Q3 FY2026
Filed Nov 5, 2026Enviri Corporation Reports Third Quarter 2026 Results
Adjusted EBITDA increased 21% YoY to $47 million, with both Harsco Environmental and Harsco Rail improving, while the company raised segment Adjusted EBITDA outlooks. Revenue was $325 million versus $325 million in Q3 2025, and operating cash flow was negative.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 revenues from continuing operationsGAAP | $325M | – | – |
| Q3 2026 service revenues from continuing operationsGAAP | $261.3M | – | – |
| Q3 2026 product revenues from continuing operationsGAAP | $63.76M | – | – |
| Q3 2026 operating income from continuing operationsGAAP | $24M | – | – |
| Q3 2026 income from continuing operationsGAAP | $6M | – | – |
| Q3 2026 net incomeGAAP | $4.37M | – | – |
| Q3 2026 net income attributable to Enviri CorporationGAAP | $2.47M | – | – |
| Q3 2026 diluted EPS from continuing operationsGAAP | $0.16 | – | – |
| Q3 2026 diluted EPSGAAP | $0.09 | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $47M | – | 21% |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 14.4% | – | – |
| Q3 2026 adjusted diluted loss per share from continuing operationsnon-GAAP | $(0.16) | – | – |
| Q3 2026 net cash used by operating activitiesGAAP | −$7M | – | – |
| Q3 2026 adjusted free cash flownon-GAAP | −$18M | – | – |
| Nine months ended September 30, 2026 revenues from continuing operationsGAAP | $836.4M | – | – |
| Nine months ended September 30, 2026 operating loss from continuing operationsGAAP | −$226.8M | – | – |
| Nine months ended September 30, 2026 loss from continuing operationsGAAP | −$313.6M | – | – |
| Nine months ended September 30, 2026 adjusted EBITDAnon-GAAP | $109.4M | – | – |
| Nine months ended September 30, 2026 adjusted free cash flownon-GAAP | −$49.99M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Harsco EnvironmentalHigher volumes and services pricing. | $273M | – | 5% |
| Harsco RailLower volumes, including equipment volumes as a result of Rail exiting its contracts with Network Rail and Deutsche Bahn. | $52M | – | – |
2026 outlook
- NoteHarsco Environmental Adjusted EBITDA of $180 million to $184 million
- NoteHarsco Rail Adjusted EBITDA of $(7) million to $(10) million
- NoteHarsco Environmental projected adjusted revenues of $1,037 million
- NoteHarsco Rail projected adjusted revenues of $231 million
- NoteHarsco Environmental projected adjusted EBITDA margin of 17.6%
- NoteHarsco Rail projected adjusted EBITDA margin of (3.6)%
What drove it
- Harsco Environmental revenue growth reflected higher volumes and services pricing.
- Harsco Environmental adjusted earnings benefited from internal improvement actions.
- Harsco Rail adjusted earnings benefited from lower operating costs, including lower cost of sales using LIFO, and a more favorable business mix.
- The company raised segment Adjusted EBITDA outlooks on higher volume expectations, structural cost optimization and productivity initiatives.
- The internal improvement program is targeting $40 million in earnings benefits over the next two years.
Concerns
- Consolidated Q3 revenue was $325 million, the same reported amount as Q3 2025.
- Harsco Rail revenue declined to $52 million from $64 million as equipment volumes fell following exits from Network Rail and Deutsche Bahn contracts.
- Harsco Rail's Q3 Adjusted EBITDA was $1 million and its 2026 outlook is $(7) million to $(10) million.
- Q3 net cash used by operating activities was $(7) million, compared with $34 million provided in the prior-year quarter.
- Q3 results included restructuring costs, a gain related to the initial GBM payment, and a favorable adjustment to the Deutsche Bahn contract exit reserve due to the release of performance bonds.
What to watch
- Delivery of approximately $40 million in earnings growth over the next two years from the internal improvement program.
- Harsco Environmental demand for services and products, new sites, site exits and the non-recurrence of the 2025 Brazil sales-tax expense recovery.
- Harsco Rail aftermarket contributions, standard equipment and contracted-services demand.
- Receipt of up to an additional $34 million from GBM in the coming quarters.
- Cash flow effects of Harsco Environmental working-capital timing and Rail contract exits.
Balance sheet and cash flow
- Cash and cash equivalents of $226,307 thousand as of September 30, 2026, compared with $103,487 thousand as of December 31, 2025.
