| Schedule of revisions of financial statements |
The impacts of revising the Condensed Consolidated Statements of Operations for the correction of the errors discussed above and reclassifications related to the Transactions for the periods presented are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | (In thousands, except per share amounts) | | As Previously Reported | | Revision Adjustment | | Reclassification for Discontinued Operations | | As Revised and Reclassified | | Revenues from continuing operations: | | | | | | | | | | Service revenues | | $ | 505,241 | | | $ | (51) | | | $ | (246,231) | | | $ | 258,959 | | | Product revenues | | 57,013 | | | — | | | — | | | 57,013 | | | Total revenues | | 562,254 | | | (51) | | | (246,231) | | | 315,972 | | | Costs and expenses from continuing operations: | | | | | | | | | | Cost of services sold | | 394,811 | | | — | | | (179,908) | | | 214,903 | | | Cost of products sold | | 68,339 | | | — | | | — | | | 68,339 | | | Selling, general and administrative expenses | | 95,503 | | | — | | | (41,730) | | | 53,773 | | | Research and development expenses | | 995 | | | — | | | (220) | | | 775 | | | Property, plant and equipment impairment charge | | 7,386 | | | — | | | — | | | 7,386 | | | Other expense (income), net | | 2,411 | | | — | | | (32) | | | 2,379 | | | Total costs and expenses | | 569,445 | | | — | | | (221,890) | | | 347,555 | | | Operating income (loss) from continuing operations | | (7,191) | | | (51) | | | (24,341) | | | (31,583) | | | Interest income | | 470 | | | — | | | (56) | | | 414 | | | Interest expense | | (27,600) | | | — | | | 18,861 | | | (8,739) | | | Facility fees and debt-related income (expense) | | (2,619) | | | — | | | 2,465 | | | (154) | | | Defined benefit pension income (expense) | | (5,387) | | | (168) | | | — | | | (5,555) | | Income (loss) from continuing operations before income taxes and equity in income | | (42,327) | | | (219) | | | (3,071) | | | (45,617) | | | Income tax benefit (expense) from continuing operations | | (3,609) | | | 13 | | | 4,501 | | | 905 | | Equity in income (loss) of unconsolidated entities, net | | 44 | | | — | | | — | | | 44 | | | Income (loss) from continuing operations | | (45,892) | | | (206) | | | 1,430 | | | (44,668) | | | Discontinued operations: | | | | | | | | | | Income (loss) from discontinued operations | | (889) | | | — | | | 3,071 | | | 2,182 | | | Income tax benefit (expense) from discontinued operations | | 232 | | | — | | | (4,501) | | | (4,269) | | | Income (loss) from discontinued operations, net of tax | | (657) | | | — | | | (1,430) | | | (2,087) | | | Net income (loss) | | (46,549) | | | (206) | | | — | | | (46,755) | | | Less: Net loss (income) attributable to noncontrolling interests | | (1,058) | | | — | | | — | | | (1,058) | | | Net income (loss) attributable to Enviri Corporation | | $ | (47,607) | | | $ | (206) | | | $ | — | | | $ | (47,813) | | | Amounts attributable to Enviri Corporation common stockholders: | | | | | | | | | | Income (loss) from continuing operations, net of tax | | $ | (46,950) | | | $ | (206) | | | $ | 1,430 | | | $ | (45,726) | | | Income (loss) from discontinued operations, net of tax | | (657) | | | — | | | (1,430) | | | (2,087) | | | Net income (loss) attributable to Enviri Corporation common stockholders | | $ | (47,607) | | | $ | (206) | | | $ | — | | | $ | (47,813) | | | | | | | | | | | Weighted-average shares of common stock outstanding (a) | | 26,876 | | 26,876 | | 26,876 | | 26,876 | Basic earnings (loss) per share attributable to Enviri Corporation common stockholders: (b) | | Continuing operations | | $ | (1.75) | | | $ | (0.01) | | | $ | 0.05 | | | $ | (1.70) | | | Discontinued operations | | (0.02) | | | — | | | (0.05) | | | (0.08) | | | Basic