PERMA FIX ENVIRONMENTAL SERVICES INC Q4 FY2025 earnings call

• 2025 was important for Permafix as they focused on strengthening operational foundation for Hanford cleanup mission. Revenue totaled ~$61.7M with stronger performance from treatment segment and improving waste volumes. Renewal of permit for Permafix Northwest facility expanded processing capacity. - International activity saw revenue from foreign entities increase ~163% y-o-y to ~$6.4M. - Advancing PFAS destruction technology with new Generation 2.0 system at Oak Ridge facility to increase capacity. - Services segment revenue declined due to project mobilization timing, but won over $30M in new services backlog and submitted over $40M in new bids in Q1. - Highlighted long-term opportunity with Hanford tank contractor's RFP tied to retrieving 22 tanks for commercial grouting.

For the full year, revenue totaled approximately $61.7 million. Treatment segment revenue increased by 10.1 million, with revenue up due to increased volume and higher average pricing related to waste mix. Services segment revenue dropped by 7.6 million due to reduced project work related to timing of project startups and awards. Treatment revenue in fourth quarter was 15.7 million, up 6.9% from last year's 14.7 million. Services segment revenue in fourth quarter was down, with total revenue from continuing operations in fourth quarter 15.7 million vs 14.7 million last year. Treatment segment revenue increased by 2.6 million, services segment down 1.6 million. Treatment segment revenue for the year was up due to increased volume and higher average pricing. Services segment revenue down due to reduced project work. Treatment segment gross profit in fourth quarter increased by $983,000. Services segment gross profit below prior year by $365,000. For the year, gross profit up by $6 million, mostly from treatment segment. Waste treatment backlog for the year end was $11.9 million compared to $7.9 million in prior year.

• First quarter expected to be softer due to DF Law effluent receipts delays, seasonal weaknesses, and processing stored waste. - Second quarter expected to be inflection point with additional waste receipts and project activity ramping. - Initial estimates for DF Law revenue potential ~$1 to $2M per month beginning in Q2 and ramping up. - PFAS technology development continues with new system expected to start testing late April/early May, aiming for 3,000 gallons per day capacity.

• Delays in DF Law effluent receipts which can affect revenue timing. - Seasonal weaknesses in field activity impacting services segment. - Supply chain issues affecting PFAS system installation. - Dependence on DOE execution and site operating conditions for DFLA ramp.

Q: Can you give a better sense of Q2 performance?

A: Confidence in Q2 due to services group new contract awards, mobilization of new projects, Northwest project starting April 1st, DF Law waste stream expected in May, TRU waste program doubled, and $2M revenue moved from Q1 to Q2.

Q: Comment about grouting?

A: Two components at Hanford site, west area has large RFP for grouting, east side has opportunity for supplemental grouting, both present significant backlog opportunities.

Q: Where are we headed with PFAS volume and capacity?

A: New system delayed a couple months due to supply chain issues, on track for late April/early May testing, once online will be able to do about 3,000 gallons a day, sales focus on getting incineration competitor waste, backlog good at Gen 1 system.

Q: Visibility into DF Law waste stream?

A: Difficult to project exactly but blowdown water waste stream expected to start at 10,000 gallons a month and ramp, other wastes expected in April.

Q: International volumes outlook?

A: Won work from Canada, Mexico waste project, strong waste from Germany, GRC project in Italy with field work starting in April and waste seeing in Q1 27.

Q: Preparing to handle volumes at Hanford with permit?

A: Submitted proposal for permit mod to ramp liquid treatment capacity to 4.2 million gallons a year, permit mod expected to take 6-9 months.

Q: PFAS operation and pricing?

A: Original unit operating commercially, doing about 650 gallons a day, pricing ranges from $10 to $15 a gallon for higher volumes, target 60%-70% incremental margins.

Q: Capex for PFAS second unit?

A: Capex for second unit in $4 to $5 million range.