v3.26.1
Revenues
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenues Revenues*
The Company recognizes revenues to depict the transfer of promised services and products to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services and products. Service revenues include CE and the service components of HE and Rail. Product revenues include portions of HE and Rail. There are no significant inter-segment sales.

A summary of the Company's revenues by primary geographical markets as well as by key product and service groups is as follows:
Three Months Ended
March 31, 2026
(In thousands)
Harsco Environmental
Clean Earth
Harsco Rail
Consolidated Totals
Primary Geographical Markets (a):
North America$59,098 $225,755 $39,618 $324,471 
Western Europe96,439 — 21,886 118,325 
Latin America (b)
40,553 — 1,622 42,175 
Asia-Pacific30,357 — 4,160 34,517 
Middle East and Africa25,488 — 45 25,533 
Eastern Europe 4,782 — — 4,782 
Total Revenues $256,717 $225,755 $67,331 $549,803 
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services$240,425 $— $— $240,425 
Ecoproducts12,213 — — 12,213 
Environmental systems for aluminum dross and scrap processing4,079 — — 4,079 
Railway track maintenance equipment— — 20,703 20,703 
After-market parts and services; safety and diagnostic technology
— — 28,955 28,955 
Railway contracting services— — 17,673 17,673 
Hazardous waste processing solutions— 188,807 — 188,807 
Soil and dredged materials processing and reuse solutions— 36,948 — 36,948 
Total Revenues$256,717 $225,755 $67,331 $549,803 
Three Months Ended
March 31, 2025
(In thousands)
Harsco Environmental
Clean Earth
Harsco Rail
Consolidated Totals
Primary Geographical Markets (a):
North America$55,226 $234,854 $36,976 $327,056 
Western Europe97,644 — 27,224 124,868 
Latin America (b)
32,124 — 1,800 33,924 
Asia-Pacific28,564 — 3,947 32,511 
Middle East and Africa25,349 — — 25,349 
Eastern Europe 4,199 — — 4,199 
Total Revenues$243,106 $234,854 $69,947 $547,907 
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services$227,205 $— $— $227,205 
Ecoproducts10,692 — — 10,692 
Environmental systems for aluminum dross and scrap processing5,209 — — 5,209 
Railway track maintenance equipment— — 33,068 33,068 
After-market parts and services; safety and diagnostic technology
— — 22,915 22,915 
Railway contracting services— — 13,964 13,964 
Hazardous waste processing solutions— 197,594 — 197,594 
Soil and dredged materials processing and reuse solutions— 37,260 — 37,260 
Total Revenues$243,106 $234,854 $69,947 $547,907 
(a)     Revenues are attributed to individual countries based on the location of the facility generating the revenue.
(b)     Includes Mexico.

The Company may receive payments in advance of earning revenue (advances on contracts), which are included in Current portion of advances on contracts and Other liabilities on the Condensed Consolidated Balance Sheets. The Company may recognize revenue in advance of being able to contractually invoice the customer (contract assets), which is included in Current portion of contract assets and Other assets on the Condensed Consolidated Balance Sheets. Contract assets are transferred to Trade accounts receivable, net, when the right to payment becomes unconditional. Contract assets and advances on contracts are reported as a net position, on a contract-by-contract basis, at the end of each reporting period. These instances are primarily related to Rail.

The Company had contract assets totaling $75.2 million and $69.1 million at March 31, 2026 and December 31, 2025, respectively. The Company had advances on contracts totaling $9.1 million and $8.2 million at March 31, 2026 and December 31, 2025, respectively. The increase in advances on contracts is due principally to an excess of new advances over the recognition of revenue on previously received advances on contracts during the period. During the three months ended March 31, 2026, the Company recognized $4.7 million of revenue related to amounts previously included in advances on contracts. During the three months ended March 31, 2025, the Company recognized revenues of $17.6 million related to amounts previously included in advances on contracts.

The table below represents the expected fulfillment year of Company's fixed, unsatisfied performance obligations, where the expected contract duration exceeds one year, by segment, and excludes any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year:
(In thousands)
Harsco
Environmental
Harsco
Rail
2027$15,784 $42,885 
202813,655 35,856 
202910,127 13,354 
20303,132 4,324 
20313,132 3,508 
Thereafter
3,132 9,063 
Total remaining performance obligations
$48,962 $108,990 
Rail is currently manufacturing highly-engineered equipment under significant long-term fixed-price contracts with SBB, Network Rail, and Deutsche Bahn. As previously disclosed, the Company has recognized estimated forward loss provisions related to these contracts due to several factors, such as material and labor cost inflation, supply chain delays, the bankruptcy of key vendors, increased engineering efforts and challenges encountered with homologation and commissioning of equipment.

For the Network Rail contract, no adjustment was made to the forward loss provision for the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company recorded an additional forward loss provision of $1.1 million primarily related to increased estimated engineering and manufacturing costs.

For the Deutsche Bahn contract, no adjustment was made to the forward loss provision during the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company recorded a net favorable adjustment of $13.3 million that was the result of an amendment to the contract with Deutsche Bahn which included additional pricing, as well as an extension of the delivery schedule for the machines which resulted in a reduction of the previous estimate of penalties. The increased pricing and reduction of penalties were recorded as an increase to revenue. Partially offsetting this were higher estimated material, manufacturing and engineering costs.

For the SBB contract, no adjustment was made to the forward loss provision during the three months ended March 31, 2026. For the three months ended March 31, 2025, the Company recorded an additional loss provision of $1.1 million due to an increased estimate for engineering costs and a supplier claim.

The estimated forward loss provisions represent the Company's best estimate based on currently available information. It is possible that the Company's overall estimate of liquidated damages, penalties and costs to complete these contracts may change, which could result in an additional estimated forward loss provision at such time that could be material. The Company will continue to update its estimates to complete these contracts, which will include the effect of negotiations with the customers regarding measures to improve the overall economics if the contracts, to include price increases, change orders and extensions to delivery schedules. To that extent, the Company is currently in discussions with Network Rail and has sent Network Rail a letter communicating the need to bring the negotiations to closure and summarizing various options, including a substantial revision of the contract’s economic terms or finding a mutually acceptable exit to this contract. If the Company were to exit this contract and/or other contracts, it could result in a material unfavorable impact to the Company's results of operations and cash flows.

As of March 31, 2026, the contracts with Network Rail, Deutsche Bahn and SBB are 68%, 56% and 91% complete, respectively, based on costs incurred under the cost-to-cost method to measure progress.

The Company provides assurance type warranties primarily for product sales at Rail. These warranties are typically not priced or negotiated separately (there is no option to separately purchase the warranty) or the warranty does not provide customers with a service in addition to the assurance that the product complies with agreed-upon specifications. Accordingly, such warranties do not represent separate performance obligations.

*    Previously issued 2025 amounts have been revised due to the correction of immaterial errors, as identified in Note 1, Basis of Presentation under "Revision of Previously Issued Financial Statements".