Core Viewpoint - Perma-Fix Environmental Services, Inc. has entered into a joint distribution agreement with Enforcer One, LLC to provide a comprehensive solution for replacing PFAS-based firefighting foams with fluorine-free alternatives, addressing both the destruction of legacy stocks and the supply of new products [1][2][3]. Group 1: Partnership Details - The collaboration aims to assist fire departments, industrial facilities, and other high-risk sites in transitioning from PFAS-based aqueous film forming foams (AFFF) to next-generation fluorine-free foams [2][7]. - Perma-Fix will distribute Enforcer One's FIREBULL® fluorine-free foams and Enforcer CAFS equipment, while Enforcer One will promote Perma-Fix's Perma-FAS™ PFAS destruction technology [3][5]. Group 2: Product Offerings - Enforcer One's FIREBULL® product line includes various fluorine-free foam concentrates and related firefighting agents designed to enhance environmental performance while maintaining firefighting effectiveness [4][6]. - The Enforcer CAFS equipment is available in various sizes, providing efficient firefighting solutions for areas with limited water access [4][6]. Group 3: Environmental and Regulatory Impact - The partnership aligns with increasing regulatory and Environmental, Social, and Governance (ESG) expectations, offering a sustainable solution for PFAS contamination [5]. - Perma-Fix's Perma-FAS™ technology is a non-incineration process that effectively destroys PFAS, providing a cost-effective alternative to traditional methods like incineration [5][10]. Group 4: Market Demand and Performance - There is significant demand across various sectors for safe alternatives to PFAS-based foams, indicating a strong market opportunity for the partnership [4]. - Perma-Fix's Perma-FAS™ technology has shown exceptional performance in commercial operations, with high destruction levels of PFAS across multiple carbon-fluorine chain types [5].

