Perma-Fix Q3 revenue rises 2% but net loss widens

Overview

• U.S. nuclear waste manager's Q3 revenue rose slightly, driven by 46% growth in Services Segment

• Company posted wider net loss and negative EBITDA, with substantial doubt about going concern status

• Treatment backlog grew 25% during the quarter; upgrades and new pricing initiatives underway

Outlook

• Company expects DFLAW-related waste volumes to increase as facility ramps up production

• Perma-Fix anticipates continued demand for PFAS destruction due to new Florida legislation

• Company says improved results are expected in the coming year with growing backlog and new pricing

Result Drivers

• SERVICES SEGMENT GROWTH - Revenue rose 46% year over year in Services Segment, mainly due to increased project activity and new project awards

• TREATMENT SEGMENT DELAYS - Revenue in Treatment Segment fell due to lower waste volumes processed, as customer-directed changes in treatment protocols delayed Hanford-related waste processing until late in the quarter

• THERMAL SYSTEM UPGRADES - Temporary downtime for thermal treatment system upgrades at Florida and Kingston facilities contributed to reduced waste processing during the quarter

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the environmental services & equipment peer group is "buy"

• Wall Street's median 12-month price target for Perma-Fix Environmental Services Inc is $30.00, about 134.2% above its November 4 closing price of $12.81

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)