Perma-Fix Reports Q1 2025 Results and Highlights Momentum in Hanford and PFAS Programs

Rhea-AI Summary

Perma-Fix Environmental Services (NASDAQ: PESI) reported Q1 2025 financial results with revenue of $13.9 million, up slightly from $13.6 million in Q1 2024. The Treatment Segment revenue increased to $9.2 million, while Services Segment revenue decreased to $4.7 million. Despite operational improvements, the company reported a net loss of $3.6 million ($0.19 per share). Key highlights include: - Backlog increased 30% from year-end 2024 to over $10 million - PFAS program received first commercial shipments from Federal Government - Gross profit improved to $657,000 vs loss of $620,000 in Q1 2024 - Company expects stronger performance in H2 2025, driven by Hanford DFLAW facility operations and PFAS initiatives - Management remains optimistic about August 1 commencement of hot commissioning program

Positive

• Backlog increased by 30% from year-end 2024 to over $10 million
• Revenue increased to $13.9M from $13.6M year-over-year
• Gross profit improved to $657,000 vs loss of $620,000 in Q1 2024
• Treatment Segment revenue grew by $477,000 to $9.2 million
• First commercial PFAS shipments received from Federal Government
• Improved operational efficiency with PFAS chemical recycling enhancement

Negative

• Net loss of $3.6 million ($0.19 per share)
• Services Segment revenue decreased by $175,000 to $4.7 million
• Higher operating expenses due to facility readiness costs
• Delays in procurement and waste shipments due to federal administration changes
• Increased fixed costs from additional staffing and training requirements

Insights

Financial Analyst

Perma-Fix shows improved margins despite ongoing losses, with strategic PFAS and Hanford programs positioned for growth in late 2025.

Perma-Fix's Q1 2025 results reveal a company making meaningful operational progress despite continuing to operate at a loss. Revenue increased modestly by 2.2% to $13.9 million, with the Treatment Segment growing 5.5% to $9.2 million on higher waste volumes, while the Services Segment declined 3.6% to $4.7 million due to federal procurement delays.

The most significant improvement came in gross profitability, with the company generating $657,000 in gross profit versus a $620,000 gross loss in Q1 2024. Both segments showed substantial margin enhancements, with Treatment reaching 2.7% (from -0.6%) and Services jumping to 8.6% (from -11.6%). These improvements reflect successful cost optimization initiatives and better project execution.

Despite these operational gains, Perma-Fix continues to post losses, with a net loss of $3.6 million ($0.19 per share) compared to $3.6 million ($0.26 per share) in Q1 2024. The operating loss narrowed to $3.7 million from $4.5 million, while EBITDA improved to -$3.3 million from -$4.0 million.

The 30% increase in backlog to over $10 million indicates growing business momentum. Strategically, Perma-Fix is making headway on two key fronts: its PFAS destruction technology program has begun receiving commercial shipments from the federal government, while recent system enhancements have reduced operating costs and increased per-gallon margins.

The anticipated August 1st commencement of the Department of Energy's Direct Feed Low-Activity Waste facility operations at Hanford represents a potentially significant long-term revenue catalyst. This initiative, part of the broader Hanford tank remediation mission, could provide steady revenue streams if schedules hold.

While investments in facility readiness and PFAS initiatives continue to pressure near-term profitability, the operational improvements, growing backlog, and strategic positioning suggest Perma-Fix may indeed deliver on management's expectation of stronger financial performance in the second half of 2025.

Improved gross margins and rising backlog driven by increased waste receipts

Strategic investments expected to position the Company for stronger performance in the second half of 2025

ATLANTA, May 08, 2025 (GLOBE NEWSWIRE) -- Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) (the “Company”) today announced financial results and provided a business update for the first quarter ended March 31, 2025.

"Our first quarter results reflect the impact of several transitional headwinds," said Mark Duff, President and Chief Executive Officer of Perma-Fix Environmental Services. "Delays in procurement and waste shipments tied to the change in federal administration limited revenue growth during the quarter; however, we still delivered a modest increase compared to the prior-year period, underscoring the resilience of our core operations. Importantly, we began to see improvement in waste receipts late in the quarter, contributing to a strengthened backlog of over $10 million—an increase of approximately 30% from year-end 2024."

