In This Article:
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Revenue: $574 million, down 4% on a reported basis.
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Adjusted EBITDA: $85 million, an improvement of 3% year-over-year.
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Clean Earth Adjusted EBITDA: Increased 23% to $42 million with a margin of 17.5%.
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Harsco Environmental Revenue: $279 million, down 2% compared with the prior year quarter.
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Harsco Environmental Adjusted EBITDA: $53 million, modestly lower versus the prior year.
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Rail Revenue: $58 million.
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Rail Adjusted EBITDA: Loss of $2 million.
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Adjusted Diluted Loss Per Share: $0.01 for the quarter.
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Adjusted Free Cash Flow: Deficit of $34 million versus a deficit of $7 million in the prior year quarter.
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Full Year Adjusted EBITDA Outlook: Expected to be within a range of $317 million to $327 million.
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Free Cash Flow Guidance: Midpoint now negative $10 million.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Clean Earth achieved another record quarter in terms of EBITDA and EBITDA margin, with adjusted EBITDA increasing over 20% compared to Q3 of last year.
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The company successfully strengthened its balance sheet through asset sales and the renewal and extension of its revolver and other short-term credit facilities.
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Enviri Corp's sizable pension fund in the UK is now fully funded, reaching this milestone about a year earlier than expected.
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The company exceeded its goal of generating $50 million to $75 million of proceeds from asset sales, primarily from non-core businesses.
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Enviri Corp expects to yield EBITDA in excess of $400 million in 2027 with free cash flow of more than $150 million and net leverage of 2.5 times, providing greater strategic flexibility and optionality for value creation.
Negative Points
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Harsco Environmental faced headwinds due to a weakening steel industry, with excess capacity and weaker demand in China impacting customers in less protected markets.
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Harsco Rail continues to face operational challenges, including late deliveries from key vendors, global shipping disruptions, and bottlenecks in manufacturing processes.
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Hurricane Helene affected production and shipments at the end of the quarter from the primary manufacturing facility in Columbia, South Carolina.
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The company's free cash flow for the quarter was a deficit of $34 million, primarily due to the timing of working capital and capital spending.
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Enviri Corp's full-year adjusted EBITDA guidance was lowered, reflecting tempered expectations for Harsco Environmental and Rail, partially offset by a raised outlook for Clean Earth.