THE WOODLANDS, Texas - Thursday, 16. April 2026
Net
sales increased to $55.1 million for the quarter and $210.9 million for
the full year, compared to $45.0 million and $158.4 million in the
prior year periods, respectively
Income before income taxes increased
to $6.4 million for the quarter and $27.5 million for the full year,
compared to $5.3 million and $18.5 million in the prior year periods,
respectively
GAAP diluted earnings per share increased to $0.60 for
the quarter and $2.09 for the full year, compared to $0.22 and $1.12 in
the prior year periods, respectively
Backlog stood at $121.6 million, reflecting strong conversion to revenue during the quarter
(BUSINESS
WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) today
announced financial results for the fourth quarter and 2025 fiscal year
ended January 31, 2026.
“For the three months ended January 31,
2026, net sales were $55.1 million, an increase of $10.1 million, or
22.4%, compared to $45.0 million in the same quarter of the prior year.
Growth was driven by higher sales volumes in both the Middle East and
North America. Gross profit was $17.3 million, up $2.1 million from
$15.2 million last year, reflecting higher activity levels. Selling,
general and administrative expenses increased slightly to $10.3 million
from $9.7 million, primarily due to higher payroll costs, partially
offset by lower bonus costs. The Company’s effective tax rate (“ETR”)
was 12.3%, compared to 32.1% in the prior-year quarter, reflecting the
impact of product mix across various tax jurisdictions. As a result, net
income attributable to common stock was $4.9 million, an increase of
$3.1 million, or 172.2%, compared to $1.8 million in the fourth quarter
of fiscal 2024,” noted President and CEO Saleh Sagr.
“For the
year ended January 31, 2026, net sales were $210.9 million, an increase
of $52.5 million, or 33.1%, compared to $158.4 million in the prior year
period. The increase was primarily attributable to higher sales volumes
in both the Middle East and North America. Gross profit was $69.5
million, compared to $53.2 million in the prior year period, reflecting
increased activity levels. Selling, general and administrative expenses
were $40.1 million, up from $32.9 million, due to higher payroll and
professional fees, including approximately $1.0 million related to
Sarbanes-Oxley Section 404 compliance in connection with our transition
from a non-accelerated filer to an accelerated filer. This also includes
a one-time compensation charge of approximately $2.0 million related to
the departure of the previous CEO. The Company’s effective tax rate was
24.9%, compared to 29.1% in the prior-year period. The change in the
Company's effective tax rate reflects product mix across various tax
jurisdictions and the Company’s overall reduction in its effective tax
rate for the year was partially offset by the impact of a tax limitation
related to the one-time charge associated with the prior CEO’s
departure. Net income attributable to common stock was $17.0 million, an
increase of $8.0 million, or 88.9%, compared to $9.0 million in fiscal
2024,” Mr. Sagr commented.
President and CEO Saleh Sagr added:
“Our backlog stood at $121.6 million as of January 31, 2026. This
reflects strong operational execution as we successfully accelerated the
conversion of existing sales orders into realized revenue. Our backlog
remains at historically strong levels. We continue to see meaningful
multi-regional expansion, particularly across North America and the
Middle East, reinforcing sustained global demand for our solutions.”
“Our
fiscal 2025 results represent a landmark achievement for the Company.
Total revenues of $210.9 million and net income attributable to common
stockholders of $17.0 million mark our highest level of earnings in the
Company’s modern operating history, driven not only by strong top-line
growth but also by improved margins. This record performance was driven
by broad-based strength across our global footprint, with significant
growth contributions from the Middle East and North America. Our ability
to scale across these diverse markets while maintaining disciplined
margin performance has enabled us to convert top-line momentum into
meaningful bottom-line value for our shareholders.”
“To sustain
this trajectory, we have entered into a long-term lease for a new
production facility in Ohio (AI data centers). This strategically
located hub will serve as a primary logistics center for the Northeast
and New England corridors, enabling us to localize production for our
district heating and cooling offerings and capture additional regional
market share. The region’s favorable and flexible labor environment
further enhances our operational agility.”
