Perma-Pipe International Holdings, Inc. Announces First Quarter Fiscal 2025 Financial Results

14.06.2025 - 11:00:25

Business Wire India

The Company generated net sales of $46.7 million compared to $34.3 million in the first quarter of 2024
Income before income taxes of $7.4 million versus $2.6 million in the first quarter of 2024
Backlog of $131.1 million at April 30, 2025, compared to $63.1 million at April 30, 2024

Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the first quarter ended April 30, 2025.

“Sales for the first quarter were $46.7 million, resulting in an increase of $12.4 million, or 36.2%, compared to $34.3 million in the same quarter last year. Net income attributable to common stock of $5.0 million was an increase of $3.6 million, or 243%, compared to $1.4 million in the first quarter of the prior year,” noted President and CEO Saleh Sagr.

Backlog currently stands at $131.1 million, a decrease of $7.0 million, compared to $138.1 million at January 31, 2025. However, the Company has experienced a significant increase in backlog of $68.0 million, or 108%, compared to $63.1 million at April 30, 2024. We feel encouraged with the level of backlog we have obtained, which remains more than double the level of reported backlog at the end of the first quarter last year,” Mr. Sagr continued.

“Our first quarter results represent unprecedented performance on behalf of the Company as both sales and net income attributable to common stock are the highest levels of performance in the first quarter since transitioning from MFRI to Perma-Pipe in 2017. Additionally, net income attributable to common stock during the first quarter represents approximately 55% of the Company’s full year fiscal 2024 results,” noted President and CEO Saleh Sagr.

“We are pleased with the level of business activity we are experiencing in various markets, which contributed to the overall increase in sales and earnings during the first fiscal quarter. Additionally, we are very encouraged by the level of performance in both the Americas and MENA region, which produced comparable results in the first quarter,” Mr. Sagr commented.

“The strength of our first quarter results provides significant momentum heading into the remaining quarters of fiscal 2025. We feel well-positioned that the Company will continue to capitalize on this momentum and drive further participation in development plans in MENA and gain additional market share in the North America region,” Mr. Sagr concluded.

First Quarter Fiscal 2025 Results

Net sales were $46.7 million and $34.3 million in the three months ended April 30, 2025 and 2024, respectively. The increase of $12.4 million, or 36%, was a result of increased sales volumes in the Middle East and in North America.

Gross profit was $16.7 million, or 36% of net sales, and $10.5 million, or 31% of net sales, in the three months ended April 30, 2025 and 2024, respectively. The increase of $6.2 million, was driven primarily by increased volume of activity and better margins due to product mix.

General and administrative expenses were $7.7 million and $6.1 million in the three months ended April 30, 2025 and 2024, respectively. The increase of $1.6 million, was due to higher payroll expenses and professional fees in the quarter.

Selling expenses remained consistent and were $1.1 million and $1.2 million in the three months ended April 30, 2025 and 2024, respectively.

Net interest expense remained consistent and was $0.4 million and $0.5 million in the three months ended April 30, 2025 and 2024, respectively.

Other expense remained consistent and was less than $0.1 million in the three months ended April 30, 2025 and 2024, respectively.

The Company's ETR was 21% and 30% in the three months ended April 30, 2025 and 2024, respectively. The change in the ETR is due to the mix of income and loss in various jurisdictions.

Net income attributable to common stock was $5.0 million and $1.4 million in the three months ended April 30, 2025 and 2024, respectively. The increase of $3.6 million, was mainly due to increased sales volumes and better project execution in the quarter.

Perma-Pipe International Holdings, Inc.

Perma-Pipe International Holdings, Inc. (the “Company”) is a global leader in pre-insulated piping and leak detection systems for oil and gas gathering, district heating and cooling, and other applications. It uses its extensive engineering and fabrication expertise to develop piping solutions that solve complex challenges regarding the safe and efficient transportation of many types of liquids. In total, the Company has operations at fourteen locations in six countries.

Forward-Looking Statements

and under the Investor Center section of our website (http://investors.permapipe.com.)

The Company's fiscal year ends on January 31. Years, results, and balances described as 2025, 2024, and 2023 are for the fiscal year ended January 31, 2026, 2025, and 2024, respectively.

Additional information regarding the Company's financial results for the fiscal year ended January 31, 2025, including

management's discussion and analysis of the Company's financial condition and results of operations, is contained in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2025, which will be filed with the Securities and Exchange Commission on or about the date hereof and will be accessible at www.sec.gov and www.permapipe.com. For more information, visit the Company's website.

PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
*(In thousands, except per share data)*
(Unaudited)

	Three Months Ended April 30,
		2025		2024
Net sales	$	46,747	$	34,321
Gross profit		16,724		10,517

Total operating expenses		8,835		7,383

Income from operations		7,889		3,134

Interest expense		406		507
Other expense		47		67
Income before income taxes		7,436		2,560

Income tax expense		1,582		770

Net income	$	5,854	$	1,790
Less: Net income attributable to non-controlling interest		902		347
Net income attributable to common stock	$	4,952	$	1,443

Weighted average common shares outstanding
Basic		7,983		7,906
Diluted		8,079		8,056

Earnings per share attributable to common stock
Basic	$	0.62	$	0.18
Diluted	$	0.61	$	0.18

PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
*(In thousands)*
(Unaudited)

	April 30, 2025		January 31, 2025
ASSETS
Current assets	$	120,700	$	108,802
Long-term assets		57,615		56,439
Total assets	$	178,315	$	165,241
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	61,751	$	54,063
Long-term liabilities		26,459		28,073
Total liabilities		88,210		82,136
Non-controlling interests		12,238		10,967
Stockholders' equity		77,867		72,138
Total liabilities and equity	$	178,315	$	165,241