Perma-Fix Environmental Services Q3 2025 Earnings Results & Report

Perma-Fix Environmental Services EPS Results

• Actual EPS: -$0.10
• Consensus EPS: -$0.12
• Beat/Miss: Beat by +$0.02
• One Year Ago EPS: N/A
• EPS Beat Rate: 1 of last 8 quarters

Perma-Fix Environmental Services Revenue Results

• Actual Revenue: $17.45 million
• Expected Revenue: $16.30 million
• Beat/Miss: Beat by +$1.15 million
• YoY Revenue Growth: N/A

Perma-Fix Environmental Services (NASDAQ:PESI) (NASDAQ:PESI) provides nuclear and industrial waste management services. The company treats and processes radioactive, mixed, hazardous, and other difficult-to-manage waste streams for government and commercial customers, with an emphasis on reducing waste volume and preparing materials for compliant disposal.

Its services include waste treatment, stabilization, remediation, waste characterization, decontamination, engineering, consulting, and project management. Perma-Fix operates specialized treatment facilities and provides technical support for nuclear power, defense, research, medical, and industrial activities.

Founded in 1990, the company serves customers primarily in the United States, including federal agencies, nuclear facilities, utilities, and other organizations that handle regulated radioactive or hazardous materials. Perma-Fix is headquartered in Atlanta, Georgia, and has historically operated treatment facilities in locations including Florida, Tennessee, and Washington. Mark J. Duff serves as the company’s president and chief executive officer.

Perma-Fix Environmental Services Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Gross profit more than doubled to $2.6 million and gross margin expanded to 14.6% (from 7.9%), with a meaningful sequential improvement in EBITDA driven by higher throughput and execution discipline.
• Positive Sentiment: Treatment segment strength: segment revenue rose 45% YoY to $13.1 million, segment margin improved to 17.3%, waste sales increased 74%, and backlog grew to $15.4 million, improving visibility into 2026.
• Positive Sentiment: Major DOE opportunity at Hanford: Perma-Fix Northwest is the designated commercial treatment pathway for DFLAW secondary wastes, Melter I is converting tank waste to glass, and initial effluent shipments are expected in late Q4 or early Q1 2026, implying potential multi‑decade recurring revenue.
• Positive Sentiment: PFAS progress: the Florida Perma‑Fast system achieved complete PFAS destruction with a 10–20% cost advantage versus incineration and zero air emissions, and throughput improved after Q3 upgrades.
• Negative Sentiment: Revenue was slightly below prior year ($16.5M vs. $16.8M) and increased fixed costs partially offset margin gains, while DOE's allowed multi‑year ramp to design capacity creates uncertainty around the timing of full throughput and related revenue.

Presentation

[Operator]

Good morning, everyone, and welcome to the Perma-Fix Environmental Services Fiscal Third Quarter 2025 earnings conference call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions following the presentation. If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, David Waldman of Crescendo Communications. David, the floor is yours.

[David Waldman, Head of Investor Relations at Perma-Fix Environmental Services]

Thank you, Jenny. Good morning, everyone, and welcome to Perma-Fix Environmental Services Third Quarter 2025 conference call. On the call with us this morning are Marc Duff, President and CEO; Dr. Louis Centofanti, Executive Vice President of Strategic Initiatives; and Ben Naccarato, Chief Financial Officer. The company issued a press release this morning containing Third Quarter 2025 financial results, which is also posted on the company's website. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. I'd also like to remind everyone that certain statements contained within this conference call may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and include certain non-GAAP financial measures.

[David Waldman, Head of Investor Relations at Perma-Fix Environmental Services]

All statements on this conference call, other than a statement of historical fact, are forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors which could cause actual results and performance of the company to differ materially from such statements. These risks and uncertainties are detailed in the company's filings with the U.S. Securities and Exchange Commission, as well as this morning's press release. The company makes no commitment to disclose any revisions to forward-looking statements or any facts, events, or circumstances after the date hereof that bear upon forward-looking statements. In addition, today's discussion will include references to non-GAAP measures. Perma-Fix believes that such information provides an additional measurement consistent with historical comparison of its performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is available in today's news release on our website.

[David Waldman, Head of Investor Relations at Perma-Fix Environmental Services]

I'd now like to turn the call over to Marc Duff. Please go ahead, Marc.

