enviri(US:NVRI)2025-11-10 13:04Revenue Performance - Total revenues for Q3 2025 were $574.8 million, slightly up from $573.6 million in Q3 2024, while total revenues for the nine months ended September 30, 2025, were $1,685.4 million, down from $1,783.9 million in the same period of 2024[124]. - Harsco Environmental segment revenues decreased to $261.1 million in Q3 2025 from $279.1 million in Q3 2024, and for the nine months, revenues fell to $762.2 million from $871.2 million[124]. - Clean Earth segment revenues increased to $250.1 million in Q3 2025 from $236.8 million in Q3 2024, and for the nine months, revenues rose to $731.6 million from $698.9 million[124]. - Harsco Rail segment revenues grew to $63.6 million in Q3 2025 from $57.7 million in Q3 2024, while for the nine months, revenues decreased to $191.5 million from $213.8 million[124]. - Total revenues for the three months ended September 30, 2025 increased by $1.2 million, or 0.2%, while revenues for the nine months decreased by $98.6 million, or 5.5%, compared to the same periods in 2024[139]. Operating Income and Expenses - Consolidated operating income for Q3 2025 was $16.5 million, down from $37.4 million in Q3 2024, and for the nine months, operating income decreased to $39.9 million from $94.4 million[124]. - The Company reported a $2.5 million decrease in operating income due to unfavorable net effects from new and lost contracts in Q3 2025 compared to Q3 2024[127]. - A decrease in sales from ecoproducts led to a decline in operating income of $4.9 million for the nine months ended September 30, 2025 compared to the same period in 2024[131]. - The divestitures of Performix and Reed negatively impacted operating income by $2.7 million and $7.9 million during the three and nine months ended September 30, 2025, respectively[131]. - A decrease of $5.0 million and $12.1 million in operating income from lower equipment revenue and higher manufacturing costs was reported for the three and nine months ended September 30, 2025, respectively[137]. Financial Position and Cash Flow - For the nine months ended September 30, 2025, net cash provided by operating activities was $63.0 million, an increase of $21.2 million from $41.8 million in the same period of 2024[157]. - Net cash used by investing activities during the nine months ended September 30, 2025 was $91.0 million, an increase of $68.8 million from $22.2 million in the same period of 2024[158]. - Net cash provided by financing activities increased by $88.9 million during the nine months ended September 30, 2025, primarily due to an increase in net borrowings of $70.1 million[159]. - The total net debt to Consolidated Adjusted EBITDA ratio was 4.82x as of September 30, 2025, compared to the permitted maximum ratio of 5.00x[164]. - As of September 30, 2025, the Company held $114.7 million in consolidated cash and cash equivalents, with approximately 9.3% subject to regulatory restrictions[169]. Strategic Initiatives and Changes - The Company initiated a review of strategic alternatives in August 2025, including a potential tax-efficient sale or separation of the Clean Earth business[121]. - An amendment to the Credit Agreement was made on November 5, 2025, adjusting the total Net Debt to Consolidated Adjusted EBITDA ratio covenant to 5.25x for Q4 2025 and 5.50x for the first three quarters of 2026[122]. - The Company updated its advance payment guarantee with Deutsche Bahn, requiring $14.5 million in cash collateral classified as Restricted Cash[170]. Income and Expenses - Net income for the nine months ended September 30, 2025 was $(80.1) million, compared to $(40.2) million for the same period in 2024[138]. - Defined benefit pension expense increased to $5.3 million and $15.7 million for the three and nine months ended September 30, 2025, respectively, from $4.3 million and $12.6 million in the same periods of 2024[151]. - The Company recognized interest income of $0.6 million and $1.5 million for the three and nine months ended September 30, 2025, respectively, down from $1.0 million and $6.1 million in the same periods of 2024[148]. - Interest expense decreased by $0.5 million and $2.3 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[149]. - Total other comprehensive income was $1.6 million and $20.4 million for the three and nine months ended September 30, 2025, compared to $8.2 million and $(5.7) million in the same periods of 2024[154]. Market and Risk Factors - Market risks have not changed significantly from those disclosed in the Company's Annual Report for the fiscal year ended December 31, 2024[172].