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HOUSTON - Bradley L. Radoff, a significant shareholder of Enviri Corporation (NYSE: NVRI), a $750 million market cap environmental solutions company, has publicly urged the company’s Board of Directors to implement immediate governance changes after a sustained period of poor stock performance. According to InvestingPro data, the company currently trades near its Fair Value amid significant operational challenges. In an open letter, Radoff criticized the board’s recent plan to refresh its composition, highlighting its failure to address the combined Chairman and CEO role and lack of transparency regarding director replacements.
Radoff’s main points of contention include the replacement of three long-serving directors with new, independent members, the separation of the roles of Chairman and CEO, and a strategic review of the company’s underperforming rail segment, Harsco (NYSE:NVRI) Rail. He highlighted the stark contrast between Enviri’s negative stockholder returns over various periods and those of relevant indices, such as the S&P 600 Industrial Sector Index and the Russell 2000 Index.
The shareholder’s analysis indicates that Enviri’s stock performance has been significantly lagging behind these indices during the tenures of the current directors and CEO F. Nicholas Grasberger III. Recent InvestingPro data shows concerning fundamentals, including a debt-to-equity ratio of 3.23 and negative earnings of $0.73 per share over the last twelve months. Radoff argues that this underperformance is evidence of a lack of accountability and has led to a substantial erosion of shareholder value. For deeper insights into Enviri’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In his letter, Radoff calls for a more focused environmental solutions company and suggests that the rail business, which has been under strategic review for over four years, should have been divested to unlock value for shareholders. With analyst price targets ranging from $10 to $24, suggesting potential upside, he expresses an urgency for these changes, warning that he intends to vote against all incumbent directors at the upcoming 2025 Annual Meeting of Stockholders if the board fails to act on his recommendations.
The letter concludes with an offer from Radoff to discuss his concerns and ideas with the board in the coming weeks, emphasizing the need for immediate action to reverse the trend of value destruction and set Enviri on a path toward value creation. This news is based on a press release statement issued by Bradley L. Radoff.
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 Corporation also announced the addition of two new independent directors to its Board, a move seen as part of a cooperation agreement with investment firm Neuberger Berman. BMO Capital adjusted its outlook on Enviri, reducing the price target from $13.00 to $10.00 while maintaining a Market Perform rating, reflecting near-term challenges faced by the company.
In terms of leadership changes, Enviri appointed Christophe Reitemeier as the new senior vice president and president of Harsco Environmental. The company also updated its executive severance agreements, potentially in anticipation of future corporate restructuring or acquisition events. Lastly, Enviri announced a change in its independent registered public accounting firm for the fiscal year 2025. These are the recent developments in Enviri Corporation.
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