[Marc Duff, President and CEO at Perma-Fix Environmental Services]

All right. Thanks, David. Good morning, everyone, and thank you for joining us today. We're pleased to report another quarter of solid financial and operational progress for Perma-Fix. Revenue increased to $16.5 million, compared to $16.8 million in the same period last year, while gross profit more than doubled to $2.6 million, up from $1.3 million a year ago. Gross margin expanded to 14.6% from 7.9%, driven primarily by higher waste volumes and a more favorable mix within our treatment operations, partially offset by increased fixed cost. Gross margin also increased by 38% from Q2, reflecting continued operational progress and a stronger overall mix. We also achieved a meaningful improvement in EBITDA versus the prior quarter, reflecting stronger throughput and continued execution discipline. Overall, these results demonstrate consistent progress in margin expansion, backlog growth, and positioning Perma-Fix for long-term sustainable growth across our treatment, PFAS, and nuclear services programs.

[Marc Duff, President and CEO at Perma-Fix Environmental Services]

Our treatment segment continued to deliver strong performance. Segment revenue increased 45% year over year to $13.1 million, up from $9.1 million in Q3 of 2024, while segment gross margin improved to 17.3% from 4.5%. The improvement was driven up by higher waste volumes, higher throughput at our plants, and solid execution across both commercial and DOE projects. Waste sales totaled $14.6 million, up from $8.4 million in the same period last year, a 74% increase. Our treatment backlog ended the quarter at $15.4 million, up from $7.9 million a year ago, providing a strong visibility through year-end and into 2026. Automation, digital scheduling, and plant optimization initiatives are all improving productivity and throughput while maintaining safety performance overall. We're now realizing the full benefit of these investments, contributing to higher throughput and sequential margin improvement.

[Marc Duff, President and CEO at Perma-Fix Environmental Services]

We also continue to support international waste shipments, which remain on schedule and are expected to continue into the first half of 2026, adding backlog stability and revenue diversity. We continue to process waste streams from Europe and North America and are evaluating new shipment requests tied to upcoming 2026 European Union programs. During the Hanford, this is one of the most significant and long-term growth opportunities in our company's history. The Department of Energy's Direct Feed Low-Activity Waste facility, also known as DFLAW, initiated hot commissioning in early October ahead of the October 15th triparty agreement milestone. Melter I is now converting tank waste into stable glass, marking a major milestone in DOE's environmental cleanup mission. Under DOE's record decision for the Hanford DFLAW program, Perma-Fix Northwest is the designated commercial treatment pathway for secondary waste streams generated during the vitrification operations.

[Marc Duff, President and CEO at Perma-Fix Environmental Services]

These include processed liquids and solid residues that require off-site treatment at licensed facilities. This designation establishes the opportunity for a multi-decade high-volume revenue for Perma-Fix as DFLAW meets the objectives for the cleanup of Hanford over the next several decades. We expect to begin receiving effluent waste shipments from DFLAW later in Q4 or early Q1 of 2026, following DOE's initial production phase and associated waste characterization. Although DOE's triparty agreement allows up to three years to reach design capacity for throughput, internal DOE goals indicate an earlier ramp-up, and Perma-Fix Northwest is fully prepared to meet that. Earlier this year, we completed the union transition under our UA Local 598 agreement in the Tri-Cities region for our Perma-Fix Northwest plant. This has improved labor stability, increased hiring efficiency, and allows multi-shift operations to meet DOE throughput requirements while maintaining excellent safety performance.

[Marc Duff, President and CEO at Perma-Fix Environmental Services]

Taken together, the record decision designation, DOE progress, facility upgrades, and a workforce stability position puts Perma-Fix in a position as a critical commercial link in the DOE's waste treatment chain, a role that provides long-term recurring revenue as DOE's cleanup mission advances. Our PFAS destruction initiative continues to advance both technically and commercially. At our Florida facility, the first-generation Perma-Fast system operated reliably through the quarter, achieving complete destruction of PFAS compounds at a 10-20% cost advantage to incineration and with zero air emissions. System performance improved month over month following Q3 upgrades and increased throughput.

[Operator]

Please wait a moment whilst we reconnect our speaker. Apologies for the technical issue there. We'll reconnect them very shortly. We appreciate your patience, everybody. We're just reconnecting.

Participants

Executives

• David Waldman, Head of Investor Relations
• Marc Duff, President and CEO