Perma-Fix Reports Q1 2025 Results and Highlights Momentum in Hanford and PFAS Programs

Core Insights - The company reported improved gross margins and a rising backlog driven by increased waste receipts, with a backlog exceeding $10 million, marking a 30% increase from year-end 2024 [2][3] - Strategic investments are expected to enhance performance in the second half of 2025, particularly in the PFAS initiatives and operational readiness for new waste streams [2][3] Financial Performance - Revenue for Q1 2025 was $13.9 million, a slight increase from $13.6 million in Q1 2024, primarily driven by the Treatment Segment which saw revenue rise to approximately $9.2 million from $8.7 million [4] - Gross profit for Q1 2025 was $657,000, compared to a gross loss of $620,000 in Q1 2024, with significant improvements in gross margins for both Treatment and Services segments [5][6] - Operating loss for Q1 2025 was $3.7 million, an improvement from a loss of $4.5 million in Q1 2024, with net loss remaining approximately the same at $3.6 million for both periods [7][8] Segment Analysis - The Treatment Segment's gross profit increased by $302,000, with gross margin improving to 2.7% from (0.6)%, attributed to higher waste volume despite lower average prices [5] - The Services Segment experienced a revenue decrease to $4.7 million from $4.9 million, primarily due to a lack of projects linked to procurement delays [4][5] Strategic Initiatives - The PFAS program is gaining momentum, with the first commercial shipments received from the Federal Government and key upgrades completed to enhance processing efficiency [3] - The company is optimistic about the hot commissioning program for the U.S. Department of Energy's DFLAW facility, which is expected to commence on August 1, 2025, representing a potential long-term revenue catalyst [3]