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1. Company Snapshot

1.a. Company Description

Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States.It operates in three segments: Treatment, Services, and Medical.The Treatment segment offers nuclear, low-level radioactive, mixed waste, hazardous and non-hazardous waste treatment, and processing and disposal services through treatment and storage facilities.


This segment is also involved in the research and development activities to identify, develop, and implement waste processing techniques for problematic waste streams.The Services segment provides technical services, including professional radiological measurement and site survey of government and commercial installations; integrated occupational safety and health services; and consulting, engineering, project and waste management, environmental, decontamination and decommissioning (D&D) field, technical, on-site waste management services, and management personnel and services.This segment also offers nuclear services, including technology-based services comprising engineering, D&D, specialty, construction, logistics, transportation, processing, and disposal; offers remediation of nuclear licensed and federal facilities, as well as cleanup of nuclear legacy sites; and owns an equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources health physics, industrial hygiene, and customized nuclear, environmental, and occupational safety and health instrumentation.


The Medical segment is involved in the research and development of medical isotope production technology.The company provides its services to research institutions, commercial companies, public utilities, and governmental agencies through direct sales to customers or through intermediaries.Perma-Fix Environmental Services, Inc.


was incorporated in 1990 and is based in Atlanta, Georgia.

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1.b. Last Insights on PESI

Negative drivers behind Perma-Fix Environmental Services' recent performance include concerns over FY24 results and DOGE-related Hanford project delay. The company's share price drop was driven by these concerns, which seem overblown. Additionally, the delay of the Hanford cleanup project, scheduled to start in August 2025, is crucial for PESI, as it is expected to eventually double their current waste treatment business.

1.c. Company Highlights

2. Perma-Fix's Q3 2025 Earnings: A Strong Treatment Segment Fuels Growth

Perma-Fix reported revenue of $17.5 million for Q3 2025, a 4% increase from $16.8 million in the same period last year. The company's gross profit more than doubled to $2.6 million, up from $1.3 million a year ago, driven by a favorable mix within its Treatment operations. Gross margin expanded to 14.6% from 7.9%. The Treatment segment continued to deliver strong performance, with revenue increasing 45% year-over-year to $13.1 million. The segment's gross margin improved to 17.3% from 4.5%. The company's EPS came in at -$0.1, slightly missing estimates of -$0.09.

Publication Date: Nov -21

📋 Highlights
  • Revenue Growth & Gross Profit Expansion:: Total revenue rose to $17.5M (+4% YoY), while gross profit doubled to $2.6M (margin 14.6% vs. 7.9% in Q3 2024).
  • Treatment Segment Surge:: Revenue jumped 45% to $13.1M (+$4M YoY) with gross margin improving to 17.3% (from 4.5%), driven by higher waste volumes and throughput.
  • PFAS System Backlog & Efficiency:: Florida’s PFAS unit achieved 10-20% cost edge over incineration, with 20,000 gallons under contract and 25,000 anticipated by year-end, ensuring full utilization through early 2026.
  • DFLAW Operations & Revenue Potential:: Hot commissioning began ahead of schedule, with $1M–$2M/month revenue expected from Hanford waste shipments in early 2026 after initial production phase.
  • Services Segment Decline & Recovery Outlook:: Revenue dropped to $4.3M (vs. $7.7M in Q3 2024) due to DOE/DoD delays, but Q4 rebound is anticipated as projects resume under approved funding.

Treatment Segment Drives Growth

The Treatment segment's strong performance was driven by higher waste volumes, increased average pricing, and improved throughput at several facilities. The company's Florida facility's first-generation PFAS system operated reliably throughout the quarter, achieving complete destruction of PFAS compounds at a 10% to 20% cost advantage to incineration. The company has a backlog of 20,000 gallons under contract and anticipated commitments for another 25,000 gallons expected before year-end.

Services Segment Faces Challenges

The Services segment reported revenue of $4.3 million, compared with $7.7 million in Q3 of '24. The decline was primarily driven by DOE and DoD project delays and slower award timing. However, the company expects a rebound in field activity in Q4 as DOE and DoD programs resume under approved funding.

Outlook and Valuation

Looking ahead, Perma-Fix expects strong visibility and positive momentum, driven by its Treatment segment's record performance. Analysts estimate next year's revenue growth at 62.5%. The company's current valuation metrics, including a P/S Ratio of 3.47 and EV/EBITDA of -22.19, suggest that the market is pricing in significant growth expectations. With a ROE of -33.98% and ROIC of 102.08%, the company's profitability metrics are mixed, reflecting its current growth stage.

