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Perma-Fix Environmental Services Inc. (PESI+1.59%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024. The company, a Delaware corporation, is engaged in environmental and technology services through its two main segments: Treatment and Services.
The filing reports a decline in total revenue by 34.1% to $59,117,000 in 2024 from $89,735,000 in 2023. The Treatment Segment revenue decreased by 19.6% to $34,953,000, while the Services Segment saw a 47.8% drop to $24,164,000. The company attributes the decline to several factors, including delays in project starts due to Continuing Resolution impacts, poor weather conditions, temporary outages for equipment replacement, and completion of two large projects in 2023 that were not replaced by new projects of similar value.
The company's cost of goods sold decreased by $14,251,000, primarily due to lower revenue. The Treatment Segment's variable costs decreased by approximately $1,467,000, but overall fixed costs increased by about $929,000. The Services Segment saw a decrease in cost of goods sold by $13,713,000, attributed mainly to lower revenue.
Perma-Fix reported a gross profit of $2,000 for 2024, a significant decrease from $16,369,000 in 2023. The decrease in gross profit was mainly due to the reduction in revenue and the impact of the company's fixed cost structure. Selling, general, and administrative expenses decreased by $484,000 to $14,491,000 in 2024.
The company completed two public equity raises in 2024, selling an aggregate of 4,581,282 shares of Common Stock, resulting in net cash proceeds of approximately $41,664,000. The proceeds are intended to fund continued R&D and business development related to its patent-pending process for the destruction of PFAS, ongoing facility capital expenditures, and general corporate and working capital purposes.
Perma-Fix has two reporting segments: the Treatment Segment and the Services Segment. The Treatment Segment, which includes nuclear, low-level radioactive, mixed, hazardous, and non-hazardous waste treatment, accounted for 59.1% of total revenue in 2024, down from 48.5% in 2023. The Services Segment, which includes technical and nuclear services, accounted for 40.9% of total revenue in 2024, compared to 51.5% in 2023.
The company has been focusing on expanding into international markets, with contracts awarded in Mexico and Canada totaling approximately $6,000,000. Additionally, a multi-year contract valued up to EUR 50 million was awarded for the treatment of radioactive waste from the Joint Research Center in Ispra, Italy.
Perma-Fix's new processing technology, the Perma-FAS system for PFAS destruction, completed its first full-scale commercial installation in 2024. The company plans to deploy a second-generation unit in 2025 to expand its PFAS destruction capabilities.
The company faces various risks, including dependence on federal government contracts, potential changes in government funding, and the need to maintain permits and licenses. The company also noted risks related to cybersecurity and climate change.
Perma-Fix reported a net loss of $19,979,000 for 2024, compared to a net income of $485,000 in 2023. The company provided a full valuation allowance against its U.S. federal and state deferred tax assets in 2024, resulting in an income tax expense of approximately $8,194,000.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Perma-Fix Environmental Services Inc. annual 10-K report dated March 13, 2025. To report an error, please email earnings@qz.com.