Perma-Fix Environmental Services 2025 Q3 Earnings 79.6% Net Loss Reduction Driven by Treatment Segment Growth

Perma-Fix Environmental Services (NASDAQ:PESI) delivered improved Q3 2025 results, with revenue rising 3.8% to $17.45 million and net losses narrowing by 79.6% to $1.83 million. The company exceeded analyst revenue estimates by 7.1% while significantly reducing per-share losses. CEO Mark Duff highlighted operational progress and strategic positioning for long-term growth through expanded PFAS capabilities and Hanford project opportunities.

Revenue

The company reported $17.45 million in total revenue, driven by a 45% year-over-year increase in the Treatment segment to $13.11 million. This segment's performance was bolstered by higher waste volumes, improved project mix, and international shipment growth. The Services segment contributed $4.34 million, though delays in government contracts tempered its potential. Corporate operations reported no revenue, aligning with the consolidated total.

Earnings/Net Income

Perma-Fix narrowed its net loss to $1.83 million in Q3 2025, a 79.6% improvement from $8.98 million in the prior-year period. Earnings per share (EPS) improved to -$0.10 from -$0.57, representing an 82.5% reduction in losses. This progress reflects margin expansion in the Treatment segment and disciplined cost management, despite ongoing challenges in the Services division.

Post-Earnings Price Action Review

The stock price surged 3.49% on the day of the report, with a 18.81% gain during the trading week and a 46.07% month-to-date increase. The positive momentum aligns with the company's improved financial performance and strategic catalysts, including PFAS commercialization and Hanford project advancements.

CEO Commentary Summary

CEO Mark Duff (President and CEO)

emphasized the company's operational progress, stating, "Our Treatment segment delivered a 45% year-over-year revenue increase, with gross margin improvement to 17.3% from 4.5% in the prior year." He highlighted the Treatment backlog of $15.4 million and international shipment growth as key drivers. Duff also noted the ramp-up of PFAS destruction capabilities, with the second-generation unit nearing completion, and expressed confidence in Hanford project revenue potential.

Guidance

Management provided forward-looking revenue guidance, projecting $1 million to $2 million in monthly Hanford-related revenue beginning in early 2026. PFAS revenue is expected to reach $150,000 per month in Q1 2026, with potential escalation to $500,000 by year-end 2026. The company anticipates continued Treatment segment growth and backlog conversion, supported by automation initiatives and federal bid opportunities.

Additional News

Perma-Fix announced the nearing completion of its second-generation PFAS destruction unit near Oak Ridge, with commissioning expected in Q1 2026. The facility is designed to process 1,000 gallons per shift, scalable to 2,000, addressing tightening regulatory requirements. Additionally, the company confirmed its role as the designated commercial treatment pathway for Hanford's secondary waste streams, positioning it for multi-decade revenue opportunities.