PERMA FIX ENVIRONMENTAL SERVICES INC Q1 FY2026 earnings call

Mark Duff mentioned that Q1 was a transitional period. Hanford is a key opportunity with ETF waste receipts beginning in April and other waste streams expected to follow. In nuclear services, the Lawrence Livermore National Security site awarded a $24 million master task agreement. Progress with PFAS destruction platform, including successful treatment project and installation of Gen 2 unit. Permafix Northwest's expanded permit and facility investments position it for long-term waste receipts and grouting opportunities.

For the first quarter, revenue was $11.1 million, down from $13.9 million in prior year. In the treatment segment, revenue was down about $1.3 million compared to last year, mainly due to lower volumes and a less favorable waste mix. In the service segment, revenue decreased about $1.5 million year over year, largely due to fewer large projects contributing to revenue compared to prior year, partially offset by contributions from new, smaller projects.

Management believes Q2 represents an inflection point with Permafix Northwest on track to deliver stronger revenue contributions as Hanford-related waste receipts and other customer activities increase. Although quarterly results may vary, the company is increasingly well positioned to deliver improved performance beginning in Q2 through the balance of 2026 and over the long term as opportunities scale up.

Statements on this conference call include forward-looking statements subject to known and unknown risks, uncertainties, and other factors which could cause actual results and performance of the company to differ materially from such statements. These risks and uncertainties are detailed in the company's filings with the U.S. Securities and Exchange Commission, as well as this morning's press release.

Q: On Hanford, can you give an update on incremental waste streams?

A: There are four primary waste streams at Hanford now, including ETF which is showing up well, EMF waste with extended regulatory process but expected shipments later June, dry waste starting mid-May, and TRU waste with efforts to increase capacity.

Q: On the enterprise project?

A: The enterprise project had a protest, proposals resubmitted April 24th, Navy anticipating award sometime in June, with significant scope in core competency.

Q: Impact of energy situation?

A: Impacted in early stages of DOE's reindustrialization mission with efforts to get involved in fuel fabrication and other energy-related initiatives.

Q: About EMF?

A: EMF is effluent management facility, receives low-down water from DF law, with extended regulatory process but expected shipments later.

Q: On mining and rare earth?

A: Participating in mining procurement, using soil sorting technology for radioactive component segregation in mining industry.

Q: On PFAS?

A: Working with companies on PFAS change-outs, receipts slowed but resumed in May, and progress with Gen 2 unit installation.