Perma-Fix Environmental Services (NASDAQ:PESI) Inc has reported a 17% increase in group revenue in the third quarter and said it expects to see continued growth next quarter.
In the three months to end-September, revenue came in at $18.5 million, up from $15.8 million in Q3, 2021.
In the services segment, revenue was $9.6 million compared to $6.9 million in the year-earlier period, as "full operational status" was reached on several delayed projects, partly due to the pandemic.
Meanwhile, the group's treatment business saw revenue of around $8.9 million for the third quarter both this year and in 2021, the company said.
Perma-Fix highlighted that its treatment Segment had continued to see "steady improvement" in waste receipts since Q2, 2022 from certain customers who had delayed waste shipments.
READ: Perma-Fix Environmental Services sees 2Q revenue climb 20% on Treatment and Services sales growth
CEO Mark Duff added that he expected to expand the group's waste treatment offering to the commercial utility sector and oil and gas markets, which he reckons will be sustainable for several years.
"We have defined new procurement and market expansion opportunities with the US Navy, the US Department of Defense (DOD) and the US Department of Energy (DOE). The second phase of the Test Bed Initiative (TBI) project continues to move forward as DOE intends to submit the Research, Development and Demonstration (RD&D) permit to the state by the end of first quarter of 2023," he said.
"We believe our foundation, coupled with expansion of our treatment capabilities, increased bidding opportunities and improved federal budgets will continue to support our growth objectives," he added.
Gross profit in the latest third quarter was $3.1 million, up from $2.2 million in the third quarter of 2021, while Perma-Fix said its income from continuing operations was $824,000 versus $1.3 million in the third quarter of 2021.
Perma-Fix is a nuclear services company and provider of nuclear and mixed waste management services.
Its nuclear waste services include the management and treatment of radioactive and mixed waste for hospitals, research labs, institutions, and US federal agencies. The company also operates four nuclear waste treatment facilities.
Contact the writer at giles@proactiveinvestors.com