Enviri Corporation Reports 8.7% Revenue Decline in Q1 2025, Operating Income Improves

Enviri Corporation reported a decline in financial performance for the first quarter of 2025, with total revenues of $548.3 million, down 8.7% from $600.3 million in the same period of 2024. The decrease was primarily driven by a significant drop in revenues from the Harsco Environmental segment, which fell to $243.1 million from $299.1 million, attributed to divestitures, lost contracts, and unfavorable foreign currency translation. In contrast, the Clean Earth segment saw a slight increase in revenues to $235.2 million, while Harsco Rail revenues decreased to $69.9 million from $75.2 million.

Despite the revenue decline, Enviri's operating income improved to $30.7 million from $25.8 million year-over-year. This increase was supported by a reduction in the cost of services and products sold, which decreased by 11.4% to $423.8 million, reflecting the impact of divestitures and changes in revenue volume and mix. The company also reported a net loss of $12.2 million, an improvement from a loss of $16.8 million in the prior year, with basic earnings per share from continuing operations at $(0.15), compared to $(0.21) in 2024.

Strategically, Enviri has made significant organizational changes, including the divestiture of its subsidiaries Performix and Reed Minerals, which contributed to the overall revenue decline but were part of a broader strategy to streamline operations. The company also amended its Credit Agreement in February 2025, resetting its financial covenants to maintain compliance and support its operational needs. The total net debt to consolidated adjusted EBITDA ratio was reported at 4.31x, below the maximum allowable of 4.75x.

Operationally, Enviri's customer base and engagement metrics showed mixed results. The company reported a favorable increase in operating income from its Clean Earth segment, driven by higher volumes processed in hazardous waste management. However, the Harsco Environmental segment faced challenges with decreased service levels and increased costs at certain sites. The company continues to assess the impacts of recent tariffs and market conditions on its operations, particularly in the context of its international business.

Looking ahead, Enviri remains focused on maintaining compliance with its amended covenants and expects to leverage its operational capabilities to navigate market challenges. The company anticipates that its strategic initiatives, including the ongoing assessment of its service offerings and potential geographic expansions, will position it for improved performance in the coming quarters.