Group 1 - CECO Environmental Corp. (CECO) has been added to the Zacks Rank 5 (Strong Sell) List due to a 15% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Builders FirstSource, Inc. (BLDR) has also been added to the Zacks Rank 5 (Strong Sell) List, with a 3.5% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Eagle Bancorp, Inc. (EGBN) is included in the Zacks Rank 5 (Strong Sell) List, experiencing a 15.6% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Financial Data and Key Metrics Changes - Revenues totaled $548 million, down approximately 4% on an organic basis after adjusting for FX translation and business divestitures [20] - Adjusted EBITDA was $67 million, with year-over-year comparisons affected by negative FX and divestiture impacts of $7 million [21] - Adjusted diluted loss per share was $0.18 for the quarter, excluding the impact of special items [21] Business Line Data and Key Metrics Changes - Clean Earth revenues totaled $235 million, with adjusted EBITDA reaching $38 million, reflecting a 12% increase in EBITDA and 4% revenue growth [25] - Harsco Environmental segment revenues totaled $243 million, with adjusted EBITDA of $39 million, impacted by lower volumes due to site exits and closures [23] - Rail revenues totaled $70 million, with an adjusted EBITDA loss of $2 million, in line with expectations due to lower product and service volumes [26] Market Data and Key Metrics Changes - Steel production at customer locations declined less than 1% compared to the prior year, with service volumes and earnings at these sites up slightly year over year [23] - The U.S. dollar strength has negatively impacted Harsco Environmental's revenues and EBITDA by approximately $100 million and $25 million over the past three years [13] - Recent dollar weakness is seen as a potential tailwind for Harsco Environmental, which generates roughly 80% of its revenues outside the U.S. [13] Company Strategy and Development Direction - The company aims to maintain its guidance for the full year, with organic growth driven by Clean Earth while Harsco Environmental's performance is expected to be stable [17] - The focus remains on operational excellence and productivity improvements, particularly through ongoing investments in a common IT platform [11] - The company anticipates generating annual free cash flow of $150 million on a consistent basis in future years [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant macroeconomic uncertainty due to ongoing global trade issues but does not expect a material direct impact from tariffs [8][19] - The outlook for Clean Earth's earnings, margins, and free cash flow is positive, outpacing other segments [11] - Management remains cautious about potential economic slowdowns but has not built these concerns into guidance [41] Other Important Information - Cash flow was ahead of expectations, supporting full-year cash flow guidance of $30 million to $50 million [7] - The company completed the rebuild of the Rail leadership team with new appointments [7] - The amendment of the ETO contract with Deutsche Bahn is seen as a key milestone, reducing future risks [48] Q&A Session Summary Question: Thoughts on steel production and the economy going forward - Management expects a bit of volume growth for Harsco Environmental, with efficiency and cost reduction programs mitigating impacts from site shutdowns [36] Question: Clean Earth's performance and volume assumptions - Management sees volume as a larger contributor to earnings growth this year, with no signs of economic slowdown yet [40] Question: Status of Rail ETO contract renegotiation - The amendment recognizes cost inflation and includes a new delivery schedule, reducing future penalty risks [46] Question: Sustainability of Clean Earth margin expansion - Management expects margins in Clean Earth to exceed previously projected levels, with ongoing efficiency improvements [50] Question: Pressure in the steel industry from excess capacity - Management notes encouraging signs in the EU market, expecting higher capacity utilization and volume growth later in the year [55][57]

Q1 2025 Earnings Release April 29, 2025 Forward-looking statements and Non-GAAP information This presentation contains forward-looking statements with predictions, projections and other statements about future events. These statements are made on the basis of management's views and assumptions regarding future events and business performance. We use words such as "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "plan," "should" and similar expressions to identify forw ...