“Supporting our
long-term growth strategy, we also finalized a new credit facility with
J.P. Morgan Chase. This agreement represents a watershed moment for the
Company. We have standardized our borrowing platform globally at
significantly improved terms. This transition optimizes our cost of
capital while providing the liquidity necessary to support the next
phase of our global expansion,” Mr. Sagr continued.
“With record
earnings as our foundation and a modernized capital structure as our
fuel, we enter the remainder of 2026 with strong confidence in our
ability to scale our global operations and drive meaningful shareholder
returns,” Mr. Sagr concluded.
2025 Results
Net sales were
$210.9 million for the fiscal year ended January 31, 2026, an increase
of $52.5 million, or 33.1%, from $158.4 million in the prior year. The
growth was primarily driven by higher sales volumes across our key
markets in the Middle East, Canada, and the United States
Gross
profit was $69.5 million, or 33% of net sales, compared to $53.2
million, or 34% of net sales, in the prior year. The $16.3 million was
driven by higher sales volumes and consistent gross margins globally.
General
and administrative expenses were $35.3 million, compared to $28.0
million in the prior year. The increase of $7.3 million was primarily
related to higher compensation costs and professional fees, including
approximately $1.0 million relating to Sarbanes-Oxley 404 compliance in
connection with our transition from a non-accelerated filer to an
accelerated filer. This also includes a one-time compensation charge of
approximately $2.0 million related to the departure of the previous CEO.
Selling
expenses were $4.7 million, compared to $4.9 million in the years ended
January 31, 2026 and 2025, respectively. The decrease of $0.2 million
was primarily driven by lower payroll expenses during the year.
Interest
expense, net was $1.8 million and $1.9 million in the years ended
January 31, 2026 and 2025, respectively. The decrease of $0.1 million
was the result of an overall reduction in interest rates during the
year.
The Company's worldwide effective tax rates ("ETR") were
24.9% and 29.1% in the years ended January 31, 2026 and 2025,
respectively. The change in ETR was largely due to changes in the mix of
income and loss in various tax jurisdictions and the domestic Global
Intangible Low-Taxed Income ("GILTI") inclusion.
Net income
attributable to common stock was $17.0 million, or $ 2.09 per diluted
share, for the fiscal year ended January 31, 2026, compared to $9.0
million, or $ 1.12 per diluted share, in the prior year. The 89%
increase was driven by the significant growth in sales volumes and
operational efficiencies discussed above, partially offset by the
one-time charges previously noted and amounts attributable to
non-controlling interest.
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 thirteen locations in seven countries.
Forward-Looking Statements
Certain
statements and other information contained in this press release that
can be identified by the use of forward-looking terminology constitute
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and are subject to the safe harbors
created thereby, including, without limitation, statements regarding the
expected future performance and operations of the Company. These
statements should be considered as subject to the many risks and
uncertainties that exist in the Company's operations and business
environment. Such risks and uncertainties include, but are not limited
to, the following: (i) fluctuations in the price of oil and natural gas
and its impact on customer order volume for the Company's products; (ii)
the Company’s ability to purchase raw materials at favorable prices and
to maintain beneficial relationships with its suppliers; (iii)
decreases in government spending on projects using the Company’s
products, and challenges to the Company’s non-government customers’
liquidity and access to capital funds; (iv) the Company’s ability to
repay its debt and renew expiring international credit facilities; (v)
the Company’s ability to effectively execute its strategic plan and
achieve sustained profitability and positive cash flows; (vi) the
Company's ability to collect a long-term account receivable related to a
project in the Middle East; (vii) the Company’s ability to interpret
changes in tax regulations and legislation; (viii) the Company's ability
to use its net operating loss carryforwards; (ix) reversals of
previously recorded revenue and profits resulting from inaccurate
estimates made in connection with the Company’s "over-time" revenue
recognition; (x) the Company’s failure to establish and maintain
effective internal control over financial reporting; (xi) the timing of
order receipt, execution, delivery and acceptance for the Company’s
products; (xii) the Company’s ability to successfully negotiate
progress-billing arrangements for its large contracts; (xiii) aggressive
pricing by existing competitors and the entrance of new competitors in
the markets in which the Company operates; (xiv) the Company’s ability
to manufacture products free of latent defects and to recover from
suppliers who may provide defective materials to the Company; (xv)
reductions or cancellations of orders included in the Company’s backlog;
(xvi) risks and uncertainties specific to the Company's international
business operations; (xvii) the Company’s ability to attract and retain
senior management and key personnel; (xviii) the Company’s ability to
achieve the expected benefits of its growth initiatives; (xix) the
impact of pandemics and other public health crises on the Company and
its operations; and (xx) the impact of cybersecurity threats on the
Company’s information technology systems. Shareholders, potential
investors and other readers are urged to consider these factors
carefully in evaluating the forward-looking statements and are cautioned
not to place undue reliance on such forward-looking statements. The
forward-looking statements made herein are made only as of the date of
this press release and we undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise. More detailed information about factors that
may affect our performance may be found in our filings with the
Securities and Exchange Commission, which are available at
https://www.sec.gov 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 ending January 31, 2026, 2025, and
2024, respectively.
