Perma-Fix Environmental Services, Inc.

Perma-Fix reported first-quarter 2026 revenue of $11.1 million, down $2.8 million year over year from $13.9 million. Gross profit declined by $3.5 million year over year, SG&A was $4.3 million (up about $284,000), EBITDA from continuing operations was a $7 million loss versus a $3.3 million loss last year, and net loss was $7.5 million, or $0.40 per share, versus a $3.6 million loss, or $0.19 per share, a year ago. Cash ended the quarter at $6.7 million, working capital was $5.9 million, treatment backlog was $12.2 million, cash used in operations was $3.6 million, investing used about $964,000, and financing used about $227,000. For guidance, management said Q2 is an inflection point: Hanford ETF receipts started in April at about $1 million to $1.5 million per month, EMF waste is expected to begin in late June at about $300,000 a month during high commissioning, dry waste could start in mid-May at roughly $100,000 a month, and DFLAW-related volumes should rise further once operations ramp in the fall. Management also said ETF revenue could support more than $4 million per quarter and reiterated long-term Hanford and grouting opportunities, including committed capacity of 4.2 million gallons within 18 months if the West-side grouting award is received.

Mark Duff described Q1 as a deliberately weak but necessary transition period, saying the company used it to reduce waste inventories, finish lower-margin work, and prepare facilities and staffing for higher activity. He was notably optimistic on Hanford, calling it a long-duration mission with multiple waste streams and saying ETF receipts have started, with more streams expected as DOE resolves regulatory and operating issues. He also pointed to renewed momentum in Services and PFAS, framing Perma-Fix as being at a clear inflection point entering Q2 and the rest of 2026.

Ben Naccarato focused on the quarter’s financial decline and balance sheet usage. He cited revenue of $11.1 million versus $13.9 million last year, gross profit down $3.5 million, SG&A of $4.3 million, EBITDA loss of $7 million, net loss of $7.5 million, cash of $6.7 million, working capital of $5.9 million, and operating cash outflow of $3.6 million. He said the cash decline reflected operating use and capital spending, and noted treatment backlog rose to $12.2 million from $11.9 million at year-end and $10.2 million in Q1 2025.

Analysts pressed on the timing and size of Hanford waste streams, with management clarifying that ETF is now running regularly, EMF should start in late June, dry waste may begin in mid-May, and DFLAW-related volumes could expand in the fall. Questions on grouting focused on East-side versus West-side opportunities; management said East-side grouting could reach about 300,000 gallons in the next 12 months, while the West-side program could support 3 million gallons a year or more and Perma-Fix is targeting 4.2 million gallons of total capacity within 18 months of an award. On services, management said the USS Enterprise Navy project could be awarded in June, with a government estimate of $500 million to $800 million and a 20% to 30% small-business share target, and on PFAS they said state-level rules are driving demand even though federal action has not materialized.