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Dec 31, 2022
Harsco Q4 2022 Earnings Report
Reported fourth quarter and full year 2022 results, exceeding adjusted EBITDA guidance due to strong segment performance and highlighting cost efficiencies and pricing initiatives.
Key Takeaways
Harsco Corporation reported a 6% increase in fourth-quarter revenues from continuing operations, totaling $468 million, excluding FX translation impacts. The company's Q4 GAAP operating income from continuing operations was $2 million, with an adjusted EBITDA of $61 million, surpassing the company's guidance range. Full-year revenue from continuing operations also increased by 6% before FX translation impacts, while adjusted EBITDA totaled $229 million. The company anticipates a meaningful increase in operating results for 2023.
Fourth Quarter Revenues from Continuing Operations Totaled $468 Million, An Increase of 6 Percent Over the Prior-Year Quarter After Excluding FX Translation Impacts
Q4 GAAP Operating Income from Continuing Operations of $2 Million
Adjusted EBITDA in Q4 Totaled $61 Million; Above Company's Guidance Range Due to Strong Performance in Each Business Segment
Full Year 2022 Revenue from Continuing Operations Increased 6 Percent Before FX Translation Impacts; GAAP Operating Loss of $57 million Including Impairments, While Adjusted EBITDA Totaled $229 million
Forward Guidance
The Company's 2023 guidance anticipates that it will realize a meaningful improvement in financial performance relative to 2022, with the better financial results driven by various price and cost reduction initiatives across the Company.
Positive Outlook
- Harsco Environmental adjusted EBITDA is projected to be modestly above 2022 results at the mid-point of guidance.
- For the year, higher services pricing, restructuring benefits, site improvement initiatives and new contracts are expected to be partially offset by FX translation impacts, lower commodity prices and a less favorable services mix.
- Clean Earth adjusted EBITDA is expected to significantly increase versus 2022, as a result of higher services pricing as well as cost reduction and operational improvement actions, offsetting the impacts of continued labor-market and supply-chain (disposal) tightness.
- Clean Earth is expected to drive the year-on-year performance growth
- Various price and cost reduction initiatives across the Company.
Challenges Ahead
- FX translation impacts
- lower commodity prices
Historical Earnings Impact
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Avg. Return Before/After Earnings
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