ADMINISTRATIVE ITEMS Q2 2025 Quarterly Results and Outlook Conference Call August 5, 2025 © 2025 Enviri Corporation. All Rights Reserved. This document and the information set forth herein are the property of Enviri Corporation. 1 Conference Call and Access to Information More information on Enviri's quarterly earnings, including the Company's earnings press release issued today and this presentation, is available on the Investor Relations portion of Enviri's website. Company management will discuss the Com ...

[Enviri Corporation Second Quarter 2025 Results](index=1&type=section&id=Enviri%20Corporation%20Second%20Quarter%202025%20Results) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Enviri reported Q2 2025 revenue of $562 million, a $46 million GAAP loss, and $65 million Adjusted EBITDA, revising full-year guidance and exploring strategic alternatives Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $562 million | $610 million | | GAAP Loss from Continuing Operations | $46 million | $10 million | | GAAP Diluted EPS from Continuing Operations | $(0.58) | $(0.16) | | Adjusted EBITDA | $65 million | $86 million | | Adjusted Diluted EPS from Continuing Operations | $(0.22) | $0.02 | - The company has initiated a formal process to evaluate **strategic alternatives** to unlock shareholder value[3](index=3&type=chunk)[16](index=16&type=chunk) - Full-year 2025 **Adjusted EBITDA guidance has been revised downward to a range of $290 million to $310 million**, reflecting a weaker outlook for the Harsco Rail segment[3](index=3&type=chunk)[20](index=20&type=chunk) [Consolidated Second Quarter Operating Results](index=2&type=section&id=Consolidated%20Second%20Quarter%20Operating%20Results) Consolidated revenues decreased 8% to $562 million, driven by declines in Harsco Environmental and Rail, while Adjusted EBITDA fell to $65 million - Consolidated revenues from continuing operations were **$562 million**, an **8% decrease** from the prior-year quarter, with divestitures in Harsco Environmental negatively impacting revenues by approximately **$22 million**[7](index=7&type=chunk) - The GAAP consolidated loss from continuing operations **widened to $46 million**, compared to a $10 million loss in Q2 2024[9](index=9&type=chunk) - Adjusted EBITDA totaled **$65 million**, **down from $86 million** in the prior-year quarter, with an increase in Clean Earth's Adjusted EBITDA offset by lower contributions from other segments[9](index=9&type=chunk) [Second Quarter Business Review](index=3&type=section&id=Second%20Quarter%20Business%20Review) Q2 segment performance was mixed, with Clean Earth achieving record earnings, Harsco Environmental declining, and Harsco Rail facing a significant downturn and Adjusted EBITDA loss [Harsco Environmental](index=3&type=section&id=Harsco%20Environmental) Harsco Environmental's revenues decreased to $258 million, with Adjusted EBITDA falling to $40 million and margin contracting to 15.5% Harsco Environmental Segment Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $258 million | $293 million | | Operating Income | $4 million | $20 million | | Adjusted EBITDA | $40 million | $49 million | | Adjusted EBITDA Margin | 15.5% | 16.8% | - The year-over-year revenue decrease was attributed to business divestitures, lower service levels from site closures, and reduced eco-products volumes, with revenues declining **5%** excluding divestitures[10](index=10&type=chunk) [Clean Earth](index=3&type=section&id=Clean%20Earth) Clean Earth achieved strong Q2 results with revenues up 4% to $246 million, record Adjusted EBITDA of $40 million, and improved margins Clean Earth Segment Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $246 million | $236 million | | Operating Income | $25 million | $24 million | | Adjusted EBITDA | $40 million | $38 million | | Adjusted EBITDA Margin | 16.3% | 16.1% | - The **4%** revenue increase was due to higher volumes and services pricing[13](index=13&type=chunk) - The improvement in adjusted earnings was attributed to **revenue growth** and **efficiency improvements**, partially offset by higher operating expenses[13](index=13&type=chunk) [Harsco Rail](index=4&type=section&id=Harsco%20Rail) Harsco Rail revenues declined 28% to $58 million, resulting in a $20 million GAAP operating loss and a $3 million Adjusted EBITDA loss Harsco Rail Segment Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $58 million | $81 million | | Operating Loss | $(20) million | $(3) million | | Adjusted EBITDA | $(3) million | $7 million | | Adjusted EBITDA Margin | (5.7)% | 9.1% | - The **28%** revenue decrease reflects lower volumes for equipment, aftermarket parts, and technology products[14](index=14&type=chunk) - The decline in adjusted earnings was a result of **lower volumes**, **higher manufacturing costs**, and a **less favorable business mix**[14](index=14&type=chunk) [Cash Flow](index=4&type=section&id=Cash%20Flow) Q2 2025 operating cash flow decreased to $22 million, with Adjusted Free Cash Flow turning negative at $(14) million due to lower earnings and higher capital expenditures Cash Flow Summary | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $22 million | $39 million | | Adjusted Free Cash Flow | $(14) million | $9 million | - The year-over-year decrease in adjusted free cash flow is attributed to **lower cash earnings** and **higher capital spending**, partially offset by working capital improvements and lower pension contributions[15](index=15&type=chunk) [Exploration of Strategic Alternatives](index=4&type=section&id=Exploration%20of%20Strategic%20Alternatives) The Board has initiated a formal process to evaluate strategic alternatives, including a potential sale or separation of Clean Earth, to unlock shareholder value - The Board of Directors has authorized management to conduct a **formal process** to evaluate and explore **strategic alternatives**[16](index=16&type=chunk) - Value creation alternatives being evaluated include a **tax-efficient sale or separation of the Clean Earth business**[18](index=18&type=chunk) - **No timetable** has been established for the completion of the review, and the company does not intend to provide additional updates unless necessary[19](index=19&type=chunk) [2025 Outlook](index=5&type=section&id=2025%20Outlook) Enviri revised its full-year 2025 guidance downward due to Harsco Rail weakness, projecting Adjusted EBITDA of $290-$310 million and Adjusted Free Cash Flow of $15-$35 million Full-Year 2025 Outlook Revision | 2025 Full Year Outlook | Current | Prior | | :--- | :--- | :--- | | Adjusted EBITDA | $290 - $310 million | $305 - $325 million | | Adjusted Diluted EPS | $(0.52) - $(0.30) | $(0.34) - $(0.11) | | Adjusted Free Cash Flow | $15 - $35 million | $30 - $50 million | - The revised outlook is primarily due to **lower global demand** and **higher manufacturing costs** impacting Harsco Rail's performance[20](index=20&type=chunk) - Guidance for Harsco Environmental and Clean Earth is **unchanged** from the prior quarter[20](index=20&type=chunk) - For **Q3 2025**, the company projects Adjusted EBITDA to be in the range of **$76 million to $86 million**[25](index=25&type=chunk) [Financial Statements and Reconciliations](index=7&type=section&id=Financial%20Statements%20and%20Reconciliations) [Consolidated Financial Statements](index=11&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated statements of operations, balance sheets, and cash flows for Q2 2025 and Q2 2024 [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a Q2 2025 net loss of $46.5 million on total revenues of $562.3 million, a decrease from the prior year Consolidated Statements of Operations (Unaudited) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenues | $562,254 | $609,993 | | Operating income (loss) from continuing operations | $(7,191) | $31,255 | | Income (loss) from continuing operations | $(45,892) | $(10,223) | | Net income (loss) | $(46,549) | $(11,120) | | Diluted EPS from continuing operations | $(0.58) | $(0.16) | [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $2.77 billion, total liabilities $2.35 billion, and total equity decreased compared to December 31, 2024 Consolidated Balance Sheets (Unaudited) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $747,881 | $710,525 | | Total assets | $2,770,311 | $2,650,233 | | Total current liabilities | $626,064 | $566,382 | | Long-term debt | $1,482,138 | $1,410,718 | | Total liabilities | $2,352,480 | $2,200,634 | | Total equity | $417,831 | $449,599 | [Consolidated Statements of Cash Flows](index=13&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q2 2025 net cash from operations was $22.0 million, with $42.8 million used in investing and $28.0 million provided by financing activities Consolidated Statements of Cash Flows (Unaudited) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $21,973 | $39,036 | | Net cash (used) provided by investing activities | $(42,795) | $4,021 | | Net cash (used) provided by financing activities | $28,001 | $(41,393) | | Net increase (decrease) in cash | $9,106 | $98 | [Non-GAAP Reconciliations](index=15&type=section&id=Non-GAAP%20Reconciliations) This section details reconciliations of non-GAAP financial measures, including Adjusted EBITDA and Adjusted Free Cash Flow, to their comparable GAAP metrics - For Q2 2025, the reconciliation from **GAAP loss from continuing operations of $(47.0) million** to **adjusted loss of $(17.7) million** includes adjustments for **contract-related costs ($15.9 million)**, **site exit costs ($10.3 million)**, and **strategic costs ($3.5 million)**[51](index=51&type=chunk) - The reconciliation of **Consolidated Adjusted EBITDA of $64.7 million** for Q2 2025 starts with a **consolidated loss from continuing operations of $(45.9) million** and adds back items such as **depreciation ($37.9 million)**, **interest expense ($27.6 million)**, and various unusual items[58](index=58&type=chunk) - **Adjusted Free Cash Flow of $(14.0) million** for Q2 2025 is reconciled from **Net Cash Provided by Operating Activities of $22.0 million** by subtracting **capital expenditures ($39.0 million)** and adding back **proceeds from asset sales ($2.3 million)** and other items[64](index=64&type=chunk)

