Enviri (NYSE:NVRI) Q4 2025 Earnings call February 24, 2026 09:00 AM ET Company ParticipantsDave Martin - VP of Investor RelationsLarry Solow - Managing DirectorNick Grasberger - CEORussell Hochman - COOTom Vadaketh - CFOConference Call ParticipantsDevin Dodge - AnalystRob Brown - Senior Research AnalystOperatorAlso, this telephone conference presentation and accompanying webcast made on behalf of Enviri Corporation are subject to copyright by Enviri Corporation, and all rights are reserved. No recordings or ...

Enviri (NYSE:NVRI) Q4 2025 Earnings call February 24, 2026 09:00 AM ET Speaker4Also, this telephone conference presentation and accompanying webcast made on behalf of Enviri Corporation are subject to copyright by Enviri Corporation, and all rights are reserved. No recordings or redistributions of this telephone conference by any other party are permitted without the express written consent of Enviri Corporation. Your participation indicates your agreement. I would now like to introduce Dave Martin of Envir ...

Summary of Key Points from the Conference Call Industry Overview - **Construction Machinery**: - According to the China Construction Machinery Association (CCMA), domestic excavator shipment/export volume increased by **61%** and **40%** year-over-year (YoY) in January 2026, attributed to a low base effect from January 2025 [1][4][11]. - The tower crane leasing rate index decreased by **6%** week-over-week (WoW) as the Chinese New Year (CNY) low season approaches, but remains **15%** higher than the same period last year, marking the third consecutive week of YoY increase [1][12]. - **Factory Automation**: - Ta Liang Technology (3167.TW), a Taiwanese peer of Han's CNC, reported a **120%** YoY revenue growth in January 2026, up from **61%** and **53%** in December 2025 and November 2025 respectively, indicating strong demand for PCB drilling equipment from AI PCB manufacturers [1][8][10]. Company Insights - **Top Picks in Construction Machinery**: - Recommended companies include: - Zoomlion (1157.HK) - Sany Heavy (6031.HK) and Sany Heavy Equipment International Holdings Company Ltd (631.HK) - In the AI PCB and Apple equipment theme: - Han's Laser (002008.SZ) and Han's CNC (301200.SZ) - For humanoid robots: - Hengli Hydraulic (601100.SS) [1]. - **Price Adjustments**: - THK (6481.T) announced a **10%** increase in the average selling price (ASP) of all ball screw products effective from February 2, 2026, to reflect rising raw material and operating costs. This follows similar price hikes by SKF and Schaeffler in January 2026 [2]. Upcoming Events - A business update call with Sany International (631.HK) is scheduled for **10 AM HKT on February 12, 2026**, focusing on how rising commodity prices may benefit mining equipment [1]. Additional Notes - The ball screw is estimated to account for approximately **2%** of total revenue in 2026E for THK [2]. - The report emphasizes the importance of monitoring the construction machinery and factory automation sectors for potential investment opportunities, especially in light of the recent positive data points and company performance metrics [1][2].

Core Insights - United Parcel Service (UPS) and Westinghouse Air Brake Technologies Corporation (WAB) have both announced dividend increases in 2025, reflecting their commitment to shareholder value despite economic uncertainty [1][2][3] Dividend Increases - Wabtec's board approved a 25% dividend increase in February 2025, raising its quarterly payout to $0.25 ($1.00 annually) from $0.20 per share ($0.80 annually) [2] - UPS raised its dividend to $1.64 ($6.56 annually) from $1.63 per share ($6.52 annually) during the same month [3] Dividend Sustainability - UPS faces concerns regarding the long-term sustainability of its dividend due to a high payout ratio, which indicates a significant portion of earnings is distributed as dividends [4] - In the first nine months of 2025, UPS generated $2.7 billion in free cash flow while paying over $4 billion in dividends, raising questions about its financial flexibility [6] Stock Performance - Wabtec's stock has performed well in 2025, gaining in double digits, while UPS has experienced a double-digit decline [7][9] - UPS's weak stock performance is attributed to revenue pressures from geopolitical uncertainty and inflation, which have negatively impacted consumer sentiment and shipping volumes [10] Company Strategies - Wabtec's stock strength is driven by its focus on advanced technologies, safety improvements, and cost-reduction initiatives, alongside a recovering global rail supply market [11][12] - Wabtec has introduced significant new products and is optimizing its portfolio to enhance profitability and customer retention [12] Financial Estimates - The Zacks Consensus Estimate projects Wabtec's revenue growth of 6.4% in 2025 and 7% in 2026, with an 18.4% increase in EPS for 2025 [13] - In contrast, UPS is expected to see a 3.4% decline in sales for 2025 and a 10.5% drop in EPS [15] Valuation Comparison - Wabtec trades at a forward price-to-sales multiple of 3.19X, above its five-year median of 2.1X, while UPS trades at a lower multiple of 1.02X, below its five-year median of 1.46 [18] Conclusion - Wabtec's lower payout ratio and stronger stock performance suggest it is a more attractive investment compared to UPS, which faces sustainability concerns regarding its dividend [20][21]

