NYSE$NVRI

Harsco Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported results within quarterly earnings guidance range, despite market weakness in Harsco Environmental as well as shipment delays and operational challenges within Harsco Rail.

Enviri Corporation reported third quarter 2024 results with revenues totaling $574 million. GAAP operating income was $37 million, and Adjusted EBITDA was $85 million, a 3% increase year-over-year. The company surpassed its 2024 asset sales goal with the sale of Reed Minerals and refinanced its credit facilities to enhance financial flexibility. However, the adjusted diluted loss per share from continuing operations in the third quarter of 2024 was $0.01.

  • Third quarter revenues totaled $574 million; organic growth in the quarter was 1%.
  • Q3 GAAP operating income of $37 million.
  • Adjusted EBITDA in Q3 totaled $85 million, an increase of 3% over the prior-year quarter.
  • Completed sale of Reed Minerals, enabling Company to surpass 2024 asset sales goal of $50 to $75 million.

Headline financials

Total Revenue

$574M

Previous: $525M+9.3%
EPS

-$0.16

Previous: $0.05-420.0%
Adjusted EBITDA

$84.7M

Previous: $79M+7.2%
Adjusted EBITDA Margin

14.8%

Previous: 15.1%-2.0%
Harsco Environmental Adj EBITDA

$53.1M

No prior period
Harsco Environmental Adj EBITDA Margin

19.0%

No prior period
Clean Earth Adj EBITDA

$41.5M

No prior period
Clean Earth Adj EBITDA Margin

17.5%

No prior period
Harsco Rail Adj EBITDA

-$2.45M

No prior period
Harsco Rail Adj EBITDA Margin

-4.3%

No prior period
Capital Expenditures

-$102M

Previous: -$93.6M-9.0%
Free Cash Flow

-$115M

Previous: -$104M-10.4%
Net Income

-$13.2M

Previous: -$10.8M-21.9%
Operating Income

$37.4M

Previous: $29.8M+25.5%
Gross Profit

$574M

Previous: $116M+395.2%
Cash & Equivalents

$110M

Previous: $95.6M+15.3%
Total Assets

$2.8B

Previous: $2.84B-1.2%
R&D Expense

$888K

Previous: $271K+227.7%

Revenue & EPS history

Harsco · Revenue · Quarterly

$574M

Q3 2024+9.3%vs Q3 2023
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's 2024 Adjusted EBITDA outlook is updated to reflect the sale of Reed Minerals and lower volumes in Harsco Environmental as well as shipment delays and supply chain and other production challenges that are slowing performance against certain contracts in Harsco Rail, partially offset by an improved outlook for Clean Earth.

Tailwinds

  • Harsco Environmental Adjusted EBITDA is projected to be below prior-year results, partially offset by higher services pricing, site improvement initiatives and higher services volumes at certain sites, including those tied to growth investments and new contracts.
  • Clean Earth Adjusted EBITDA is expected to increase versus 2023 as a result of higher services pricing (net of inflation) and efficiency initiatives, offsetting the impacts of a less favorable project-related business mix as well as the 2023 Stericycle settlement not repeating.
  • Harsco Rail Adjusted EBITDA is expected to increase versus 2023 as a result of higher demand and pricing for standard equipment offerings, technology products and contracted services, partially offset by lower contributions from aftermarket parts (volume and product mix driven).
  • Corporate spending is anticipated to decrease (single-digit percentage) when compared with 2023.
  • Guidance for free cash flow has been revised as a result.

Headwinds

  • The Company's 2024 Adjusted EBITDA outlook is updated to reflect the sale of Reed Minerals and lower volumes in Harsco Environmental.
  • Shipment delays and supply chain and other production challenges that are slowing performance against certain contracts in Harsco Rail.
  • Currency impacts, business divestitures, exited contracts, lower commodity prices and personnel investments are expected to be partially offset by higher services pricing, site improvement initiatives and higher services volumes at certain sites, including those tied to growth investments and new contracts.
  • The mid-point of the 2024 Adjusted EBITDA guidance represents a 5% increase, compared with 2023.
  • Guidance for free cash flow has been revised as a result.

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 Q3 2024

Historical avgQ3 2024

-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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