Perma Fix Environmental Services’ (PESI) Strong Backlog Overshadows Weak Results

Long Cast Advisers, an independent registered investment adviser, released its Q2 2026 investor letter. A copy can be downloaded here . The firm reported strong earnings in the second quarter, with results improving 20%, bringing year-to-date returns to +19%. While performance trailed the Russell 2000 and iShares US MicroCap ETF, it remained well ahead of the iShares SmallCap EAFE (ex-N. Am) ETF. Since inception in 2015, cumulative returns stand at 343% (15% CAGR), reflecting the firm's strategy of concentrated, patient investments in small and micro‑cap companies. The firm remains cautious in this environment, emphasizing patience and endurance while avoiding margin and volatility. In addition, please check the firm's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Long Cast Advisers highlighted Perma-Fix Environmental Services, Inc. (NASDAQ: PESI ). Headquartered in Atlanta, Georgia, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) is an environmental and technology know-how company. The one-month return of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) was 22.95%, and its shares gained 50.00% over the last 52 weeks. On August 07, 2026, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) stock closed at $18.08 per share, with a market capitalization of $383.36 million.

Long Cast Advisers stated the following regarding Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) in its Q2 2026 investor letter:

"In 2Q26, PDEX, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) and MTRX were the largest contributors. Among our other large holdings, PESI recently preannounced 2Q26 earnings indicating continued weak profitability but strong backlog growth on expanding processing at Hanford. There is potential for significantly more waste volumes if a decision is made to grout (embed in concrete) up to 9M gallons of low-level tank waste by 2030. This recent GAO report illustrates how large that opportunity could be and how favorable the government is in pursuing it."

Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . According to our database, 10 hedge fund portfolios held Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) at the end of the first quarter, compared to 11 in the previous quarter. While we acknowledge the potential of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey .