PHILADELPHIA, PA — Enviri Corporation (NYSE: NVRI) raised its 2026 adjusted earnings outlook for its two remaining businesses after third-quarter operating improvements lifted adjusted EBITDA 21%, as the Philadelphia-based industrial services company advanced a restructuring program targeting $40 million in additional earnings over two years.
The company reported $6 million in income from continuing operations for the third quarter of 2026, reversing a $21 million loss a year earlier, as improved results at Harsco Environmental and Harsco Rail strengthened profitability.
Revenue from continuing operations totaled $325 million, including growth in environmental services that helped offset lower rail equipment sales.
Adjusted earnings before interest, taxes, depreciation and amortization increased to $47 million from $39 million in the third quarter of 2025, marking the second consecutive quarter of adjusted earnings growth exceeding 20%.
Enviri reported diluted earnings of 16 cents per share from continuing operations under generally accepted accounting principles, compared with a loss of 82 cents per share a year earlier.
Excluding certain items, the company posted an adjusted diluted loss of 16 cents per share, narrowing from a loss of 59 cents in the prior-year quarter.
The difference between reported and adjusted results reflects several items associated with Enviri’s restructuring, including charges at Harsco Environmental, gains and reserve adjustments related to Harsco Rail’s exit from a Deutsche Bahn contract, and expenses connected with the sale of Clean Earth and the planned separation of its remaining businesses.
Harsco Environmental, the company’s largest remaining operation, generated $273 million in third-quarter revenue, an increase of 5% from a year earlier.
Higher service volumes and pricing contributed to the growth, while operational improvements helped increase profitability.
The segment reported operating income of $20 million, up from $13 million, and adjusted EBITDA of $50 million, compared with $44 million a year earlier.
Its adjusted EBITDA margin expanded to 18.2% from 17%, reflecting improved operating efficiency.
Harsco Rail generated $52 million in quarterly revenue, with sales declining from the prior year as the business reduced equipment volumes following its exits from contracts with Network Rail and Deutsche Bahn.
Despite the lower revenue, the division reported $19 million in operating income, compared with a $9 million operating loss a year earlier.
Adjusted EBITDA improved to $1 million from a $4 million loss, supported by lower operating costs, inventory accounting effects and a more favorable sales mix.
The rail division’s results included the financial effects of terminating its engineered-to-order contract with Deutsche Bahn, an agreement that eliminated remaining obligations associated with the project.
Under that settlement, Harsco Rail repaid approximately $73 million in customer advances, while Deutsche Bahn agreed to release $13 million in performance bonds and approximately $49 million in restricted cash.
Harsco Rail also received an initial $8 million payment from Gleisbaumechanik Brandenburg GmbH, or GBM, for assets associated with the Deutsche Bahn project.
The company expects to receive up to $34 million in additional payments from GBM over the coming quarters under the previously disclosed asset sale agreement.
The contract exit removes a source of financial and operational exposure as Enviri concentrates on its remaining businesses following the Clean Earth divestiture.
Enviri President and Chief Executive Officer Russell Hochman attributed the stronger quarterly performance to improvements across both operating segments.
“Both businesses, in fact, reported their highest quarterly earnings in approximately two years, with this performance supported by strong operational execution,” Hochman stated.
The company also completed the assessment phase of an internal improvement program intended to generate approximately $40 million in additional earnings over the next two years.
The initiative includes structural cost reductions, productivity improvements and other operational changes already underway or planned for implementation in coming quarters.
“Based on our assessment, we expect to deliver approximately $40 million in earnings growth over the next two years through actions already underway and additional measures planned for the coming quarters as part of the program,” Hochman stated.
Enviri’s cash flow results were mixed during the quarter.
Operating activities used $7 million in cash, compared with $34 million generated in the third quarter of 2025.
Adjusted free cash flow was negative $18 million, improving from negative $41 million a year earlier, excluding Clean Earth and transaction-related expenditures.
The improvement reflected lower working capital requirements at Harsco Rail, including effects from exiting two engineered-to-order contracts, and reduced financing costs. Working capital timing at Harsco Environmental partially offset those benefits.
Following the stronger operating results, Enviri increased its full-year adjusted EBITDA forecasts for both divisions.
Harsco Environmental is now expected to generate adjusted EBITDA of $180 million to $184 million in 2026, exceeding its prior-year performance.
The outlook reflects higher demand for services and products, contributions from new operating sites and cost improvement initiatives.
Those gains are expected to be partially offset by site exits and the absence of certain favorable items recorded in 2025, including the recovery of sales tax expenses in Brazil.
Harsco Rail is projected to report an adjusted EBITDA loss of $7 million to $10 million for the year, an improvement over 2025.
Higher aftermarket contributions, cost reductions and productivity initiatives are expected to support the division’s performance, although demand for standard equipment and contracted services remains lower.
The revised outlook reflects Enviri’s effort to improve earnings and cash generation across its remaining operations while completing its broader corporate restructuring.
With the Deutsche Bahn contract resolved and the internal improvement program advancing, the company’s near-term financial performance will depend on sustaining environmental services growth, improving rail profitability and converting operating gains into stronger cash flow.
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