Perma-Fix Environmental Services (PESI) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 reached $61.7 million, driven by strong treatment segment performance, increased waste volumes, and expanded Hanford-related capacity.

• Significant investments were made in personnel, infrastructure, automation, and PFAS destruction technology to prepare for increased DOE-related waste streams and future growth.

• The Perma-Fix Northwest facility's permit renewal tripled liquid processing capacity to 1.2 million gallons annually and authorized expanded waste treatment, positioning it for major DOE contracts.

• International revenue grew 163% year-over-year to $6.4 million, reflecting expanding global demand for specialized waste treatment.

• Advanced commercialization of proprietary PFAS destruction technology, with a new system expected to triple capacity and lower costs, targeting both government and commercial markets.

Financial highlights

• Q4 2025 revenue was $15.7 million, up 6.9% year-over-year; full-year revenue rose 4.3% to $61.7 million.

• Treatment segment revenue increased by 29% to $45.1 million for the year, while services segment declined by 31.4% to $16.6 million.

• Gross profit for 2025 rose to $6 million, mainly from the treatment segment; SG&A expenses increased by $1.9 million due to higher payroll and legal costs.

• Net loss for 2025 was $13.8 million, improved from a $20 million loss in 2024; Q4 net loss was $5.7 million, including a $2.7 million adjustment for discontinued operations.

• Year-end cash was $11.8 million, down from $29 million; total debt at quarter end was $2 million.

Outlook and guidance

• Q1 2026 expected to be soft, with losses likely exceeding $4 million in negative EBITDA on $13 million revenue, due to delayed waste receipts and seasonal factors.

• Q2 and Q3 anticipated to mark a return to profitability, with new project mobilizations, increased Hanford waste streams, and $2 million in revenue shifting from Q1 to Q2.

• DFLAW-related revenue projected at $1 million–$2 million per month starting Q2, ramping as DOE operations scale up.

• International revenue in 2026 expected to be 25%-30% lower than 2025, with a stronger ramp in 2027.

• Expects improved financial performance as expanded capacity, backlog, and international demand drive higher treatment throughput in 2026.