Perma-Fix Wins Share of $4.37B Hanford Nuclear-Waste Contract, Stock Hits One-Year High
PESI has more than doubled off its 52-week low of $8.02.
Summary
Perma-Fix has been awarded a subcontract under the $4.37 billion Hanford Tank Waste Operations & Closure contract to treat and dispose of pretreated liquid mixed low-level waste from the DOE's Hanford site. The work will be performed at the company's Perma-Fix Northwest facility in Richland, WA, which it has been upgrading in anticipation of this program. The stock jumped 18% to $20.96, hitting a one-year high, reflecting the market's view that this award materially improves the company's revenue outlook. This follows a preliminary Q2 net loss of ~$6M on ~$13M revenue reported in late July, but with Hanford waste receipts already beginning and backlog jumping. The contract's maximum value is shared among multiple awardees, so Perma-Fix's actual share is not yet disclosed, but the award validates its strategic investments and positions it for significant long-term revenue from the Hanford cleanup.
At the time of this announcement, PESI was trading at $20.39 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $432.3M. The 52-week trading range was $8.02 to $21.32. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.