- Restricted cash of $50,352 thousand as of September 30, 2026, compared with $21,677 thousand as of December 31, 2025.
- Long-term debt of $381,226 thousand as of September 30, 2026, compared with $1,480,072 thousand as of December 31, 2025.
- Current maturities of long-term debt of $8,202 thousand as of September 30, 2026, compared with $14,373 thousand as of December 31, 2025.
- Net cash used by operating activities was $(6,910) thousand in Q3 2026, compared with $34,435 thousand provided in Q3 2025.
- Purchases of property, plant and equipment were $(21,289) thousand in Q3 2026, compared with $(31,757) thousand in Q3 2025.
- Harsco Rail repaid prior customer advances of $73 million.
- Harsco Rail received an initial payment of $8 million from GBM for project assets and expects to receive up to an additional $34 million from GBM in the coming quarters.
Analysis
Enviri reported Q3 revenue from continuing operations of $325 million, compared with $325 million in Q3 2025. The top line masked divergent segment trends. Harsco Environmental revenue rose 5% to $273 million on higher volumes and services pricing, while Harsco Rail revenue fell to $52 million from $64 million because of lower volumes, including equipment volumes following exits from the Network Rail and Deutsche Bahn contracts.
Profitability improved materially. GAAP operating income from continuing operations was $24 million, compared with an $8 million operating loss, and income from continuing operations was $6 million compared with a $21 million loss. Adjusted EBITDA increased 21% to $47 million and margin reached 14.4%, versus $39 million and 11.9%. Harsco Environmental generated $50 million of Adjusted EBITDA and an 18.2% margin, while Harsco Rail returned to $1 million of Adjusted EBITDA from a $4 million loss. Rail's GAAP operating income of $19 million included contract exits and the GBM gain, while its adjusted result reflected lower operating costs and a more favorable mix.
Reported earnings and adjusted earnings diverged in the quarter. GAAP diluted EPS from continuing operations was $0.16, compared with a loss of $0.82, whereas adjusted diluted loss per share was $0.16, compared with a loss of $0.59. The reconciliation identifies $(19,106) thousand of contract exits and GBM gain among unusual items, alongside $6,412 thousand of restructuring and related costs and $3,876 thousand of strategic costs. These items are important to evaluating the extent to which the GAAP operating-income recovery reflects ongoing performance versus Rail contract-exit effects.
Cash generation remained negative in the quarter. Net cash used by operating activities was $7 million and adjusted free cash flow was $(18) million, although the latter improved from $(41) million in the prior-year period. Management attributed the year-over-year adjusted free-cash-flow change to lower working capital in Rail, including contract exits, and lower financing costs, partly offset by working-capital timing in Harsco Environmental. Cash and cash equivalents were $226,307 thousand at September 30, 2026, while long-term debt was $381,226 thousand.
Management raised 2026 Adjusted EBITDA outlook for both businesses. Harsco Environmental is expected to produce $180 million to $184 million and Harsco Rail is expected to produce $(7) million to $(10) million. The outlook is supported by higher expected services volume at Environmental and aftermarket volume at Rail, as well as structural cost optimization and productivity initiatives. The company also completed the assessment phase of its internal improvement program and is targeting approximately $40 million in earnings growth over the next two years.
Management, verbatim
We experienced continued momentum across both of our businesses in the third quarter, with Enviri delivering adjusted earnings growth of more than 20% for the second consecutive quarter and achieving better than anticipated results.
Russell Hochman, Enviri President and CEO
Both businesses, in fact, reported their highest quarterly earnings in approximately two years, with this performance supported by strong operational execution. Based on these results, we have raised our full-year Adjusted EBITDA outlook.
Russell Hochman, Enviri President and CEO
Based on our assessment, we expect to deliver approximately $40 million in earnings growth over the next two years through actions already underway and additional measures planned for the coming quarters as part of the program.
Russell Hochman, Enviri President and CEO
Not in the filing
stated, not guessed- Previous-period outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- Consolidated 2026 revenue guidance was not provided.
- Gross margin was not reported.
- Gross-margin guidance was not provided.
- Operating-expense guidance was not provided.
- Tax-rate guidance was not provided.
- A Q3 2026 GAAP tax rate was not reported.
- Capital-return activity, including share repurchases and dividends, was not reported.
- Prior-quarter comparisons were not reported for the reported Q3 metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.