Perma-Fix Environmental Services 2025 Q1 Earnings Modest Performance as Net Income Worsens Slightly

Generated by AI AgentAinvest Earnings Report Digest
Friday, May 9, 2025 1:56 am ET2min read
Perma-Fix Environmental Services (PESI) reported its fiscal 2025 Q1 earnings on May 08th, 2025. The company posted an increase in revenue to $13.92 million, a 2.2% rise from $13.62 million in 2024 Q1. Despite a slight improvement in gross profit, the company reported a net loss of $3.57 million, widening from the previous year's $3.56 million. Perma-Fix's CEO provided guidance in line with previous projections, anticipating stronger performance in the second half of 2025.

Revenue

Perma-Fix Environmental Services saw revenue growth in its Treatment Segment, which rose to approximately $9.2 million, driven by higher waste volumes despite a lower average price from . In contrast, the Services Segment experienced a decline, generating $4.7 million, impacted by procurement delays and limited project opportunities.

Earnings/Net Income

Perma-Fix Environmental Services narrowed earnings losses to $0.19 per share in 2025 Q1 from a loss of $0.26 per share in 2024 Q1, showing a 26.9% improvement. However, net income remains challenging as losses increased compared to last year.

Price Action

The stock price of jumped 10.08% during the latest trading day, climbed 5.56% during the most recent full trading week, and surged 38.89% month-to-date.

Post-Earnings Price Action Review

Historically, buying Perma-Fix shares after a quarter-over-quarter revenue drop and holding for 30 days has shown positive returns over the last five years. An initial revenue dip in Q1 2020 was followed by significant growth, peaking in Q4 2021. This suggests that the 30-day holding strategy allows investors to capture rebounds and benefit from the company's growth trajectory.

CEO Commentary

Mark J. Duff, Chief Executive Officer, expressed confidence in the company’s improving performance, highlighting a resurgence in waste volume receipts and backlog, which positions Perma-Fix for revenue growth in 2025. He noted that waste treatment operations have ramped up to meet rising demand and emphasized preparations for the DOE’s Direct-Feed Low-Activity Waste program, set to start this summer. Duff also pointed to advancements in Perma-FAS technology for PFAS destruction, which he believes will drive long-term value despite short-term financial impacts. He remains optimistic about the company’s strategic positioning and expected return to growth and profitability in the latter half of 2025.

Guidance

Perma-Fix Environmental Services anticipates a revenue of approximately $15.30 million for Q1 2025, with a projected full-year revenue of $80.10 million. The company expects an EPS of -$0.14 for Q1 and -$0.29 for the full year. Duff stated that despite recent challenges, the company is strategically positioned for growth, particularly with strong expectations for the second half of 2025. The operational ramp-up of the DFLAW program and expansion in international markets, particularly in Italy, are key components of their growth strategy.

Additional News

Recently, Perma-Fix Environmental Services appointed Troy Eshleman as Chief Operating Officer, effective January 30, 2025, a strategic move to strengthen its leadership team. The company continues to expand its PFAS treatment operations in response to growing demand, highlighted in a press release dated February 19, 2025. Perma-Fix also participated in the Gabelli Funds’ 11th Annual Waste & Environmental Services Symposium, furthering its engagement with industry leaders and investors, as announced on March 31, 2025.

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