Business/Financial Results (Form 8-K)

Item 2.02 - Results of Operations and Financial Condition

In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 2.02 is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Preliminary Q2 Results

The second quarter of 2026 marked an important operational milestone for Perma-Fix Environmental Services, Inc. (the "Company"): the receipt of certain waste streams from the Hanford Site to our Perma-Fix Northwest (PFNW) facility, as we had forecast. As a result, our treatment-related backlog increased to approximately $15.7 million as of June 30, 2026, up approximately 29% from $12.2 million at the end of the first quarter. Subsequent to quarter-end, in early July, PFNW also began receiving liquid effluent wastes from the Direct-Feed Low-Activity Waste (DFLAW) facility, a major milestone for the Company.

Notwithstanding this progress, our second quarter financial results do not yet reflect these developments. Although we maintained strong receipts and subsequent backlog through the second quarter as anticipated, we were required to delay the start of treatment of certain Hanford-related waste streams due to customer-directed changes in treatment protocols. These delays are now largely behind us, and we expect to commence treatment of these wastes in the third quarter. In addition, delays in several new project starts and the continued drawdown of stored waste inventories limited revenues in the quarter. At the same time, we incurred increased personnel and other operating expenses in anticipation of these waste receipts - thus, while the expected revenue has shifted to the second half of the year, associated costs were incurred in the second quarter, which contributed to our losses for the period. We currently estimate a net loss of approximately $(6.0) million on revenue of approximately $13 million for the second quarter, subject to the review of our second quarter 2026 financial statements by our independent registered public accounting firm.

Given that receipts of these Hanford-related waste streams began in the second quarter and DFLAW receipts have now commenced, and that this progress is directly reflected in the significant growth of our backlog, we believe the investments we have made in personnel, readiness, facility upgrades, and capacity ahead of these waste receipts are beginning to be realized.

Our Services Segment is also strengthening. In addition to the win at Lawrence Livermore National Laboratory in the first quarter, contract awards have been secured at multiple U.S. Department of Energy (DOE) facilities and commercial sites, supporting services backlog of over $17 million over the next year.

Turning to developments at Hanford, which underpin much of our optimism for the second half of 2026 and beyond, DOE has announced a revised Hanford Tank approach that includes adopting the "Hanford Dual Glass-Plus-Grout Strategy." This strategy has been presented to the public and stakeholders in several venues and specifically names the Company. DOE is coordinating this strategy with Washington State regulators and is targeting the second half of 2026 to begin implementation. As highlighted in recent DOE presentations, the principal features and anticipated advantages of this approach include: