Enviri Q1 2025 slides: Clean Earth shines amid mixed results, guidance reaffirmed

Enviri Corporation (NYSE:NVRI) presented its first quarter 2025 results on May 1, revealing a mixed financial performance with its Clean Earth segment continuing to drive growth while other divisions faced headwinds. Despite year-over-year declines in revenue and adjusted EBITDA, the company exceeded its quarterly EBITDA guidance and reaffirmed its full-year outlook.

Quarterly Performance Highlights

Enviri reported Q1 2025 revenue of $548 million, down 9% from $600 million in the same period last year. Adjusted EBITDA decreased 14% year-over-year to $67 million, with margins contracting slightly to 12.2% from 13.0%. The company noted that foreign exchange impacts and business divestitures accounted for approximately $7 million of the EBITDA decline.

As shown in the following financial summary:

Despite the overall revenue and earnings decline, Enviri demonstrated improved cash generation with operating cash flow of $7 million, up from $1 million in Q1 2024. Adjusted free cash flow, while still negative at $13 million, showed a 20% improvement from the prior year’s $17 million outflow.

"We had a positive first quarter, exceeding our EBITDA guidance," noted the company’s CEO in the presentation. "Clean Earth again realized strong growth, while Harsco Environmental performed above expectations despite persistent market challenges."

Segment Analysis

The Clean Earth segment emerged as the standout performer, achieving a record first quarter result with revenues increasing to $235 million from $226 million in Q1 2024. The segment’s adjusted EBITDA grew to $38 million from $34 million, with margins expanding to 16.2% from 15.1%. This growth was attributed to higher volumes, improved pricing, and ongoing operational improvements.

The following chart illustrates Clean Earth’s performance drivers:

In contrast, Harsco Environmental faced significant challenges, with revenue declining to $243 million from $299 million in Q1 2024. The segment’s adjusted EBITDA fell to $39 million from $49 million, though margins remained relatively stable at 16.2% compared to 16.5% in the prior year. The decline was primarily attributed to business divestitures, foreign exchange impacts, and lower service levels.

As shown in the Environmental segment’s performance breakdown:

Harsco Rail continued to struggle, with revenue decreasing to $70 million from $75 million and adjusted EBITDA turning negative at -$2 million compared to positive $2 million in Q1 2024. The segment’s performance was impacted by lower aftermarket and technology volumes, along with less favorable business mix.

The following chart details the Rail segment’s performance:

Forward-Looking Statements

Despite the mixed Q1 results, Enviri reaffirmed its full-year 2025 guidance, projecting adjusted EBITDA between $305-$325 million and adjusted free cash flow of $30-$50 million. This represents potential improvement from 2024’s $319 million in adjusted EBITDA and negative $34 million in free cash flow.

The company’s consolidated outlook is presented here:

For the second quarter of 2025, Enviri expects adjusted EBITDA between $65-$75 million and adjusted earnings per share between -$0.17 and -$0.05. The outlook reflects continued strength in Clean Earth offset by challenges in the Environmental and Rail segments.

The Q2 outlook details are shown below:

Strategic Initiatives

Enviri’s management emphasized that its strategic priorities remain focused on free cash flow improvements, debt reduction, and achieving financial targets. The company noted "positive business momentum offset by economic uncertainty in the near-term" as it continues to navigate challenging market conditions.

The segment-specific outlook for 2025 reveals divergent trajectories, with Clean Earth expected to deliver mid-single-digit revenue growth and low double-digit EBITDA growth. Meanwhile, Harsco Environmental faces headwinds with revenue expected to decline by low double digits as reported, though only low single digits excluding foreign exchange and divestitures. Harsco Rail is projected to see high single-digit revenue growth and approximately 50% EBITDA growth, suggesting a potential turnaround from its current challenges.

The detailed segment outlook is illustrated here:

Enviri’s presentation comes against the backdrop of a challenging market environment. The company’s stock has shown significant volatility, trading at $6.87 as of April 30, 2025, well below its 52-week high of $12.79 but above its low of $4.72. In premarket trading following the earnings release, the stock showed a modest gain of 0.44%.

The Q1 2025 results continue a pattern seen in the previous quarter, where Enviri beat earnings expectations but faced revenue challenges. The company’s strategic shift toward its more profitable Clean Earth segment appears to be yielding results, though overall performance remains constrained by challenges in its traditional businesses and broader economic uncertainties.

Full presentation:

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