v3.26.1
Relationship with Parent and Related Entities - New Enviri
 3 Months Ended
Mar. 31, 2026
New Enviri  
Related Party Transaction [Line Items]  
Relationship with Parent and Related Entities Relationship with Parent and Related Entities
Historically, New Enviri has been managed and operated in the normal course of business consistent with other affiliates of Enviri. Accordingly, certain shared costs have been allocated to New Enviri and are reflected as expenses in the Condensed Combined Financial Statements. The expenses reflected on the Condensed Combined Financial Statements may not be indicative of the actual expenses that would have incurred during the periods presented if New Enviri historically operated as a separate, stand-alone company. In addition, the expenses reflected in the Condensed Combined Financial Statements may not be indicative of expenses that New Enviri could incur in the future.
All significant intercompany transactions between New Enviri and the Parent that have not been historically cash settled are deemed to be intercompany financing transactions and are treated as contributions from or distributions to the Parent. All intercompany accounts, profits and transactions among New Enviri’s combined entities have been eliminated.
Related Party Receivables and Notes Payables
The Related party notes payables of $189.0 million and $182.1 million as of March 31, 2026 and December 31, 2025, respectively, consist of balances entirely related to the AR Facility detailed in Note 4, Trade Accounts Receivables and Other Receivables. The Related party receivable account has no balance as of March 31, 2026 and December 31, 2025. As the counterparty of these related party transactions is under common control, there is a right of offset as treasury can move cash between entities to settle balances as needed to execute the cash management strategies of New Enviri.
Allocation of Corporate Costs
The Condensed Combined Financial Statements include corporate costs incurred by the Parent for services provided to or on behalf of New Enviri, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, shared services, executive expenses and corporate initiatives. These costs consist of allocated cost pools and direct costs.
These costs have been attributed to New Enviri directly when identifiable, with the remainder allocated on the basis of revenues or headcount. Management of New Enviri considers these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, New Enviri. These allocations may not, however, reflect the expense New Enviri would have incurred as a separate, stand-alone company for the periods presented. Actual costs that may have been incurred if New Enviri had been a separate, stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure.
Total general corporate expenses incurred by Parent that are allocated to New Enviri in the Condensed Combined Statements of Operations for the three months ended March 31, 2026 and 2025 were as follows:
Three Months Ended March 31
(In thousands)20262025
Selling, general and administrative expenses
$11,896 $11,768 
Total allocated costs
$11,896  $11,768 
Stock-Based Compensation
Enviri maintains several stock-based incentive plans (collectively, the “Plans”) for the benefit of certain of its officers, directors, and employees, including the employees of New Enviri. The following disclosures below represent our portion of the Plans maintained by Enviri in which our employees participated. All awards granted under the Plans consist of Enviri common shares. Accordingly, the amounts presented are not necessarily indicative of future performance and do not necessarily reflect the results that New Enviri would have experienced as a separate, stand-alone company for the periods presented.
Stock-based compensation expense includes expense attributable to New Enviri based on awards and terms previously granted to New Enviri’s employees (“Direct Employees”) and an allocation of the Parent’s corporate and shared functional employee (“Shared Employees”) expenses. Total costs charged to New Enviri related to employee participation in the incentive plans were $1.2 million and $2.2 million during the three months ended March 31, 2026 and 2025, respectively. These charges are included within the Selling, general and administrative expenses and are presented in the following table:
Three Months Ended March 31
(In thousands)20262025
Amount Recorded for Direct Employees
$328 $819 
Amount Allocated for Shared Employees
851 1,400 
Total Stock-Based Compensation
$1,179 $2,219 
Additionally, the Board of Directors approves the granting of PSUs to officers and certain key employees that may be earned based on the Company's total shareholder return over the three-year performance period. For 2025, a portion of the PSUs that were granted are to be settled in cash and are, therefore, accounted for as a liability with changes in value recorded through earnings at the end of each reporting period and is included in Other liabilities on New Enviri's Condensed Combined Balance Sheets. PSUs granted prior to 2025 did not have an option for cash payment. Total compensation expense related to cash-settled PSUs was $0.6 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.