"At the same time, we incurred higher operating expenses related to facility readiness for new waste streams and the continued scale-up of our PFAS (Per -and polyfluoroalkyl) initiatives. These strategic investments impacted profitability in the near term, yet we delivered significant year-over-year improvement in gross margins across both the Treatment and Services segments—driven by higher waste volume, improved project execution, and ongoing cost optimization efforts," Duff added.

"Our PFAS program continues to build momentum on multiple fronts. We’ve received our first commercial shipments from the Federal Government, with additional approvals pending, and recently completed key upgrades to our Perma-FAS system, including a chemical recycling enhancement that has reduced operating costs and increased margins per gallon processed. Our Gen 2.0 system remains on track for Q4 deployment, and we believe our destruction technology offers an efficient solution for the market. With new regulations emerging in multiple states and growing national legislative momentum, we expect PFAS to be a contributor to our long-term growth."

"We remain optimistic regarding the progress in the hot commissioning program for the U.S. Department of Energy’s Direct Feed Low-Activity Waste (DFLAW) facility to maintain current schedules for an August 1 commencement, and we are prepared to support multiple waste streams as it ramps to full-scale operations. This initiative, part of the broader Hanford tank remediation mission, represents what we expect to be a key, long-term revenue catalyst for Perma-Fix. In parallel, we continue to see growth in international demand."

"With growing backlog, improved operational discipline, and increasing project visibility across federal, commercial, and international markets, we believe Perma-Fix is well positioned to deliver stronger financial performance in the second half of 2025."

Financial Results

Revenue was $13.9 million for the first quarter of 2025, as compared to $13.6 million for the corresponding period of 2024. The increase was entirely within the Treatment Segment where revenue increased by $477,000 to approximately $9.2 million for the first quarter of 2025, from $8.7 million for the same period of 2024. The increase in revenue was primarily due to overall higher waste volume partially offset by overall lower averaged price from waste mix. Services Segment revenue decreased by approximately $175,000 to $4.7 million in the first quarter of 2025, from $4.9 million for the first quarter of 2024. The decrease in revenue in the Services Segment was primarily due to lack of projects, due in part to delay in procurements from temporary suspension mandates as directed by the new Administration transition team.

Gross profit for the first quarter of 2025, was $657,000 versus gross loss of $620,000 for the first quarter of 2024. The increases in Treatment Segment gross profit of $302,000 and gross margin to 2.7% from (0.6)% were attributed to higher revenue from overall higher waste volume, partially offset by overall lower averaged price from waste mix and increase in fixed costs. The increase in fixed costs was attributed partly to implementation of operational readiness to support receipts of a certain specific waste steam that are expected to continue for at least the remainder of 2025. The processing of this waste stream required hiring of additional staff, associated training and start-up costs. Services Segment gross profit increased by approximately $975,000 and gross margin increased to 8.6% from (11.6)%. The increases were attributed to cost initiatives that we implemented to align expenses with our revenue backlog. Additionally, our overall Services Segment gross margin is impacted by our current projects which are competitively bid on and will therefore, have varying margin structures.

Operating loss for the first quarter of 2025, was $3.7 million versus operating loss of $4.5 million for the corresponding period of 2024. Net loss for each of the first quarters of 2025 and 2024 was approximately $3.6 million. Net loss for the first quarter of 2024, included a tax benefit of approximately $956,000. Net loss per share (both basic and diluted) for the first quarter of 2025, was $0.19 per share versus net loss per share (both basic and diluted) of $0.26 for the same period in 2024.

The Company reported EBITDA of ($3.3) million from continuing operations for the first quarter of 2025, as compared to EBITDA of ($4.0) million from continuing operations for the first quarter of 2024. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is not a measure of performance calculated in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”), and should not be considered in isolation of, or as a substitute for, earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. The Company believes the presentation of EBITDA is relevant and useful by enhancing the readers’ ability to understand the Company’s operating performance. The Company’s management utilizes EBITDA as a mean to measure performance. The Company’s measurement of EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA, a non-GAAP measure, to GAAP numbers for loss from continuing operations for the three months ended March 31, 2025, and 2024.

