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Enviri (NVRI)
NYSE:NVRI
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Enviri
(NYSE:NVRI)
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Rating:45Neutral
Price Target:
$17.50
▼(-5.86% Downside)
Action:ReiteratedDate:02/25/26
The score is held down primarily by weak financial performance (declining revenue, ongoing net losses, and materially higher leverage) and only partially offset by positive operating cash flow. Technicals also suggest near-term weakness (low RSI and trading below short-term moving averages). Earnings call guidance is constructive on operational initiatives but remains cautious due to Rail losses, high interest burden, and modest/negative free cash flow expectations.
Positive Factors
Operating cash flow resilience
Consistent positive operating cash flow (improving to $101M in 2025) demonstrates the core businesses generate real cash despite accounting losses. That durable cash generation underpins working capital, funds restructuring and capex needs, and provides a foundation to de-lever or support the planned spin-off over the next 2–6 months.
Clean Earth strength and strategic simplification
Clean Earth's record earnings, margin improvement and ~4% growth make it a valuable, cash-generative asset. Its planned mid‑2026 sale and spin-out is a structural change that can provide significant proceeds, reduce operational complexity, and allow management to focus New Enviri on core, higher-margin environmental services.
Long-term contract wins supporting market position
Securing a 10-year design-build-operate contract with LMEL strengthens Harsco Environmental's foothold in a large, growing market and secures multi-year revenue visibility. Long-duration service contracts enhance recurring cash flows, deepen customer relationships, and support margin stability versus purely spot-market businesses.
Negative Factors
Persistent revenue decline
Two consecutive years of meaningful revenue decline (including a steep -16.5% in 2025) signal structural demand weakness or loss of scale in key end markets. Sustained top-line erosion undermines fixed-cost absorption, pressures margins and EBITDA conversion, and makes returning to consistent profitability more difficult over the medium term.
Elevated leverage and eroded equity
Material increase in leverage to roughly 6.6x debt/equity materially raises financial risk. High debt levels limit strategic flexibility, increase interest sensitivity, constrain capital allocation for growth or repairs, and amplify downside if demand or cash flow deteriorates, complicating any near-term restructuring or spin-off execution.
Negative free cash flow and high cash consumption
Negative free cash flow (-$40M in 2025) despite positive operating cash flow highlights heavy investment, ETO contract cash consumption, and insufficient post-investment cash generation. Persistently negative FCF forces reliance on external financing or asset sales, limiting organic de-leveraging and raising medium-term execution risk.
Enviri (NVRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.45B
Dividend YieldN/A
Average Volume (3M)2.29M
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth-2.91%
EPS Growth-67.18%
CountryUS
Employees12,000
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)-0.17
Shares Outstanding81,449,500
10 Day Avg. Volume1,941,442
30 Day Avg. Volume2,291,680
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)5.67
Price to Sales (P/S)0.65
P/FCF Ratio-36.28
Enterprise Value/Market Cap2.23
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit7.50
Enterprise Value/Ebitda16.68
Forecast
1Y Price Target
$22.00Price Target Upside18.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.38
Revenue Forecast (FY)$2.31B
Enviri Business Overview & Revenue Model
Company DescriptionEnviri Corporation provides environmental solutions for industrial and specialty waste streams in the United States and internationally. The company operates through two segments: Harsco Environmental and Harsco Clean Earth. The Harsco Environmental segment offers on-site services under long-term contracts for material logistics, product quality improvement, and resource recovery for iron, steel, and metals manufacturing; manufactures and sells industrial abrasives, roofing granules, aluminum dross, and scrap processing systems; and produces value-added downstream products from industrial waste-stream. The Harsco Clean Earth segment provides specialty waste processing, treatment, and recycling and beneficial reuse solutions for waste needs, such as hazardous, non-hazardous, and contaminated soils and dredged materials. The company was formerly known as Harsco Corporation and changed its name to Enviri Corporation in June 2023. The company was founded in 1853 and is headquartered in Philadelphia, Pennsylvania.
How the Company Makes MoneyEnviri generates revenue through multiple key streams, including service fees from waste management and treatment operations, consulting fees for environmental compliance and strategy services, and sales from recycled materials. The company has established significant partnerships with industrial clients, municipalities, and regulatory agencies, which help secure long-term contracts and recurring revenue. Additionally, Enviri benefits from regulatory incentives for environmental compliance, which can enhance its earnings through increased demand for its sustainable services.
