Executive Summary

Q1 2025 revenue was $548M and Adjusted EBITDA $67M; EPS was a GAAP loss of $0.15 and adjusted loss of $0.18. Versus consensus, EPS beat by ~$0.06, EBITDA beat, while revenue missed; management reaffirmed full-year Adjusted EBITDA ($305–$325M) and FCF ($30–$50M) guidance . EPS/Revenue/EBITDA estimates from S&P Global.*
Clean Earth delivered a record first-quarter, with revenue up 4% to $235M and adj. EBITDA up 12% to $38M (16.2% margin), offsetting weakness in Harsco Environmental and Rail; FX and divestitures were headwinds at HE, and Rail benefited from a favorable ETO contract amendment .
Non-GAAP adjustments included a ~$11.5M favorable contract amendment in Rail recognized to revenue, and restructuring costs in HE; management highlighted limited direct tariff exposure and USD weakness as a net positive, maintaining caution on macro uncertainty .
Guidance color: segment outlooks unchanged (CE and Rail up, HE down on FX/divestitures); tax rate range raised vs Q4 guidance; Q2 2025 guide implies Adjusted EBITDA $65–$75M and continued negative FCF due to seasonality .
Potential stock reaction catalysts: Clean Earth strength and guidance reaffirmation; clarity on Rail ETO risk reduction (DB amendment) and leadership upgrades; watch macro-steel volumes and FX trajectory .

What Went Well and What Went Wrong

What Went Well

Clean Earth delivered record Q1 performance: revenue $235M (+4% YoY) and adj. EBITDA $38M (+12% YoY) with margin expansion to 16.2% on price, volume and efficiency gains; “record first quarter” highlighted by CEO Grasberger .
Rail risk reduced via Deutsche Bahn ETO amendment: additional revenue, new delivery schedule lowering penalties; CFO noted a favorable accounting benefit (~$11M special item) and anticipated homologation later in 2025 .
Cash flow ahead of plan: net cash from operations $6.6M vs $1.3M in Q1 2024; adjusted FCF improved to -$13.2M vs -$16.6M, aided by working capital and lower capex .

What Went Wrong

Consolidated revenue declined 9% YoY to $548M on FX (-$14M), divestitures (-$25M) and lower volumes in HE and Rail; Adjusted EBITDA fell to $66.9M from $78.0M YoY .
Harsco Environmental revenue down 19% to $243M and adj. EBITDA down to $39M, driven by divestitures, FX and site exits/closures; organic decline ex-FX/divestitures was 6% .
Rail adjusted EBITDA loss of $2M on lower volumes and less favorable mix; underlying base business remains healthy but ETO contracts still weigh on consolidated earnings and cash flow .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$574	$559	$548
Adjusted EBITDA ($USD Millions)	$85	$70	$66.9
Adjusted EBITDA Margin %	14.8%	12.6%	12.2%
GAAP Diluted EPS – Continuing Ops ($)	-$0.15	-$1.03	-$0.15
Adjusted Diluted EPS – Continuing Ops ($)	-$0.01	-$0.04	-$0.18

Segment breakdown – revenues and profitability:

Segment	Q1 2024 Revenue ($M)	Q1 2025 Revenue ($M)	Q1 2024 Adj. EBITDA ($M)	Q1 2025 Adj. EBITDA ($M)	Q1 2024 Adj. EBITDA Margin %	Q1 2025 Adj. EBITDA Margin %
Harsco Environmental	$299	$243	$49	$39	16.5%	16.2%
Clean Earth	$226	$235	$34	$38	15.1%	16.2%
Harsco Rail	$75	$70	$2	-$2	2.7%	-3.2%

KPIs and cash flow:

KPI	Q1 2024	Q1 2025
Net Cash from Operating Activities ($USD Millions)	$1.3	$6.6
Adjusted Free Cash Flow ($USD Millions)	-$16.6	-$13.2
Cash and Cash Equivalents (end of period, $USD Millions)	$107.4	$102.5

