Enviri 2025 Q2 Earnings Deepened Losses Amid Revenue Decline

Enviri (NVRI) reported its fiscal 2025 Q2 earnings on August 5, 2025, with revenue declining and losses widening. The company missed its earnings expectations and lowered its guidance, signaling a challenging environment for the quarter.

Revenue
Enviri’s total revenue for Q2 2025 declined by 7.8% to $562.25 million, compared to $609.99 million in the same period the prior year. Harsco Environmental generated $258.01 million, while Clean Earth contributed $246.28 million. Harsco Rail, the smallest of the three segments, reported $57.96 million in revenue. These figures reflect a mixed performance, with Harsco Environmental and Clean Earth maintaining strong contributions despite a challenging industrial environment.

Earnings/Net Income
Enviri’s net loss widened to $46.55 million, or $0.59 per share, in Q2 2025, compared to a loss of $11.12 million, or $0.17 per share, in Q2 2024. This represents a 318.6% increase in the net loss and a 247.1% wider loss per share, highlighting the company’s deteriorating profitability and operational challenges. The sharp increase in losses is a concerning trend for investors.

Price Action
Following the earnings report, Enviri’s stock price increased by 9.07% during the latest trading day but fell 6.00% over the past week, ending with a slight 0.34% decline month-to-date. The mixed price action reflects investor uncertainty in the face of declining revenue and deteriorating earnings.

Post-Earnings Price Action Review
Historically, a strategy of buying Enviri shares after a quarter of revenue growth and holding for 30 days has performed well. Over the past three years, this approach has generated a 67.35% return, far outperforming the benchmark. The strategy has delivered a 19.45% compound annual growth rate with a maximum drawdown of 0.00%, suggesting strong risk control. Despite a Sharpe ratio of 0.36 and a volatility of 54.22%, the approach has effectively captured NVRI’s post-revenue momentum.

CEO Commentary
Chairman and CEO Nick Grasberger noted that Clean Earth delivered record Q2 earnings and strong free cash flow, while Harsco Environmental maintained consistent performance despite lower steel-industry volumes. However, Harsco Rail underperformed expectations due to weak demand and operational issues. Grasberger emphasized the need to execute strategic priorities with discipline and explore strategic alternatives to unlock value.

Guidance
Enviri revised its 2025 adjusted EBITDA guidance to a range of $290 million to $310 million, down from prior expectations. Free cash flow guidance was also reduced to between $15 million and $35 million. These adjustments reflect a more cautious outlook for Harsco Rail, driven by global trade tensions and slowing demand. The leadership remains focused on disciplined execution and strategic reviews to enhance value.

Additional News
On May 30, 2025, Enviri’s stock traded with light volume as 0.8 million shares changed hands, below its 0.93 million average. The stock reached an intraday high of $8.27 and closed near its 52-week range, which spans $4.72 to $12.79. Analysts set a 12-month price target of $14.33, implying potential upside of 75.87% from current levels. However, no analysts currently cover the stock, and all EPS estimates for the year and next quarter remain negative. Institutional investors hold a slight minority stake in the company, and no major M&A activity or executive changes were reported. The company’s beta of 1.81 suggests above-market volatility.