Enviri Corporation's stock plummeted 5.97% during intraday trading on Wednesday, following the release of its Q4 2025 earnings call transcript.
The transcript revealed ongoing challenges in the company's Rail business, with its engineered-to-order (ETO) contracts contributing an EBITDA loss of approximately $20 million and consuming roughly $40 million in cash during 2025. Management's 2026 guidance for the soon-to-be-spun-off "New Enviri" entity projects continued losses for the Rail segment, forecasting an EBITDA loss between $26 million and $19 million, while assuming no major improvement in European steel fundamentals.
Investor sentiment was further dampened by management's decision not to narrow the expected cash payout range from the planned asset sales, maintaining uncertainty, and by the company's commitment to accelerate actions to de-risk the problematic Rail ETO portfolio this year.