Q1 2025 vs Wall Street consensus (S&P Global):

Metric	Consensus (Q1 2025)	Actual (Q1 2025)	Surprise
Primary EPS ($)	-0.2133*	-0.15	Beat ~+$0.06*
Revenue ($USD Millions)	560.1*	548.3	Miss -$11.8M*
EBITDA ($USD Millions)	60.8*	72.8*	Beat +$12.0M*

Values with asterisks retrieved from S&P Global. EPS/Revenue actuals cross-checked to Enviri’s filings; EBITDA definitions may differ from company “Adjusted EBITDA” reporting.*

Guidance Changes

Metric	Period	Previous Guidance (Q4 2024)	Current Guidance (Q1 2025)	Change
Adjusted EBITDA ($M)	FY 2025	$305–$325	$305–$325	Maintained
Adjusted Free Cash Flow ($M)	FY 2025	$30–$50	$30–$50	Maintained
Net Cash from Operating Activities ($M)	FY 2025	$156–$186	$156–$186	Maintained
GAAP Diluted EPS – Continuing Ops ($)	FY 2025	-$0.49 to -$0.26	-$0.50 to -$0.26	Maintained/Minor tightening
Adjusted Diluted EPS – Continuing Ops ($)	FY 2025	-$0.25 to -$0.01	-$0.34 to -$0.11	Lowered
Tax Expense (ex-unusuals, $M)	FY 2025	$21–$26	$28–$33	Raised
Net Interest Expense (ex-unusuals, $M)	FY 2025	$105–$109	$105–$109	Maintained
Net Capital Expenditures ($M)	FY 2025	$130–$140	$130–$140	Maintained
Q2 Adjusted EBITDA ($M)	Q2 2025	—	$65–$75	New
Q2 GAAP Diluted EPS – Continuing Ops ($)	Q2 2025	—	-$0.23 to -$0.11	New
Q2 Adjusted Diluted EPS – Continuing Ops ($)	Q2 2025	—	-$0.17 to -$0.05	New

Segment outlooks unchanged: CE and Rail up vs 2024; HE down on FX/divestitures; corporate spending to rise on incentive normalization and non-cash equity comp .

Earnings Call Themes & Trends

Topic	Prev-2 (Q3 2024)	Prev-1 (Q4 2024)	Current (Q1 2025)	Trend
Clean Earth execution/margins	Record EBITDA/margins; price/efficiency offsets lower industrial volumes	Record Q4 margins; +26% EBITDA YoY; strong cash generation	Record Q1; price and volume equally contributed; One Clean Earth IT to drive further gains	Improving margins; broader volume-driven growth emerging
Rail ETO contracts & risk	Ongoing provision adjustments; supply chain bottlenecks; hurricane delays	Additional forward losses and goodwill impairment; plan to improve cash cadence in 2025	DB amendment reduces penalties, adds revenue; first vehicle commissioning; homologation later 2025	Risk being reduced; milestones approaching
HE steel market & FX	Weak global steel; customer curtailments; asset sales to strengthen balance sheet	Excess capacity and bankruptcies; salt cake environmental matter; expect HE FCF stability	Limited direct tariff exposure; USD weakness a tailwind; volumes flat near term	Stabilizing; FX tailwind possible; cautious on volumes
IT/Technology initiatives	One Clean Earth program to support future volume growth and margin	Rail ERP investment to improve ops; CE facility projects with quick paybacks	One Clean Earth order-to-invoice efficiencies; IT ~80–90% done by YE26; Rail supply chain ops focus	Execution continuing; operational benefits accruing
Cash flow trajectory	2024 FCF guide cut; negative in Q3; HE/CE offset interest/corporate outflows	Q4 adjusted FCF $8M; 2025 FCF to improve (rail and pensions)	Q1 FCF better than plan; Q2 expected negative on seasonality; FY reaffirmed	Improving through year; seasonal dips

