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]