Core Insights - Enviri reported a disappointing second quarter 2025, missing both revenue and non-GAAP EPS estimates, with revenue at $562 million versus an estimate of $576.6 million and non-GAAP EPS at $(0.22) compared to the expected $(0.12) [1][2] - The company lowered its full-year guidance due to ongoing pressures in the Harsco Rail segment and cautious outlook for the remainder of 2025 [1][10] Financial Performance - Non-GAAP EPS for Q2 2025 was $(0.22), a decline of 43.6% year-over-year from $0.02 in Q2 2024 [2] - Revenue decreased by 7.9% year-over-year from $610 million in Q2 2024 to $562 million in Q2 2025 [2] - Adjusted EBITDA for the company was $65 million, down from $86 million in Q2 2024, with an adjusted EBITDA margin of 11.5%, a decrease of 2.6 percentage points year-over-year [2] - Net cash provided by operating activities fell by 24.4% to $22 million from $39 million in Q2 2024 [2] Business Segments Overview - Enviri operates primarily through Clean Earth and Harsco Environmental segments, focusing on waste management and resource recovery [3] - Clean Earth achieved record earnings in Q2 2025, with a 4% year-over-year revenue increase, reaching an adjusted EBITDA of $40 million and an adjusted EBITDA margin of 16.3% [5] - Harsco Environmental experienced an 11.9% revenue decline year-over-year, maintaining adjusted EBITDA of $40 million and a 15.5% adjusted EBITDA margin despite challenges [6] - Harsco Rail faced significant challenges, with revenue dropping 28% to $58 million and an adjusted EBITDA loss of $3 million [7] Strategic Focus and Guidance - The company is transitioning to a pure-play environmental solutions provider, emphasizing long-term contracts and operational efficiency [4] - Full-year adjusted EBITDA guidance was revised down to a range of $290 million to $310 million, and adjusted free cash flow guidance was cut to $15 million to $35 million [10] - Management announced a review of strategic alternatives to unlock shareholder value, which may include a potential sale or separation of the Clean Earth business [11] Future Outlook - Clean Earth is expected to continue driving earnings growth through volume increases and efficiency initiatives, while Harsco Environmental's adjusted EBITDA is projected to be below prior-year results [12] - Investors should monitor Clean Earth's margin expansion and the company's leveraged balance sheet, which includes $1.48 billion of long-term debt [13]