Perma-Fix Environmental Services, Inc.

Good day, ladies and gentlemen, and welcome to the Permafix Fiscal First Quarter 2026 Earnings Conference Call. At this time, all participants are placed on a listen-only mode, and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. And please note, this conference is being recorded. I will now turn the conference over to your host, Mr. David Waldman, Investor Relations. Sir, the floor is yours.

Thank you, and good morning, everyone. Welcome to Permafix Environmental Services' first quarter 2026 conference call. On the call with us this morning are Mark Duff, President and CEO, Dr. Lou Senefani, Executive Vice President of Strategic Initiatives, and Ben Naccarato, Chief Financial Officer. The company issued a press release this morning containing first quarter financial results, which is also posted on the company's website. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. I'd also like to remind everyone that certain statements contained within this conference call may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and and include certain non-GAAP financial measures. All statements on this conference call, other than statements of historical fact, are forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors, which could cause actual results and performance of the company to differ materially from such statements. These risks and uncertainties are detailed in the company's filings with the U.S. Securities and Exchange Commission, as well as this morning's press release. The company makes no commitment to disclose any revisions to forward-looking statements or any facts, events, or circumstances after the date you're on, but they're upon forward-looking statements. In addition, today's discussion will include references to non-GAAP measures. PermaFix believes such information provides an additional measurement and consistent historical comparison of its performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is available in today's news release on our website. Now I'd like to turn the call over to Mark Duff. Please go ahead, Mark.

