PHILADELPHIA, PA — Enviri Corporation (NYSE: NVRI) posted a $297 million second-quarter loss from continuing operations as charges tied to its exit from two European Harsco Rail contracts and separation-related costs overwhelmed improved underlying performance at Harsco Environmental and Rail.
The company reported a diluted loss of $10.70 a share from continuing operations for the quarter, compared with a loss of $1.70 a share a year earlier. On an adjusted basis, the loss narrowed to 63 cents a share from 84 cents.
Adjusted EBITDA increased to $34 million from $27 million, driven by Harsco Environmental. Enviri also reaffirmed its 2026 adjusted EBITDA outlook for both operating segments.
Reported revenue from continuing operations totaled $187 million. Excluding adjustments tied to the rail contract exits, revenue was $324 million, up 2% from a year earlier.
The quarter reflects a substantially different company following the sale of Clean Earth and the spin-off of Harsco Environmental and Harsco Rail. Clean Earth is now classified as discontinued operations, while $1.9 million of quarterly corporate costs previously allocated to that business are included in Enviri’s continuing operations.
The largest drag came from Harsco Rail, where Enviri recently ended work on two European engineered-to-order contracts in an effort to eliminate future execution risk, cash demands and earnings volatility.
Harsco Rail reported negative $79 million of revenue after reflecting the contract-exit adjustments. Excluding those effects, revenue was $58 million, essentially unchanged from a year earlier as higher aftermarket volumes offset weaker equipment and contracted-services activity.
The segment recorded a $221 million GAAP operating loss and a $5 million adjusted EBITDA loss. A year earlier, Harsco Rail posted a $20 million operating loss and a $3 million adjusted EBITDA loss.
Enviri President and Chief Executive Officer Russell Hochman framed the exits as part of a broader effort to simplify the company and reduce financial volatility.
“We took meaningful action to advance our strategic priorities that improve our financial profile and earnings potential,” Hochman stated, pointing to the European rail exits and recently launched restructuring actions.
Harsco Environmental delivered the stronger operating performance. Revenue rose 3% to $266 million on higher services and ecoproduct volumes and increased services pricing.
The segment’s GAAP operating income climbed to $13 million from $4 million, while adjusted EBITDA increased to $46 million from $40 million. Adjusted EBITDA margin expanded to 17.2% from 15.5%.
Enviri attributed the improvement to higher volumes, pricing and internal operating initiatives.
Cash flow remained pressured on a GAAP basis. Net cash used in operating activities totaled $297 million, compared with $22 million of cash provided a year earlier.
Adjusted free cash flow, excluding Clean Earth and transaction-related expenditures, improved to negative $9 million from negative $39 million. Enviri attributed the improvement to higher adjusted cash earnings, working-capital gains and lower net capital spending.
The company’s Credit Agreement net leverage ratio stands at 1.9 times under its new capital structure.
For 2026, Enviri continues to expect Harsco Environmental adjusted EBITDA of $170 million to $180 million. The midpoint would be modestly above the prior year as higher demand, new sites and operating improvements offset site exits and benefits recorded in 2025 that are not expected to recur.
Harsco Rail is expected to produce an adjusted EBITDA loss of $26 million to $19 million for the year. The company expects weaker equipment and contracted-services demand and related manufacturing inefficiencies to be partially offset by cost reductions and other operating benefits.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.