Growth Initiatives

Perma-Fix is exploring new initiatives, including applying its technology to the rare earth mining industry. The company is working with mining companies to define the application of its soil sorter technology to separate valuable minerals from non-valuable minerals. This new opportunity could potentially drive future growth and expand the company's revenue streams.

3. NewsRoom

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Perma-Fix and Enforcer One Announce Joint Distribution Agreement to Deliver End-to-End PFAS Foam Transition Solutions

Dec -04

Source: globenewswire.com

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Critical Review: Perma-Fix Environmental Services (NASDAQ:PESI) vs. Universal Detection Technology (OTCMKTS:UNDT)

Nov -25

Source: defenseworld.net

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Perma-Fix Environmental Services, Inc. (PESI) Q3 2025 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

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Perma-Fix Reports Financial Results and Provides Business Update for the Third Quarter of 2025

Nov -10

Source: globenewswire.com

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Perma-Fix Schedules Third Quarter 2025 Business Update Conference Call

Oct -31

Source: globenewswire.com

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PermaFix: Hanford And Other Catalysts Near

Sep -09

Source: seekingalpha.com

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Perma-Fix Environmental Services, Inc. (PESI) Q2 2025 Earnings Call Transcript

Aug -08

Source: seekingalpha.com

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Perma-Fix Schedules Second Quarter 2025 Business Update Conference Call

Aug -05

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.54%)

6. Segments

Services

Expected Growth: 4.83%

Perma-Fix Environmental Services, Inc.'s 4.83% growth is driven by increasing demand for nuclear and environmental services, government contracts, and a growing need for waste management and remediation. Additionally, the company's expansion into new markets, strategic acquisitions, and cost savings initiatives contribute to its growth momentum.

Treatment

Expected Growth: 8.37%

Perma-Fix Environmental Services, Inc.'s 8.37% growth is driven by increasing demand for nuclear and environmental services, strategic acquisitions, and expansion into new markets. The company's expertise in treating and disposing of radioactive and hazardous waste also contributes to its growth, as governments and industries focus on environmental sustainability and compliance.

7. Detailed Products

Nuclear Services

Perma-Fix Environmental Services, Inc. provides nuclear services including nuclear waste management, nuclear facility decontamination and decommissioning, and nuclear material transportation and storage.

Environmental Services

Perma-Fix Environmental Services, Inc. offers environmental services including site remediation, hazardous waste management, and environmental consulting.

Radiological Services

Perma-Fix Environmental Services, Inc. provides radiological services including radiological surveys, radiation protection, and radiological waste management.

Engineering and Construction Services

Perma-Fix Environmental Services, Inc. offers engineering and construction services including design-build, construction management, and operations and maintenance.

Waste Management Services

Perma-Fix Environmental Services, Inc. provides waste management services including hazardous waste disposal, industrial waste management, and recycling.

8. Perma-Fix Environmental Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Perma-Fix Environmental Services, Inc. is medium due to the availability of alternative waste management services.

Bargaining Power Of Customers

The bargaining power of customers for Perma-Fix Environmental Services, Inc. is low due to the company's specialized services and lack of alternative providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Perma-Fix Environmental Services, Inc. is medium due to the availability of multiple suppliers for waste management services.

Threat Of New Entrants

The threat of new entrants for Perma-Fix Environmental Services, Inc. is low due to the high barriers to entry in the waste management industry.

Intensity Of Rivalry

The intensity of rivalry for Perma-Fix Environmental Services, Inc. is high due to the competitive nature of the waste management industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.99%
Debt Cost 6.42%
Equity Weight 92.01%
Equity Cost 6.42%
WACC 6.42%
Leverage 8.68%

11. Quality Control: Perma-Fix Environmental Services, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Montrose Environmental Group

A-Score: 3.8/10

Value: 5.3

Growth: 4.0

Quality: 3.1

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

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Enviri

A-Score: 3.7/10

Value: 6.9

Growth: 3.4

Quality: 1.1

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

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Aqua Metals

A-Score: 3.1/10

Value: 7.4

Growth: 5.0

Quality: 6.2

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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Quest Resource

A-Score: 3.1/10

Value: 9.6

Growth: 3.0

Quality: 3.4

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

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Perma-Fix Environmental Services

A-Score: 2.7/10

Value: 6.8

Growth: 0.4

Quality: 5.4

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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LanzaTech

A-Score: 2.6/10

Value: 8.0

Growth: 3.6

Quality: 3.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.98$

Current Price

13.98$

Potential

-0.00%

Expected Cash-Flows