PERMA FIX ENVIRONMENTAL SERVICES INC Q3 FY2025 earnings call

• Treatment segment delivered strong performance with 45% Y/Y revenue growth and improved gross margin, driven by higher waste volumes and solid execution. - Hanford's DFLAW initiated hot commissioning, with Perma-Fix Northwest as designated commercial treatment pathway for secondary waste streams. - PFAS destruction initiative advanced technically and commercially, with first-generation system operating reliably and second-generation unit nearing completion. - Services segment facing delays but federal bid pipeline remains strong with over $200M in potential contract values.

Treatment segment: Revenue increased 45% year-over-year to $13.1 million, up from $9.1 million in Q3 of '24, with segment gross margin improving to 17.3% from 4.5%. Waste sales totaled $14.6 million, a 74% increase year-over-year. PFAS segment: First-generation Perma-FAS system operated reliably, with second-generation unit near completion in Oak Ridge, Tennessee. Services segment: Revenue was $4.3 million compared with $7.7 million in Q3 of '24, decline due to DOE and DoD project delays.

• Expect waste shipments from DFLAW later in Q4 or early Q1 2026. - PFAS revenue projected to increase from ~$150,000/month to ~$500,000/month by end of 2026. - Anticipate rebound in field activity in Q4 as DOE and DoD programs resume under approved funding.

• Government shutdown may impact services timing and cause delayed waste shipments. - Potential delays in partnerships and scaling of PFAS commercialization due to technical and commercial progress timelines.

Q: How long will the government shutdown impact business?

A: Minimal impact on waste treatment, with shipments expected to resume after shutdown.

Q: How much waste anticipated from DFLAW and when?

A: Expect shipments in late December/early January, with revenue of $1-2 million/month beginning early 2026.

Q: Thoughts on PFAS program in 2026?

A: Projected revenue to increase from ~$150k/month to ~$500k/month by end of 2026 with new system online.