All right. Thank you, David, and good morning, everyone. Thank you for joining us today. As you saw in this morning's press release, the first quarter was a transitional period for Permafix. While our financial results were weak, this was not unexpected. Many of the factors that impacted the quarter were consistent with what we discussed on our year-end call in March, including seasonal softness, lower waste receipts, the timing of achieving revenue milestones, and the deliberate steps were taken to prepare our facilities, workforce, and infrastructure for higher activity levels beginning in the second quarter. Importantly, the first quarter should not be viewed in isolation. We used the quarter to position the company for the next phase of activity. This included the deliberate processing and reduction of existing waste inventories, particularly at our Permafix Northwest facility so we could maximize capacity ahead of anticipated Hanford-related waste receipts. In addition, We completed treatment of several lower margin waste streams during the quarter, which further positions our facilities to improve, mix, and higher value activity as new receipts begin to ramp up. We also continued investing in personnel, training, facility improvements, and operational readiness to support additional shifts and higher production expectations beginning in Q2. These activities impacted near-term financial performance, but we believe they were necessary to prepare Permafix for what may be one of the most important growth opportunities in the company's history. The centerpiece of that opportunity remains Hanford. As we've discussed for some time, the Dewey Hanford's cleanup mission represents one of the largest and most complex environmental remediation programs in the United States. Permafix Northwest is located just outside the Hanford site, and we believe it's uniquely positioned to support multiple Hanford-related waste streams over the coming years. A key milestone in our preparation for this opportunity was the December 2025 renewal of the permit for our PermFix Northwest facility, which significantly expands our permitted liquid mixed waste processing capacity to approximately 1.2 million gallons annually and authorizes treatment of up to 175,000 tons of waste through macroencapsulation. Combined with our investments in automation, facility upgrades, and workforce expansion, this enhanced permit maturely strengthens our ability to support increased volumes from Hanford and other DOE mission objectives as activities ramp up. We are now beginning to see the opportunity move from preparation towards execution. Our Permavix Northwest facility began receiving ETF waste from Hanford in mid-April, which we believe can support sustainable revenues of more than $4 million per quarter as the waste stream continues. We're also working closely with DOE contractors on the anticipated start of the additional DF law-related dry waste and EMF effluent waste streams, which were delayed due to regulatory document extensions. Based on current activity, we believe Q2 represents an inflection point for the company with Permafix Northwest on track to deliver stronger revenue contributions as Hanford-related waste receipts and other customer activities increase. While the exact timing and pace of these receipts remain dependent on DOE and contractor schedules, we remain highly encouraged by the directions of the activity and the role Permafix can play in supporting the Hanford cleanup mission. In addition, DOE leadership continues to focus on advancing Hanford tank waste retrieval through grouting as a supplement path to DF law using available commercial treatment capacity. We believe this is highly significant for Permafix because of the Permafix Northwest provides additional local capacity near the Hanford site and is positioned to support de-waste tank waste treatment objectives over the next several years. Beyond the near-term ETF and DFLO related activities, we remain extremely focused on the broader grouting opportunities at Hanford. We believe Permafix Northwest is exceptionally well positioned for this opportunity given its proximity to the Hanford site. Our expanded permitting profile, existing waste treatment capabilities, and investments we've made over the past several years to expand grouting capabilities to reach production levels of over 4 million gallons of tank waste received per year. This is why we're so bullish on Hanford. It's not simply one waste stream or one contract opportunity. It's a long-duration remediation mission with multiple potential waste streams, multiple program phases, and the potential to support recurring treatment demand over an extended period. While timing will always be subject to government program execution, appropriations, and regulatory requirements, along with customer schedules, we believe the scale and duration of the opportunities are significant. We also recently completed several large proposal initiatives, including opportunities related to the Hanford tank routing, large project services for the U.S. Army Corps of Engineers and DOE at Y-12, and a proposal revision to support the USS Enterprise aircraft carrier decommissioning project for the Navy. While these opportunities remain subject to award timing and customer decisions, they reflect the breadth of our pipeline and the alignment of our capabilities with large, complex government remediation, decommissioning, and other waste missions. In addition to Hanford, we're also seeing renewed momentum in our services segment. During the quarter, we were awarded a two-year master task agreement valued at approximately $24 million by the Lawrence Livermore National Security site for demolition and disposal of of a building at the Lawrence Livermore Laboratory. This project mobilized and began supporting work in early April. It draws directly on our expertise in complex radiological and hazardous waste handling and facility decontamination, along with demolition and nuclear waste management. We view this award as an important validation of our nuclear services capabilities and our longstanding relationship with the Livermore Lab. More broadly, we've mobilized on several additional smaller projects, that have the potential to grow through the summer, and we continue to see a meaningful pipeline of project opportunities across nuclear services for demolition, remediation, decontamination, and other government-related field work. This is important because renewed services segment activities strengthens our broader Permafix platform by leveraging our integrated capabilities across project execution, waste management, transportation, treatment, and disposal. We also continue to make progress with our PFAS destruction platform As we announced in March, we successfully completed a PFAS treatment project for Four Rivers Nuclear Partnership, the DOE contractor responsible for environmental cleanup activities at the Paducah site. We received approximately 1,500 gallons of PFAS contaminated liquids and successfully treated the material using our patented pending Permafast destruction technology. This is an important precedent application for our technology supporting DOE cleanup activities and meeting the strict quality control programs as required by the department. PFAS contamination continues to represent one of the most significant environmental challenges facing both the government and commercial clients. Our approach is designed to permanently destroy PFAS compounds rather than simply transferring them to another medium. We believe this distinction is important as customers increasingly look for solutions that can reduce long-term environmental liabilities. During the quarter, PFAS receipts slowed, but activity resumed in May, supporting supported by several new winds at regional airports, and continued work through partnerships with generators and industry leaders focused on the destruction of PFAS liquids. We're also continuing the installation of our Gen 2 unit at our Ewok facility in Oak Ridge, which is designed to add approximately 2,000 gallons per shift of additional treatment capacity to support our existing operations. While construction experienced some supply chain and fabrication delays, Assembly activities are moving forward, and we expect the system to meaningfully expand our capacity once it's operational. Taken together, we believe PFAS represents a compelling long-term growth opportunity that complements our core nuclear and mixed waste treatment capabilities. We're still early in the commercialization curve, but the market need is real. Regulatory and customer's attention continues to increase, and we believe our destruction technology gives Permafix a differentiated position. Stepping back, the broader message is straightforward. Q1 was difficult, but it was also preparatory for us. We're now beginning to see the transition we've been preparing for begin to materialize across the business. At Hanford, ETF waste receipts began in April, and additional DF law-related streams are expected to follow. In nuclear services, the Livermore project has mobilized and our project pipeline is improving. In PFAS, we've demonstrated our technology in the field, secured additional opportunities, and continue to expand capacity. And at Permafix Northwest, our expanded permit and the facility investment position that we made position us to support the long-term waste receipts and longer-term grouting opportunities. We believe Permafix is at a clear inflection point. The investments we've made over the past several years in permits, people, infrastructure, automation, treatment capacity, and technology were all designed to prepare the company for the type of opportunity set now that is developing in front of us. Although quarterly results may continue to vary based on the timing of customer shipments, government programs, and project mobilizations, we believe the company is increasingly well positioned to deliver improved performance beginning in the second quarter through the balance of 2026 and over the long term as these opportunities continue to scale up. With that, I'll turn it over to Ben to review the financial results in more detail. Ben?