Enviri Corporation Reports Mixed Q3 Results, Decline in Quarterly Revenues and Increased Losses

Enviri Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. Total revenues for the three months ended September 30, 2024, were $573.6 million, a decrease of $23.3 million (3.9%) from $596.9 million in the same period of 2023. However, for the nine months ended September 30, 2024, total revenues increased to $1,783.9 million, up $17.2 million (1.0%) from $1,766.7 million in the prior year.

The company's service revenues for the third quarter of 2024 were $488.1 million, slightly down from $490.8 million in 2023. Operating income from continuing operations for the third quarter improved to $37.4 million, compared to $28.8 million in the same period last year. The Harsco Environmental segment saw revenues decrease to $279.1 million from $285.9 million, while the Clean Earth segment's revenues remained relatively stable at $236.8 million, down from $238.7 million.

Despite the revenue decline in the third quarter, the company reported a net loss attributable to common stockholders of $(13.2) million, compared to $(10.8) million in the same period of 2023. The basic loss per share increased to $(0.16) from $(0.14). For the nine months ended September 30, 2024, the net loss attributable to common stockholders was $(44.7) million, compared to $(31.8) million in the prior year.

Enviri's total assets as of September 30, 2024, were $2.8 billion, down from $2.9 billion at the end of 2023. Total liabilities remained relatively stable at $2.3 billion, compared to $2.3 billion at the end of the previous year. The company’s stockholders’ equity decreased to $484.0 million from $523.2 million.

Strategically, Enviri completed significant divestitures, including the sale of Performix Metallurgical Additives, LLC for $17.5 million and Reed Minerals, LLC for $45.0 million, recognizing gains of $1.8 million and $8.7 million, respectively. The company also renewed its Accounts Receivable Securitization Facility with PNC Bank for a three-year term, expiring in October 2027, with a maximum purchase commitment of $150.0 million.

Operating expenses for the nine months increased due to higher compensation costs and professional fees, while SG&A expenses rose by $8.1 million. The company recorded a $2.8 million charge to fully impair a customer relationship intangible asset due to the loss of a customer in Europe.

Overall, while Enviri Corporation experienced a decline in quarterly revenues and increased losses, it maintained stable annual revenues and made strategic moves to enhance its financial position through divestitures and facility renewals.