Shares of Enviri Corporation (NVRI) are surging 6.26% in pre-market trading on Thursday following the release of the company's better-than-expected first-quarter 2025 earnings report. The environmental services provider demonstrated resilience in the face of economic headwinds, beating its own guidance for adjusted EBITDA.
Enviri reported first-quarter revenues of $548 million, with an adjusted EBITDA of $67 million, surpassing the company's previously provided guidance range of $57 million to $63 million. While revenues declined 9% year-over-year, primarily due to divestitures and foreign currency impacts, the company's cost management and operational efficiency drove stronger-than-anticipated profitability.
Nick Grasberger, Enviri's Chairman and CEO, expressed satisfaction with the results, stating, "We are pleased to have met our financial goals for the quarter, supported by consistent execution in our business units." He highlighted the strong performance of the Clean Earth segment, which delivered double-digit earnings growth despite weather-related challenges. Notably, the Harsco Environmental segment also performed above expectations, demonstrating resilience in the face of persistent pressures in the steel industry.
Despite the uncertain economic backdrop, Enviri reaffirmed its 2025 guidance, maintaining its adjusted EBITDA outlook at $305 million to $325 million and free cash flow projection of $30 million to $50 million. The company cited recent U.S. dollar weakness as a net positive, while acknowledging elevated economic uncertainty and limited visibility into the second half of the year.
Segment performance varied, with Clean Earth standing out as a strong performer. The segment's revenues increased 4% year-over-year to $235 million, driven by higher volumes and improved pricing. Harsco Environmental, while facing headwinds from divestitures and foreign exchange impacts, managed to exceed expectations, contributing to the overall positive results.
As Enviri navigates through a challenging global economic environment, the company's ability to outperform its own guidance and maintain its full-year outlook has resonated well with investors. The pre-market stock surge reflects growing confidence in Enviri's operational execution and its potential to deliver value despite ongoing market uncertainties.