		Quarter Ended
		March 31,
(In thousands)			2025				2024
Loss from continuing operations		$	(3,500	)		$	(3,458	)
Adjustments:
Depreciation & amortization			436				431
Interest income			(335	)			(174	)
Interest expense			112				116
Interest expense - financing fees			20				13
Income tax benefit			—				(956	)
EBITDA		$	(3,267	)		$	(4,028	)

The tables below present certain unaudited financial information for the business segments, which excludes allocation of corporate expenses.

		Quarter Ended									Quarter Ended
		March 31, 2025									March 31, 2024
(In thousands)		Treatment				Services					Treatment				Services
Revenues		$	9,186			$	4,733				$	8,709			$	4,908
Gross profit (loss)			250				407					(52	)			(568	)
Loss from operations			(1,397	)			(347	)				(1,335	)			(1,388	)

Conference Call

Perma-Fix will host a conference call at 10:00 a.m. EDT on Thursday, May 8, 2025. The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers, and by entering access code: 146674. The conference call will be led by Mark J. Duff, Chief Executive Officer, Dr. Louis F. Centofanti, Executive Vice President of Strategic Initiatives, and Ben Naccarato, Executive Vice President and Chief Financial Officer of Perma-Fix Environmental Services, Inc.

A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2243/52435 or in the investor section of the Company’s website at https://ir.perma-fix.com/conference-calls. A webcast will also be archived on the Company’s website and a telephone replay of the call will be available approximately one hour following the call, through Thursday, May 15, 2025, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code: 52435.

About Perma-Fix Environmental Services

Perma-Fix Environmental Services, Inc. is a nuclear services company and leading provider of nuclear and mixed waste management services. The Company's nuclear waste services include management and treatment of radioactive and mixed waste for hospitals, research labs and institutions, federal agencies, including the U.S Department of Energy (DOE), the U.S Department of Defense (DOD), and the commercial nuclear industry. The Company’s nuclear services group provides project management, waste management, environmental restoration, decontamination and decommissioning, new build construction, and radiological protection, safety and industrial hygiene capability to our clients. The Company operates four nuclear waste treatment facilities and provides nuclear services at DOE, DOD, and commercial facilities, nationwide.

Please visit us at http://www.perma-fix.com.

This press release contains “forward-looking statements” which are based largely on the Company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the Company's control. Forward-looking statements generally are identifiable by use of the words such as “believe”, “expects”, “intends”, “anticipate”, “plan to”, “estimates”, “projects”, and similar expressions. Forward-looking statements include, but are not limited to: stronger performance in the second half of 2025; Gen 2.0 system deployment in Q4; believe our destruction technology offers an efficient solution; expect our PFAS to be a contributor to long-term growth; hot commissioning program of DFLAW facility for August 1 commencement of waste receipt; support multiple waste streams from full-scale operations; DFLAW represents long-term revenue catalyst for Perma-Fix; international demand; and operational readiness to support a waste stream expected to continue for the remainder of 2025. While the Company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including, without limitation, future economic conditions; industry conditions; competitive pressures; our ability to apply and market our new technologies; the government or such other party to a contract granted to us fails to abide by or comply with the contract or to deliver waste as anticipated under the contract or terminates existing contracts; Congress fails to provides funding for the DOD’s and DOE’s remediation projects; inability to obtain new foreign and domestic remediation contracts; and the additional factors referred to under “Risk Factors” and "Special Note Regarding Forward-Looking Statements" of our 2024 Form 10-K and Form 10-Q for quarter ended March 31, 2025. 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.

