Enviri Corporation reported a second-quarter 2026 loss from continuing operations of $297 million, significantly wider than the $45 million loss a year earlier. The bulk of the loss stemmed from one-time charges related to exiting two European Harsco Rail contracts and costs from the recent Clean Earth sale and spin-offs. Harsco Environmental, the largest segment, posted $266 million in revenue, up 3% year-on-year. Operating income more than tripled to $13 million from $4 million. Adjusted EBITDA climbed to $46 million from $40 million, pushing the segment's margin to 17.2% from 15.5%. Company-wide adjusted EBITDA rose to $34 million from $27 million, with margin expanding to 10.4% from 8.7%. Management reaffirmed 2026 adjusted EBITDA guidance for both segments.

Enviri Corporation is exiting its Deutsche Bahn and Network Rail contracts to reduce risk and improve cash flow. The decision led to $207 million in unusual charges, including $75 million in non-cash impairments and $133 million in incremental liabilities. The company's Harsco Environmental division saw growth from modest steel market improvements and cost discipline, despite volume challenges in Northern Europe and China. Rail performance improved through a strategic shift toward aftermarket opportunities, which experienced double-digit growth. Enviri is implementing restructuring actions, including closing its Ludington, Michigan manufacturing facility and eliminating approximately 300 positions globally. These measures are expected to deliver over $15 million in annual margin improvements. The sale of Clean Earth in June provided cash reserves to fund the contract exits. Management maintains full-year EBITDA guidance and anticipates meaningful growth in 2027 as restructuring initiatives take full effect.

Enviri Corporation has announced the conclusion of engineered-to-order contracts with Deutsche Bahn and Network Rail. Harsco Rail Europe sold relevant assets and intellectual property to General Atomics subsidiary Gleisbaumechanik Brandenburg to complete utility track vehicles for Deutsche Bahn, ceasing all contract activities. Separately, Harsco Rail Limited halted its Network Rail contract for stoneblower rail maintenance vehicles, closing associated manufacturing facilities. The company proposed extending the life of Network Rail's existing stoneblower fleet under its current multi-year service contract. Enviri will record a $75 million noncash impairment charge and a $133 million incremental liability for future contract obligations. The company's contract to deliver wagons to Swiss Federal Railways remains on schedule, with significant cash payments expected in 2027.