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Revenue and Profitability - Revenue for Q3 2025 increased by $642,000 or 3.8% to $17,454,000 compared to Q3 2024, driven by a 44.7% increase in the Treatment Segment revenue [101]. - Gross profit for the nine months ended September 30, 2025, was $4,761,000, reflecting an increase of $5,353,000 or 904.2% compared to a gross loss of $592,000 in the same period of 2024 [102]. - Consolidated revenues increased by $642,000 or 3.8% for the three months ended September 30, 2025, compared to the same period in 2024, totaling $17,454,000 [110]. - Gross profit for the quarter ended September 30, 2025, increased by $1,223,000, totaling $2,557,000, with Treatment Segment gross profit increasing by $1,856,000 or 452.7% [116]. - For the nine months ended September 30, 2025, consolidated revenues increased by $1,544,000 or 3.5%, totaling $45,959,000 [112]. Segment Performance - Treatment Segment backlog reached approximately $15,396,000 as of September 30, 2025, an increase of $7,537,000 or 95.9% from December 31, 2024 [105]. - The Treatment Segment revenue for Q3 2025 was $13,114,000, up $4,050,000 or approximately 44.7% from Q3 2024 [101]. - Services Segment revenue decreased by $3,408,000 or 44.0% to $4,340,000 for Q3 2025, attributed to delays in project mobilizations and awards [101]. - International initiatives contributed approximately $798,000 or 310.5% increase in revenue from international customers in the Treatment Segment [111]. - Services Segment gross profit decreased by $633,000 or approximately 68.5%, with gross margin declining to 6.7% from 11.9% [116]. Expenses and Costs - SG&A expenses increased by $1,597,000 or 15.0% for the nine months ended September 30, 2025, compared to the same period in 2024 [102]. - SG&A expenses increased by $451,000 for the three months ended September 30, 2025, totaling $4,083,000, primarily due to higher salaries and payroll-related expenses [118]. - Cost of goods sold decreased by $581,000 for the quarter ended September 30, 2025, totaling $14,897,000, with Treatment Segment costs increasing by approximately $2,194,000 or 25.4% [114]. - SG&A expenses increased by $1,597,000 to $12,228,000 for the nine months ended September 30, 2025, representing 26.6% of revenue compared to 23.9% in 2024 [119]. Cash Flow and Liquidity - Cash used in operating activities of continuing operations was $(8,312,000) for the nine months ended September 30, 2025, compared to $(10,971,000) in 2024 [127]. - The company had working capital of $18,393,000 as of September 30, 2025, down from $28,283,000 as of December 31, 2024 [131]. - Cash used in investing activities of continuing operations totaled approximately $(2,683,000) for the nine months ended September 30, 2025 [127]. - As of September 30, 2025, the company had liquidity of approximately $23,844,000 and no outstanding borrowing under its Revolving Credit [125]. Future Outlook and Risks - The company expects revenue from the West Valley Development Project to ramp up in 2026 as the scope is further defined and approved [105]. - The federal government shutdown may impact operations, but the company believes its backlog and increased international receipts may mitigate the effects [106]. - The company is subject to significant uncertainties due to macroeconomic conditions, including government budget issues and trade uncertainties, which may impact revenue and profitability [151]. - The company is currently facing potential delays in waste shipments due to a partial government shutdown, which may impact operations and liquidity [150]. Research and Development - Research and development expenditures for the nine months ended September 30, 2025, were $1,037,000, up from $872,000 in the same period of 2024 [102]. - The company has filed patent applications for its PFAS destruction technology, which is expected to complement its core waste remediation services [152]. - The second-generation Perma-FAS system is anticipated to triple production capacity and is expected to be deployed in Q1 2026 [153]. Environmental and Regulatory - The company has accrued environmental remediation liabilities of $764,000 as of September 30, 2025, a decrease of $3,000 from the previous balance [156]. - Approximately $11,666,000 or 66.8% of total revenues for the three months ended September 30, 2025, were generated from federal government contracts, compared to $11,749,000 or 69.9% for the same period in 2024 [149]. - The Facility Fee has been revised from 0.375% to 0.500%, reverting back to 0.375% once the FCCR requirement is met [143]. Labor and Compensation - The Collective Bargaining Agreement (CBA) provides for annual base hourly wage increases of 1% plus the annual percentage change in the Consumer Price Index for Covered Employees [147]. - Administrative SG&A expenses rose primarily due to higher salaries and payroll-related expenses totaling approximately $352,000, influenced by the hiring of a COO and cost-of-living adjustments [120]. Interest and Tax - Interest income decreased by approximately $26,000 for Q3 2025 but increased by approximately $222,000 for the nine months ended September 30, 2025, compared to the same period in 2024 [121]. - Income tax expenses were $0 for Q3 2025 and $4,300,000 for the nine months ended September 30, 2024, resulting in effective tax rates of 0% and 36.6%, respectively [123].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was reported at $16.5 million, a slight decrease from $16.8 million in the same period last year, while gross profit more than doubled to $2.6 million from $1.3 million a year ago [5] - Gross margin expanded to 14.6% from 7.9%, driven by higher waste volumes and a favorable mix within treatment operations, despite increased fixed costs [5] - EBITDA showed meaningful improvement compared to the prior quarter, reflecting stronger throughput and execution discipline [5] Business Line Data and Key Metrics Changes - The treatment segment revenue increased by 45% year over year to $13.1 million, up from $9.1 million in Q3 2024, with gross margin improving to 17.3% from 4.5% [6] - Waste sales totaled $14.6 million, a 74% increase from $8.4 million in the same period last year [6] - Treatment backlog ended the quarter at $15.4 million, up from $7.9 million a year ago, indicating strong visibility into future revenue [6] Market Data and Key Metrics Changes - International waste shipments are on schedule and expected to continue into the first half of 2026, contributing to backlog stability and revenue diversity [7] - The Department of Energy's Direct Feed Low-Activity Waste facility initiated hot commissioning, marking a significant milestone in environmental cleanup efforts [7][8] Company Strategy and Development Direction - The company is positioned as a critical commercial link in the DOE's waste treatment chain, which is expected to provide long-term recurring revenue as the DOE's cleanup mission advances [8] - The PFAS destruction initiative is advancing technically and commercially, with the first-generation Perma-Fast system achieving complete destruction of PFAS compounds at a cost advantage to incineration [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational progress and margin expansion, highlighting the importance of automation and digital scheduling in improving productivity [6] - The company is prepared to meet DOE throughput requirements while maintaining excellent safety performance, indicating a strong operational foundation for future growth [8] Other Important Information - The company completed a union transition that improved labor stability and increased hiring efficiency, allowing for multi-shift operations [8] Q&A Session Summary - No specific questions or answers were provided in the available content, indicating that the Q&A session details are not included in the provided excerpts.