Core Insights - Enviri Corporation reported second quarter 2025 revenues of $562 million, a decrease of 8% compared to the same quarter in 2024, which had revenues of $610 million [4][5] - The company experienced a GAAP consolidated loss from continuing operations of $46 million in Q2 2025, compared to a loss of $10 million in Q2 2024 [7][4] - Adjusted EBITDA for Q2 2025 was $65 million, down from $86 million in the prior year, reflecting challenges in certain business segments [7][4] Financial Performance - The diluted loss per share from continuing operations on a GAAP basis was $0.58 in Q2 2025, compared to a loss of $0.16 in Q2 2024 [2][4] - Adjusted diluted loss per share from continuing operations was $0.22 in Q2 2025, a decline from adjusted earnings of $0.02 in the same quarter of 2024 [2][4] - The adjusted EBITDA margin for Q2 2025 was 11.5%, down from 14.1% in Q2 2024 [4] Segment Performance - Harsco Environmental reported revenues of $258 million in Q2 2025, down from $293 million in Q2 2024, primarily due to business divestitures and lower service levels [8] - Clean Earth achieved revenues of $246 million in Q2 2025, a 4% increase from $236 million in Q2 2024, driven by higher volumes and pricing [9] - Harsco Rail revenues fell by 28% to $58 million in Q2 2025, impacted by lower demand and operational challenges [10][11] Cash Flow and Guidance - Net cash provided by operating activities was $22 million in Q2 2025, down from $39 million in the prior year [12] - Adjusted free cash flow was $(14) million in Q2 2025, compared to $9 million in Q2 2024, reflecting lower cash earnings and higher capital spending [12] - The company revised its 2025 guidance for Adjusted EBITDA to a range of $290 million to $310 million, reflecting a cautious outlook for Harsco Rail [5][15] Strategic Initiatives - The Board of Directors has authorized management to explore strategic alternatives to unlock shareholder value, including a potential separation of the Clean Earth business [13] - The company aims to continue executing its strategic priorities while reviewing options to enhance business value [3][13]

Core Viewpoint - Enviri Corporation is exploring strategic alternatives to enhance shareholder value, including a potential tax-efficient sale or separation of its Clean Earth business while continuing its business plan execution [1][2][3]. Company Overview - Enviri Corporation is a global leader in providing environmental solutions for industrial and specialty waste streams, operating in over 150 locations across more than 30 countries [8]. Strategic Review - The Board of Directors has authorized a comprehensive review of strategic alternatives to address the gap between Enviri's public market valuation and its sum-of-the-parts value [3]. - The company is working with financial advisors BofA Securities and Jefferies LLC, and legal counsel Fried, Frank, Harris, Shriver & Jacobson LLP for this strategic review [4]. Financial Performance - Enviri released its second quarter earnings results for the period ending June 30, 2025, which can be accessed on the company's Investor Relations page [5].

Core Insights - Enviri Corporation released its 2024 Environmental, Social, and Governance (ESG) Report, showcasing its commitment to sustainability and innovation in environmental solutions [1][3] - The report emphasizes the integration of Enviri's core values into its ESG strategy, which aims to meet stakeholder expectations for environmental responsibility [2] Environmental Initiatives - Enviri's Clean Earth division reused 85 million gallons of wastewater and recycled nearly 500 metric tons of solar panels in 2024 [2] - The company recycled or reused over 16 million metric tons of waste across its divisions, with Clean Earth achieving a 91% recycling rate for specialty waste materials processed [5] Performance Metrics - Enviri improved its Total Recordable Incident Rate (TRIR) to below 1.0 in 2024, marking a 12% improvement from 2023 [2] - The Clean Earth division achieved a 99% on-time pickup service rate, reflecting the company's focus on customer satisfaction and operational excellence [2] Community Engagement - Harsco Environmental, a division of Enviri, donated 40,000 tons of steel slag for sustainable road improvement in Latin America [2] - The company fosters an inclusive workplace by investing in career development and supporting employee resource groups [2] Reporting Standards - The 2024 ESG Report aligns with leading sustainability reporting standards, including the Global Reporting Initiative and the Sustainability Accounting Standards Board [3]

Core Viewpoint - Enviri Corporation will release its second quarter 2025 earnings results on August 5, 2025, before the NYSE market opens, and will host a conference call that morning at 9:00 a.m. ET [1][3]. Group 1 - The earnings results announcement is scheduled for August 5, 2025, prior to market opening [1]. - The quarterly conference call and webcast will begin at 9:00 a.m. ET on the same day [1]. - Investors can access the conference call via the company's website or by dialing in approximately ten minutes before the call [2][3]. Group 2 - Enviri Corporation is a global leader in environmental services, focusing on recycling and reuse solutions to help customers meet sustainability goals [3]. - The company operates in over 150 locations across more than 30 countries [3]. - Enviri is based in Philadelphia, Pennsylvania, and aims to address complex environmental challenges for its diverse customer base [3].

