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Sep 30, 2024
Harsco Q3 2024 Earnings Report
Reported results within quarterly earnings guidance range, despite market weakness in Harsco Environmental as well as shipment delays and operational challenges within Harsco Rail.
Key Takeaways
Enviri Corporation reported third quarter 2024 results with revenues totaling $574 million. GAAP operating income was $37 million, and Adjusted EBITDA was $85 million, a 3% increase year-over-year. The company surpassed its 2024 asset sales goal with the sale of Reed Minerals and refinanced its credit facilities to enhance financial flexibility. However, the adjusted diluted loss per share from continuing operations in the third quarter of 2024 was $0.01.
Third quarter revenues totaled $574 million; organic growth in the quarter was 1%.
Q3 GAAP operating income of $37 million.
Adjusted EBITDA in Q3 totaled $85 million, an increase of 3% over the prior-year quarter.
Completed sale of Reed Minerals, enabling Company to surpass 2024 asset sales goal of $50 to $75 million.
Harsco
Harsco
Harsco Revenue by Segment
Revenue by Segment
Harsco Environmental Revenue
CapyFin.comClean Earth Revenue
CapyFin.comHarsco Rail Revenue
CapyFin.com Forward Guidance
The Company's 2024 Adjusted EBITDA outlook is updated to reflect the sale of Reed Minerals and lower volumes in Harsco Environmental as well as shipment delays and supply chain and other production challenges that are slowing performance against certain contracts in Harsco Rail, partially offset by an improved outlook for Clean Earth.
Positive Outlook
- Harsco Environmental Adjusted EBITDA is projected to be below prior-year results, partially offset by higher services pricing, site improvement initiatives and higher services volumes at certain sites, including those tied to growth investments and new contracts.
- Clean Earth Adjusted EBITDA is expected to increase versus 2023 as a result of higher services pricing (net of inflation) and efficiency initiatives, offsetting the impacts of a less favorable project-related business mix as well as the 2023 Stericycle settlement not repeating.
- Harsco Rail Adjusted EBITDA is expected to increase versus 2023 as a result of higher demand and pricing for standard equipment offerings, technology products and contracted services, partially offset by lower contributions from aftermarket parts (volume and product mix driven).
- Corporate spending is anticipated to decrease (single-digit percentage) when compared with 2023.
- Guidance for free cash flow has been revised as a result.
Challenges Ahead
- The Company's 2024 Adjusted EBITDA outlook is updated to reflect the sale of Reed Minerals and lower volumes in Harsco Environmental.
- Shipment delays and supply chain and other production challenges that are slowing performance against certain contracts in Harsco Rail.
- Currency impacts, business divestitures, exited contracts, lower commodity prices and personnel investments are expected to be partially offset by higher services pricing, site improvement initiatives and higher services volumes at certain sites, including those tied to growth investments and new contracts.
- The mid-point of the 2024 Adjusted EBITDA guidance represents a 5% increase, compared with 2023.
- Guidance for free cash flow has been revised as a result.
Revenue & Expenses
Visualization of income flow from segment revenue to net income