NYSE$NVRI

Harsco Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported strong first quarter results driven by steady demand and focused execution.

Harsco Corporation reported a 9% increase in first-quarter revenues from continuing operations, totaling $496 million. GAAP operating income was $29 million, and adjusted EBITDA reached $63 million, a 28% increase over the prior year. The company raised its full-year adjusted EBITDA guidance to between $260 million and $275 million.

  • First Quarter Revenues from Continuing Operations Totaled $496 Million, an Increase of 9 Percent Over the Prior-Year Quarter.
  • Q1 GAAP Operating Income from Continuing Operations of $29 Million.
  • Adjusted EBITDA from Continuing Operations in Q1 Totaled $63 million, an Increase of 28 Percent Over the Prior-Year Quarter.
  • Full Year 2023 Adjusted EBITDA Guidance Range Increased to Between $260 Million and $275 Million.

Headline financials

Total Revenue

$496M

Previous: $453M+9.5%
EPS (adj)

-$0.11

Previous: -$0.01-1000.0%
Adjusted EBITDA Margin

12.7%

Previous: 10.8%+17.6%
Capital Expenditures

-$22.1M

Previous: -$33M+32.8%
Free Cash Flow

-$31.7M

Previous: -$72.8M+56.5%
Net Income

-$9.53M

Previous: -$39.8M+76.1%
Operating Income

$29M

Previous: $7.75M+274.4%
Gross Profit

$95M

Previous: $419M-77.4%
Cash & Equivalents

$91.8M

Previous: $85.2M+7.7%
Total Assets

$2.82B

Previous: $3.05B-7.4%

Revenue & EPS history

Harsco · Revenue · Quarterly

$496M

Q1 2023+9.5%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Harsco · $487M total across 2 segments · Q3 2022

  • Harsco Environmental
    $265M-1.9%
  • Clean Earth
    $222M+10.8%

Forward guidance

The Company has increased its 2023 guidance to reflect its positive business momentum and improved visibility in each of its businesses

Tailwinds

  • Harsco Environmental adjusted EBITDA is projected to be modestly above 2022 results.
  • Higher services pricing, restructuring benefits, site improvement initiatives and new contracts are expected to be partially offset by FX translation impacts and lower commodity prices.
  • Clean Earth adjusted EBITDA is expected to significantly increase versus 2022, as a result of higher services pricing as well as cost reduction and operational improvement actions, offsetting the impacts of continued labor-market and supply-chain (disposal) tightness.
  • Corporate spending is anticipated to be higher relative to the prior year due to the normalization of certain expenditures, including travel and higher planned incentive compensation.
  • Harsco Free Cash Flow is now projected to be within a range of $25 million to $45 million for the year.

Headwinds

  • FX translation impacts
  • lower commodity prices
  • continued labor-market tightness
  • supply-chain (disposal) tightness
  • Corporate spending is anticipated to be higher relative to the prior year due to the normalization of certain expenditures, including travel and higher planned incentive compensation.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.2%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+4.9%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+25.1%

Q1 2023

Best reaction

-39.1%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%+0.7%
Q4 2025-6.2%-0.9%-2.2%
Q3 2025+3.9%+9.8%+48.5%
Q1 2025+1.5%+1.3%+18.6%
Q4 2024-13.4%-19.1%-22.7%
Q3 2024-23.7%-31.5%-26.3%
Q2 2024+5.2%-6.2%+1.1%
Q1 2024-13.2%-2.2%+8.9%
Q4 2023-1.5%-0.4%+14.7%
Q3 2023+9.8%+1.5%+9.1%
Q2 2023-11.2%-19.9%-20.9%
Q1 2023+25.1%+39.9%+34.5%
Q4 2022+5.0%+3.8%-18.0%
Q3 2022+4.2%+14.6%+40.8%
Q2 2022+14.0%+33.1%+11.0%
Q1 2022-12.1%-18.4%-19.1%
Q4 2021-25.2%-22.8%-21.1%
Q3 2021-23.1%-15.0%-15.2%
Q2 2021-5.6%-6.4%-8.1%
Q1 2021+10.7%+19.8%+20.9%
Q4 2020-24.2%-21.2%-21.1%
Q3 2020-4.8%-4.8%+34.5%
Q2 2020-8.7%+2.1%-13.6%
Q1 2020+11.4%-4.6%+64.0%
Q4 2019-9.0%-23.5%-59.6%
Q3 2019+0.0%+2.8%+8.5%
Q2 2019-16.6%-19.4%-28.9%
Q1 2019+21.9%+18.1%+22.4%
Q4 2018+5.5%-0.1%-8.8%
Q3 2018+8.6%+16.7%+10.0%
Q2 2018-1.4%+2.6%+11.0%
Q1 2018+10.6%+8.9%+24.4%
Q4 2017+20.0%+25.7%+28.1%
Q3 2017-9.9%-17.6%-13.5%
Q2 2017+7.7%+11.3%+12.2%
Q1 2017+14.7%+18.1%+20.5%
Q4 2016+5.1%+6.6%-10.6%
Q3 2016+8.1%+15.6%+50.0%
Q2 2016+10.3%+9.5%+3.0%
Q1 2016-0.7%
Q4 2015-39.1%
Q3 2015-3.4%
Q2 2015-12.2%
Q1 2015+0.7%
Q4 2014-5.6%
Q3 2014-2.3%
Q2 2014-6.4%
Q1 2014+4.2%
Q4 2013+1.8%
Q3 2013-0.9%
Q2 2013-5.7%
Q1 2013+0.6%
Q4 2012-3.4%
Q3 2012-0.5%
Q2 2012-1.4%
Q1 2012+1.0%
Q4 2011-1.5%
Q3 2011+6.9%
Q2 2011-8.8%
Q1 2010-0.9%
Q1 2011-0.3%
Q4 2008+1.9%
Q4 2010+1.9%
Q3 2009+4.9%
Q3 2010+4.9%
Q2 2010-2.1%
Q4 2009-2.1%
Q2 2009-2.1%

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