Enviri Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenues from continuing operations totaled $325 million, flat compared to $325 million in the prior-year quarter.
• GAAP consolidated income from continuing operations was $6 million, compared to a loss of $21 million in the prior-year quarter.
• GAAP diluted earnings per share from continuing operations was $0.16, compared to a loss of $0.82 in the prior-year quarter.
• Adjusted EBITDA totaled $47 million, an increase of 21% year-over-year from $39 million.
• Adjusted EBITDA margin was 14.4%, up from 11.9% in the prior-year quarter.
• Adjusted diluted loss per share from continuing operations was $0.16, compared to a loss of $0.59 in the prior-year quarter.
• Net cash used by operating activities was $7 million, compared to net cash provided of $34 million in the prior-year quarter.
• Adjusted free cash flow was $(18) million, compared to $(41) million in the prior-year quarter.

Guidance and Future Outlook:

• Raised 2026 Adjusted EBITDA outlook for both Harsco Environmental and Harsco Rail.
• Harsco Environmental 2026 Adjusted EBITDA outlook is $180 million to $184 million, above prior-year results.
• Harsco Rail 2026 Adjusted EBITDA outlook is $(7) million to $(10) million, above 2025 results.
• Internal improvement program is underway, targeting $40 million in earnings benefits over the next two years.
• 2026 outlook drivers include higher volume expectations, cost benefits from structural cost optimization, and productivity initiatives.

Business Segments and Product Lines:

• Harsco Environmental:
  • Revenues totaled $273 million, a 5% increase year-over-year, driven by higher volumes and services pricing.
  • GAAP operating income was $20 million, compared to $13 million in the prior-year quarter.
  • Adjusted EBITDA was $50 million, compared to $44 million in the prior-year quarter.
  • Adjusted EBITDA margin increased to 18.2% from 17.0%.
• Harsco Rail:
  • Revenues totaled $52 million, down from $64 million in the prior-year quarter due to lower volumes from exiting contracts with Network Rail and Deutsche Bahn.
  • GAAP operating income was $19 million, compared to a loss of $9 million in the prior-year quarter.
  • Adjusted EBITDA was $1 million, compared to a loss of $4 million in the prior-year quarter.
  • Adjusted EBITDA margin improved to 1.6% from (5.7)%.
  • Executed agreement with Deutsche Bahn releasing the segment from all obligations under the ETO contract.
  • Repaid prior customer advances of $73 million as anticipated.
  • Received initial payment of $8 million from GBM for project assets under a previously disclosed agreement.
  • Expects to receive up to an additional $34 million from GBM in the coming quarters under the same agreement.

Market and Competitive Landscape:

• No specific market share data or competitor names were provided in the release.
• The company noted higher demand for services and products in Harsco Environmental and aftermarket contributions in Harsco Rail as key drivers.

Risks and Challenges:

• The release includes standard forward-looking statement risks regarding economic, competitive, regulatory, and technological conditions.
• Specific risks include the ability to implement business strategies, customer concentration, fixed-price contracts, compliance with environmental laws, and potential claims or losses exceeding insurance coverage.
• Risks also include currency exchange rate fluctuations, interest rate changes, and labor disputes.

Management Commentary and Tone:

• President and CEO Russell Hochman stated the company experienced "continued momentum" with adjusted earnings growth of more than 20% for the second consecutive quarter.
• Management noted both businesses reported their highest quarterly earnings in approximately two years.
• Hochman highlighted that the internal improvement program's final assessment phase is complete and initiatives are designed to improve performance across market cycles.

Other Key Points:

• The third quarter included restructuring costs in Harsco Environmental and additional expenses related to the sale of Clean Earth and the spin-off of Harsco Environmental and Harsco Rail.
• The quarter included a gain related to the initial payment received from GBM for project-related assets and a favorable adjustment to the exit reserve for the Deutsche Bahn contract due to the release of performance bonds.
• Prior period results exclude Clean Earth and reflect central costs previously allocated to Clean Earth ($1.9 million per quarter) now included in the Corporate segment.
• A conference call was held on November 5, 2026, to discuss results.