Perma-Fix Environmental Services 2025 Q3 Earnings Sharp Net Loss Reduction and Revenue Growth

Perma-Fix Environmental Services (NASDAQ:PESI) reported mixed results for its fiscal 2025 Q3, with revenue growth outpacing expectations while losses narrowed significantly. The stock surged post-announcement, reflecting optimism around operational improvements and future revenue catalysts.

Revenue

The company’s total revenue rose 3.8% year-over-year to $17.45 million, driven by a robust 45% year-over-year increase in the Treatment segment to $13.11 million. Services revenue contributed $4.34 million, while the Corporate segment remained flat at $0. The consolidated performance highlights improved waste volumes and operational efficiency, particularly in the Treatment business.

Earnings/Net Income

Perma-Fix narrowed its net loss to $1.83 million, a 79.6% reduction compared to $8.98 million in the prior-year quarter. Earnings per share improved to a loss of $0.10 from $0.57, signaling strong cost management and margin expansion. This marked progress underscores the company’s ability to control expenses despite higher fixed costs.

Post-Earnings Price Action Review

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CEO Commentary

CEO Mark Duff highlighted a 17.3% gross margin in the Treatment segment, up from 4.5%, driven by automation and operational efficiency. He emphasized the Hanford project as a "multi-decade high-volume revenue opportunity," with DFLAW commissioning progressing ahead of schedule. Strategic priorities include scaling PFAS destruction capabilities and expanding capacity through a second-generation unit in Oak Ridge.

Guidance

Perma-Fix anticipates Hanford waste shipments beginning late Q4 2025 or early Q1 2026, generating $1–$2 million monthly revenue. PFAS revenue is projected to reach $500K/month by late 2026, with capacity tripling post-Gen 2 unit commissioning. Capital expenditures for 2025 are estimated at $5–5.5 million, with 2026 spending trending to $2–3 million annually.

Additional News

Perma-Fix’s Hanford project milestone, with hot commissioning of the DFLAW facility in October 2025, positions the company for long-term revenue. The firm also announced a second-generation PFAS unit nearing completion in Oak Ridge, capable of processing 1,000 gallons per shift. International expansion efforts, including steady waste shipments from Europe and North America, are expected to diversify revenue streams.

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A visual breakdown of Perma-Fix’s Q3 2025 financial highlights, including revenue growth by segment, net loss reduction, and key guidance metrics.

Key Risks and Outlook

While the company’s operational improvements are encouraging, challenges remain. Regulatory changes, competitive pressures, and supply chain disruptions could impact growth. However, strong backlog growth, DOE contract momentum, and PFAS commercialization provide a solid foundation for 2026. Investors should monitor Hanford shipment timelines and international shipment progress.