Perma-Fix Environmental Services Reports Decline in Q2 2026 Financial Performance

Perma-Fix Environmental Services, Inc. reported a decline in financial performance for the second quarter of 2026, with net revenues of $12.9 million, down 11.7% from $14.6 million in the same period last year. The decrease was primarily driven by a significant drop in revenue from the Treatment Segment, which fell by 27.3% to $8.3 million, attributed to lower waste volumes and a less favorable revenue mix. In contrast, the Services Segment saw a 44.1% increase in revenue, reaching $4.6 million, reflecting a higher volume of project work. For the first half of 2026, total revenues decreased by 15.8% to $24 million, with the Treatment Segment again leading the decline.

The company's cost of goods sold increased by 18% to $15.4 million for the second quarter, resulting in a gross loss of $2.5 million, compared to a gross profit of $1.5 million in the prior year. Selling, general, and administrative expenses decreased slightly to $3.8 million from $4.1 million. The overall loss from operations for the quarter was $6.5 million, compared to a loss of $2.9 million in the same quarter of 2025. For the first six months, the loss from operations totaled $14 million, significantly higher than the $6.6 million loss reported in the first half of 2025.

In terms of strategic developments, Perma-Fix completed a public equity offering in May 2026, raising approximately $21.1 million to fund capital investments and working capital needs. The company also extended the maturity of its PNC Credit Facility from May 2027 to May 2030, which is expected to enhance liquidity. Additionally, in August 2026, Perma-Fix was awarded a Master IDIQ Subcontract for the treatment and disposal of pretreated liquid mixed low-level waste from the Department of Energy's Hanford Site, with a maximum cumulative value of approximately $4.4 billion.

Operationally, the company reported a backlog of approximately $15.7 million as of June 30, 2026, a 28.5% increase from the previous quarter. However, delays in the commencement of several new projects and processing delays due to customer-directed changes in treatment protocols negatively impacted revenues. The company anticipates that these operational challenges will be addressed in the second half of 2026, as it expects to commence treatment of certain Hanford-related waste streams.

Looking ahead, Perma-Fix remains cautious about its financial outlook, citing substantial doubt about its ability to continue as a going concern within the next year. The company plans to utilize existing cash and borrowing availability while pursuing additional project opportunities to improve its financial position. However, the timing and volume of government-directed waste shipments remain uncertain, which could significantly impact future revenues and cash flows.