Nov 5, 2026, 8:36 AM ETIndustrials

Perma-Fix Environmental Services — Third Quarter 2026 Earnings Summary

PESIPERMA FIX ENVIRONMENTAL SERVICES INC

Financial Performance

Total revenue for the quarter ended September 30, 2026, was $17.9 million, compared to $17.5 million in the same period of 2025.
Revenue increased 39% sequentially from the second quarter of 2026.
Services Segment revenue reached $6.3 million, up 46% year-over-year from $4.4 million in Q3 2025.
Treatment Segment revenue decreased to $11.6 million from $13.1 million in Q3 2025.
Consolidated gross profit was $552,000, down from $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; its gross margin was (1.9%) versus 17.3% in the prior year.
Loss from operations was $3.7 million, compared to $1.9 million in Q3 2025.
Net loss was $3.5 million ($0.16 per basic share), compared to $1.8 million ($0.10 per basic share) in Q3 2025.
EBITDA from continuing operations was ($3.1) million, compared to ($1.5) million in Q3 2025.
As of September 30, 2026, the company held approximately $19.9 million in liquidity, consisting of $5.5 million in borrowing availability and $14.3 million in cash.
Total assets were $102.4 million as of September 30, 2026, compared to $88.0 million as of December 31, 2025.
Total liabilities were $47.2 million as of September 30, 2026, compared to $37.9 million as of December 31, 2025.
Stockholders' equity was $55.2 million as of September 30, 2026, compared to $50.1 million as of December 31, 2025.

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.
The company anticipates continued growth in the Services Segment.
Facility upgrades at Florida and Kingston facilities were completed in September to support a large backlog of waste receipts.
The company is advancing facility upgrades to expand grouting capacity to support Hanford-related activity.

Services Segment: Revenue up 46% year-over-year; gross margin improved to 12.2%; segment generated positive operating income. PFAS destruction business saw increased sales and receipts compared to the first half of the year.
Treatment Segment: Revenue decreased due to lower waste volumes processed and higher fixed operating costs. Processing of a specific Hanford-related waste stream was delayed until September 2026 due to customer-directed changes in treatment protocols.
Perma-Fix Northwest: Now receiving both liquid effluent and dry waste from the DOE's DFLAW facility.
DFLAW Program: The DOE's 2023 amended Record of Decision identifies Perma-Fix Northwest to treat effluent waste on an interim basis expected to last approximately 10 years.
Hanford IDIQ Subcontract: The Company is one of three contractors awarded a Master IDIQ Subcontract by H2C for Hanford tank waste operations, with potential treatment of up to 50 million gallons through 2041 and an aggregate procurement ceiling of approximately $4.4 billion.
Pricing: Price increases implemented in August 2026 are starting to be reflected in new backlog.

The Company is the only one of the three Master IDIQ Subcontract holders with a facility located adjacent to the Hanford Site.
Waste treated under the subcontract would leave Perma-Fix Northwest as a stabilized, grouted solid shipped out of state by rail.
The State of Florida enacted legislation phasing out PFAS-containing firefighting foam, which is expected to support continued demand for PFAS destruction.
The Company competes for individual task orders under the Master IDIQ, which are shared among three contract holders.

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.
Future outcomes could differ materially due to factors including: failure of H2C or DOE to issue task orders; competition from other IDIQ holders; regulatory approval delays for permit modifications; opposition from stakeholders to grouting or offsite transport; and changes in DOE treatment strategies or funding.

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 a Hanford waste stream and temporary downtime for facility upgrades.
The tone indicates confidence in the company's positioning for the coming year due to backlog growth and pricing changes, despite current losses.

Treatment backlog grew approximately 25% during the quarter to $19.6 million, representing a 65% increase from year-end 2025.
In August 2026, the company extended the maturity of its PNC credit facility from May 2027 to May 2030.
A May 2026 public equity offering strengthened the company's liquidity position prior to recent reductions.
The company reported a loss from discontinued operations of $54,000 for the quarter.
The company operates four nuclear waste treatment facilities and provides services at DOE, DOW, and commercial facilities nationwide.