The headline EPS miss is noise from one-time contract exits; the reaffirmed guidance and 24% YoY Adjusted EBITDA growth signal operational improvement. Monitor the Q3 2026 earnings call for progress on the restructuring actions and any updates on the Harsco Rail ETO contract resolution, as the elimination of this legacy risk is the key catalyst for multiple expansion.
Price Chart
Executive Summary
Enviri reported Q2 2026 adjusted diluted EPS of -$0.63, a 105.4% miss vs the $-0.31 consensus, though this is a GAAP-adjusted figure that strips out massive one-time charges from exiting Rail ETO contracts and the Clean Earth sale. Adjusted EBITDA rose 24% YoY to $34M, and the company reaffirmed its full-year 2026 Adjusted EBITDA guidance for both Harsco Environmental and Harsco Rail, signaling underlying operational strength despite the headline miss. The stock's prior strong momentum (100% win rate on past calls) suggests the market will look through the one-time charges to the reaffirmed guidance and deleveraged balance sheet (1.9x net leverage).
Key Financial Metrics
Key Facts
- Adjusted diluted EPS from continuing operations was -$0.63 vs consensus of -$0.31 (105.4% miss).
- GAAP diluted EPS from continuing operations was -$10.70, reflecting $207.4M in contract exit charges and other unusual items.
- Adjusted EBITDA rose to $34M in Q2 2026 from $27M in Q2 2025, a 26% YoY increase.
- Adjusted revenues (excluding contract exit adjustments) were $324M, up 2% YoY from $316M.
- Harsco Environmental segment Adjusted EBITDA grew to $46M from $40M YoY, with margin expanding to 17.2% from 15.5%.
- 2026 Adjusted EBITDA guidance reaffirmed: Harsco Environmental $170M-$180M, Harsco Rail $(26)M-$(19)M.
- Credit Agreement net leverage ratio reduced to 1.9x following the Clean Earth sale and debt paydown.
- Net cash used by operating activities was -$297M in Q2 2026, vs +$22M in Q2 2025, driven by transaction-related outflows.
Financial Impact
Adjusted EBITDA of $34M (+26% YoY) and reaffirmed FY2026 guidance of $170-180M for Harsco Environmental; GAAP loss of $297M driven by $207M in contract exit charges.
Risk Factors
- Harsco Rail segment remains deeply unprofitable (Adjusted EBITDA -$5M in Q2) and guidance implies a full-year loss of -$26M to -$19M.
- Adjusted free cash flow was negative -$8.9M in Q2, though improved from -$39.2M a year ago.
- Execution risk on the broad restructuring actions and the ability to sustain Harsco Environmental's margin expansion in a subdued end-market environment.
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0002104052-26-000126 |
| Document: nvri-20260811.htm | 0002104052-26-000126 |
| Document: 0002104052-26-000126-index-headers.html | 0002104052-26-000126 |
| Document: 0002104052-26-000126-index.html | 0002104052-26-000126 |
| Document: 0002104052-26-000126.txt | 0002104052-26-000126 |
| 8-K Data (Synthetic) | 0002104052-26-000126 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 19, 2026 6w ago | Insider Cluster | $20.52 $20.55 | ▲ +0.15% | ▲ +2.10% | $20.21 (−1.51%) |
Aug 11, 2026 7w ago | 8-K | $20.14 $22.55 | ▲ +11.97% | ▲ +13.03% | $20.21 (+0.35%) |
Aug 4, 2026 8w ago | 144 | $23.86 $22.01 | ▲ +7.75% | ▲ +6.52% | $20.21 (+15.30%) |
Jul 29, 2026 9w ago | 144 | $22.19 $23.08 | ▲ +4.01% | ▼ −1.01% | $20.21 (−8.92%) |
Jul 21, 2026 10w ago | 144 | $21.87 $19.66 | ▼ −10.11% | ▼ −12.67% | $20.21 (−7.59%) |
Jun 12, 2026 16w ago | 15-12G | $21.35 $23.28 | ▲ +9.04% | ▲ +7.26% | $20.21 (−5.34%) |
Jun 8, 2026 16w ago | Insider Cluster | $21.13 $22.53 | ▲ +6.63% | ▲ +5.18% | $20.21 (−4.35%) |
Jun 5, 2026 17w ago | EFFECT | $19.30 $23.10 | ▲ +19.69% | ▲ +17.83% | $20.21 (+4.72%) |
Jun 4, 2026 17w ago | Insider Cluster | $19.70 $22.59 | ▲ +14.67% | ▲ +16.04% | $20.21 (+2.59%) |
Jun 1, 2026 17w ago | 8-K | $19.20 $23.22 | ▲ +20.94% | ▲ +22.50% | $20.21 (+5.26%) |
US Market Status
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