Perma-Fix Envirn Servs posts 45% revenue growth in treatment segment, achieving record gross margins and backlog, positioning for long-term success.

OPERATOR - (00:00:00)

Differ materially from such statements. These risks and uncertainties are detailed in the Company's filings with the U.S. securities and Exchange Commission as well as this morning's press release. The Company makes no commitment to disclose any revisions to forward looking statements or any facts, events or circumstances after the date hereof that bear upon forward looking statements. In addition, today's discussion will include references to non GAAP measures. Perma-Fix Envirn Servs believes that such information provides an additional measurement for historical comparison of its performance a reconciliation of the non GAAP measures to the most directly comparable GAAP measures available in today's news release on our website. I'd now like to turn the call over to Mark Duff, please.

Mark Duff - (00:00:37)

Go ahead, Mark all right, thanks David Good morning everyone and thank you for joining us today. We're pleased to report another quarter of solid financial and operational progress for Perma-Fix Envirn Servs. Our revenue increased 16.5 million compared to 16.8 million in the same period last year, while gross profit more than doubled to 2.6 million, up from 1.3 million a year ago. Gross margin expanded to 14.6% from 7.9%, driven primarily by higher waste volumes and a more favorable mix within our treatment operations, partially offset by increased fixed cost. Gross margin also increased by 38% from Q2, reflecting continued operational progress and a stronger overall mix. We also achieved a meaningful improvement in EBITDA versus the prior quarter, reflecting stronger throughput and continued execution discipline. Overall, these results demonstrate consistent progress in margin expansion, backlog growth and positioning Perma-Fix Envirn Servs for long term sustainable growth across our treatment, PFAS and nuclear services programs. Our treatment segment continued to deliver strong performance. Segment revenue increased 45% year over year to 13.1 million, up from 9.1 million in Q3 of 24, while segment gross margin improved to 17.3% from 4.5%. The improvement was driven up by higher waste volumes, higher output at our plants and solid execution. Across both commercial and Department of Energy (DOE) projects, waste sales totaled 14.6 million, up from 8.4 million in the same period last year, a 74% increase. Our treatment backlog ended the quarter at 15.4 million, up from 7.9 million a year ago, providing a strong visibility through year end and into 2026. Automation, digital scheduling and plan optimization initiatives are all improving productivity and throughput while maintaining safety performance.

UNKNOWN - (00:02:41)

Overall.

Mark Duff - (00:02:42)

We're now realizing the full benefit of these investments, contributing to higher throughput and sequential margin improvement. We also continue to support international waste shipments which remain on schedule and are expected to continue into the first half of 2026, adding backlog stability and revenue diversity. We continue to process waste streams from Europe and North America and are evaluating new shipment requests tied to upcoming 2026 European Union programs. Turning to Hanford, this is one of the most significant and long term growth opportunities in our company's history. The Department of Energy's Direct Feed Low Activity Waste Facility, also known as DFLAW, initiated HOT commissioning in early October ahead of the October 15th tri party agreement milestone. Melter One is now converting tank waste into stable glass, marking a major milestone in DOE's environmental cleanup mission. Under DOE's record decision for the Hanford DF Law program, Perma-Fix Envirn Servs Northwest is the designated commercial treatment pathway for secondary waste streams generated during the vitrification operations. These include processed liquids and solid residues that require off site treatment at licensed facilities. This designation establishes the opportunity for multi decade high volume revenue permafix as DF Law meets the objectives for the cleanup of Hanford over the next several decades. We expect to begin receiving effluent waste shipments from DF law later in Q4 or early Q1 of 2026 following DOE's initial production phase and associated waste characterization. Although DOE's DOE's tri party agreement allows up to three years to reach design capacity for throughput, internal DOE goals indicate an earlier ramp up and permafix Northwest is fully prepared to meet that. Earlier this year we completed the union transition under our UA Local 598 agreement in the Tri Cities region for our Perma-Fix Envirn Servs Northwest plant. This has improved labor stability, increased hiring efficiency and allows multi shift operations to meet DOE throughput requirements while maintaining excellent safety performance. Taken together, the record decision designation DFLAW Progress facility upgrades and a workforce stability position puts Perma-Fix Envirn Servs in a position as a critical commercial link in the doe's waste treatment chain, a role that provides long term recurring revenue. As DOE's cleanup mission advances. Our PFAS destruction initiative continues to advance both technically and commercially. At our Florida facility, the first generation permafast system operated reliably through the quarter, achieving complete destruction of PFAS compounds at a 10 to 20% cost advantage to incineration and with zero air emissions. System performance improved month over month following Q3 upgrades and increased throughout throughput.

OPERATOR - (00:05:46)

Please wait a moment whilst we reconnect our speaker. Apologies for the technical issue. We'll reconnect them very shortly. Appreciate your patience everybody. We're just reconnecting Mark.