Perma-Fix's Q4 2024: Revenue Expectations and Timelines in Flux for PFAS and DFLAW

These are the key contradictions discussed in Perma-Fix Environmental Services' latest 2024 Q4 earnings call, specifically including: PFAS revenue expectations, grouting timeline at Hanford, DFLAW startup and operational timeline, and PFAS waste treatment and revenue expectations:



Revenue Challenges and Recovery:
- Perma-Fix reported total revenue of $14.7 million for the fourth quarter of 2024, a decrease of $8 million or 35.2% compared to the same quarter in 2023.
- The decline was attributed to lower volume and average pricing in waste treatment, and procurement cycle delays due to federal budget uncertainties.

Waste Treatment and Backlog Improvement:
- The waste treatment backlog for 2024 ended at $7.9 million, down from $10.7 million in 2023.
- Despite the decrease, the company expects a return to growth in 2025 due to increased backlog and rising demand, driven by the ramp-up of key programs like the DFLAW at Hanford and improved project visibility.

PFAS Technology Investment and Growth:
- Perma-Fix incurred $2 million in capital spending and $1 million in R&D for its PFAS technology in 2024.
- The investment was aimed at commercializing its PFAS destruction system, which is expected to process nearly 2,000 gallons of high-concentration PFAS liquids daily by late Q3 2025, with potential for further expansion in PFAS treatment solutions.

Impact of Federal Budget Uncertainty:
- Federal budget uncertainties affected procurement cycles and waste receipts, impacting Perma-Fix's Q4 2024 revenue.
- The company is positioning itself for upcoming DOE and DOD opportunities, expecting a stabilization in procurement cycles as budgets are finalized, and anticipating limited impact on waste receipts due to legally binding commitments.