PESI · Perma-Fix Environmental Services, Inc.

Perma-Fix Environmental Services reported challenging Q1 2026 results, with revenue falling 20% year-over-year to $11.1 million, driven by lower waste receipts in the Treatment Segment ($7.9 million vs. $9.2 million) due to reduced volumes and less favorable pricing mix, alongside Services Segment declines ($3.2 million vs. $4.7 million) from seasonal weather delays and project timing variability. Gross margins deteriorated sharply, posting a $2.9 million loss compared to a $0.7 million profit last year, as fixed cost investments in personnel, training, and facility readiness for anticipated Hanford DFLAW waste outpaced revenue. Treatment Segment margins swung to (36.0)% from 2.7%, reflecting these preparations, while Services margins fell to (1.5)% from 8.6% amid competitively bid projects. Operating and net losses widened to $7.5 million each, or $0.40 per share, versus $3.7 million and $3.6 million ($0.19 per share) in Q1 2025. EBITDA from continuing operations was ($7.0) million, down from ($3.3) million. CEO Mark Duff described Q1 as a transitional period, with PFNW now receiving Hanford ETF waste, expanded permits tripling capacity for liquid mixed waste and macroencapsulation, and mobilization under a $24 million Lawrence Livermore contract. PFAS technology advances with Gen 2.0 unit installation. Management anticipates quarterly variability but improved performance from Q2 2026 onward as these opportunities scale, converting years of investments into growth, though going concern doubts persist per the 10-Q due to covenant compliance and federal spending risks.