Perma FIX Environmental Services Inc.: Q1 FY2026 earnings call
What management said about Q1 FY2026, from the documents filed with the SEC on 11 May 2026: press release. The quarter’s numbers.
Key takeaways
- Revenue fell year over year: Revenue was $11.1 million, compared with $13.9 million in the first quarter of 2025. Loss from operations was $7.5 million, against $3.7 million. Source
- Gross result turned to a loss: The company reported an overall gross loss of $2.9 million, against gross profit of $657,000 a year earlier. Source
- Treatment margin fell to negative: Treatment gross margin fell to (36.0)% from 2.7%, mainly on lower revenue. Management also cited higher fixed costs for infrastructure and workforce built ahead of expected waste volumes. Source
- Hanford ETF waste receipts began: The Perma-Fix Northwest facility began receiving Hanford ETF waste. Management described this as the start of its Hanford-related receipts. Source
- Lawrence Livermore agreement mobilized: The Services Segment mobilized under a recently awarded Lawrence Livermore agreement for demolition and disposal, reported at about $24 million over two years. Source
- Cash fell to $6.7 million: Cash was $6.7 million at March 31, 2026, against $11.8 million at December 31, 2025. Accounts receivable and unbilled receivables also declined in the period. Source
- Going concern doubt disclosed: The Form 10-Q includes disclosure that certain conditions raise substantial doubt about the company's ability to continue as a going concern. Source
- Northwest permit roughly triples capacity: The expanded permit at the Northwest facility roughly triples its permitted liquid mixed waste processing capacity and authorizes annual macroencapsulation processing. Source
“As expected, the first quarter represented a transitional period as we deliberately positioned the Company for what we believe will be a significant step-up in activity beginning in the second quarter,”
Mark Duff, President and Chief Executive Officer
What changed from last quarter
- New: The Services Segment mobilized under a recently awarded Lawrence Livermore National Laboratory demolition and disposal agreement, reported at about $24 million over two years. Source
- New: The expanded permit at the Northwest facility roughly triples its permitted liquid mixed waste processing capacity and authorizes annual processing through macroencapsulation. Source
- New: The Perma-Fix Northwest facility began receiving Hanford ETF waste in the period. Source
Results and growth drivers
- Revenue fell year over year: Revenue was $11.1 million, compared with $13.9 million in the first quarter of 2025. Loss from operations was $7.5 million, against $3.7 million. Source
- Gross result turned to a loss: The company reported an overall gross loss of $2.9 million, against gross profit of $657,000 a year earlier. Source
- Net loss per share widened: Net loss per share, basic and diluted, was $0.40 against $0.19. Net loss was $7.5 million, and EBITDA from continuing operations was ($7.0) million. Source
Segments and regions
- Treatment revenue fell on volumes: Treatment revenue fell about $1.3 million to $7.9 million, from $9.2 million. Management attributed this to lower waste volumes and a less favorable average waste pricing mix. Source
- Services revenue fell on seasonal delays: Services revenue fell about $1.5 million to $3.2 million. Management cited reduced field activity from winter weather and post-holiday slowdowns. Source
- Segment operating losses both widened: Treatment loss from operations was $4.5 million, against $1.4 million. Services loss from operations was $0.9 million, against $0.3 million. Segment figures exclude corporate expense allocation. Source
“In our view, Perma-Fix is now positioned to begin converting this multi-year investment cycle into improved operating performance.”
Mark Duff, President and Chief Executive Officer
Costs, margins and pricing
- Treatment margin fell to negative: Treatment gross margin fell to (36.0)% from 2.7%, mainly on lower revenue. Management also cited higher fixed costs for infrastructure and workforce built ahead of expected waste volumes. Source
- Services margin declined on lower revenue: Services gross margin declined to (1.5)% from 8.6%, mainly from lower revenue. Management said competitively bid projects carry varying margin structures. Source
- Waste inventories drawn down deliberately: Management said it processed and reduced existing waste inventories to free capacity ahead of anticipated Hanford-related activity. Source
Demand and the order book
- Hanford ETF waste receipts began: The Perma-Fix Northwest facility began receiving Hanford ETF waste. Management described this as the start of its Hanford-related receipts. Source
- Grouting seen as tank retrieval route: Management said DOE leadership appears focused on Hanford tank retrieval, supplemental to DFLAW, through grouting using available commercial capacity. Source
- Lawrence Livermore agreement mobilized: The Services Segment mobilized under a recently awarded Lawrence Livermore agreement for demolition and disposal, reported at about $24 million over two years. Source
“we expect Perma-Fix to deliver improved performance beginning in the second quarter, through the balance of 2026, and over the longer term as these opportunities continue to scale.”
Mark Duff, President and Chief Executive Officer
Capital and cash position
- Cash fell to $6.7 million: Cash was $6.7 million at March 31, 2026, against $11.8 million at December 31, 2025. Accounts receivable and unbilled receivables also declined in the period. Source
- Going concern doubt disclosed: The Form 10-Q includes disclosure that certain conditions raise substantial doubt about the company's ability to continue as a going concern. Source
- Funding relies on cash and revolver: Management said it expects to fund anticipated cash requirements from cash on hand, operating cash flows, and Revolving Credit facility borrowings. Source
- Equity declined on accumulated deficit: Total stockholders' equity fell to $43.0 million from $50.1 million. The accumulated deficit grew to $118.2 million from $110.7 million. Source
Strategy and investment
- Northwest permit roughly triples capacity: The expanded permit at the Northwest facility roughly triples its permitted liquid mixed waste processing capacity and authorizes annual macroencapsulation processing. Source
- PFAS platform advancing with Gen 2.0: Management said the PFAS platform advanced through completed treatment work, new project wins, and installation of a Gen 2.0 unit designed to expand treatment capacity. Source
- Prior investment framed as preparation: Management said the expanded permit, Hanford receipts, grouting, Nuclear Services momentum and PFAS demand together reflect years of investment and preparation. Source
People and leadership
- Personnel and training spending noted: Management cited investments in personnel, training and facility readiness as one reason results were affected this quarter. Source
- Three executives to lead call: The May 6, 2026 conference call was to be led by the Chief Executive Officer, the Executive Vice President of Strategic Initiatives, and the Chief Financial Officer. Source
- Duff named as chief executive: The release names Mark Duff as President and Chief Executive Officer of the company. Source
Coming up, as management said on 11 May 2026
- Activity step-up expected from Q2: Management expects a significant step-up in activity beginning in the second quarter of 2026. Source
- DFLAW waste streams expected to start: Management said it is working with DOE contractors on the anticipated start of additional DFLAW-related waste streams. Source
Risks management discussed
- Demand: Management said government program and customer shipment timing may continue to cause quarter-to-quarter variability in results. Source
- Financial: Revolving Credit facility borrowing availability depends on compliance with financial covenants and other conditions. Source
- External: Management said expected operating cash flows are subject to timing and uncertainty, including from ongoing federal spending constraints. Source
- Demand: Services revenues are project-based, so they vary with project scope, duration and completion timing. Source
Earlier plans management reported on
- Met: Management said the first quarter was a transitional period, as it had expected. Source
- Not stated: Management said the transition it had been preparing for is beginning to materialize across operations. Source
Other quarters
Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.