Core Insights - CECO Environmental Corp. reported record orders of $228 million in Q1 2025, leading to a backlog exceeding $600 million for the first time in company history, indicating strong demand and growth potential [4][6][8] - The company achieved an operating income of $61.9 million, significantly up from $7.7 million in Q1 2024, while net income rose to $36.0 million from $1.5 million in the same period [4][6][20] - CECO maintains a full-year revenue guidance of $700 to $750 million, representing a 30% increase at the midpoint, alongside a backlog growth of 55% [6][8] Financial Performance - First quarter revenue was $176.7 million, up 40% from $126.3 million in Q1 2024, with gross profit margin at 35.2% [6][16] - Non-GAAP operating income for Q1 was $8.6 million, down 16% from $10.2 million in Q1 2024, while adjusted EBITDA increased by 6% to $14.0 million [4][20] - Free cash flow for the quarter was $(15.1) million, a decline of $13.2 million compared to $(1.9) million in Q1 2024 [4][6][20] Strategic Actions - The company implemented strategic price actions to mitigate tariff impacts and proactively managed its backlog by adjusting inventory purchases and hiring key personnel [5][8] - CECO plans to take cost actions in Q2 2025 to eliminate redundant roles and enhance productivity, expecting these measures to support operating margin expansion [5][8] - The company is monitoring economic conditions and supply chain dynamics to manage potential cost increases effectively [8][29] Market Position and Outlook - CECO's portfolio is aligned with long-term growth themes such as industrial manufacturing reshoring, electrification, and energy transition, positioning the company favorably for future growth [4][8] - The order pursuit pipeline exceeds $5 billion, reflecting strong confidence in continued growth [4][6] - The company recognizes the dynamic economic environment but believes its operational model mitigates direct exposure to tariff-related imports [8][29]

Corporate Governance - Stockholders approved the election of all eight nominees to the Board of Directors to serve until the 2026 Annual Meeting of Stockholders [1] - The Audit Committee's appointment of Deloitte as Independent Auditors for the year ending December 31, 2025 was ratified [1] Executive Compensation - Stockholders approved the compensation of the Company's named executive officers on an advisory basis [2] - Amendment No. 5 to the 2013 Equity and Incentive Compensation Plan was approved [2] - Amendment No. 3 to the 2016 Non-Employee Directors' Long-Term Equity Compensation Plan was approved [2] - An amendment to the Company's Certificate of Incorporation to limit the liability of certain officers in accordance with recent Delaware law amendments was approved [2] Company Overview - Enviri is a global leader in providing a broad range of environmental services and innovative solutions [3] - The company offers critical recycle and reuse solutions for waste streams, helping customers address complex environmental challenges and achieve sustainability goals [3] - Enviri operates in more than 150 locations across over 30 countries [3]

Financial Performance - The company reported a basic earnings per share of -0.1800 yuan for 2024, unchanged from 2023, and a slight decrease from -0.1700 yuan in 2022 [1] - The net profit for 2024 was -0.53 billion yuan, showing a marginal improvement of 1.85% compared to -0.54 billion yuan in 2023, consistent with the previous year's loss [1] - Operating revenue decreased by 19.55% to 4.69 billion yuan in 2024, down from 5.83 billion yuan in 2023 and 6.01 billion yuan in 2022 [1] - The net asset return rate for 2024 was -7.90%, a decline from -7.44% in 2023 [1] - The company's net asset per share decreased by 7.42% to 2.12 yuan in 2024, down from 2.29 yuan in 2023 [1] Shareholder Structure - The top ten unrestricted shareholders collectively hold 14,399.95 million shares, accounting for 53.84% of the circulating shares, with a decrease of 701.41 million shares compared to the previous period [1] - The largest shareholder, Xuanjie Holdings Co., Ltd., holds 11,753.97 million shares, representing 43.95% of the total share capital, with no change in holdings [2] - Several new shareholders entered the top ten list, including Jiang Ronggui, Cheng Ting, Li Xianglan, Zhang Jianhua, Li Guishi, and Ma Hongxian, while previous shareholders such as Yin Shunxin and Yin Yiqiao exited [2]

Core Viewpoint - Enviri Corporation will release its first quarter 2025 earnings results on May 1, 2025, before the NYSE market opens, and will host a conference call that morning at 9:00 a.m. ET [1][3]. Company Overview - Enviri Corporation is a global leader in providing a wide range of environmental services and innovative solutions, focusing on recycling and reuse solutions for waste streams [3]. - The company operates in over 150 locations across more than 30 countries, helping customers address complex environmental challenges and achieve sustainability goals [3]. Conference Call Details - The conference call is scheduled for May 1, 2025, at 9:00 a.m. ET, with dial-in options available for both US and international participants [3]. - Listeners are encouraged to join the call approximately ten minutes early, and an archived version of the webcast will be available on the company's website [2].