Summary of Perma-Fix Environmental Services (PESI) Q1 2026 Earnings Call

1Key Financial Results and Metrics:

Revenue: $11.1 million, down from $13.9 million in Q1 2025, a decrease of $2.8 million year-over-year.

Gross Profit: Declined by $3.5 million due to lower revenue and higher variable costs.

EBITDA: Loss of $7 million compared to a loss of $3.3 million in the prior year.

Net Loss: $7.5 million, up from a $3.6 million loss in Q1 2025; loss per share of $0.40 versus $0.19.

Cash Position: Cash at quarter-end was $6.7 million, down from prior year levels.

Treatment Backlog: Increased slightly to $12.2 million from $11.9 million at year-end.

2Strategic Updates and Business Highlights:

Transition Period: Q1 was characterized as a transitional phase, with a focus on preparing facilities for increased activity in Q2.

Hanford Opportunity: The Perma-Fix Northwest facility began receiving ETF waste from Hanford in mid-April, expected to generate sustainable revenues of over $4 million per quarter.

Facility Upgrades: Investments in personnel, training, and infrastructure are aimed at supporting higher production levels.

New Contracts: Awarded a $24 million master task agreement for demolition and disposal at the Lawrence Livermore National Security site.

PFAS Technology: Progress in PFAS destruction technology, with new wins and ongoing installations to expand treatment capacity.

3Forward Guidance and Outlook:

Q2 Expectations: Anticipated inflection point with stronger revenue contributions from Hanford-related waste receipts and other activities.

Long-term Growth: The company is positioned for significant growth opportunities, particularly related to the Hanford cleanup mission and PFAS destruction.

Operational Readiness: Continued focus on operational improvements and readiness for increased waste processing.

4Bad News, Challenges, or Points of Concern:

Weak Q1 Performance: Financial results were below expectations, attributed to seasonal softness, lower waste receipts, and delays in revenue milestones.

Cash Usage: Operating cash usage and capital spending have reduced cash reserves compared to the prior year.

Regulatory Delays: Some anticipated waste streams from DFLAW were delayed due to regulatory processes, impacting revenue timing.

Market Risks: Potential impacts from government program execution and regulatory requirements on revenue generation.

5Notable Q&A Insights:

Hanford Waste Streams: Management provided updates on multiple waste streams from Hanford, including ETF and EMF waste, with expectations for increased revenue as operations ramp up.

Grouting Opportunities: Discussion on the potential for significant revenue from grouting projects, with a focus on local processing capabilities.

Enterprise Project: Anticipated award for the USS Enterprise decommissioning project, expected in June, with a government estimate of $500 million to $800 million for the overall project.

PFAS Developments: The company is actively working with airports to replace PFAS firefighting foam, which is expected to contribute to revenue growth. Overall, while Q1 2026 presented challenges for Perma-Fix, management is optimistic about the upcoming quarters, driven by strategic initiatives and a strong pipeline of opportunities, particularly related to Hanford and PFAS remediation.