Management Commentary

“Clean Earth continued to perform well, delivering double-digit earnings growth… Notwithstanding persistent pressures in the steel industry, Harsco Environmental performed above our expectations, and at Rail, we strengthened our leadership team and continued to make positive progress on our ETO contracts.” — CEO Nick Grasberger .
“We’re pleased to have successfully amended our contract with Deutsche Bahn… a new delivery schedule… lowers anticipated penalties… we expect to begin product homologation later this year.” — CEO Grasberger .
“We’re keeping our outlook for the year intact… the recent U.S. dollar weakness… is helpful… this positive, along with our favorable start in Q1, provides us some cushion against economic volatility.” — CFO Tom Vadaketh .
“CE’s business pipeline is very robust… revenue growth in the first quarter included a good balance of price and volume… we anticipate productivity improvements from our ongoing investments in a common IT platform.” — CEO Grasberger .

Q&A Highlights

HE volumes and tariffs: Management expects modest volume growth for the rest of the year; limited direct tariff impact; efficiency/cost reduction programs to mitigate impacts and benefit once volumes recover .
Clean Earth volume/margins sustainability: Expect larger volume contribution in 2025; One Clean Earth IT initiative targeted at order-to-invoice efficiencies; margins could exceed prior 17% target over time .
Rail ETO risk and timing: DB amendment reduces risk; first vehicle commissioning underway; homologation expected later 2025, with residual risk until customer acceptance .
Regional steel dynamics: HE expects stronger second half on new site ramps and easier comps; volumes flat near term; optimistic on EU actions supporting customers .
Capex cadence: Elevated CE capex in 2025 with high returns and quick paybacks; future capex expected lower .

Estimates Context

EPS beat: Q1 2025 GAAP diluted EPS (-$0.15) beat consensus (-$0.2133) by ~$0.06; adjusted EPS (-$0.18) within prior company guidance . EPS consensus from S&P Global.*
Revenue miss: $548.3M actual vs $560.1M consensus (-$11.8M). FX (-$14M) and divestitures (-$25M) weighed on reported revenue; CE outperformed . Revenue consensus from S&P Global.*
EBITDA beat: Consensus $60.8M vs S&P Global actual $72.8M; company-reported Adjusted EBITDA was $66.9M (non-GAAP definition differs from SPGI’s EBITDA) . EBITDA consensus from S&P Global.*

Values marked with asterisks are retrieved from S&P Global and may reflect differing metric definitions from company non-GAAP reporting.*

Key Takeaways for Investors

Clean Earth’s structural margin gains and pipeline support multi-quarter estimate upside bias for CE; watch for continued price/volume balance and IT-driven efficiency realization .
Rail risk reduction via DB amendment is a tangible de-risking step; catalysts include homologation/acceptance milestones and leadership upgrades (new President, CFO, VP Ops) .
HE remains macro-sensitive; stability measures and FX tailwinds can underpin EBITDA/FCF even with muted steel volumes; second-half ramp from new sites is a swing factor .
Full-year guidance reaffirmed despite macro uncertainty; tax expense range raised and adjusted EPS range lowered—model updates likely to reflect mix, tax, and FX changes .
Q2 guide suggests another cautious quarter (Adj. EBITDA $65–$75M); expect near-term cash flow pressure from seasonality before H2 improvement .
Non-GAAP adjustments matter: the ~$11.5M Rail ETO amendment flowed into Q1 revenue and special items; use adjusted metrics for core run-rate comparisons .
Medium-term thesis: CE-powered mix shift, Rail ETO wind-down, and FX normalization can expand consolidated margins and FCF; portfolio optionality increases as execution continues .

Notes:
*EPS/Revenue/EBITDA consensus and actual values marked with asterisks are retrieved from S&P Global.

ENVIRI Corp (NVRI)·Q1 2025 Earnings Summary