PHILADELPHIA, PA — Enviri Corporation (NYSE: NVRI) reported a second-quarter 2025 loss of $46 million from continuing operations, citing challenges in its Harsco Rail business and related one-time charges. Revenue fell to $562 million, down 8% year-over-year, while adjusted EBITDA totaled $65 million, compared to $86 million in the prior-year quarter.
The company also announced a formal review of strategic alternatives, including a potential tax-efficient sale or separation of its Clean Earth division. The move signals an effort to unlock shareholder value amid uneven performance across its business segments.
“As we seek to close the persistent gap between Enviri’s public market valuation and the company’s sum-of-the-parts value, the Board has authorized a comprehensive review of strategic alternatives,” said Chairman and CEO Nick Grasberger. “We are approaching this process with clarity, discipline, and an open mind, assisted by our outside advisors and guided by our commitment to maximize shareholder value.”
Segment Highlights
Clean Earth, which handles hazardous and non-hazardous waste, posted $246 million in revenue, a 4% increase from Q2 2024. Adjusted EBITDA rose to $40 million, supported by higher volumes, price improvements, and efficiency initiatives, despite temporary disruptions that led to costlier disposal alternatives. EBITDA margin for the segment edged up to 16.3%.
Harsco Environmental reported $258 million in revenue, down year-over-year due to site closures, exited contracts, and lower eco-product volumes. Adjusted EBITDA declined to $40 million, with a 15.5% margin, reflecting impacts from recent divestitures and reduced service activity.
Harsco Rail, the company’s most troubled unit, saw revenue fall 28% to $58 million. The segment reported an adjusted EBITDA loss of $3 million, driven by weak demand, higher manufacturing costs, and an unfavorable product mix.
“Our environmental businesses performed well in the quarter and in line with our expectations,” said Grasberger. “Clean Earth achieved record Q2 earnings while continuing to generate strong free cash flow, and Harsco Environmental again delivered consistent performance despite steel-industry volumes remaining subdued. Rail results were below our expectations and negatively impacted by weak demand and ongoing operating challenges.”
Updated Guidance and Strategic Review
Looking ahead, Enviri revised its 2025 guidance to reflect lower expectations for Harsco Rail. Adjusted EBITDA is now forecast between $290 million and $310 million, with free cash flow projected in the $15 million to $35 million range.
Grasberger added: “The second quarter began with significant economic uncertainty, and our forward-looking outlook is mixed. Fundamentals for Clean Earth and Harsco Environmental remain stable, while market conditions for Harsco Rail have weakened due to slowing global demand. This weakness can be partially attributed to global trade tensions, and our revised 2025 guidance reflects a more cautious view on Rail. Looking into the second half of the year, we intend to continue executing on our strategic priorities with discipline, while concurrently reviewing strategic alternatives available to the Company to unlock the significant value inherent in our businesses.”
There is no timeline for completion of the strategic review, and the company stated it would not provide further updates unless deemed appropriate.
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