Perma-Fix Environmental Services (PESI) investor relations material

Executive summary

• Q1 2026 was a transitional period with revenue declining 20.1% year-over-year to $11.1 million, driven by seasonal softness, lower waste receipts, project delays, and investments in personnel and facility upgrades for anticipated growth in Hanford, Nuclear Services, and PFAS destruction activities.

• Net loss widened to $7.5 million ($0.40 per share) from $3.6 million ($0.19 per share) in Q1 2025, reflecting lower revenue, higher fixed costs, and increased SG&A.

• Liquidity decreased to $6.7 million at quarter-end, with working capital at $5.9 million, raising substantial doubt about going concern.

• The company began receiving ETF waste from Hanford in April, expected to generate over $4 million in quarterly revenue as the stream continues, and mobilized under a $24 million Lawrence Livermore National Laboratory contract.

• Expanded permit at the Northwest facility triples permitted liquid mixed waste processing capacity, positioning for improved performance as government programs ramp up.

Financial highlights

• Q1 2026 revenue was $11.1 million, down from $13.9 million year-over-year, primarily due to lower volumes, less favorable pricing, and timing of processing activity.

• Gross loss was $2.9 million in Q1 2026 versus gross profit of $657,000 in Q1 2025; gross margin declined to (36.0%) from 2.7%.

• EBITDA loss from continuing operations was $7 million, compared to a $3.3 million loss last year.

• Net loss was $7.5 million ($0.40 per share) versus $3.6 million ($0.19 per share) in the prior year.

• Cash used from operations was $3.6 million; working capital at March 31, 2026 was $5.9 million, down from $13.8 million at year-end 2025.

Outlook and guidance

• Q2 is expected to be an inflection point with stronger revenue contributions from Hanford-related waste receipts and other customer activities, and improved performance anticipated through the remainder of 2026.

• Sustainable revenues from ETF waste are projected at $1–1.5 million per month through at least Q3 and into Q4.

• Additional waste streams (EMF, dry waste, TRU) are expected to ramp up, with DFLAW operational phases anticipated to increase volumes and revenues.

• Grouting opportunities at Hanford could represent significant long-term revenue, with readiness for west side grouting by January 2028 and potential for 3–6 million gallons per year.

• Capital expenditures for 2026 expected to be $3–5.5 million, focused on PFAS technology and facility upgrades.