Contacts:
David K. Waldman-US Investor Relations
Crescendo Communications, LLC
(212) 671-1021

Herbert Strauss-European Investor Relations
herbert@eu-ir.com
+43 316 296 316

FINANCIAL TABLES FOLLOW

PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
		Three Months Ended March 31,
(Amounts in Thousands, Except for Per Share Amounts)		2025				2024
Revenues	$	13,919			$	13,617
Cost of goods sold		13,262				14,237
Gross profit (loss)		657				(620	)
Selling, general and administrative expenses		4,015				3,544
Gain on disposal of property and equipment		(5	)			—
Research and development		383				296
Loss from operations		(3,736	)			(4,460	)
Other income (expense):
Interest income		335				174
Interest expense		(112	)			(116	)
Interest expense-financing fees		(20	)			(13	)
Other		33				1
Loss from continuing operations before taxes		(3,500	)			(4,414	)
Income tax benefit		—				(956	)
Loss from continuing operations, net of taxes		(3,500	)			(3,458	)
Loss from discontinued operations (net of taxes)		(73	)			(102	)
Net loss	$	(3,573	)		$	(3,560	)
Net loss per common share - basic and diluted:
Continuing operations	$	(.19	)		$	(.25	)
Discontinued operations		—				(.01	)
Net loss per common share	$	(.19	)		$	(.26	)
Weighted average number of common shares used in computing
net loss per share:
Basic		18,424				13,676
Diluted		18,424				13,676

PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
		March 31,				December 31,
(Amounts in Thousands, Except for Share and Per Share Amounts)			2025				2024
ASSETS
Current assets:
Cash		$	25,745			$	28,975
Account receivable, net of allowance for credit losses of $221 and
$202, respectively			9,311				11,579
Unbilled receivables			5,168				4,990
Other current assets			5,164				4,659
Assets of discontinued operations included in current assets			36				20
Total current assets			45,424				50,223
Net property and equipment			21,395				21,133
Property and equipment of discontinued operations			130				130
Operating lease right-of-use assets			1,614				1,697
Intangibles and other assets			24,290				24,065
Total assets		$	92,853			$	97,248
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities		$	20,534			$	21,696
Current liabilities related to discontinued operations			258				244
Total current liabilities			20,792				21,940
Long-term liabilities			11,925				11,973
Long-term liabilities related to discontinued operations			948				945
Total liabilities			33,665				34,858
Commitments and Contingencies
Stockholders' equity:
Preferred Stock, $.001 par value; 2,000,000 shares authorized,
no shares issued and outstanding			—				—
Common Stock, $.001 par value; 30,000,000 shares authorized,
18,436,035 and 18,384,879 shares issued, respectively;
18,428,393 and 18,377,237 shares outstanding, respectively			18				18
Additional paid-in capital			159,944				159,590
Accumulated deficit			(100,503	)			(96,930	)
Accumulated other comprehensive loss			(183	)			(200	)
Less Common Stock held in treasury, at cost: 7,642 shares			(88	)			(88	)
Total stockholders' equity			59,188				62,390
Total liabilities and stockholders' equity		$	92,853			$	97,248

FAQ

What were Perma-Fix's (PESI) Q1 2025 financial results?

Perma-Fix reported Q1 2025 revenue of $13.9 million (up from $13.6M in Q1 2024) with a net loss of $3.6 million ($0.19 per share). Gross profit was $657,000 compared to a loss of $620,000 in Q1 2024.

How much did Perma-Fix's (PESI) backlog increase in Q1 2025?

Perma-Fix's backlog increased by approximately 30% from year-end 2024 to over $10 million.

What progress has Perma-Fix (PESI) made in its PFAS program?

Perma-Fix received its first commercial PFAS shipments from the Federal Government, completed upgrades to their Perma-FAS system including chemical recycling enhancement, and is on track for Gen 2.0 system deployment in Q4.

When is Perma-Fix (PESI) expecting to start the Hanford DFLAW facility operations?

Perma-Fix expects the hot commissioning program for the U.S. Department of Energy's Direct Feed Low-Activity Waste (DFLAW) facility to commence on August 1, 2025.

What caused the increase in Perma-Fix's (PESI) Treatment Segment revenue?

The Treatment Segment revenue increased by $477,000 to $9.2 million primarily due to higher waste volume, partially offset by lower averaged price from waste mix.