PERMA FIX ENVIRONMENTAL SERVICES INC Q2 FY2025 earnings call

• Treatment segment saw 37% revenue growth year-over-year, with waste receipts doubling to ~$14 million. Technical challenges resolved through automation and process improvements.
• Hanford DFLAW facility start-up delayed to as late as October 15, but preparations made at Northwest facility.
• Services segment project delays due to federal procurement timing, but now tracking on schedule; awarded Navy RADMAC III IDIQ contract.
• Progress on PFAS with expanded demonstrations, sales ~$500k year-to-date, daily ops resumed at Florida unit, Gen 2 system under construction in Tennessee.
• International waste receipts over $7 million in past 2 quarters, EUR 50 million contract in Italy progressing.
• Focus on cost management and margin improvement initiatives.

Treatment segment revenue increased approximately 36.6% to ~$14 million in Q2 2025, driven by increased waste volumes and average price. It began the quarter with a backlog of $10 million and had waste receipts and related revenues over $14 million. Services segment revenue decreased by $2.5 million due to project delays and completion of large projects in the prior year. Gross profit improved to $1.5 million from negative $1.3 million in Q2 2024, with Treatment segment contributing positively and Services segment relatively flat.

• Expect full benefit of operational enhancements in second half of 2025.
• Anticipate stronger EBITDA performance in second half.
• DFLAW expected to start up within October 15 period and ramp up revenue.
• Services segment picking up with projects rolling and bids submitted.
• West Valley project seen as significant multiyear opportunity once DOE approves performance strategy.

• Federal procurement delays impacting Services segment results.
• DOE project delays like Hanford DFLAW start-up delay.
• Uncertainty in waste volume and mix affecting revenue and margin projections.
• Competitive nature of IDIQ contracts and funding variability.

Q: On treatment challenges and Hanford delay.

A: Technical challenges resolved, Hanford delay due to off-gas system issues, preparations made at Northwest facility.

Q: On Hanford start-up and preparations.

A: Confident start-up within October 15, preparations done for waste receipt.

Q: On Services segment and West Valley.

A: Services picking up, West Valley strategy stage, expecting implementation in Q1 2026.

Q: On DFLAW ramp-up and revenue.

A: Anticipate $2-3 million revenue on start-up, ramping up over 18 months.

Q: On Navy IDIQ contract.

A: $240 million contract, small business eligible for task orders, first task order due soon.