earnings (loss) per share attributable to Enviri Corporation common stockholders | | $ | (1.77) | | | $ | (0.01) | | | $ | — | | | $ | (1.78) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | (In thousands, except per share amounts) | | As Previously Reported | | Revision Adjustment | | Reclassification for Discontinued Operations | | As Revised and Reclassified | Diluted weighted-average shares of common stock outstanding (a) | | 26,876 | | 26,876 | | 26,876 | | 26,876 | Diluted earnings (loss) per share attributable to Enviri Corporation common stockholders: (a) | | Continuing operations | | $ | (1.75) | | | $ | (0.01) | | | $ | 0.05 | | | $ | (1.70) | | | Discontinued operations | | (0.02) | | | — | | | (0.05) | | | (0.08) | | | Diluted earnings (loss) per share attributable to Enviri Corporation common stockholders | | $ | (1.77) | | | $ | (0.01) | | | $ | — | | | $ | (1.78) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | (In thousands, except per share amounts) | | As Previously Reported | | Revision Adjustment | | Reclassification for Discontinued Operations | | As Revised and Reclassified | | Revenues from continuing operations: | | | | | | | | | | Service revenues | | $ | 982,081 | | | $ | (427) | | | $ | (481,086) | | | $ | 500,568 | | | Product revenues | | 128,457 | | | — | | | — | | | 128,457 | | | Total revenues | | 1,110,538 | | | (427) | | | (481,086) | | | 629,025 | | | Costs and expenses from continuing operations: | | | | | | | | | | Cost of services sold | | 767,213 | | | — | | | (353,499) | | | 413,714 | | | Cost of products sold | | 119,700 | | | 1,017 | | | — | | | 120,717 | | | Selling, general and administrative expenses | | 184,611 | | | — | | | (78,767) | | | 105,844 | | | Research and development expenses | | 1,462 | | | — | | | (153) | | | 1,309 | | | Property, plant and equipment impairment charge | | 7,386 | | | — | | | — | | | 7,386 | | | Other expense (income), net | | 6,702 | | | — | | | (112) | | | 6,590 | | | Total costs and expenses | | 1,087,074 | | | 1,017 | | | (432,531) | | | 655,560 | | | Operating income (loss) from continuing operations | | 23,464 | | | (1,444) | | | (48,555) | | | (26,535) | | | Interest income | | 924 | | | — | | | (56) | | | 868 | | | Interest expense | | (54,174) | | | — | | | 36,729 | | | (17,445) | | | Facility fees and debt-related income (expense) | | (5,231) | | | — | | | 4,661 | | | (570) | | | Defined benefit pension income (expense) | | (10,420) | | | (336) | | | — | | | (10,756) | | Income (loss) from continuing operations before income taxes and equity in income | | (45,437) | | | (1,780) | | | (7,221) | | | (54,438) | | | Income tax benefit (expense) from continuing operations | | (11,555) | | | 5,958 | | | 9,922 | | | 4,325 | | Equity in income (loss) of unconsolidated entities, net | | 72 | | | — | | | — | | | 72 | | | Income (loss) from continuing operations | | (56,920) | | | 4,178 | | | 2,701 | | | (50,041) | | | Discontinued operations: | | | | | | | | | | Income (loss) from discontinued operations | | (2,468) | | | — | | | 7,221 | | | 4,753 | | | Income tax benefit (expense) from discontinued operations | | 644 | | | — | | | (9,922) | | | (9,278) | | | Income (loss) from discontinued operations, net of tax | | (1,824) | | | — | | | (2,701) | | | (4,525) | | | Net income (loss) | | (58,744) | | | 4,178 | | | — | | | (54,566) | | | Less: Net loss (income) attributable to noncontrolling interests | | (2,259) | | | — | | | — | | | $ | (2,259) | | | Net income (loss) attributable to Enviri Corporation | | $ | (61,003) | | | $ | 4,178 | | | $ | — | | | $ | (56,825) | | | Amounts attributable to Enviri Corporation common stockholders: | | | | | | | | | | Income (loss) from continuing operations, net of tax | | $ | (59,179) | | | $ | 4,178 | | | $ | 2,701 | | | $ | (52,300) | | | Income (loss) from discontinued operations, net of tax | | (1,824) | | | — | | | (2,701) | | | (4,525) | | | Net income (loss) attributable to Enviri Corporation common stockholders | | $ | (61,003) | | | $ | 4,178 | | | $ | — | | | $ | (56,825) | | | | | | | | | | | Weighted-average shares of common stock outstanding (a) | | 26,827 | | 26,827 | | 26,827 | | 26,827 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | (In thousands, except per share amounts) | | As Previously Reported | | Revision Adjustment | | Reclassification for Discontinued Operations | | As Revised and Reclassified | Basic earnings (loss) per share attributable to Enviri Corporation common stockholders: (b) | | Continuing operations | | $ | (2.21) | | | $ | 0.16 | | | $ | 0.10 | | | $ | (1.95) | | | Discontinued operations | | (0.07) | | | — | | | (0.10) | | | $ | (0.17) | | | Basic earnings (loss) per share attributable to Enviri Corporation common stockholders | | $ | (2.27) | | | $ | 0.16 | | | $ | — | | | $ | (2.12) | | | | | | | | | | | Diluted weighted-average shares of common stock outstanding (a) | | | | | | | | | Diluted earnings (loss) per share attributable to Enviri Corporation common stockholders: (b) | | Continuing operations | | $ | (2.21) | | | $ | 0.16 | | | $ | 0.10 | | | $ | (1.95) | | | Discontinued operations | | (0.07) | | | — | | | (0.10) | | | (0.17) | | | Diluted earnings (loss) per share attributable to Enviri Corporation common stockholders | | $ | (2.27) | | | $ | 0.16 | | | $ | — | | | $ | (2.12) | |
(a) Weighted-average shares outstanding and earnings per share amounts for periods prior to the completion of the Transactions have been retrospectively adjusted to reflect the impact of the Transactions on the Company's capital structure. (b) Earnings (loss) per share attributable to Enviri Corporation common stockholders is calculated based on actual amounts. As a result, these per share amounts may not total due to rounding.
The impact of revising the Condensed Consolidated Statements of Comprehensive Income (Loss) for the periods presented are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | Six Months Ended June 30, 2025 | | (In thousands, except per share amounts) | | As Previously Reported | | Revision Adjustment | | As Revised | | As Previously Reported | | Revision Adjustment | | As Revised | | Net income (loss) | | $ | (46,549) | | | $ | (206) | | | $ | (46,755) | | | $ | (58,744) | | | $ | 4,178 | | | $ | (54,566) | | | Other comprehensive income (loss): | | | | | | | | | | | | | | Foreign currency translation adjustments, net of deferred taxes | | 22,947 | | | (1,145) | | | 21,802 | | | 38,670 | | | (1,767) | | | 36,903 | | | Pension liability adjustment, net of deferred taxes | | (11,122) | | | 72 | | | (11,050) | | | (15,328) | | | 90 | | | (15,238) | | | Total other comprehensive income (loss) | | 10,033 | | | (1,073) | | | 8,960 | | | 18,751 | | | (1,677) | | | 17,074 | | | Total comprehensive income (loss) | | (36,516) | | | (1,279) | | | (37,795) | | | (39,993) | | | 2,501 | | | (37,492) | | | Comprehensive income (loss) attributable to Enviri Corporation | | $ | (38,362) | | | $ | (1,279) | | | $ | (39,641) | | | $ | (43,407) | | | $ | 2,501 | | | $ | (40,906) | |
