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PHILADELPHIA - Enviri Corporation (NYSE: NVRI), a leader in environmental solutions with a market capitalization of $691 million, announced today the addition of two new independent directors to its Board as part of a cooperation agreement with investment firm Neuberger Berman. According to InvestingPro analysis, the company currently appears slightly undervalued based on its Fair Value assessment. The appointments are a continuation of Enviri's board refreshment plan, which has already seen three new members in the past four years.
The first new director will join the Board at Enviri's 2025 Annual Meeting of Stockholders, with the second to be appointed within eight months. As part of the governance overhaul, one current director will not seek re-election at the 2025 Annual Meeting, and another will step down at the subsequent Annual Meeting. Further changes to the Board are expected in 2026.
Nick Grasberger, Enviri's Chairman and CEO, emphasized the company's commitment to corporate governance and shareholder engagement. With a debt-to-equity ratio of 3.23 and total revenue of $2.1 billion in the last twelve months, "Our directors are focused squarely on the execution of Enviri's strategic priorities to drive meaningful growth and deliver sustainable value," Grasberger stated. InvestingPro data reveals several key insights about the company's financial health, with additional ProTips available to subscribers.
Benjamin Nahum of Neuberger Berman expressed confidence in Enviri's transformation and potential for shareholder value increase. "We are committed to working with management to achieve the Company's full potential," Nahum said, highlighting the importance of adding expertise to the Board that aligns with Enviri's operational priorities.
The cooperation agreement between Enviri and Neuberger Berman, detailed in a Form 8-K filed with the U.S. Securities and Exchange Commission, is part of the company's strategy to bolster its governance and enhance long-term shareholder value.
Enviri, headquartered in Philadelphia, Pennsylvania, provides a wide array of environmental services and solutions, focusing on recycling and reuse for diverse waste streams. The company operates in over 150 locations across more than 30 countries, aiming to assist customers in meeting their sustainability goals. With an EBITDA of $278 million and a gross profit margin of 21%, the company shows mixed financial indicators. For comprehensive analysis and detailed insights, investors can access the full Pro Research Report available on InvestingPro, which provides in-depth coverage of Enviri among 1,400+ US equities. This board refreshment initiative is reported based on a press release statement from the company.
In other recent news, Enviri Corporation has been the subject of several significant developments. The company reported total revenues of $574 million in its latest earnings call, marking a 4% decrease from the previous year. Despite some operational issues in the Rail segment, the Clean Earth division achieved a record performance with over 20% adjusted EBITDA growth and a 17.5% EBITDA margin.
Enviri has also updated its executive severance agreements, providing a lump sum severance for key executives under certain conditions. This move may be strategic in anticipation of potential future corporate restructuring or acquisition events. Additionally, Enviri announced a change in its independent registered public accounting firm for the fiscal year 2025, following PricewaterhouseCoopers LLP's decision not to participate in the company's strategic request-for-proposal process.
BMO Capital has adjusted its outlook on Enviri, reducing the price target from $13.00 to $10.00 while maintaining a Market Perform rating. This change reflects near-term challenges faced by the company, particularly in its Rail and HE divisions. However, the company remains optimistic about future margin expansion, EBITDA, and top-line growth.
Finally, Enviri has appointed Christophe Reitemeier as the new senior vice president and president of Harsco (NYSE:NVRI) Environmental. This appointment comes after the passing of Mauro Curi and will be effective from January 1, 2025. These recent developments reflect Enviri's resilience and adaptability amidst sector-specific and macroeconomic challenges.
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