Perma-Fix Environmental Services (PESI) Q1 2025 earnings summary

Executive summary

• Revenue increased 2.2% year-over-year to $13.9M, driven by a 5.5% rise in the Treatment segment, while Services revenue declined slightly due to federal procurement delays.

• Gross profit improved to $657K from a $620K loss, reflecting cost controls and higher Treatment segment volumes.

• Waste backlog increased over 30% from year-end 2024, exceeding $10M, indicating improved project visibility and expected growth in 2025.

• PFAS program advanced with first commercial government shipments, system upgrades reducing costs, and Gen 2.0 system on track for Q4 deployment.

• Strategic investments in facility readiness and PFAS initiatives increased operating expenses but are expected to drive stronger performance in H2 2025.

Financial highlights

• Q1 2025 revenue was $13.9M, up $302K year-over-year; Treatment segment up $477K (5.5%), Services segment down $175K (3.6%).

• Gross profit was $657K, reversing a $620K loss in Q1 2024; gross margin improved to 4.7%.

• Net loss was $3.6M, or $(0.19) per share, nearly flat year-over-year.

• EBITDA from continuing operations was negative $3.3M, improved from negative $4M last year.

• Cash and equivalents at quarter-end: $25.7M, down from $29M at year-end.

Outlook and guidance

• Management anticipates stronger performance in H2 2025, driven by backlog growth, federal procurement visibility, Hanford DFLAW ramp-up, PFAS technology, and international opportunities.

• Revenue from the West Valley Project expected in H2 2025; DFLAW program at Hanford to begin in Q3 2025.

• Q2 expected to be much better than Q1, with sales receipts already above quarterly goals and potential profitability.

• Capital expenditures for 2025 projected at $2M–$6M, including PFAS technology investments.

• Liquidity of $29.3M expected to be sufficient for the next twelve months.