The impact of revising the Condensed Consolidated Statements of Cash Flows for the period presented is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | (In thousands, except per share amounts) | | As Previously Reported | | Revision Adjustment | | Reclassification Adjustment (a) | | As Revised and Reclassified | | Cash flows from operating activities: | | | | | | | | | | Net income (loss) | | $ | (58,744) | | | $ | 4,178 | | | $ | — | | | $ | (54,566) | | | Deferred income tax (benefit) expense | | (2,387) | | | (5,612) | | | — | | | (7,999) | | | Changes in assets and liabilities, net of acquisitions and dispositions of businesses: | | | | | | | | | | Accounts receivable | | (14,314) | | | 427 | | | — | | | (13,887) | | | Inventories | | (8,300) | | | 1,017 | | | — | | | (7,283) | | | Retirement plan liabilities, net | | 9,381 | | | 336 | | | — | | | 9,717 | | | Reserve for contracts | | — | | | — | | | (6,477) | | | (6,477) | | | Other assets and liabilities | | 5,745 | | | (346) | | | 6,477 | | | 11,876 | | | Net cash (used) provided by operating activities | | 28,573 | | | — | | | — | | | 28,573 | | | Net cash (used) provided by investing activities | | (61,242) | | | — | | | — | | | (61,242) | | | Net cash (used) provided by financing activities | | 54,128 | | | — | | | — | | | 54,128 | | | Effect of exchange rate changes on cash and cash equivalents, including restricted cash | | 1,918 | | | — | | | — | | | 1,918 | | | Net increase (decrease) in cash and cash equivalents, including restricted cash and cash included in Current portion of assets held-for-sale | | 23,377 | | | — | | | — | | | 23,377 | | | Cash and cash equivalents, including restricted cash and cash included in Current portion of assets held-for-sale, at beginning of period | | 90,158 | | | — | | | — | | | 90,158 | | | Cash and cash equivalents, including restricted cash, at end of period | | $ | 113,535 | | | $ | — | | | $ | — | | | $ | 113,535 | |
(a) Reclassifications have been made to conform with current year presentation.
The impact of revising the Condensed Consolidated Statements of Equity for all periods presented are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As Previously Reported | | | Enviri Corporation Stockholders’ Equity | | | | | | | Common Stock | | Additional Paid-in Capital | | Retained
Earnings | | Accumulated Other
Comprehensive
Loss | | Noncontrolling
Interests | | | | (In thousands, except share amounts) | | Issued | | Treasury | | | | | | Total | Balances, December 31, 2024 | | $ | 146,844 | | | $ | (851,881) | | | $ | 255,102 | | | $ | 1,400,347 | | | $ | (538,964) | | | $ | 38,151 | | | $ | 449,599 | | | Net income (loss) | | — | | | — | | | — | | | (13,396) | | | — | | | 1,201 | | | (12,195) | | Total other comprehensive income (loss), net of deferred income taxes of $2,487 | | — | | | — | | | — | | | — | | | 8,351 | | | 367 | | | 8,718 | | Vesting of restricted stock units and other stock grants, net 284,643 shares | | 636 | | | (1,357) | | | (636) | | | — | | | — | | | — | | | (1,357) | | Vesting of performance share units, net 14,860 shares | | 35 | | | (122) | | | (35) | | | — | | | — | | | — | | | (122) | | | Amortization of unearned stock-based compensation, net of forfeitures | | — | | | — | | | 4,044 | | | — | | | — | | | — | | | 4,044 | | Balances, March 31, 2025 | | $ | 147,515 | | | $ | (853,360) | | | $ | 258,475 | | | $ | 1,386,951 | | | $ | (530,613) | | | $ | 39,719 | | | $ | 448,687 | | | Net income (loss) | | — | | | — | | | — | | | (47,607) | | | — | | | 1,058 | | | (46,549) | | Total other comprehensive income (loss), net of deferred income taxes of $3,934 | | — | | | — | | | — | | | — | | | 9,245 | | | 788 | | | 10,033 | | Vesting of restricted stock units and other stock grants, net 144,761 shares | | 191 | | | (56) | | | (191) | | | — | | | — | | | — | | | (56) | | | Amortization of unearned portion of stock-based compensation, net of forfeitures | | — | | | — | | | 5,716 | | | — | | | — | | | — | | | 5,716 | | Balances, June 30, 2025 | | $ | 147,706 | | | $ | (853,416) | | | $ | 264,000 | | | $ | 1,339,344 | | | $ | (521,368) | | | $ | 41,565 | | | $ | 417,831 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revision Adjustment | | | Enviri Corporation Stockholders’ Equity | | | | | | | Common Stock | | Additional Paid-in Capital | | Retained
