Perma-Fix Environmental Services, Inc.

What they do

The company operates two reportable segments: a Treatment Segment that processes radioactive, mixed and hazardous waste at licensed and permitted facilities, and a Services Segment that provides project management, environmental restoration, decontamination and decommissioning (D&D), new build construction, and radiological protection and industrial hygiene services. Treatment facilities also house R&D laboratories used to develop new processing methods. It is headquartered in Atlanta, Georgia, and also pursues waste projects in Canada, Mexico, the United Kingdom and the EU, with international waste treated at U.S. facilities and returned to the customer.

Revenue drivers

• Treatment Segment — Processing radioactive, mixed and hazardous waste, including higher volumes and higher-priced waste mix from international and commercial clients; 2025 revenue was $45.1M, up 29.0% from $35.0M in 2024.
• Services Segment — Project management, environmental restoration, D&D, construction and radiological safety work, largely tied to federal programs; 2025 revenue was $16.6M, down 31.4% from $24.2M in 2024 due to project mobilization and procurement delays.
• International and commercial waste — Revenue from foreign entities was approximately $6.4M in 2025 versus $2.5M in 2024, an increase of 162.6%, as the company expands beyond U.S. federal work.
• PFAS destruction technology — Patent-pending technology for destruction of per- and polyfluoroalkyl substances; the company funded aggressive R&D, sales and marketing in 2025, and those activities adversely affected results with no material offsetting revenue disclosed.

Recent performance

Consolidated revenue rose 4.3% to $61.7M in 2025 from $59.1M in 2024, entirely from the Treatment Segment, while Services Segment revenue fell 31.4%. Gross profit improved by $5.97M versus 2024, and the loss from continuing operations narrowed 45.5% to approximately $10.7M from $19.6M. Net loss was $13.8M in 2025 with diluted EPS of -$0.75, compared with a $20.0M net loss and -$1.33 in 2024. Quarterly revenue declined through the first half of 2026, from $17.5M in Q3 2025 and $15.7M in Q4 2025 to $11.1M in Q1 2026 and $12.9M in Q2 2026. At June 30, 2026, total assets were $101.8M, total liabilities $43.5M, shareholder equity $58.3M and long-term debt $1.4M.

Strategy

Management is positioning the Perma-Fix Northwest Richland (PFNWR) facility in Richland, Washington to support the DOE's Direct-Feed Low-Activity Waste (DFLAW) program at Hanford, which began hot commissioning in October 2025 and is expected to enter operations in 2026. The company invested in treatment capacity, trained workforce and infrastructure for anticipated waste receipts beginning in the first half of 2026, and in December 2025 received a PFNWR permit renewal that roughly triples permitted liquid mixed waste processing capacity to about 1,200,000 gallons per year and authorizes up to 175,000 tons annually through macroencapsulation. It continues to pursue large and mid-size DOE and Department of War procurements, expand international and commercial markets, and fund PFAS destruction technology development, including a planned second-generation PFAS destruction unit for the second half of 2026.

Risks

• Federal budget and shutdown exposure — Congressional appropriations timing, continuing resolutions and the partial government shutdown effective October 1, 2025 delayed procurements and reduced Services Segment revenue.
• DFLAW timing depends on DOE — The commencement, scope and timing of DFLAW-related waste streams are controlled by the DOE and subject to appropriations and procurement processes beyond the company's control.
• Continued operating losses and cash use — The company expects near-term operating losses as it carries fixed operating costs and capital spending ahead of anticipated waste volumes, after operating cash outflows of $10.8M in 2025 and $14.7M in 2024.
• Loan covenant and liquidity risk — The company cites inability to meet quarterly financial covenant requirements under its PNC Loan Agreement and the need for sufficient cash flow and liquidity to fund operations, and flags going-concern considerations.

Outlook

Management states it believes it is positioned for potential improvement in financial results in 2026, based on assumed timing and ramp-up of DFLAW-related waste volumes and conversion of Treatment Segment backlog into revenue. Treatment Segment backlog was approximately $11.9M at December 31, 2025, up 50.9% from $7.9M a year earlier, though backlog does not guarantee immediate revenue. The company also expects Hanford-related waste received in the second quarter of 2026 to begin processing in the third quarter of 2026, and plans to deploy a second-generation PFAS destruction unit in the second half of 2026. It cautions that delays in anticipated volumes would hurt results given continuing fixed costs and capital expenditures.