Financial Performance - Q4 2014 - Revenues for Q4 2014 were $492 million, a decrease of 3% compared to Q4 2013[11] - Adjusted operating income was $29 million, a decrease of 4% compared to Q4 2013[11] - Adjusted diluted earnings per share were $007, a decrease of 65% compared to Q4 2013, impacted by a $3 million loss from the Brand Energy JV due to FX translation and restructuring[11] - Free cash flow was negative $25 million, a decrease of 42% compared to Q4 2013[11] - ROIC trended positively to 66%[11] Financial Performance - FY 2014 - Revenues for 2014 were $2066 million, an increase of 3% compared to 2013[12] - Adjusted operating income was comparable with the prior year[12] - Adjusted diluted earnings per share were $072, a decrease of 17% compared to 2013, influenced by Brand Energy JV loss and unit adjustment fair value change as well as higher taxes[12] - Free cash flow improved to $52 million, an increase of 162% compared to 2013, mainly due to Rail advances[12] - ROIC trended positively to 66%[12] 2015 Outlook - Adjusted operating income is projected to be between $155 million and $170 million, compared to $153 million in 2014[34] - Free cash flow is projected to be between $75 million and $100 million, compared to $52 million in 2014[34] - ROIC is projected to be between 75% and 85%, compared to 66% in 2014[34] - Adjusted diluted earnings per share are projected to be between $073 and $091, compared to $072 in 2014[34]

Financial Performance - Q4 2015 - Revenues decreased to $387 million, a 21% decline compared to 2014[7] - Adjusted operating income was $26 million, a 13% decrease from the previous year[7] - Adjusted diluted earnings per share increased by 22% to $0.11[7] - Free cash flow improved significantly to $6 million[7] - Return on invested capital (ROIC) decreased to 6.3%[7] Financial Performance - FY 2015 - Revenues decreased by 17% to $1.723 billion[9] - Adjusted operating income decreased by 13% to $135 million[9] - Adjusted diluted earnings per share decreased by 24% to $0.56[9] - Free cash flow decreased by 53% to $24 million[9] - ROIC decreased to 6.3%[9] Segment Performance & Outlook - Metals & Minerals (M&M) revenues decreased by 23% to $243 million, and adjusted operating income decreased by 39% to $12 million[10] - Industrial revenues decreased by 26% to $75 million, while operating income decreased by 18% to $12 million[15] - Rail revenues decreased by 7% to $69 million, but operating income increased to $10 million[19] - 2016 outlook projects adjusted operating income between $80 to $100 million and free cash flow between $50 to $70 million[24]

Financial Performance - Q4 2016 - Revenues for Q4 2016 were $360 million, a decrease of $27 million or 7% compared to Q4 2015[9] - GAAP Operating Income for Q4 2016 was $24 million[9] - Adjusted Operating Income for Q4 2016 was $28 million, a 9% increase compared to Q4 2015[9] - Adjusted Diluted Earnings Per Share for Q4 2016 was $0.16, a 46% increase compared to Q4 2015[9] - Free Cash Flow for Q4 2016 was $38 million[9] Financial Performance - FY 2016 - Revenues for FY 2016 were $1451 million, a decrease of $272 million or 16% compared to FY 2015[11] - GAAP Operating Income for FY 2016 was $63 million, a 28% decrease compared to FY 2015[11] - Adjusted Operating Income for FY 2016 was $116 million, a 14% decrease compared to FY 2015[11] - Adjusted Diluted Earnings Per Share for FY 2016 was $0.48, a 14% decrease compared to FY 2015[11] - Free Cash Flow for FY 2016 was $100 million[11] 2017 Outlook - The company anticipates GAAP Operating Income between $100 million and $120 million for 2017[29] - The company anticipates Free Cash Flow between $60 million and $80 million for 2017[29]

Q4 2017 Financial Performance - Revenues increased to $455 million, a 26% increase compared to 2016[7] - GAAP Operating Income increased to $38 million, a 59% increase compared to 2016[7] - Adjusted Operating Income increased to $38 million, a 37% increase compared to 2016[7] - Free Cash Flow increased to $63 million, a 66% increase compared to 2016[7] Full Year 2017 Financial Performance - Revenues reached $1607 million, an 11% increase compared to 2016[25] - GAAP Operating Income increased to $143 million, a 125% increase compared to 2016[25] - Adjusted Operating Income increased to $147 million, a 27% increase compared to 2016[25] - Adjusted Diluted Earnings Per Share increased to $074, a 54% increase compared to 2016[25] 2018 Outlook - The company anticipates GAAP Operating Income between $150 to $170 million[28] - The company anticipates Free Cash Flow between $80 million to $100 million[28]