Earnings | | Accumulated Other
Comprehensive
Loss | | Noncontrolling
Interests | | | | (In thousands, except share amounts) | | Issued | | Treasury | | | | | | Total | Balances, December 31, 2024 | | $ | — | | | $ | — | | | $ | — | | | $ | (21,512) | | | $ | 1,579 | | | $ | — | | | $ | (19,933) | | | Net income (loss) | | — | | | — | | | — | | | 4,383 | | | — | | | — | | | 4,383 | | | Total other comprehensive income (loss) | | — | | | — | | | — | | | — | | | (604) | | | — | | | (604) | | | Vesting of restricted stock units and other stock grants | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Vesting of performance share units | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Amortization of unearned stock-based compensation, net of forfeitures | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Balances, March 31, 2025 | | $ | — | | | $ | — | | | $ | — | | | $ | (17,129) | | | $ | 975 | | | $ | — | | | $ | (16,154) | | | Net income (loss) | | — | | | — | | | — | | | (206) | | | — | | | — | | | (206) | | | Total other comprehensive income (loss) | | — | | | — | | | — | | | — | | | (1,073) | | | — | | | (1,073) | | | Vesting of restricted stock units and other stock grants | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Amortization of unearned portion of stock-based compensation, net of forfeitures | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Balances, June 30, 2025 | | $ | — | | | $ | — | | | $ | — | | | $ | (17,335) | | | $ | (98) | | | $ | — | | | $ | (17,433) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As Revised | | | Enviri Corporation Stockholders’ Equity | | | | | | | Common Stock | | Additional Paid-in Capital | | Retained
Earnings | | Accumulated Other
Comprehensive
Loss | | Noncontrolling
Interests | | | | (In thousands, except share amounts) | | Issued | | Treasury | | | | | | Total | Balances, December 31, 2024 | | $ | 146,844 | | | $ | (851,881) | | | $ | 255,102 | | | $ | 1,378,835 | | | $ | (537,385) | | | $ | 38,151 | | | $ | 429,666 | | | Net income (loss) | | — | | | — | | | — | | | (9,013) | | | — | | | 1,201 | | | (7,812) | | | | | | | | | | | | | | | | | Total other comprehensive income (loss), net of deferred income taxes of $2,487 | | — | | | — | | | — | | | — | | | 7,747 | | | 367 | | | 8,114 | | Vesting of restricted stock units and other stock grants, net 284,643 shares | | 636 | | | (1,357) | | | (636) | | | — | | | — | | | — | | | (1,357) | | Vesting of performance share units, net 14,860 shares | | 35 | | | (122) | | | (35) | | | — | | | — | | | — | | | (122) | | | Amortization of unearned stock-based compensation, net of forfeitures | | — | | | — | | | 4,044 | | | — | | | — | | | — | | | 4,044 | | Balances, March 31, 2025 | | $ | 147,515 | | | $ | (853,360) | | | $ | 258,475 | | | $ | 1,369,822 | | | $ | (529,638) | | | $ | 39,719 | | | $ | 432,533 | | | Net income (loss) | | — | | | — | | | — | | | (47,813) | | | — | | | 1,058 | | | (46,755) | | Total other comprehensive income (loss), net of deferred income taxes of $3,934 | | — | | | — | | | — | | | — | | | 8,172 | | | 788 | | | 8,960 | | Vesting of restricted stock units and other stock grants, net 144,761 shares | | 191 | | | (56) | | | (191) | | | — | | | — | | | — | | | (56) | | | Amortization of unearned portion of stock-based compensation, net of forfeitures | | — | | | — | | | 5,716 | | | — | | | — | | | — | | | 5,716 | | Balances, June 30, 2025 | | $ | 147,706 | | | $ | (853,416) | | | $ | 264,000 | | | $ | 1,322,009 | | | $ | (521,466) | | | $ | 41,565 | | | $ | 400,398 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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