The following is a summary of the Enviri Corporation (NVRI) Q3 2024 Earnings Call Transcript:
Financial Performance:
Enviri Corporation reported Q3 revenues of $574 million, a 4% decrease on a reported basis, despite modest increases excluding FX translation, divestitures, and a $5 million ETO-related adjustment in Rail.
Adjusted EBITDA for Q3 was $85 million, showing a 3% increase year-over-year.
The company experienced a net loss in adjusted diluted earnings per share of $0.01 for the quarter.Adjusted free cash flow for Q3 was a deficit of $34 million, impacted largely by Rail business investments.
Business Progress:
Clean Earth delivered another record quarter with adjusted EBITDA increasing over 20% from the previous year, driven by pricing, operational efficiency, and mix adjustments.
HE (Harsco Environmental) and Rail segments continued to face challenges, including global steel market weakness and operational disruptions, with planned improvements underway.
Significant balance sheet strengthening through asset sales exceeding $50 million and fully funding the UK pension fund, providing added financial flexibility.
Opportunities:
Clean Earth is expected to benefit from sustainability-driven volume growth and efficiency gains from technology-driven initiatives.
The company anticipates strategic flexibility and growth through the continuous refinement of its operational plan, promising organic growth and margin enhancements across its business segments over the next two to three years.
Risks:
HE segment's performance was hindered by weakening in the global steel market, primarily influenced by excess capacity and reduced demand from China along with operational challenges and some production curtailments by its steel customers.
Rail faced losses due to operational bottlenecks, shipment and supply chain delays exacerbated by Hurricane Helene.
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