Perma-Fix Environmental Services Inc. Faces Challenges, Sees Opportunities in Q4 2024

Perma-Fix Environmental Services Inc. (NASDAQ: PESI) released its fourth-quarter and full-year 2024 financial results, painting a mixed picture of temporary setbacks and long-term opportunities. The company's revenue for the fourth quarter of 2024 was $14.7 million, a significant drop from $22.7 million in the same period last year. This decline was primarily due to the completion of two large projects at the end of 2023, which were not replaced with similar value projects, resulting in a revenue decrease of approximately $6.6 million in the Services Segment. Additionally, the Treatment Segment saw a decrease of approximately $1.4 million due to overall lower waste volume. These factors contributed to a net loss of approximately $3.5 million for the fourth quarter of 2024, compared to a net income of $81,000 for the same period in 2023.

Mark Duff, President and CEO of Perma-Fix, acknowledged the challenges but remained optimistic about the company's future. "While our financial performance in the fourth quarter of 2024 was impacted by ongoing yet temporary delays in project starts and waste receipts, we remain confident in the overall outlook and significant opportunities that lie ahead," Duff stated. The company is seeing improving waste volume receipts and backlog in the first quarter of 2025, positioning them to resume revenue growth. Waste treatment operations have ramped up in February with expanded shifts at the Perma-Fix Northwest (PFNW) and Diversified Scientific Services (DSSI) facilities to meet increasing demand.

One of the key opportunities for Perma-Fix is the U.S. Department of Energy's (DOE) Direct-Feed Low-Activity Waste (DFLAW) program at Hanford, which is scheduled to begin operations this summer under legally binding milestones. This initiative aligns well with Perma-Fix's strategic goals and is expected to contribute to increased revenue and improved financial performance. "Overall, we expect a return to growth and profitability in 2025, with a particularly strong second half, including the anticipated ramp-up of the DFLAW program," Duff commented.



In addition to traditional revenue streams, Perma-Fix is investing in innovative technologies to drive long-term value. The company's Perma-FAS technology for PFAS (Per- and polyfluoroalkyl) destruction has shown continually improving effectiveness over the past four months. Perma-Fix is also developing a next-generation system, which is expected to triple processing capacity and incorporate chemical recycling capabilities. While this investment has impacted short-term financials, the company remains confident in its ability to establish itself as a leader in PFAS destruction.

On the Nuclear Services side, Perma-Fix has been awarded as part of the team selected for the DOE's West Valley Demonstration Project, a 10-year initiative that aligns well with the company's expertise in radiological protection and waste management. Although uncertainty in federal budgets has delayed some procurement cycles, Perma-Fix continues to pursue new opportunities across multiple DOE and U.S. Department of Defense (DOD) sites. Additionally, the company's international expansion efforts, particularly in Italy, are progressing as planned, with expected waste treatment operations beginning in 2026.

In conclusion, while Perma-Fix Environmental Services Inc. faced challenges in the fourth quarter of 2024, the company is well-positioned to capitalize on significant opportunities in the coming years. With a solid backlog, expanding project pipeline, and strategic advancements in PFAS treatment and nuclear services, Perma-Fix is poised to execute on its long-term growth strategy.