Enviri Corporation Reports Q1 2026 Financial Results with Revenue Increase and Net Loss

Enviri Corporation reported its financial results for the first quarter of 2026, revealing total revenues of $549.8 million, a slight increase of $1.9 million or 0.3% compared to $547.9 million in the same period last year. The company's service revenues rose to $484.0 million from $476.5 million, while product revenues decreased to $65.8 million from $71.4 million. Despite the revenue growth, Enviri experienced a net loss of $10.7 million, compared to a loss of $9.0 million in the prior year, primarily due to increased costs and lower operating income.

The company's operating income from continuing operations fell significantly to $0.8 million from $29.3 million in the previous year. This decline was attributed to various factors, including increased costs of services sold, which rose to $444.2 million from $424.8 million, and higher selling, general, and administrative expenses, which increased to $91.5 million from $89.1 million. The Clean Earth segment, which is in the process of being sold to Veolia Environnement S.A., saw a revenue decline to $225.8 million from $234.9 million, reflecting lower volumes and increased operational costs.

Enviri's operational metrics showed mixed results. The Harsco Environmental segment reported revenues of $256.7 million, up from $243.1 million, while the Harsco Rail segment's revenues decreased to $67.3 million from $69.9 million. The company also noted a significant increase in cash flows from operating activities, which rose to $21.5 million from $6.6 million, driven by favorable changes in working capital. However, cash used in investing activities increased to $30.7 million, primarily due to higher capital expenditures.

Strategically, Enviri is preparing for the anticipated sale of its Clean Earth segment, which is expected to close in the second quarter of 2026. The company amended its Senior Secured Credit Facilities to extend the maturity of a $50 million revolving credit facility, which is now set to mature on the earlier of July 1, 2026, or the closing date of the Clean Earth sale. Enviri remains optimistic about maintaining compliance with its debt covenants, with a total net debt to consolidated adjusted EBITDA ratio of 4.98x as of March 31, 2026, below the permitted maximum of 5.50x.

Looking ahead, Enviri's management expressed confidence in the company's ability to navigate current market conditions and execute its strategic initiatives, including the successful completion of the Clean Earth sale. The company continues to assess its operational performance and market dynamics, particularly in light of ongoing economic uncertainties and regulatory changes affecting its business segments.