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Perma-Fix (PESI) Q2 CY2025 revenue rose 4.3% YoY to $14.59 million, missing Wall Street's estimates of $16.4 million. The non-GAAP loss of $0.14 per share was in line with analysts' consensus estimates. The Treatment segment showed year-over-year growth, while delays in the Services segment offset gains. Management highlighted federal contract wins and PFAS commercialization progress as key drivers for the future.

Perma-Fix Environmental Services (PESI), listed on NASDAQ under the ticker PESI, reported its Q2 2025 earnings, revealing a revenue shortfall against forecasts but improvements in financial performance compared to the previous year. The company’s stock saw a modest increase in pre-market trading, rising by 0.9% to $11.23. According to InvestingPro data, PESI currently maintains strong liquidity with a current ratio of 2.18, indicating robust short-term financial health. The stock has shown resilience with a 16.3% return over the past six months, despite challenging market conditions.

Key Takeaways

Revenue reached $14.6 million, a 4.3% increase year-over-year but below the forecasted $17.7 million. Earnings per share (EPS) were reported at a loss of $0.15, missing the forecasted loss of $0.10. Pre-market trading showed a 0.9% increase in stock price, despite the revenue miss. Significant growth in the Treatment Segment, with revenue up 36.6% to $3.1 million. Strong international interest and a $240 million Navy contract highlight future potential.

Company Performance

Perma-Fix demonstrated resilience in Q2 2025 by improving its financial metrics despite falling short of revenue expectations. The company reported a 4.3% increase in total revenue compared to the previous year, with notable growth in its Treatment Segment. This performance is set against a backdrop of strong international interest and strategic contract wins, positioning Perma-Fix for future growth.

Financial Highlights

- Revenue: $14.6 million, up 4.3% year-over-year
- Earnings per share: -$0.15, improved from -$0.27 last year
- Gross profit: Improved from -$1.3 million to $1.5 million
- Net loss: Reduced from $4.0 million to $2.7 million
- Cash on balance sheet: $22.6 million
- Total debt: $2.0 million

Earnings vs. Forecast

Perma-Fix’s EPS of -$0.15 was a 50% miss compared to the forecasted -$0.10. The revenue of $14.6 million was 17.57% below the anticipated $17.7 million. This marks a significant deviation from expectations, although the company showed improvements in other financial areas.

Market Reaction

Despite the revenue miss, Perma-Fix’s stock price increased by 0.9% in pre-market trading, indicating a cautious but optimistic investor sentiment. The stock’s current price of $11.23 remains within its 52-week range, suggesting room for potential growth as the company executes its strategic plans.

Outlook & Guidance

The company anticipates improved financial results in the latter half of 2025, driven by operational investments and strategic initiatives. While InvestingPro analysts indicate the company may not achieve profitability this year, PESI’s current market valuation suggests potential upside, with analyst price targets reaching $18 per share. The stock’s relatively low beta of 0.27 indicates lower volatility compared to the broader market, potentially offering more stable returns for long-term investors.

Perma-Fix expects monthly revenue of $2-3 million from its DF Law facility, with production capacity projected to reach 70-80% over the next 18 months. The company is targeting $70-80 million in annual revenue from this facility once fully operational.

Executive Commentary

CEO Mark Duff expressed confidence in the company’s future, stating, "We remain confident in our ability to deliver a stronger financial performance in the back half of the year." He emphasized the potential revenue from the DF Law facility, noting, "We’re anticipating 2-3 million dollars in revenue upon operational phase start-up."

Risks and Challenges

Revenue shortfall against forecasts may affect investor confidence. Execution risks associated with scaling production capacity at the DF Law facility. Macroeconomic pressures and evolving regulatory environments may impact operations. Potential delays in project timelines, such as the Hanford facility.

[1] https://za.investing.com/news/transcripts/earnings-call-transcript-permafix-q2-2025-shows-revenue-miss-stock-up-93CH-3827152