Enviri Corporation (NYSE:NVRI) Q1 2024 Earnings Call Transcript

Page 2 of 2

Brian Butler: Okay. And then one just on Clean Earth, nice quarter there. How much of an impact was January weather on the quarter?

Nick Grasberger: It affected our soil and dredge business a bit, I guess, as well as has. I wouldn’t say it was that material. Again, it was more of a challenge than we thought. But of course, we were still able to deliver a better quarter than we expected.

Brian Butler: All right. Then maybe I’ll slip one last one in on Harsco Environmental. When you look at steel production versus your February guidance, has there been any increase or change in expectations around kind of a global steel outlook?

Nick Grasberger: No, Brian, there has not. So I think we expect 6% to 7% volume growth in the mill services business this year. Probably 4 points of that or so is the market and the balance would be the impact of new contracts. So no, the outlook has really not changed.

Operator: Our next question comes from Davis Baynton from BMO Capital Markets.

Davis Baynton: This is Davis on for Devin Dodge. So some solid results in Harsco Environmental and Clean Earth. But just wondering if you could speak to some of the internal deleveraging efforts with the Rail sale being on pause?

Nick Grasberger: Sure. So as I mentioned, we are looking at some other smaller businesses within the portfolio. We’re looking at some assets that we can dispose of. And these are not new initiatives. But I would say the degree of focus on them has stepped up a bit with the reconsolidation of Rail. So we’ve seen — you’ll see some of that in the second quarter. And then in the back half of the year, I think you’ll see some other transactions that, as I estimated in my remarks, we think will total $50 million to $75 million of incremental cash. I’ll turn it over…

Tom Vadaketh: And if I just — I’ll just take it and add to that. I covered it in my prepared remarks. But we’ve already, as Nick said, made progress and I listed a few things. So we sold our planes. That generated some cash in Q1. And then in Q2, we’ll have the proceeds from the Performix sale as well as we monetized a notes receivable for an amount. So by the end of Q2, we would’ve already kind of made pretty good progress towards the target that Nick just mentioned.

Operator: There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to you, David Martin, for any closing remarks.

David Martin: Thank you, everyone, for joining us this morning. Feel free to reach out to me with any additional questions. And as always, we appreciate your interest in Enviri and have a great day. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

Follow Enviri Corp (NYSE:NVRI)

Page 2 of 2