Perma-Fix Environmental Services (PESI) Q2 2026 earnings summary

Executive summary

• Second quarter 2026 results were below expectations, with revenue at $12.9 million and a net loss of $6.2 million, primarily due to delayed waste processing, lower treatment volumes, and continued investments in growth initiatives.

• Awarded a major Master IDIQ Subcontract for Hanford tank waste grouting, potentially the largest commercial opportunity in company history, with task orders eligible from January 2027.

• Treatment backlog increased 29% to $15.7 million at quarter-end, driven by Hanford-related waste streams and new contract awards.

• Services segment revenue rose 44% year-over-year, supported by new DOE and commercial contracts.

• Began receiving liquid effluent waste from the DFLAW facility, marking a major operational milestone.

Financial highlights

• Q2 2026 revenue was $12.9 million, down from $14.6 million in Q2 2025, mainly due to a 27.3% decline in Treatment segment revenue.

• Gross loss for Q2 2026 was $2.5 million, compared to gross profit of $1.5 million in Q2 2025.

• Net loss for Q2 2026 was $6.2 million ($0.32 per share), compared to $2.7 million ($0.15 per share) in Q2 2025.

• Services segment revenue grew to $4.6 million, with gross profit improving to $149,000 from a loss last year.

• EBITDA from continuing operations was ($5.9) million for Q2 2026, compared to ($2.3) million in Q2 2025.

Outlook and guidance

• Management expects improved results in the second half of 2026 as Hanford-related waste treatment ramps up and Services backlog is realized.

• DOE's Dual Glass-Plus-Grout Strategy and new contract awards position the company for multi-decade growth, with targeted capacity expansion to 9 million gallons annually by 2030, pending regulatory approvals.

• Facility upgrades and permit modifications are underway to support increased volumes, with completion targeted for Q2/Q3 2027.

• Substantial doubt remains about the ability to continue as a going concern due to reliance on government-directed projects.