Perma-Fix Environmental Services, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the quarter ended September 30, 2026, was $17.9 million, a 2.6% increase from $17.5 million in the same period in 2025.
• Revenue increased 39% sequentially from the second quarter of 2026.
• Services Segment revenue was $6.3 million, up 46% year-over-year from $4.4 million in Q3 2025.
• Treatment Segment revenue was $11.6 million, down from $13.1 million in Q3 2025.
• Consolidated gross profit was $552,000, compared to $2.6 million in Q3 2025.
• Services Segment gross margin improved to 12.2% from 6.7% in the prior-year period.
• Treatment Segment reported a gross loss of $225,000, compared to a gross profit of $2.3 million in Q3 2025; Treatment gross margin was (1.9%) versus 17.3% in the prior year.
• Loss from operations was $3.7 million, compared to a loss of $1.9 million in Q3 2025.
• Net loss was $3.5 million ($0.16 per basic share), compared to a net loss of $1.8 million ($0.10 per basic share) in Q3 2025.
• EBITDA for the quarter was ($3.1) million, compared to ($1.5) million in Q3 2025.
• At September 30, 2026, the Company had $19.9 million in PNC Liquidity, consisting of $5.5 million in borrowing availability and $14.3 million in cash.
• Total assets were $102.4 million at September 30, 2026, compared to $88.0 million at December 31, 2025.
• Total stockholders' equity was $55.2 million at September 30, 2026, compared to $50.1 million at December 31, 2025.

Guidance and Future Outlook:

• Management expects improved results in the coming year driven by a growing backlog, new pricing, and increasing DFLAW volumes.
• The Gen 2.0 PFAS destruction unit is expected to begin commissioning in Q4 2026, with operations anticipated to commence in the first half of 2027.
• Price increases implemented in August are starting to be reflected in new backlog.
• The Company believes it is positioned to support increasing Hanford-related activity and compete for task orders under the DOE tank waste program.
• Facility upgrades to expand grouting capacity are being advanced to support future work.

Business Segments and Product Lines:

• Services Segment: Generated positive operating income for the quarter; PFAS destruction business saw increased sales and receipts compared to the first half of the year.
• Treatment Segment: Revenue decline was primarily due to lower waste volumes processed caused by customer-directed changes in treatment protocols for a Hanford-related waste stream, which delayed processing until September 2026.
• Perma-Fix Northwest: Now receiving both liquid effluent and dry waste from the DOE's Direct-Feed Low-Activity Waste (DFLAW) facility; both streams are expected to increase as DFLAW ramps up.
• Facility Upgrades: Temporary downtime occurred during the quarter to upgrade thermal treatment systems at Florida and Kingston facilities; upgrades were completed in September.
• Backlog: Treatment backlog grew 25% sequentially to $19.6 million and is up approximately 65% from year-end 2025.

Market and Competitive Landscape:

• Perma-Fix Northwest is one of three contractors awarded a Master Indefinite Delivery/Indefinite Quantity (IDIQ) Subcontract by H2C for Hanford waste treatment.
• The Master IDIQ contemplates potential treatment of up to approximately 50 million gallons of waste through 2041, with an aggregate procurement ceiling of approximately $4.4 billion shared among three holders.
• Perma-Fix is the only Master IDIQ Subcontract holder with a facility located adjacent to the Hanford Site.
• The DOE's 2023 amended Record of Decision identifies Perma-Fix Northwest to treat effluent waste from DFLAW operations on an interim basis expected to last approximately 10 years.
• Florida legislation enacted this year is phasing out PFAS-containing firefighting foam, which is expected to support continued demand for PFAS destruction services.

Risks and Challenges:

• Recurring operating losses and negative operating cash flows continue to raise substantial doubt about the Company's ability to continue as a going concern.
• Liquidity was reduced by continued operating losses since the May 2026 public equity offering and significant capital expenditures made during 2026.
• Successful execution of plans depends on the timing and volume of government-directed waste shipments and project activity, which are subject to factors outside the Company's control.
• There is no assurance regarding the number, size, or timing of task orders that may be awarded under the Master IDIQ Subcontract.
• Future outcomes could differ materially due to factors including changes in DOE treatment strategy, regulatory approval delays, competition from other IDIQ holders, and potential litigation or administrative challenges.

Management Commentary and Tone:

• CEO Mark Duff stated that third-quarter results reflect "meaningful improvement over the first half of the year," noting that consolidated gross profit returned to positive territory and net loss decreased from the second quarter.
• Management noted that results were held back by delays in processing Hanford-related waste due to protocol changes and temporary facility downtime.
• Management expressed confidence that investments have positioned the Company to support increasing Hanford activity and compete for task orders.
• The tone indicates optimism regarding the Services Segment growth and the potential for improved results in the coming year despite ongoing losses.

Other Key Points:

• In August 2026, the Company extended the maturity of its PNC credit facility from May 2027 to May 2030.
• The Company conducted a public equity offering in May 2026 which strengthened its liquidity position prior to recent reductions.
• The Company operates four nuclear waste treatment facilities and provides services to the DOE, DOW, and commercial nuclear industry.
• A conference call was scheduled for November 5, 2026, at 10:00 a.m. ET.