A goodwill impairment charge of $13.0 million was recognized for the Harsco Rail reporting unit in 2024[265] - An impairment charge of $13.9 million was recognized for property, plant, and equipment in 2024 due to lower projections[270] - The Company recorded an additional forward loss provision of $32.7 million for long-term contracts in 2024, primarily due to material and labor cost inflation[279] Net Loss and Taxation - The company experienced a net loss of $122.7 million in 2024, compared to a net loss of $88.1 million in 2023[184] - The effective income tax rate from continuing operations was (16.8)% in 2024, compared to (58.6)% in 2023[184] - Income tax expense from continuing operations decreased to $17.1 million in 2024 from $30.9 million in 2023, with an effective tax rate of (16.8)% compared to (58.6)% in 2023[208] - The Company's annual effective income tax rate on income from continuing operations was (16.8)% for 2024, (58.6)% for 2023, and (2.9)% for 2022[285] Cash Flow and Financing Activities - Net cash provided by operating activities was $78.1 million in 2024, down $36.4 million from $114.4 million in 2023, attributed to lower cash net income and unfavorable changes in net working capital[215] - Net cash used by investing activities was $34.1 million in 2024, a decrease of $82.5 million compared to $116.6 million in 2023, including net proceeds of $57.6 million from divestitures[217] - Net cash used by financing activities was $63.4 million in 2024, contrasting with net cash provided of $44.8 million in 2023, including net repayments of $39.8 million of total debt[218] - The Company expects annual interest payments on long-term debt to be approximately $85 million based on current borrowings and interest rates[220] Debt and Credit Facilities - The company amended its Credit Agreement to adjust covenants, setting the Net Debt to Consolidated Adjusted EBITDA ratio to 4.75x for the quarters ended December 31, 2024, and March 31, 2025[164] - The Company entered into an amendment to the Senior Secured Credit Facilities, adjusting the Net Debt to Consolidated Adjusted EBITDA ratio covenant to 4.75x for Q1 2025[225] - The net debt to consolidated adjusted EBITDA ratio covenant is set at 4.75x for the quarter ended September 30, 2024, decreasing to 4.00x thereafter[227] - As of December 31, 2024, the outstanding balance under the Revolving Credit Facility was $407.0 million, with available credit of $238.2 million[233] Goodwill and Fair Value - The Company's Goodwill balances were $739.8 million and $781.0 million at December 31, 2024 and 2023, respectively[260] - The Harsco Environmental reporting unit's estimated fair value was approximately 22.0% more than its net book value, with a goodwill of $360.5 million[266] - The Clean Earth reporting unit's estimated fair value was approximately 53.0% more than its net book value, with a goodwill of $379.3 million[267] - The Company performed its annual goodwill impairment test as of October 1, with no impairment in 2023 but a charge in 2024[265] - The Company utilizes a discounted cash flow model to estimate the fair value of reporting units, with significant assumptions impacting the results[263] Tax Assets and Liabilities - Valuation allowances related to deferred tax assets were $192.7 million for 2024 and $177.9 million for 2023, primarily due to pension liabilities, net operating losses, and disallowed interest expense[288] - Unrecognized tax benefits were $1.8 million for 2024 and $2.1 million for 2023, excluding accrued interest and penalties[289] - The Company recorded a $15.0 million valuation allowance increase related to disallowed interest expense for 2024[288] - The Company considers future reversals of existing deferred tax liabilities and projected future taxable income when assessing deferred tax assets[287] Other Financial Commitments - The Company has $211.1 million of outstanding purchase commitments, with $131.5 million expected to be fulfilled in the next twelve months[220] - Total commercial commitments amounted to $451.8 million as of December 31, 2024, with $305.8 million due within one year[222] - The Company has centralized cash management systems, with $88.0 million in cash and cash equivalents held by non-U.S. subsidiaries as of December 31, 2024[241]

Q4 2024 Quarterly Results and Outlook Conference Call February 20, 2025 © 2025 Enviri Corporation. All Rights Reserved. This document and the information set forth herein are the property of Enviri Corporation. 1 ADMINISTRATIVE ITEMS Conference Call and Access to Information More information on Enviri's quarterly earnings, including the Company's earnings press release issued today and this presentation, is available on the Investor Relations portion of Enviri's website. Company management will discuss the ...