Core Insights - The company reported a 45% year-over-year revenue increase, with gross margin in the Treatment Segment improving to 17.3% from 4.5% in the prior year, driven by higher waste volumes and growing international shipments [2][6] - The Treatment Segment revenue rose to approximately $13.1 million for Q3 2025, up from $9.1 million in Q3 2024, while the Services Segment revenue decreased to approximately $4.4 million from $7.7 million in the same period [6][7] - The company is well-positioned to support the Department of Energy's Direct-Feed Low-Activity Waste facility, anticipating initial waste receipts later in Q4 2025 or early 2026 [3] - The company’s PFAS destruction technology is gaining traction, with a growing backlog for services and a second-generation unit expected to be commissioned in Q1 2026 [5][15] Financial Performance - Revenue for Q3 2025 was $17.5 million compared to $16.8 million in Q3 2024, with gross profit increasing to $2.6 million from $1.3 million [6][7] - The operating loss for Q3 2025 was approximately $1.9 million, an improvement from a loss of $2.6 million in Q3 2024, with a net loss of approximately $1.8 million or ($0.10) per share compared to a net loss of $9.0 million or ($0.57) per share in the prior year [8][21] - EBITDA from continuing operations was ($1.5) million for Q3 2025, compared to ($2.1) million for the same period in 2024 [9] Market and Operational Context - The company is actively pursuing federal projects despite a recent government shutdown that has temporarily delayed certain procurements [4][14] - The Treatment Segment backlog at the end of Q3 2025 was approximately $15.4 million, an increase of $7.5 million from the end of 2024 [15] - The company operates four nuclear waste treatment facilities and provides services to various federal agencies, including the DOE and DOW [17]

Environmental waste treatment and services provider Perma-Fix (NASDAQ:PESI) will be announcing earnings results this Monday morning. Here’s what you need to know. Perma-Fix missed analysts’ revenue expectations by 11.1% last quarter, reporting revenues of $14.59 million, up 4.3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a miss of analysts’ EBITDA estimates. Is Perma-Fix a buy or sell going into earnings? Read our full analysis here, ...

Core Points - Perma-Fix Environmental Services, Inc. will host a conference call on November 10, 2025, at 10:00 AM Eastern Time [1] - The call will be led by key executives including the CEO and CFO [2] - A webcast of the call will be available on the company's website and a telephone replay will be accessible until November 17, 2025 [3] Company Overview - Perma-Fix Environmental Services, Inc. specializes in nuclear services and is a leading provider of nuclear and mixed waste management services [4] - The company manages and treats radioactive and mixed waste for various clients, including hospitals, research labs, federal agencies, and the commercial nuclear industry [4] - Perma-Fix operates four nuclear waste treatment facilities and offers a range of services including project management, environmental restoration, and radiological protection [4]

Core Points - Perma-Fix Environmental Services, Inc. announced that its founder, Dr. Louis Centofanti, received the Industry Innovation Award at the 2025 EI Digest Gathering for his contributions to nuclear and hazardous waste treatment [1][2] Company Overview - Perma-Fix Environmental Services, Inc. is a leading provider of nuclear and mixed waste management services, including the management and treatment of radioactive and mixed waste for various clients such as hospitals, research labs, federal agencies, and the commercial nuclear industry [8] - The company operates four nuclear waste treatment facilities and offers services in project management, environmental restoration, decontamination, and radiological protection [8] Innovations and Contributions - Dr. Centofanti co-founded PPM, Inc. and developed a pioneering process for destroying polychlorinated biphenyls (PCBs) in oil, which became the industry standard [3] - He founded Perma-Fix in 1991 with innovative concepts for recycling waste into fuel and developing EPA-approved treatment technology for hazardous waste [4] - Recently, he led the development of Perma-FAS™, a technology that chemically destroys PFAS contaminants at low temperatures, providing a scalable solution to environmental challenges [5] - Throughout his career, Dr. Centofanti has authored over 50 patents and publications, significantly advancing technologies that improve environmental outcomes and reduce costs [6] Industry Impact - Dr. Centofanti's work has set regulatory precedents and defined best practices in the hazardous and nuclear waste management industries, transforming the sector [6][7] - The recognition of his contributions highlights the importance of innovation in addressing complex environmental challenges [7]

Core Viewpoint - The investment thesis for PermaFix (NASDAQ: PESI) is based on the expectation that their core business will stabilize post-Covid, with potential significant upside from contracts related to the Hanford Nuclear Site [1] Company Analysis - PermaFix's core business is anticipated to recover and stabilize following the impacts of the Covid pandemic [1] - The company is positioned to benefit from potential contracts associated with the Hanford Nuclear Site, which could provide substantial growth opportunities [1] Investment Strategy - The analysis focuses on identifying opportunities where the market has not yet recognized or valued a company's fundamental business and upcoming catalysts [1] - The approach involves fundamental analysis to find discrepancies between a company's perceived value and its current share price [1]

