Summary of Perma-Fix Environmental Services (PESI) Q3 2025 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $17.5 million, a 4% increase from $16.8 million in Q3 2024.

Gross Profit: Increased to $2.6 million (14.6% margin), up from $1.3 million (7.9% margin) year-over-year.

EBITDA: Loss of $1.5 million, an improvement from a loss of $2.1 million in the prior year.

Net Loss: $1.8 million, significantly improved from a $9 million loss last year, with net loss per share improving to $0.10 from $0.57.

Cash Position: $16.4 million in cash and $18.4 million in working capital, with total debt of approximately $1.9 million.

2Strategic Updates and Business Highlights

Treatment Segment: Revenue increased 45% year-over-year to $13.1 million, with gross margin improving to 17.3% from 4.5%.

Waste Sales: Rose 74% year-over-year to $14.6 million, driven by higher waste volumes and throughput.

Backlog: Treatment backlog reached $15.4 million, up from $7.9 million a year ago, indicating strong visibility into future revenues.

PFAS Initiative: The first-generation PFAS system achieved complete destruction of PFAS compounds with a cost advantage over incineration. A second-generation unit is nearing completion, expected to triple capacity.

Hanford Operations: The DFLAW program is progressing, with expectations to begin receiving waste shipments in Q4 2025 or early Q1 2026.

3Forward Guidance and Outlook

Q4 Expectations: Anticipated strong visibility and momentum, with continued performance in the Treatment segment and scaling of PFAS operations.

Revenue Projections: Expected to generate $1 million to $2 million per month from DFLAW starting in early 2026, with PFAS revenues projected to grow from $150,000 to $500,000 monthly by the end of 2026.

Operational Focus: Plans to efficiently convert backlog, scale PFAS commercialization, and capitalize on DOE opportunities, particularly at Hanford.

4Bad News, Challenges, or Points of Concern

Services Segment Decline: Revenue decreased to $4.3 million from $7.7 million year-over-year, attributed to project delays and slower contract awards.

Government Shutdown Impact: While minimal impact on waste treatment was noted, some project activities and mobilizations were delayed, potentially affecting revenue timing.

West Valley Project Delays: Revenue expectations for the West Valley project have been pushed back, with significant revenue anticipated only in 2026.

PFAS Market Development: Although progress is being made, the PFAS initiative is moving slower than initially expected, impacting earlier revenue projections.

5Notable Q&A Insights

Government Shutdown: Minimal impact on waste treatment operations; backlog remains strong, and pent-up demand is expected to boost activity post-shutdown.

Hanford Waste Processing: Anticipated to start in late December 2025 or early January 2026, with expectations of significant revenue generation from this source.

PFAS Partnerships: Ongoing discussions for potential partnerships and licensing agreements, with a focus on scaling down technology for on-site remediation.

Competitive Landscape: Limited competition in the rare earth mining sector for waste treatment, with ongoing bids and potential revenue generation expected in summer 2026. Overall, Perma-Fix demonstrated solid financial improvement and strategic positioning for future growth, particularly in the Treatment and PFAS segments, despite facing challenges in the Services segment and project delays.