Financial Data and Key Metrics Changes - For the full year 2024, Enviri reported revenues of $2.3 billion and adjusted EBITDA of $319 million, marking a 4% year-on-year increase or an 11% increase on an organic basis, the highest adjusted EBITDA in ten years [25][9] - Free cash flow for the year was a negative $34 million, primarily due to cash usage for large engineer-to-order projects in the rail business and delayed collections [27][34] - The covenant net leverage ratio at the end of 2024 improved to 4.07 times [28] Business Line Data and Key Metrics Changes - Clean Earth delivered record earnings and margins, with adjusted EBITDA in 2024 more than double its earnings in 2021, and cash earnings, profit margins, and free cash flow were each two times higher than at the time of acquisition [10][26] - Harsco Environmental's revenues totaled $240 million in Q4, with an organic decline of 4% due to lower service levels from weaker steel production [37] - Rail revenues totaled $77 million in Q4, with adjusted EBITDA of $2 million, reflecting lower aftermarket sales and a less favorable business mix [43] Market Data and Key Metrics Changes - The global steel industry faced significant challenges, with low production levels and site closures impacting Harsco Environmental's performance [14][38] - Steel production was weakest in Europe, North America, and the Middle East, with mill utilization below 73% in Q4 [39] Company Strategy and Development Direction - The company aims to shift its portfolio towards a specialty waste business with higher growth rates and healthy cash flow conversion, with Clean Earth's contribution to consolidated EBITDA growing from 25% to over 50% [11][12] - Enviri plans to increase growth-oriented capital spending in Clean Earth due to meaningful opportunities, while also considering divesting the rail business to reduce financial leverage [20][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the global steel industry but expressed confidence in the company's ability to manage through cycles and improve cash flow in 2025 [15][21] - For 2025, adjusted EBITDA is expected to be within a range of $305 to $325 million, with Clean Earth's EBITDA projected to grow double digits, offset by Harsco Environmental's decline [51][57] Other Important Information - The company is refreshing its board with expertise in core markets and portfolio strategy, nominating Nick Fanadakis, former CFO of DuPont, to the board [23] - Adjusted diluted loss per share for Q4 was four cents, excluding special items totaling $90 million [32] Q&A Session Summary Question: Clean Earth's volume performance in 2024 - Management noted that volume churn among top retail accounts in 2024 should turn into a tailwind for 2025, expecting a 4-5% volume lift in industrial markets [64][66] Question: Harsco Environmental's contract downside protection - Management indicated that they are likely at the bottom in terms of volume at most plants, with site closures being the bigger impact [68] Question: Clean Earth's IT and facility improvements - Management reported being over halfway through a two-and-a-half-year IT harmonization program and expects high returns from facility investments [73][78] Question: Rail's incremental costs and delivery timelines - Management stated that risk will dissipate significantly once the first vehicle in the series is delivered, which is expected in 12-15 months [81][83] Question: Steel production assumptions for 2025 guidance - Management expects volume growth in India, the Middle East, and Africa, with flat production in other regions [90] Question: PFAS opportunities in Clean Earth - Management is currently treating PFAS-contaminated wastewater and is well-positioned for future opportunities, but no substantial revenue is built into the 2025 plan [96][97] Question: Rail's 2025 cadence - Management suggested spreading the production plan evenly throughout the year for modeling purposes [100]

PHILADELPHIA, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Enviri Corporation (NYSE:NVRI) is issuing new dial-in information for today's conference call. The call will be postponed until 9:15 a.m. ET. Those who wish to listen to the conference call webcast should visit the Investor Relations section of the Company's website at www.enviri.com. The live call also can be accessed using the below dial-in details. Please ask to join the Enviri Corporation call. Listeners are advised to dial in approximately ten minutes pri ...

Enviri Corporation Reports Fourth Quarter and Full Year 2024 Results • Fourth quarter revenues totaled $559 million; GAAP consolidated loss from continuing operations of $82 million • Adjusted EBITDA in Q4 totaled $70 million, an increase of 5% over the prior-year quarter on an organic basis (adjusted for foreign exchange translation and divestiture impacts) • Net cash provided by operating activities of $36 million and adjusted free cash flow of $8 million in Q4 • Full year 2024 revenues increased 3% on an ...

Fourth quarter revenues totaled $559 million; GAAP consolidated loss from continuing operations of $82 millionAdjusted EBITDA in Q4 totaled $70 million, an increase of 5% over the prior-year quarter on an organic basis (adjusted for foreign exchange translation and divestiture impacts)Net cash provided by operating activities of $36 million and adjusted free cash flow of $8 million in Q4Full year 2024 revenues increased 3% on an organic basis2024 GAAP consolidated loss from continuing operations of $119 mil ...

The Company’s second collaboration with a key player in Turkey's İzmir region further establishes its presence and commitment to delivering exceptional service in this strategic marketPHILADELPHIA, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Harsco Environmental, a division of Enviri Corporation (NYSE: NVRI), today announced the signing of a contract with İzmir Demir Çelik Sanayi A.Ş. (İDÇ) in İzmir, Turkey. The contract marks another significant milestone in Harsco Environmental's commitment to providing innovative ...

PHILADELPHIA, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Enviri Corporation (NYSE:NVRI), a global, market-leading provider of environmental solutions for industrial and specialty waste streams, today announced that Company management will be participating in the following upcoming investor conferences: J.P. Morgan 2025 Global Leveraged Finance Conference(Miami Beach, FL)Tuesday, February 25, 2025BofA Securities 2025 Global Agriculture and Materials Conference (Ft. Lauderdale, FL) Wednesday, February 26, 2025 About E ...

Group 1 - Enviri's stock closed at $9.30, reflecting a +1.2% change from the previous trading day, outperforming the S&P 500's gain of 0.72% [1] - Over the last month, Enviri's shares increased by 10.46%, surpassing the Business Services sector's gain of 5.25% and the S&P 500's gain of 1.02% [1] Group 2 - Enviri's upcoming earnings report is scheduled for February 20, 2025, with analysts expecting earnings of -$0.09 per share, a year-over-year decline of 28.57% [2] - The consensus estimate anticipates revenue of $584.3 million, indicating a 10.49% increase from the same quarter last year [2] Group 3 - Recent changes to analyst estimates for Enviri reflect shifting short-term business dynamics, with positive adjustments indicating a favorable outlook on the company's health and profitability [3] - The Zacks Rank system, which evaluates stocks based on estimate changes, currently ranks Enviri at 5 (Strong Sell) [5] Group 4 - Enviri is trading at a Forward P/E ratio of 131.29, significantly higher than the industry average of 28.94, indicating a premium valuation [6] - The Waste Removal Services industry, part of the Business Services sector, has a Zacks Industry Rank of 185, placing it in the bottom 27% of over 250 industries [6]