Perma-Fix’s first quarter results for 2025 were marked by modest revenue growth but missed Wall Street’s expectations, even as the market responded positively. Management attributed the quarter’s performance to temporary delays in federal procurement, particularly around the transition of the U.S. administration, as well as a slow start in project activity. CEO Mark Duff cited improving waste receipts toward quarter-end and a growing backlog—up 30% year-over-year—as signs of momentum. The Treatment segment benefited from increased waste volume and operational efficiency efforts, while Services saw improved margins despite lower revenue due to proactive cost controls.

Is now the time to buy PESI? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Perma-Fix’s Q1 Earnings Call

• Howard Brous (Wellington Shields) asked about the impact of the 2026 federal budget on Perma-Fix’s pipeline. CEO Mark Duff was optimistic, noting that proposed budgets remain favorable for their core Department of Energy revenue streams and that no material impact is expected on upcoming bids.
• Aaron Spychalla (Craig-Hallum) inquired about the near-term opportunity in Hanford grouting projects. Duff said decisions from the Department of Energy are expected within six to nine months, with Perma-Fix well-positioned to play a significant role, though final allocations are not yet determined.
• Aaron Spychalla (Craig-Hallum) also asked about PFAS revenue and margin contributions from the Generation 2 unit. Duff expects initial monthly revenue around $1 million, scaling as partnerships and throughput increase, and highlighted cost competitiveness versus incineration.
• Aaron Warwick (Breakout Investors) questioned the outlook for the second quarter given increased Hanford waste receipts. Duff said production improvements are ongoing and anticipates Q2 performance to be much improved, potentially nearing profitability.
• Unidentified Analyst (So Fein, LLC) sought details on competitive positioning for Hanford waste treatment and the impact of new leadership. Duff explained that Perma-Fix’s local presence, union agreements, and operational investments support a strong competitive stance, but acknowledged that some waste could be allocated to other providers.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) the pace and scale of Hanford project revenue as operations ramp up, (2) progress on PFAS technology deployment and commercial adoption, and (3) the awarding and execution of new federal and international contracts. We will also track ongoing improvements in operational efficiency and margin expansion as key indicators of execution.

Perma-Fix currently trades at $10.44, up from $8.85 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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