Revenue Performance - Overall revenue increased by $600,000 or 4.3% to $14,586,000 for Q2 2025, compared to $13,986,000 in Q2 2024[102] - Treatment Segment revenue rose by $3,054,000 or approximately 36.6% to $11,397,000 for Q2 2025, driven by increased waste volume and higher average prices[102] - Services Segment revenue decreased by $2,454,000 or 43.5% to $3,189,000 for Q2 2025, attributed to delays in project mobilizations and procurements[102] - Consolidated revenues increased by $600,000 or 4.3% for the three months ended June 30, 2025, compared to the same period in 2024, totaling $14,586,000[110] - Treatment Segment revenue increased by $3,054,000 or 36.6% for the three months ended June 30, 2025, primarily due to higher waste volume and average price[111] - Services Segment revenue decreased by $2,454,000 or 43.5% for the three months ended June 30, 2025, attributed to project-based revenue variability[111] - For the six months ended June 30, 2025, consolidated revenues increased by $902,000 or 3.3%, totaling $28,505,000[112] - Revenue from international markets reached approximately $3,589,000 for the six months ended June 30, 2025, an increase of $2,559,000 or 248.4% compared to the same period in 2024[105] - Federal government contracts accounted for approximately $9,204,000 or 63.1% of total revenues in Q2 2025, down from $9,669,000 or 69.1% in Q2 2024[145] - Revenue from federal government clients was approximately $17,609,000 or 61.8% for the first half of 2025, compared to $18,699,000 or 67.7% in the same period of 2024[145] Profitability and Expenses - Gross profit increased by $2,853,000 or 218.5% for Q2 2025, compared to the same period in 2024[102] - Gross profit for the quarter ended June 30, 2025, increased by $2,853,000, resulting in a gross margin of 10.6% compared to a loss margin in the previous year[118] - Treatment Segment's gross profit increased by $2,763,000 or approximately 230.8% for the quarter ended June 30, 2025, driven by higher revenue from waste volume[118] - SG&A expenses increased by $675,000 or 19.5% for Q2 2025 compared to Q2 2024[102] - SG&A expenses increased by $675,000 or 19.5% for the three months ended June 30, 2025, totaling $4,130,000[120] - SG&A expenses increased by $1,146,000 (16.4%) for the six months ended June 30, 2025, totaling $8,145,000 (28.6% of revenue) compared to $6,999,000 (25.4% of revenue) in 2024[121] - Cost of goods sold decreased by $2,253,000 or 14.7% for the quarter ended June 30, 2025, totaling $13,039,000[114] Losses and Financial Position - Loss from continuing operations before taxes was $2,583,000 for Q2 2025, compared to a loss of $4,946,000 in Q2 2024[109] - The company reported a net loss of approximately $6,083,000 for the first six months of 2025, compared to a net loss of approximately $7,243,000 in the same period of 2024[128][129] - Cash used in operating activities of continuing operations was $3,773,000 for the first six months of 2025, an improvement from $5,570,000 in 2024[127] - As of June 30, 2025, the company had cash on hand of approximately $22,594,000 and no outstanding borrowing under its revolving credit[127] - Working capital decreased to $21,481,000 as of June 30, 2025, from $28,283,000 as of December 31, 2024, primarily due to operational losses[131] Future Outlook and Projects - The company expects revenue contribution from the West Valley Project contract, valued at up to $3 billion, in the second half of 2025[105] - DFLAW program at Hanford, Washington is anticipated to begin initial tank waste treatment operations in Q4 2025[105] - Capital expenditures for the twelve months ending December 31, 2025, are anticipated to be up to $6,000,000, focusing on PFAS technology and regulatory compliance[136] - The company plans to fund its capital expenditures from operations, liquidity, and/or financing[136] - The second generation of the Perma-FAS system is anticipated to be deployed in Q4 2025, with engineering refinements underway[150] Regulatory and Compliance - The company is subject to rigorous federal, state, and local regulations, which may result in fines or remediation costs[151] - The company has removed the quarterly fixed charge coverage ratio (FCCR) testing requirement, which will be triggered if daily liquidity falls below $5,000,000[147] - The Facility Fee has been revised from 0.375% to 0.500%, reverting back to 0.375% once the FCCR ratio meets the required threshold[147] Environmental Initiatives - The company has completed the first full-scale commercial Perma-FAS system for PFAS destruction, processing approximately 10,000 gallons of AFFF liquids[149] - An additional 50,000 gallons of PFAS-containing waste is expected to be received in the coming months for treatment[149] - As of June 30, 2025, total accrued environmental remediation liabilities were $764,000, a decrease of $3,000 from the previous balance[153] Interest and Debt - Interest income rose by approximately $249,000 (approximately 53.1%) for the six months ended June 30, 2025, primarily due to higher interest from funds in the money market deposit account[122] - As of June 30, 2025, the company had standby letters of credit totaling approximately $3,200,000 and bonds outstanding of approximately $21,044,000[142] Procurement and Administration - The company experienced delays in federal procurements due to changes in administration, impacting operations in the first half of 2025[146] - The effective tax rate for the three months ended June 30, 2025, was approximately 0%, compared to 23.5% for the same period in 2024, influenced by a full valuation allowance against deferred tax assets[123]