Enviri Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call highlighted meaningful operational and financial achievements—particularly at Clean Earth and Harsco Environmental—and detailed a clear plan of leadership, cost actions and derisking initiatives ahead of the New Enviri spin-off. However, material near-term headwinds remain: Rail's ETO-related losses and cash consumption, a negative full-year free cash flow, a large interest burden, continued weak demand (notably in Europe and North America), and uncertainty around the Clean Earth cash payout. Management emphasized ongoing remediation steps and expects modest improvement in 2026, but several risks and one-time costs temper near-term outlook.Q4-2025 Updates
Positive Updates
Full-Year Revenue and Adjusted EBITDA
Enviri reported full-year 2025 revenues of $2.2 billion and adjusted EBITDA of $275 million, with quarterly (Q4) revenues of $556 million and Q4 adjusted EBITDA of $70 million (Q4 revenue and adjusted EBITDA unchanged year-over-year).
Clean Earth Strong Performance and Transaction Progress
Clean Earth delivered record earnings and margins in 2025, achieved ~4% revenue growth for the year driven by price and volume, and Q4 hazardous waste revenues grew approximately 3%. The sale of Clean Earth is targeted to close midyear, with HSR waiting period currently set to expire March 9 and Form 10/proxy planned to be filed in March.
Harsco Environmental Improvement
Harsco Environmental (HE) Q4 revenue was $257 million, up 7% year-over-year, with adjusted EBITDA of $48 million and a margin near 19%—the segment's highest quarterly adjusted EBITDA in 2025. Drivers included higher service levels, site performance improvements, FX and Brazil tax recoveries.
Operational and Leadership Actions for New Enviri
Management has assembled leadership for New Enviri, announced further corporate rightsizing and cost-reduction plans, initiated IT and central function streamlining, and launched third-party reviews to identify additional efficiency and margin levers for Harsco Environmental and Rail.
Rail Operational Progress Despite Weak Demand
Rail realized improved cash flow and completed several smaller ETO projects in 2025, increased machine shipments vs prior expectations in Q4, and implemented multiple restructurings and supply chain/manufacturing efficiency improvements to reduce cost and inventory.
Pro Forma and 2026 Outlook for New Enviri
Pro forma EBITDA for New Enviri is projected at approximately $140 million for 2026 (up $5 million vs November assumptions). Harsco Environmental 2026 adjusted EBITDA guidance: $170–$180 million. Rail 2026 EBITDA is expected to be a loss between $26 million and $19 million. Management expects modest pro forma free cash flow for 2026 (breakeven to slightly negative).
Negative Updates
Rail ETO Losses and Cash Burn
Rail's large engineered-to-order (ETO) contracts were a significant drag in 2025: ETOs contributed an EBITDA loss of approximately $20 million and consumed roughly $40 million of cash during the year. Management expects ETOs to remain a sizeable cash user in 2026 and projects Rail EBITDA losses of $19–$26 million for 2026.
Negative Full-Year Free Cash Flow and High Interest Burden
Adjusted free cash flow for the full year was negative $15 million (Q4 adjusted free cash flow was $6 million). While HE and Clean Earth generated over $160 million of free cash flow, this was largely offset by an interest burden of more than $100 million and Rail's negative cash flow exceeding $50 million.
Unusual and One-Time Costs Impacting Results
Q4 included $57 million of pretax unusual items: $15 million related to the Clean Earth sale/spin-off, $7 million accelerated stock vesting, and $24 million estimated additional costs to complete ETO projects for SBB and Deutsche Bahn—pressuring adjusted EPS and cash outcomes.
Uncertain Cash Payout Range for Clean Earth Sale
Management remains unable to narrow the previously disclosed cash payout range of $14.50 to $16.50 per share for the Clean Earth sale; it may need to retain more cash for New Enviri to support Rail's ETO contracts, creating uncertainty for the ultimate payout amount.
Weak Demand and Regional Headwinds—Europe and North America
Steel output in Europe (the largest HE market) remained very weak in Q4 and is a key risk to HE volumes; Rail demand—particularly in North America—was described as 'historic lows' with standard equipment demand expected to soften in 2026 and overall volumes reaching historic lows.
Near-Term Guidance and Q1 Pressure
Guidance for Q1 and 2026 is muted: Q1 segment performance for HE and Rail is projected to be lower year-over-year and lower than Q4, with certain Q4 benefits (e.g., Brazil tax credits) not repeating. Cost-out benefits are expected to reach fuller run rate only in the back half of 2026.
