Enviri Corporation, in its Q3 2023 earnings call, announced a fifth consecutive quarter of double-digit EBITDA growth, led by improved cash flow from its Harsco (NYSE:NVRI) Environmental and Clean Earth segments. The latter's EBITDA margin rose to 14%, contributing $100 million in cash flow. These results prompted the company to raise its full-year outlook.
The company also plans to reduce leverage, despite facing challenges in its Rail segment. A sale is planned for late this year or early next to support this strategy. Enviri reported a $66 million free cash flow improvement and is set to benefit from infrastructure spending.
In addition to financial growth, Enviri is making strides in environmental, social and governance (ESG) efforts. The company released an annual ESG report, which highlighted a 20% safety performance improvement and the repurposing of 35 billion pounds of waste.
The earnings call also addressed payment delays from HE customers in China and the retirement of Pete Minan, who served the company for nine years. Looking forward, Enviri is working on derisking specific long-term contracts with European customers and plans to implement a common IT operating platform next year.
CEO Nicholas Grasberger, alongside Dave Martin and new CFO Tom Vadaketh, led the earnings call. The leaders reiterated their commitment to boosting cash flow, reducing leverage, and driving Enviri's transformation.
The company's earnings release and slide presentation are available online. The discussion during the call referenced non-GAAP financial results and included forward-looking statements subject to risks highlighted in the latest 10-K report's Risk Factors section.
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