v3.26.1
Revenues
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenues
18. 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. 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
June 30, 2026
(In thousands)
Harsco Environmental
Harsco Rail
Consolidated Totals
Primary Geographical Markets (a):
North America$61,950 $(23,114)$38,836 
Western Europe103,241 (64,550)38,691 
Latin America (b)
42,693 2,366 45,059 
Asia-Pacific27,250 6,443 33,693 
Middle East and Africa26,109 37 26,146 
Eastern Europe 4,917 — 4,917 
Total Revenues$266,160 $(78,818)$187,342 
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services$245,383 $— $245,383 
Ecoproducts15,101 — 15,101 
Environmental systems for aluminum dross and scrap processing5,676 — 5,676 
Railway track maintenance equipment— (122,114)(122,114)
After market parts and services; safety and diagnostic technology— 31,464 31,464 
Railway contracting services— 11,832 11,832 
Total Revenues$266,160 $(78,818)$187,342 
Three Months Ended
June 30, 2025
(In thousands)
Harsco Environmental
Harsco Rail
Consolidated Totals
Primary Geographical Markets (a):
North America$57,613 $30,618 $88,231 
Western Europe105,304 22,822 128,126 
Latin America (b)
35,546 633 36,179 
Asia-Pacific29,828 3,890 33,718 
Middle East and Africa24,757 — 24,757 
Eastern Europe 4,961 — 4,961 
Total Revenues $258,009 $57,963 $315,972 
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services$240,450 $— $240,450 
Ecoproducts12,825 — 12,825 
Environmental systems for aluminum dross and scrap processing4,734 — 4,734 
Railway track maintenance equipment— 15,652 15,652 
After market parts and services; safety and diagnostic technology— 24,356 24,356 
Railway contracting services— 17,955 17,955 
Total Revenues$258,009 $57,963 $315,972 
Six Months Ended
June 30, 2026
(In thousands)
Harsco Environmental
Harsco Rail
Consolidated Totals
Primary Geographical Markets (a):
North America$121,048 $16,504 $137,552 
Western Europe199,680 (42,664)157,016 
Latin America (b)
83,246 3,988 87,234 
Asia-Pacific57,607 10,603 68,210 
Middle East and Africa51,597 82 51,679 
Eastern Europe 9,699 — 9,699 
Total Revenues $522,877 $(11,487)$511,390 
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services$485,808 $— $485,808 
Ecoproducts27,314 — 27,314 
Environmental systems for aluminum dross and scrap processing9,755 — 9,755 
Railway track maintenance equipment— (101,411)(101,411)
After-market parts and services; safety and diagnostic technology
— 60,419 60,419 
Railway contracting services— 29,505 29,505 
Total Revenues$522,877 $(11,487)$511,390 
Six Months Ended
June 30, 2025
(In thousands)
Harsco Environmental
Harsco Rail
Consolidated Totals
Primary Geographical Markets (a):
North America$112,839 $67,594 $180,433 
Western Europe202,948 50,046 252,994 
Latin America (b)
67,670 2,433 70,103 
Asia-Pacific58,392 7,837 66,229 
Middle East and Africa50,106 — 50,106 
Eastern Europe 9,160 — 9,160 
Total Revenues$501,115 $127,910 $629,025 
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services$467,655 $— $467,655 
Ecoproducts23,517 — 23,517 
Environmental systems for aluminum dross and scrap processing9,943 — 9,943 
Railway track maintenance equipment— 48,720 48,720 
After-market parts and services; safety and diagnostic technology
— 47,271 47,271 
Railway contracting services— 31,919 31,919 
Total Revenues$501,115 $127,910 $629,025 
(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 $32.5 million and $69.1 million at June 30, 2026 and December 31, 2025, respectively. The Company had advances on contracts totaling $9.0 million and $8.2 million at June 30, 2026 and December 31, 2025, respectively. The decrease in contract assets is due principally to the Company's decision to exit the Network Rail and Deutsche Bahn contracts, as discussed in further detail in Note 3, Contract Exits. During the three and six months ended June 30, 2026, the Company recognized $1.4 million and $6.1 million, respectively, of revenue related to amounts previously included in advances on contracts. During the three and six months ended June 30, 2025, the Company recognized revenues of $4.8 million and $22.4 million, respectively, 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$14,568 $3,677 
202814,357 1,772 
20299,283 4,869 
20304,671 — 
20314,671 — 
Thereafter
4,671 — 
Total remaining performance obligations
$52,221 $10,318 
Rail has been manufacturing ETO equipment under significant long-term, fixed-price contracts with SBB, Network Rail, and Deutsche Bahn. As previously disclosed, the Company had 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.

As discussed in Note 3, Contract Exits, the Company recorded a loss of $207.4 million during the second quarter of 2026 related to the exits of the Network Rail and Deutsche Bahn contracts.

For the Network Rail contract, during the three months ended June 30, 2025, the Company recorded a forward loss provision of $10.2 million primarily related to increased estimated manufacturing and material costs. For the six months ended June 30, 2025, the forward loss provision totaled $11.3 million.

For the three months ended June 30, 2025, no adjustment was made to the forward loss provision for the Deutsche Bahn contract. During the six months ended June 30, 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.

The Company continues to manufacture equipment under the SBB contract. For the six months ended June 30, 2026, no adjustment was made to the forward loss provision. For the three months ended June 30, 2025, the Company recorded a loss provision of $4.8 million due to higher estimated commissioning, manufacturing, assembly, and logistics costs due as progress was made towards prototype commissioning of the universal vehicle during the quarter. For the six months ended June 30, 2025, the forward loss provision totaled $5.9 million.

The estimated forward loss provision for the SBB contract represents the Company's best estimate based on currently available information. It is possible that the Company's overall estimate of costs to complete this contract may change, which could result in an additional estimated forward loss provision at such time that could be material in any one period.

As of June 30, 2026, the contract with SBB is 92% complete, 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.