Perma-Fix Environmental Services Reports 29% Backlog Increase and Initiates Hanford Waste Processing in Q2 2026

Hanford Waste Processing Launches, Signaling Operational Shift

Perma-Fix Environmental Services revealed that its Perma-Fix Northwest (PFNW) facility began receiving waste streams from the Hanford Site during Q2 2026, achieving a key company milestone. This marked a critical operational advancement in its strategic positioning within the Department of Energy (DOE) cleanup sector. The timing aligned with the company’s preparatory investments in staffing, facility enhancements, and operational readiness to handle the anticipated waste volumes.

After Q2 closed, the PFNW facility started accepting liquid effluent wastes from the DFLAW facility in early July 2026. The company described this DFLAW initiation as "a major milestone for the Company." These sequential waste receipts during late Q2 and early July transitioned Perma-Fix from a preparatory phase into active treatment and processing. While Q2 financials have yet to capture significant revenue from these operations, the backlog increase at quarter-end reflects the underlying operational progress.

Treatment Backlog Climbs 29% Despite Revenue Limitations in Q2

The treatment-related backlog reached approximately $15.7 million as of June 30, 2026, up from $12.2 million at the end of Q1—a 29% sequential increase. This backlog represents accepted waste streams pending treatment at the company’s facilities. The filing attributes this growth directly to Hanford waste receipts initiated in Q2 and the DFLAW startup in early July. Investors may interpret backlog expansion as a forward indicator of future treatment revenue.

However, Q2 financial results did not yet reflect substantial revenue from these waste streams. The company reported customer-directed treatment protocol changes that delayed treatment starts for certain Hanford wastes. These delays are "now largely behind us," with treatment expected to begin in Q3. This timing mismatch—waste accepted in Q2 but treatment and revenue recognition deferred to Q3 and beyond—created working capital pressures that suppressed Q2 profitability while setting the stage for future revenue.

Q2 Preliminary Financials Show Net Loss Amid Investment Phase

Perma-Fix preliminarily estimated a net loss of about $6.0 million on revenues near $13 million for Q2 2026. The company noted these figures are unaudited and subject to change upon completion of financial closing and independent review. It emphasized that these preliminary results "should not be viewed as a substitute for full financial statements prepared in accordance with U.S. GAAP."

The Q2 loss stemmed from overlapping factors: while waste receipts and backlog grew as planned, treatment delays prevented revenue recognition. Additionally, postponed project starts and drawdowns of stored waste inventories limited revenues. Concurrently, increased personnel and operating expenses were incurred in preparation for Hanford waste processing. This timing gap—costs recognized in Q2 with revenue deferred to later periods—explains the loss despite operational progress. The company views these expenses as investments in capacity and readiness to generate future returns.

Services Segment Contract Wins Drive Backlog Beyond Treatment Operations

Beyond treatment backlog growth at Hanford, Perma-Fix’s Services Segment gained momentum. The company secured a contract at Lawrence Livermore National Laboratory in Q1 2026 and subsequent awards at multiple DOE and commercial sites. These wins contributed to a Services Segment backlog exceeding $17 million over the next year, indicating the company’s expanding presence beyond Hanford remediation.

This backlog diversification across DOE facilities and commercial clients reduces concentration risk relative to Hanford-focused treatment operations. The segment’s growth reflects Perma-Fix’s broader DOE market penetration and commercial success. Management characterized these developments as evidence of a "strengthening" market position, signaling positive momentum across treatment and services.

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

The DOE announced a revised Hanford Tank approach called the "Hanford Dual Glass-Plus-Grout Strategy," publicly presented and naming Perma-Fix Environmental Services. This dual-track policy shift creates a major opportunity for Perma-Fix’s PFNW facility. DOE is coordinating with Washington State regulators to implement the strategy, targeting the second half of 2026.

DOE highlights that grouting is a proven technology approved under the DOE Hanford Holistic Agreement and successfully applied at the Savannah River Site, which treated 13 million gallons of tank waste using this method. The strategy is expected to increase throughput by up to 300% compared to prior methods and reduce disposal costs from about $1,200 per gallon to under $50 per gallon, representing significant operational and economic improvements.

DOE’s Hanford Tank Waste Volume Projections Outline Multi-Year Opportunity

The filing details DOE’s waste processing timeline under the dual strategy. DOE plans to ship 400,000 to 600,000 gallons of tank waste in 2026. With existing and new tank retrieval systems, pretreated waste volumes are projected to start at 100,000 gallons per month in 2026 and rise to 300,000 gallons per month by 2028, processed via grouting and DFLAW pathways. These volumes will be split between the two treatment methods.

DOE aims for combined East and West Side Tank processing to reach 9 million gallons annually by 2030. While not guaranteed contracts, these projections illustrate the scale of opportunity for vendors like Perma-Fix. The timing aligns with the company’s disclosed facility upgrades and permitting schedules.

PFNW Facility Pursues Permit Expansion and Upgrades Through 2027

Although no formal award for the West Side tank program has been made, PFNW has submitted a proposal supporting DOE’s grouting goals. The company is working with Washington State regulators to expand grouting permits from the current 1.2 million gallons per year capacity to meet DOE’s East and West tank processing targets. This regulatory approval is critical to scaling treatment capacity.

Concurrently, PFNW is finalizing design and procurement for facility upgrades to achieve expanded capacity, expected to complete by Q3 2027. This indicates substantial planned operational scaling over the next 12 to 15 months. The May 2026 public offering, which raised roughly $21 million in net proceeds, is funding these DFLAW and grouting upgrades.

Capital Raise Supports Hanford Expansion and Strategic Positioning

On May 18, 2026, Perma-Fix closed an underwritten public offering raising approximately $21 million net. The filing states that part of these funds is allocated to DFLAW and grouting upgrades at PFNW, directly supporting capacity expansion to meet DOE’s projected volumes. Completing this capital raise prior to the June quarter-end backlog buildup provided liquidity for the investment phase that contributed to Q2 expenses.

This capital market access reflects management’s confidence in Hanford and broader DOE remediation opportunities. By securing funds ahead of Hanford waste receipts, the company positioned itself to invest in facility and operational readiness without cash flow constraints. Such capital deployment ahead of revenue recognition is typical for remediation contractors preparing for contract ramp-ups.

Preliminary Results Pending Final Audit and Subject to Change

The filing cautions that the unaudited preliminary financial and operational data may change. Financial closing procedures are incomplete, and final results could differ significantly from preliminary estimates. The figures have not been reviewed by the company’s independent registered public accounting firm. The company has no obligation to update these disclosures until releasing full financial statements for the quarter ended June 30, 2026.

Investors should consider that the preliminary net loss of about $6.0 million and revenue near $13 million are subject to adjustment. Final financial closing, adjustments, and other factors may impact these numbers. The company’s disclaimer that preliminary data "should not be viewed as a substitute for full financial statements prepared in accordance with U.S. GAAP" underscores their provisional nature. Market participants typically await the quarterly report for audited or reviewed financials before detailed analysis.