Perma-Fix Environmental Services Reports Revenue Growth and Improved Gross Profit in Q2 2025

Perma-Fix Environmental Services, Inc. reported its financial results for the second quarter and first half of 2025, revealing a modest increase in revenue and significant improvements in gross profit compared to the same periods in 2024. For the three months ended June 30, 2025, the company generated net revenues of $14.6 million, a 4.3% increase from $14.0 million in the prior year. The Treatment Segment was the primary driver of this growth, with revenues rising 36.6% to $11.4 million, attributed to increased waste volume and higher average prices. Conversely, the Services Segment experienced a decline of 43.5%, with revenues falling to $3.2 million due to project mobilization delays and procurement issues.

The company's gross profit for the second quarter improved significantly, reaching $1.5 million compared to a gross loss of $1.3 million in the same quarter of 2024. This turnaround was largely due to the strong performance of the Treatment Segment, which saw gross profit increase by approximately 230.8%. However, selling, general, and administrative (SG&A) expenses also rose by 19.5% to $4.1 million, reflecting higher payroll and related costs, particularly following the hiring of a new Chief Operating Officer.

For the six months ended June 30, 2025, Perma-Fix reported total revenues of $28.5 million, a 3.3% increase from $27.6 million in the prior year. The Treatment Segment again led this growth, with a 20.7% increase in revenue, while the Services Segment saw a 24.9% decline. The overall gross profit for the first half of 2025 was $2.2 million, a substantial improvement from a gross loss of $1.9 million in the same period of 2024. The company attributed these changes to operational adjustments and increased waste processing capabilities.

In terms of operational metrics, Perma-Fix's backlog in the Treatment Segment increased to approximately $13.2 million, a 67.3% rise from the end of 2024. The company is also expanding its international presence, with revenue from foreign entities increasing by 248.4% year-over-year. As of June 30, 2025, Perma-Fix had cash and cash equivalents of $22.6 million, down from $29.0 million at the end of 2024, but still maintaining a strong liquidity position with no outstanding borrowings under its revolving credit facility.

Looking ahead, Perma-Fix expressed optimism for continued improvement in the second half of 2025, particularly with anticipated contributions from the West Valley Development Project and the Direct-Feed Low-Activity Waste program at Hanford. The company is also focused on advancing its PFAS technology, which it believes will enhance its service offerings and revenue potential. However, management acknowledged the ongoing challenges posed by government funding uncertainties and macroeconomic conditions that could impact future performance.