Enviri (NYSE: NVRI), a leading steel and waste management company, fell short of market revenue expectations in Q4 CY2024, despite achieving a 5.7% year-over-year sales increase. However, its non-GAAP loss per share of $0.04 outperformed analyst expectations by 61%, reflecting cost control measures and operational efficiency.
With headwinds in the Harsco Environmental and Rail segments, Enviri’s management remains focused on long-term execution and improving financials. Below, we break down the company’s latest earnings results and outlook for 2025.
Enviri (NVRI) Q4 CY2024 Financial Highlights
| Metric | Actual | Analyst Estimates | YoY Growth | Surprise |
|---|---|---|---|---|
| Revenue | $558.7M | $579M | +5.7% | -3.5% miss |
| Adjusted EPS | -$0.04 | -$0.10 | N/A | +61% beat |
| Adjusted EBITDA | $70.2M | $72.63M | N/A | -3.3% miss |
| Operating Margin | -11.2% | 5.1% (Q4 2023) | Decline | N/A |
| Free Cash Flow Margin | 0.3% | 4.3% (Q4 2023) | Decline | N/A |
| Market Capitalization | $699.6M | N/A | N/A | N/A |
2025 Outlook and Guidance
- Adjusted EPS: -$0.13 (Midpoint), missing analyst estimates by 193%
- EBITDA Forecast: $315M (Midpoint), below analyst consensus of $337.2M
Despite challenges, CEO Nick Grasberger remains optimistic, stating:
“Enviri performed well in 2024, and we continued to focus on consistent execution in the fourth quarter as we faced ongoing headwinds at Harsco Environmental and Rail.”
Understanding Enviri: Company Overview
Founded in the 19th century, Enviri initially made its mark by cooling America’s first indoor ice rink. Today, it specializes in steel and waste management services, playing a crucial role in industrial sustainability.
Waste Management: A Regulated Yet Resilient Industry
- Predictable Revenue Streams: Many contracts in waste management are statutorily mandated and non-discretionary, ensuring steady business.
- Regulatory Challenges: New environmental regulations can increase compliance costs, requiring capital investments.
- Economic Sensitivity: Demand is affected by interest rates, industrial production, and commercial activity.
Revenue Growth: Long-Term Performance Trends
- Five-Year Revenue CAGR: +9.3% (above industry average)
- Two-Year Revenue CAGR: +11.4% (accelerating growth)
This above-average revenue growth suggests that Enviri’s services remain in high demand, even in challenging economic conditions.
Investment Takeaway: Should You Buy Enviri (NVRI) Stock?
Key Positives:
✅ Solid Revenue Growth: +11.4% CAGR over the past two years shows demand strength.
✅ EPS Beat: Q4 loss per share narrowed significantly, outperforming expectations.
✅ Industry Resilience: Waste management offers long-term revenue stability despite market cycles.
Key Risks:
⚠️ Revenue Miss: Enviri fell short of analyst expectations, raising concerns about future performance.
⚠️ Weaker Margins: Operating and free cash flow margins declined year-over-year.
⚠️ Lower 2025 Guidance: Adjusted EPS and EBITDA below Wall Street estimates, signaling potential challenges ahead.
For investors, Enviri presents a mixed opportunity—a company with steady long-term growth, yet facing short-term financial hurdles. Those with a long-term outlook may find its expansion into industrial sustainability a compelling reason to stay invested, while short-term investors should monitor upcoming earnings for signs of improvement.
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