Core Insights - Kelso Technologies Inc. reported its third consecutive profitable quarter with a net income of $182,851 for Q3-2025, and gross revenue increased by 11.3% year-over-year to $2.81 million [5][12][15] - The company has successfully reduced total expenses by 20% year-to-date, amounting to $766,486, demonstrating a commitment to cost management and operational efficiency [5][13] - Kelso is diversifying its operations beyond rail markets into sectors such as Water & Wastewater, Oil & Gas, Chemicals, Paper & Pulp, and Irrigation, leveraging existing assets for minimal capital investment [5][13][14] Financial Performance Summary - For Q3-2025, revenues were $2,808,144 compared to $2,523,282 in Q3-2024, with a gross profit of $1,166,259 and a gross profit margin of 42% [6] - Year-to-date revenues for 2025 reached $8,609,426, up from $8,067,477 in 2024, with a gross profit of $3,651,459 [6] - The company reported a profit from continuing operations of $762,806 for the nine months ended September 30, 2025, compared to a loss of $414,402 in the same period of 2024 [6] Liquidity and Capital Resources - As of September 30, 2025, the company had cash of $835,098 and working capital of $2,893,240, an increase from $2,125,386 at the end of 2024 [9][10] - The total assets were $6,516,637, slightly down from $6,570,345 at the end of 2024, while net equity increased to $4,896,343 [10] - The company increased its line of credit from $500,000 to $1,000,000, enhancing its financial flexibility [11] Outlook - Kelso anticipates sales growth of 0% to 5% for FY2025 compared to 2024, with new tank car production expected to decline in 2026 but recover in 2027 [14] - The company is focused on securing AAR approvals for its Angle Valve and Bottom Outlet Valve, which are in service trials, to unlock new revenue streams [14] - Kelso's proactive measures, including market diversification and strengthening liquidity, position it well for long-term success despite modest near-term growth expectations [15]

Group 1: E-commerce and Market Growth - L'Oréal highlighted that e-commerce is transforming its reach in India, allowing the company to connect with previously underserved markets and accelerate growth [2] - Unilever noted that India is well positioned for medium-term growth, with rapid gains in e-commerce and quick commerce offsetting short-term GST impacts [2] - Reckitt Benckiser reported that its quick commerce business in India is more than doubling this year, with Flipkart growing at 30 percent [3] Group 2: Revenue and Performance Insights - Westinghouse Air Brake Technologies Corporation stated that year-to-date, its like-for-like net revenue growth in India remains at high single-digits, expecting the recent slowdown to be a matter of phasing [4] - TransUnion mentioned that India's growth was slightly below expectations due to tariff-related pressures but reaffirmed confidence in the market's long-term potential [5] - Visteon Corporation is deepening its presence in India with new digital products and expanded manufacturing plans [6] Group 3: Manufacturing and Export Developments - Westinghouse secured $140 million in brake orders driven by increased activity in India, marking a significant milestone for its Marhowrah plant [4] - BE Semiconductor Industries noted that India is emerging as a key location for new assembly capacities as customers diversify from China, with five major customers setting up assembly capacities in the country [8] - CIE Automotive emphasized that India remains one of its strongest and most stable markets, reinforcing its global importance [9] Group 4: Automotive Market Position - India has consolidated its position as the world's third-largest automotive market, surpassing Japan with nearly 25 million vehicles a year and continuing to grow across all segments [9]

Core Points - Kelso Technologies Inc. announces the retirement of Lead Director Paul Cass effective August 31, 2025, with Independent Director Jesse Crews taking over the role from September 1, 2025 [1][4] - Sameer Uplenchwar, the CFO, has been appointed to the newly vacant seat on the Board of Directors [1][4] - Paul Cass has served on the board for approximately ten years, holding various positions including Chair of the Audit Committee and Lead Director, contributing significantly to the company [2][3] - Jesse Crews, the new Lead Director, has extensive experience in the rail industry and has been an Independent Director since 2018 [3][4] Company Overview - Kelso Technologies is a diverse transportation equipment company specializing in the creation, production, sales, and distribution of proprietary products for rail and other transportation sectors [5] - The company focuses on high-quality tank car valves designed for safe handling and containment of commodities during rail transport, addressing public safety and environmental concerns [5]

Core Insights - Kelso Technologies Inc. reported its second consecutive profitable quarter with a net income of $72,175 for Q2-2025, despite a revenue decline of 8.6% year-over-year due to macroeconomic challenges [5][12][14] - The company anticipates flat to slightly positive sales growth of 0% to 5% for FY2025 compared to FY2024, while maintaining disciplined cost management to prepare for future demand increases [5][14][16] - Kelso is actively seeking full approval from the Association of American Railroads (AAR) for its new products, which is expected to create new revenue opportunities [15][17] Financial Performance Summary - For the three months ended June 30, 2025, revenues were $2,643,208, down from $2,891,591 in the same period of 2024, with a gross profit of $1,075,446 and a gross profit margin of 41% [4][5] - In the first half of 2025, total revenues reached $5,801,283, slightly up from $5,544,195 in the first half of 2024, with a gross profit of $2,485,201 and a gross profit margin of 43% [4][5] - The company reduced total expenses by 30% year-over-year, amounting to $580,303, demonstrating effective cost management [5][12] Liquidity and Capital Resources - As of June 30, 2025, the company had cash of $488,273 and accounts receivable of $1,303,613, compared to cash of $153,147 and accounts receivable of $1,091,304 as of December 31, 2024 [8][9] - The working capital position improved to $2,682,405 as of June 30, 2025, up from $2,125,386 at the end of 2024 [9] - The company fully repaid $250,000 drawn from its $500,000 line of credit, now having access to the entire amount [10] Strategic Outlook - The company is preparing for a potential rebound in tank car builds, expecting lower production in 2026 but a rise to 13,000 units in 2027 [16] - Kelso's strategic focus includes maintaining operational readiness and cost management to capitalize on anticipated demand increases in the rail industry [14][16] - The company aims to enhance profitability through a wider array of new proprietary products and improved operational efficiency [17][18]

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]