Corporation Enviri (NVRI) Discussion Transcript from Q2 2025 Earnings Call

Corporation Enviri (NVRI) Discussion Transcript from Q2 2025 Earnings Call

Enviri Corporation Reports Q2 2025 Results and Announces Strategic Review

Enviri Corporation (NYSE: NVRI) held a conference call on August 5, 2025, to discuss its Q2 2025 financial results. The call was a public event for investors and financial analysts, and was facilitated by Danielle. The participants included David Scott Martin, F. Nicholas Grasberger, Thomas G. Vadaketh from Enviri Corporation, as well as Devin Dodge, Lawrence Scott Solow, Robert Duncan Brown, and representatives from BMO Capital Markets Equity Research, CJS Securities, Inc., and Lake Street Capital Markets, LLC, Research Division.

The conference call was recorded, but no recordings or redistributions of the telephone conference are permitted without Enviri's expressed written consent. The conference call presentation and webcast are subject to copyright by Enviri Corporation. Participants were asked to keep their questions focused on earnings, operations, and the outlook.

Enviri reported Q2 2025 revenues of $562 million, which missed analyst expectations of about $576 million, representing a 7.8% year-over-year decline. The company posted a GAAP consolidated loss from continuing operations of $46 million and an adjusted EBITDA of $65 million. On a GAAP basis, the diluted loss per share was $0.58, while the adjusted diluted loss per share was $0.22, both wider losses compared to the prior year’s quarter.

In response to the underperformance and persistent valuation discount, Enviri announced that its Board authorized management to pursue a formal strategic review to explore alternatives aimed at unlocking shareholder value. This process may include options such as a tax-efficient sale or separation of the Clean Earth business. Engagement of financial advisors, BofA Securities and Jefferies, underscores the seriousness of this effort. However, no timeline or assurance of a specific outcome has been provided, and the company emphasized continued focus on executing its business plan during the review.

The market reaction was negative, with the stock dropping more than 15% in pre-market trading due to the revenue and earnings miss alongside uncertainty from the strategic review announcement.

Summary of Q2 2025 Financial Results:

| Metric | Q2 2025 Reported | Analyst Estimate/Previous Year | |---------------------------------|--------------------|-------------------------------------| | Revenue | $562 million | $576 million (estimate) | | GAAP Net Loss (Continuing Ops) | $46 million | Not specified | | Adjusted EBITDA | $65 million | Not specified | | GAAP Diluted EPS | -$0.58 per share | -$0.16 per share (Q2 2024) | | Adjusted Diluted EPS | -$0.22 per share | $0.02 per share (Q2 2024) |

Strategic Outlook:

• The Board's authorized comprehensive review of strategic alternatives signals management’s recognition of execution challenges and valuation concerns.
• Possible actions include a sale or spin-off of the Clean Earth business, among other value-creating transactions.
• The process is in early stages with no guarantees or timeline.
• Continued operational focus remains essential during this period.

In conclusion, Enviri’s Q2 2025 financial results showed revenue and profitability challenges, prompting a strategic review to enhance shareholder value amid a cautious near-term outlook.

Engaging financial advisors BofA Securities and Jefferies, Enviri Corporation is pursuing a strategic review, exploring options such as selling or separating the Clean Earth business, with the aim of unlocking shareholder value. This move, initiated in response to underperformance and persistent valuation discount, follows the announcement of Q2 2025 financial results where revenues of $562 million fell short of analyst expectations by $14 million.

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