Perma‑Fix Environmental Services reported third‑quarter 2025 results that exceeded analyst expectations, with revenue of $17.45 million beating the consensus estimate of $16.25 million by $1.20 million, a 7.1% upside. Net earnings per share of –$0.10 also outperformed the forecast of –$0.12, a 16.7% beat, reflecting disciplined cost management amid a 45% year‑over‑year jump in treatment revenue.
The company’s Treatment segment was the primary driver of the strong performance. Revenue in that segment rose to $13.1 million, up 45% from $9.1 million a year earlier, and the gross margin expanded to 17.3% from 4.5% in 2024. The margin lift was driven by higher average pricing and increased waste volumes, as well as a favorable mix shift toward higher‑margin projects. In contrast, the Services segment saw revenue fall to $4.4 million, a 28% decline from $7.7 million, and its margin contracted because fixed costs remained high while revenue slipped and government procurement delays limited new work.
Gross profit climbed to $2.6 million, doubling from $1.3 million in the same quarter last year, and EBITDA narrowed to a loss of $1.5 million from $2.1 million. The improvement in operating leverage is a direct result of the Treatment segment’s margin expansion and the company’s ability to keep variable costs in line with revenue growth.
Operational highlights underscored the company’s strategic trajectory. The Hanford Direct‑Feed Low‑Activity Waste (DFLAW) effluent treatment entered hot commissioning, marking a key milestone that is expected to generate recurring revenue in the coming quarters. The first‑generation Perma‑FAS PFAS destruction system has been operating reliably, and a second‑generation unit is slated for commissioning in Q1 2026. These milestones reinforce Perma‑Fix’s position in high‑margin, long‑term government contracts, and the company’s backlog of $15.4 million at quarter‑end signals growing demand for both treatment and PFAS services.
Management emphasized the impact of the federal shutdown on future waste receipts and the anticipated ramp‑up of DFLAW volumes. CEO Mark Duff highlighted the company’s “strong performance driven by a 45% year‑over‑year revenue increase and gross margin improvement in our Treatment Segment to 17.3% from 4.5% in the prior year.” He also noted that the company’s PFAS destruction technology is progressing well and that the first‑generation system is operating reliably, positioning Perma‑Fix for continued growth through 2026.
Investors reacted positively to the results, citing the earnings beat, margin expansion, and operational milestones as evidence of a solid trajectory toward profitability and long‑term contract revenue.
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