Enviri Corporation disclosed second-quarter 2026 results on August 11 that revealed a GAAP loss from continuing operations of $297 million, substantially wider than the $45 million loss recorded in the corresponding period of the prior year. The company attributed much of the deterioration to non-recurring items, including exit costs from two European Rail contracts and expenses associated with the recent divestiture of Clean Earth and the separation of Harsco Environmental and Rail operations.
When adjusted for one-time charges, the company’s core business demonstrated positive momentum. Harsco Environmental, the largest operating segment, generated $266 million in revenue, representing a 3% increase year-over-year, supported by higher service volumes, improved ecoproducts demand, and stronger pricing for services. Operating income more than tripled to $13 million from $4 million, while Adjusted EBITDA rose to $46 million from $40 million. The segment’s Adjusted EBITDA margin expanded to 17.2% from 15.5%, indicating that internal operational improvements were gaining traction. On a consolidated basis, total Adjusted EBITDA climbed to $34 million from $27 million, with company-wide margins widening to 10.4% from 8.7%. Adjusted free cash flow also showed material improvement, declining to negative $9 million from negative $39 million.
Harsco Rail, the second major segment, presented a contrasting picture. The division reported negative revenue of $79 million as a result of contract-exit accounting adjustments. Excluding those one-time effects, adjusted revenue remained essentially flat at $58 million. The segment’s operating loss deepened significantly to $221 million from $20 million, and Adjusted EBITDA swung to a loss of $5 million from a loss of $3 million. The company’s 2026 guidance for Harsco Rail projects Adjusted EBITDA losses between negative $26 million and negative $19 million, citing anticipated weakness in standard equipment and contracted services demand alongside manufacturing inefficiencies.
On a per-share basis, GAAP diluted loss from continuing operations widened to $10.70 from $1.70 year-over-year, though the adjusted loss narrowed to $0.63 from $0.84. Management maintained its 2026 Adjusted EBITDA guidance for both operating segments and noted a net leverage ratio of 1.9x under the new capital structure. Hedge fund ownership declined modestly to 25 positions from 26 in the prior quarter, suggesting institutional investors remained cautious pending clearer visibility into the company’s ongoing restructuring efforts and the full accounting separation of discontinued operations.
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