Q2 2026 Enviri Corp (Delaware) Earnings Call Transcript
Key Points
- Adjusted EBITDA increased by over 20% year-over-year, driven by strong performance in Harsco Environmental and Rail exceeding expectations.
- The exit from Deutsche Bahn and Network Rail ETO contracts significantly de-risks the company, improving its go-forward financial and cash flow profile.
- Rail's aftermarket revenues grew double-digits, and the business achieved its strongest cash flow quarter in several years.
- The company has implemented restructuring actions expected to yield over $15 million in annual margin uplift, with strong employee engagement.
- Net debt was reduced to approximately $290 million with a leverage ratio of 1.9 times, providing a solid financial foundation.
- The company recorded $247 million in unusual P&L items, including $207 million related to the ETO contract exits, impacting reported results.
- Rail continues to face challenges, with an adjusted EBITDA loss of $5 million in Q2 and ongoing uncertainty in original equipment demand.
- Harsco Environmental faces volume headwinds in Northern Europe, China, and the Middle East due to geopolitical pressures and conflict.
- The company maintains its full-year guidance, reflecting caution about market conditions and potential further disruptions.
- Adjusted free cash flow was negative $9 million in Q2, and the company expects it to remain modestly negative in Q3.
Good morning. My name is Chuck and I'll be your conference facilitator. At this time, I would like to welcome everyone to the Enviri Corporation second quarter 2026 earnings release conference call. (Operator Instructions)
Also, this telephone conference presentation and accompanying webcast made on behalf of Enviri Corporation are subject to copyright by Enviri Corporation and all rights are reserved. No recordings or redistributions of this telephone conference by any other party are permitted without the express written consent of Enviri Corporation. Your participation indicates your agreement.
I would now like to introduce Dave Martin of Enviri Corporation. Mr. Martin, you may begin your call.
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Thank you, Chuck, and welcome to everyone joining us this morning. With me today is Russell Hochman, our President and CEO; and Pete Minan, our Executive Vice President and CFO. This morning, we will discuss our
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