NYSE$NVRI

Harsco Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong growth and operational momentum across all businesses.

Harsco Corporation reported a revenue of $570 million, a 27% increase compared to the prior year. GAAP operating income was $36 million, with a GAAP diluted earnings per share of $0.18. Adjusted EBITDA totaled $78 million, and adjusted earnings per share were $0.28.

  • Second Quarter Revenues totaled $570 Million, an increase of 27 percent from the prior year.
  • Q2 GAAP Operating Income of $36 Million and GAAP Diluted Earnings Per Share of $0.18.
  • Adjusted Q2 EBITDA totaled $78 Million, at upper-end of previous guidance range.
  • Q2 Adjusted Earnings Per Share of $0.28.

Headline financials

Total Revenue

$570M

Previous: $447M+27.4%
EPS (adj)

$0.28

Previous: $0.13+115.4%
Adjusted EBITDA Margin

13.7%

Previous: 13.2%+3.8%
Capital Expenditures

-$68.6M

Previous: -$51.2M-34.0%
Free Cash Flow

-$55.3M

Previous: -$61.8M+10.6%
Net Income

$13.4M

Previous: -$10.6M+226.3%
Operating Income

$36.2M

Previous: $1.87M+1838.9%
Gross Profit

$568M

Previous: $445M+27.5%
Cash & Equivalents

$77.9M

Previous: $81.8M-4.8%
Total Assets

$3.02B

Previous: $2.93B+3.3%

Revenue & EPS history

Harsco · Revenue · Quarterly

$570M

Q2 2021+27.4%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Harsco · $570M total across 3 segments · Q2 2021

  • Harsco Environmental
    $273M
  • Clean Earth
    $196M
  • Harsco Rail
    $101M

Forward guidance

The Company's 2021 guidance is unchanged relative to the outlook provided with the Company's first quarter 2021 results. Adjusted Corporate spending is still expected to range from $36 million to $37 million for the year.

Tailwinds

  • Favorable demand for underlying services and products as well as higher commodity prices are expected to increase adjusted EBITDA compared with 2020 for the Environmental segment.
  • Adjusted EBITDA is projected to increase due to the full-year impact of ESOL ownership for Clean Earth.
  • Underlying organic growth for hazardous material services is expected for Clean Earth.
  • Integration benefits are expected for Clean Earth.
  • Higher anticipated demand for equipment and technology products, as well as higher contract services contributions are expected to increase adjusted EBITDA versus 2020 for the Rail segment.

Headwinds

  • Additional allocation of Corporate costs is expected for Clean Earth.
  • Investments which include various non-recurring expenditures are expected for Clean Earth.
  • The nature of the Company's business, together with the number of countries in which it operates, subject it to changing economic conditions.
  • The nature of the Company's business, together with the number of countries in which it operates, subject it to competitive conditions.
  • The nature of the Company's business, together with the number of countries in which it operates, subject it to regulatory conditions.

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 Q2 2021

Historical avgQ2 2021

-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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