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Dec 31, 2023
Harsco Q4 2023 Earnings Report
Reported a strong fourth quarter with increased revenues and adjusted EBITDA.
Key Takeaways
Enviri Corporation reported a 13% increase in Q4 revenues from continuing operations, reaching $529 million. GAAP operating income from continuing operations was $28 million, and adjusted EBITDA totaled $73 million, a 21% increase over the prior-year quarter. The company's net leverage ratio declined to 4.1x at quarter-end, and they anticipate further improvements in operating results for 2024.
Fourth quarter revenues from continuing operations increased by 13% year-over-year to $529 million.
Q4 GAAP operating income from continuing operations reached $28 million.
Adjusted EBITDA from continuing operations increased by 21% year-over-year to $73 million.
The credit agreement net leverage ratio declined to 4.1x at quarter-end.
Harsco
Harsco
Harsco Revenue by Segment
Revenue by Segment
Harsco Environmental Revenue
CapyFin.com Forward Guidance
The company anticipates an improvement in financial performance compared to 2023, with Clean Earth and Harsco Environmental expected to contribute to growth. The outlook assumes stable economic conditions and benefits from growth and improvement initiatives.
Positive Outlook
- Harsco Environmental adjusted EBITDA is projected to be modestly above prior-year results due to higher services volumes and pricing, site improvement initiatives, and new contracts.
- Clean Earth adjusted EBITDA is expected to increase versus 2023, driven by higher services pricing (net of inflation), efficiency initiatives, and higher volumes.
- GAAP Operating Income is projected to be between $122 million and $142 million.
- Adjusted EBITDA is projected to be between $300 million and $320 million.
- Free Cash Flow is projected to be between $20 million and $40 million.
Challenges Ahead
- Harsco Environmental's growth will be partially offset by lower commodities and certain product volumes as well as personnel investments.
- Clean Earth's growth will be offset by a less favorable project-related business mix as well as certain other 2023 items not repeating (Stericycle settlement).
- GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations is projected to be between $(0.28) and $(0.52).
- Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations is projected to be between $(0.00) and $(0.25).
- Net Capital Expenditures are projected to be between $130 million and $140 million.