PERMA FIX ENVIRONMENTAL SERVICES INC Q1 FY2025 earnings call

• Treatment segment: Waste receipts improved towards end of quarter, backlog grew to over $10 million (+30% from 2024). Revenue increased modestly, gross profit improved with higher waste volumes, reduced variable costs, and efficiency initiatives. Made investments in staffing, training, etc. for new waste receipt.
• Services segment: Revenue down due to federal procurement delays, but gross margins improved due to proactive cost reduction and resource alignment.
• PFAS program: Received first commercial shipments, upgraded system with chemical recycling, Gen 2 unit on track for Q4 deployment (expected to expand processing capacity by at least three times). Developed strategic partnerships, aligned with PFAS market trends.
• Hanford DFLAW program: On schedule for August 1 start, potential for high margin recurring revenue from Q4 through next decade.
• International: Improved waste receipts from Canada, Mexico, Germany; pursuing federal and commercial projects, including West Valley with initial operations expected in July.

Treatment segment: Revenue increased by $477,000 or 5.5% year-over-year. Gross profit increased by $302,000 based on higher revenue and lower variable costs. Services segment: Revenue down $175,000, but gross profit increased by $975,000 due to lower variable costs. Treatment segment contributed to about 5.5% of total revenue growth, while Services segment saw a slight revenue decline but improved gross margins.

• Anticipate stronger performance in second half of 2025. Drivers include growing waste treatment backlog, improved federal procurement visibility, Hanford DFLAW ramp up, PFAS technology advancement, and execution of large-scale domestic/international opportunities.

• Delays in federal procurement and project activity tied to administration transition. - Competition in waste treatment and grouting programs. - Uncertainty in federal budget and funding for long-term projects like Hanford remediation.

Q: Talk about the 2026 federal budget and its impact A: Mark Duff said the budget was favorable, with no immediate impact to bids, and encouraged by support for re-industrialization and weapons program upgrades Q: Are you receiving waste from Hanford currently?

A: Yes, seeing significant increase in Hanford waste receipts, with backlog at $10 million Q: Update on grouting near term priorities A: DOE to inform state of strategy by Dec 2025, likely a risk-based best value approach, and Perma-Fix expects to play key role Q: Contribution from PFAS second gen unit A: Gen 1 generating ~$300k revenue this quarter, Gen 2 expected to start at ~$1M/month initially, aiming for $5M/qtr, $20M/year Q: Start to the second quarter A: Mark Duff said Q2 looking much better than Q1, with waste receipts and backlog higher, close to being profitable