Perma-Fix Environmental Services Reports Major Hanford Waste Receipts and 29% Backlog Growth in Q2 2026

Hanford Site Waste Processing Begins, Marking Operational Transition

Perma-Fix Environmental Services disclosed that its Perma-Fix Northwest facility commenced receipt of waste streams from the Hanford Site during the second quarter of 2026, fulfilling a forecast milestone for the company. This development represented a significant operational step in the company's strategic positioning within the Department of Energy cleanup market. The timing of these receipts coincided with the company's preparation phase, during which it had invested in personnel, facility upgrades, and operational readiness in advance of the expected waste volumes.

Following the close of the second quarter, the company's PFNW facility began receiving liquid effluent wastes from the Direct-Feed Low-Activity Waste (DFLAW) facility in early July 2026. The filing describes this DFLAW commencement as "a major milestone for the Company." These sequential receipts across the latter half of the second quarter and into July positioned Perma-Fix to transition from a preparatory investment phase into an active treatment and processing phase. The company noted that while Q2 financial results do not yet reflect meaningful revenue from these operations, the backlog growth visible at quarter-end demonstrates the underlying operational progress.

Treatment Backlog Surges 29% Despite Q2 Revenue Constraints

The company's treatment-related backlog reached approximately $15.7 million as of June 30, 2026, up from $12.2 million at the end of the first quarter—a 29% sequential increase. This backlog metric reflects the volume of accepted waste streams awaiting treatment at the company's facilities. The filing emphasizes that this backlog growth directly reflects the Hanford waste receipts that commenced in Q2 and the early-July DFLAW operations startup. Investors monitoring the company's revenue trajectory may view backlog growth as a forward-looking indicator of treatment revenue recognition in subsequent quarters.

However, the second quarter's financial results did not yet capture significant revenue benefit from these received waste streams. The company disclosed that customer-directed changes to treatment protocols required it to delay the start of treatment for certain Hanford-related wastes. The filing states that "these delays are now largely behind us" and that the company expects to commence treatment of these wastes in the third quarter. This timing mismatch—whereby waste was received and accepted into inventory during Q2, but treatment and revenue recognition shifted to Q3 and beyond—created a working capital dynamic that depressed Q2profitability while positioning Q3 and later periods for revenue recognition.

Q2 Preliminary Financial Results Show Net Loss Amid Investment Phase

Perma-Fix estimated a preliminary net loss of approximately $6.0 million on revenue of approximately $13 million for the second quarter of 2026. The filing notes that this preliminary financial information has not been reviewed by the company's independent registered public accounting firm and is subject to change upon completion of financial closing procedures. The company emphasized that final results may vary significantly from these preliminary estimates. Investors should note that the filing explicitly states this preliminary information "should not be viewed as a substitute for full financial statements prepared in accordance with U.S. GAAP."

The company attributed the Q2 loss to several overlapping factors. While the company maintained strong waste receipts and backlog buildup as anticipated, the customer-directed treatment delays prevented corresponding revenue recognition. Additionally, delays in several new project starts and the continued drawdown of stored waste inventories limited revenues in the quarter. Simultaneously, the company incurred increased personnel and operating expenses in anticipation of the Hanford waste receipts. This timing gap—whereby costs were recognized in Q2 while expected revenue shifted to the second half of 2026—explains the loss despite positive operational developments. The company views these costs as investments in capacity and readiness that should generate returns as treatment operations expand.

Services Segment Wins Support Backlog Growth Beyond Treatment Operations

In addition to the treatment backlog expansion at Hanford, Perma-Fix's Services Segment showed strengthening momentum. The company disclosed that it had secured a contract win at Lawrence Livermore National Laboratory in the first quarter of 2026 and subsequently secured contract awards at multiple U.S. Department of Energy facilities and commercial sites. These contract wins contributed to a Services Segment backlog exceeding $17 million over the next year. The disclosure suggests that the company's market position extends beyond the Hanford remediation focus and includes broader DOE site services.

The Services Segment backlog diversification across multiple DOE facilities and commercial customers reduces concentration risk relative to the company's Hanford-focused treatment operations. This segment's growth demonstrates that Perma-Fix is expanding its footprint within the DOE market ecosystem and achieving commercial client wins. The filing characterizes these developments as evidence that the company's market position is "strengthening," a forward-looking statement reflecting management's view of business momentum across both treatment and services operations.

DOE Adopts Dual Glass-Plus-Grout Strategy With Perma-Fix Positioned as Key Vendor

The Department of Energy announced a revised Hanford Tank approach that the filing describes as the "Hanford Dual Glass-Plus-Grout Strategy." This strategy has been presented publicly and to stakeholders and specifically names Perma-Fix Environmental Services. The adoption of this dual-track approach represents a significant policy shift at Hanford that creates a major opportunity for Perma-Fix's PFNW facility. DOE is coordinating the implementation of this strategy with Washington State regulators and is targeting the second half of 2026 to begin implementation.

According to the filing, DOE presentations highlight several key features and anticipated advantages of this grouting-and-vitrification dual approach. Grouting is described as a proven technology already approved under the DOE Hanford Holistic Agreement, with the DOE Savannah River Site having treated 13 million gallons using this approach for waste tank inventories. The filing discloses that this approach is expected to provide up to 300% more throughput compared to prior methods and reduce disposal costs from approximately $1,200 per gallon to under $50 per gallon—a substantial operational and economic improvement.

Projected Hanford Tank Waste Volumes Under DOE Strategy Outline Multi-Year Opportunity

The filing outlines DOE's anticipated waste processing timeline under the dual strategy. DOE's current plan targets the shipment of 400,000 to 600,000 gallons of tank waste this year. The disclosure indicates that with deployment of existing and additional tank retrieval systems, pretreated tank waste volumes are estimated to begin in 2026 at 100,000 gallons per month and reach 300,000 gallons per month by 2028, to be processed through grouting and DFLAW operations. These volumes would be split between the DFLAW pathway and the grouting pathway as part of the dual strategy.

The filing further states that DOE totals across East and West Side Tank areas are targeted to reach 9 million gallons annually by 2030 under this revised strategy. These multi-year volume projections, while not guaranteed contractual commitments, outline the scale of opportunity DOE is planning to generate for vendors like Perma-Fix. The timing—with early volumes beginning in 2026 and scaling significantly by 2027–2028—aligns with the company's facility upgrade and permitting timelines disclosed in the announcement.

Perma-Fix PFNW Facility Seeking Expanded Permits and Upgrade Path to 2027

Although a formal award of the West Side tank program has not been made at the time of disclosure, Perma-Fix's PFNW facility has submitted a proposal to support DOE's grouting objectives. The company is currently working with Washington State regulators to expand current grouting permits from an existing annual capacity of 1.2 million gallons per year to levels that will meet DOE's objectives for both the East and West tank processing. This regulatory pathway is essential to enabling the facility to scale treatment capacity to match the DOE-projected volumes.

In parallel with the permitting expansion, PFNW is in the final design and procurement phases for the facility upgrades needed to achieve the expanded capacity. The filing indicates that the company expects to complete these upgrades by the third quarter of 2027. This timeline suggests that Perma-Fix is planning for significant facility expansion and operational scaling over the next 12–15 months. The company's May 2026 public offering, which raised approximately $21 million in net proceeds, is directly supporting the costs of these DFLAW and grouting upgrades, as disclosed in the filing.

Capital Raise Funds Expansion and Strategic Positioning at Hanford

On May 18, 2026, Perma-Fix closed an underwritten public offering that raised net proceeds of approximately $21 million. The filing explicitly states that a portion of these proceeds is being used to fund costs relating to DFLAW and grouting upgrades at the PFNW facility. This capital deployment directly supports the company's ability to expand treatment capacity and pursue the facility upgrades necessary to meet anticipated DOE volumes. The timing of this capital raise—completed in May, ahead of the June quarter-end backlog buildup—provided liquidity to fund the investment phase that contributed to Q2 costs.

The company's decision to access public capital markets reflects management's confidence in the opportunity ahead at Hanford and the broader DOE remediation market. By securing approximately $21 million in May before Hanford waste receipts began in earnest, the company positioned itself to make necessary facility and operational investments without operational cash flow constraints. Investors should note that the company's capital allocation strategy—using public market proceeds to fund capacity expansion ahead of revenue recognition—is typical for remediation contractors preparing for major contract ramp-ups.

Preliminary Results Subject to Change and Final Audit Review

The filing includes a cautionary note stating that the unaudited financial and operational information presented is preliminary and may change. The company's financial closing procedures with respect to the estimated financial information are not yet complete, and final results may vary significantly from the preliminary estimates provided. The preliminary financial information has not been reviewed by the company's independent registered public accounting firm. The company undertakes no obligation to update or supplement the information until it releases its financial statements for the three months ended June 30, 2026.

Investors should recognize that the preliminary net loss of approximately $6.0 million and revenue of approximately $13 million disclosed in this announcement are subject to adjustment. Factors such as financial closing procedures, final adjustments, and other developments could impact these preliminary figures. The company's explicit disclaimer that the preliminary information "should not be viewed as a substitute for full financial statements prepared in accordance with U.S. GAAP" underscores the preliminary nature of these disclosures. Market participants typically await the filing of the company's quarterly report for the complete audited or reviewed financial statements before making detailed financial analysis.