Company Guidance
Management provided 2026 guidance only for the two New Enviri businesses (targeting a midyear close of the Clean Earth sale; HSR waiting period expires Mar 9; Form 10/proxy filing planned for March; cash payout range of $14.50–$16.50 not yet narrowed). For 2026 they expect Harsco Environmental adjusted EBITDA of $170–$180 million and Rail an EBITDA loss of $26–$19 million, yielding pro forma New Enviri EBITDA of about $140 million (≈$5 million higher than the November disclosure); free cash flow is expected to be modest (roughly breakeven or slightly negative) with Q1 typically negative due to bond interest and Q1 segment performance projected below both prior-year Q1 and the just-completed Q4. Guidance assumes Rail volumes may hit historic lows, that cost-out benefits won’t fully run until H2, and it excludes any upside from potential European trade protections; by comparison, 2025 consolidated revenue was $2.2 billion with $275 million adjusted EBITDA, Q4 revenue was $556 million with $70 million adjusted EBITDA, Q4 free cash flow was $6 million and full-year free cash flow was negative $15 million.Enviri Financial Statement Overview
Summary
Financials screen weak: revenue declined in 2024 (-1.0%) and fell further in 2025 (-16.5%) with persistent net losses. Balance sheet risk is elevated with sharply higher leverage (debt-to-equity rising to ~6.6x in 2025) and deeply negative ROE. The main offset is consistently positive operating cash flow (improving to $101M in 2025), though free cash flow remains negative (2025: -$40M).Income Statement
Revenue has weakened, with annual sales down in 2024 (-1.0%) and falling further in 2025 (-16.5%). Profitability is the core issue: net margins are negative across all provided years, and 2025 shows near-breakeven operating profitability (EBITDA margin ~0.2%) alongside a sizable net loss (-$168M). A positive is that gross margin has held relatively steady around ~19% in recent years, but it has not translated into sustainable operating earnings.28
Negative
Balance Sheet
Leverage has increased materially and equity has eroded. Debt-to-equity rose from ~2.6x (2022) and ~2.9x (2023) to ~3.8x (2024) and ~6.6x (2025), reflecting a significantly more levered capital structure. Returns on equity are sharply negative (2025 ROE ~-66%), consistent with ongoing losses. While total assets are relatively stable, the combination of high debt and shrinking equity increases financial risk and reduces flexibility.22
Negative
Cash Flow
Operating cash flow remains positive each year, improving to $101M in 2025 from $78M in 2024, which is a constructive sign versus the reported net losses. However, free cash flow is negative in most years (including 2023–2025), with 2025 still at -$40M despite improvement from 2024 (-$60M). The company’s cash generation is therefore not yet consistently sufficient after investment needs, limiting its ability to naturally de-lever.40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.24B | 2.34B | 2.37B | 2.13B | 1.85B |
| Gross Profit | 471.99M | 440.06M | 449.89M | 338.06M | 357.84M |
| EBITDA | 270.89M | 190.35M | 225.78M | 72.76M | 267.41M |
| Net Income | -167.60M | -127.97M | -86.12M | -180.07M | -3.25M |
Balance Sheet | |||||
| Total Assets | 2.71B | 2.65B | 2.85B | 2.79B | 3.05B |
| Cash, Cash Equivalents and Short-Term Investments | 103.67M | 88.36M | 124.61M | 81.33M | 82.91M |
| Total Debt | 1.81B | 1.58B | 1.54B | 1.46B | 1.48B |
| Total Liabilities | 2.41B | 2.20B | 2.28B | 2.17B | 2.25B |
| Stockholders Equity | 255.06M | 411.45M | 523.15M | 569.44M | 748.16M |
Cash Flow | |||||
| Free Cash Flow | -39.87M | -59.84M | -25.08M | 13.18M | -86.49M |
| Operating Cash Flow | 101.41M | 78.06M | 114.45M | 150.53M | 72.20M |
| Investing Cash Flow | -149.88M | -34.07M | -116.58M | -99.06M | -124.45M |
| Financing Cash Flow | 80.32M | -63.40M | 44.77M | -42.78M | 60.24M |
Enviri Technical Analysis
Positive
18.59
Price Trends
18.57
Positive
16.42
Positive
13.03
Positive
Market Momentum
>-0.01
Positive
47.98
Neutral
37.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVRI, the sentiment is Positive. The current price of 18.59 is below the 20-day moving average (MA) of 18.97, above the 50-day MA of 18.57, and above the 200-day MA of 13.03, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 37.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVRI.
Enviri Risk Analysis
Enviri disclosed 31 risk factors in its most recent earnings report. Enviri reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enviri Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $799.34M | -24.77 | -0.17% | ― | 22.77% | 44.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $240.73M | -20.98 | -23.26% | ― | -9.64% | 40.01% | |
52 Neutral | $128.79M | -47.52 | -23.18% | ― | ― | ― | |
45 Neutral | $1.45B | -8.45 | -38.53% | ― | -2.91% | -67.18% | |
41 Neutral | $20.70M | -0.23 | -696.09% | ― | -31.28% | 42.94% |
* Industrials Sector Average
NVRI
Enviri
18.59
12.09
186.00%
PESI
Perma-Fix
14.11
6.07
75.44%
MEG
Montrose Environmental Group
28.63
9.20
47.35%
LNZA
LanzaTech Global
9.12
-70.77
-88.58%
ESGL
ESGL Holdings
3.01
1.42
89.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.