Additional information regarding the
Company's financial results for the fiscal year ended January 31, 2026,
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, 2026, 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 January 31,
Year Ended January 31,
2026
2025
2026
2025
Net sales
$
55,129
$
44,987
$
210,925
$
158,384
Gross profit
17,337
15,171
69,488
53,248
Total operating expenses
10,367
9,732
40,039
32,947
Income from operations
6,970
5,439
29,449
20,301
Interest expense, net
505
451
1,822
1,940
Other (expense) income, net
(58
)
262
(134
)
107
Income before income taxes
6,407
5,250
27,493
18,468
Income tax expense
787
1,685
6,844
5,377
Net income
$
5,620
$
3,565
$
20,649
$
13,091
Less: Net income attributable to non-controlling interest
702
1,805
3,614
4,108
Net income attributable to common stock
$
4,918
$
1,760
$
17,035
$
8,983
Weighted average common shares outstanding
Basic
8,103
7,983
8,047
7,956
Diluted
8,206
8,073
8,148
8,015
Earnings per share
Basic
$
0.61
$
0.22
$
2.12
$
1.13
Diluted
$
0.60
$
0.22
$
2.09
$
1.12
Note: Earnings per share calculations could be impacted by rounding.
PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 31,
2026
2025
ASSETS
Current assets
$
146,734
$
108,802
Long-term assets
70,752
56,439
Total assets
$
217,486
$
165,241
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
$
79,789
$
54,063
Long-term liabilities
31,396
28,073
Total liabilities
111,185
82,136
Non-controlling interests
15,663
10,967
Stockholders' equity
90,638
72,138
Total liabilities and stockholders' equity
$
217,486
$
165,241
PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
ADJUSTED INCOME BEFORE TAX
(In thousands)
(Unaudited)
The
following information contains a reconciliation of the non-GAAP
financial measure of adjusted income before income tax and income before
tax prepared in accordance with generally accepted accounting
principles ("GAAP") for the three and twelve months ended January 31,
2026, and 2025, respectively. This reconciliation is intended to provide
investors with useful information in evaluating the Company's
performance. Adjusted income before tax includes certain adjustments as
identified below. This measure is not considered an alternative to
income before tax or other financial measures of performance that are
prepared in accordance with GAAP. The Company believes that the
exclusion of certain items from income before tax allows investors to
more effectively evaluate the Company's operating performance and
identify trends that might not be apparent due to the variability and
infrequent nature of these items. In addition, the Company believes this
measure provides meaningful information to investors when comparing
results between periods and performance with respect to the Company's
peers.
Adjustments were made for certain items as follows: (i) a
one-time charge associated with the acceleration of executive
compensation; (ii) a one-time litigation settlement charge; and (iii)
other non-recurring items. These non-GAAP measures are provided to
enhance the user's overall understanding of the company’s current
financial performance and may not be comparable to similarly titled
measures used by other companies.
The following table provides a reconciliation of the GAAP and non-GAAP financial measures:
For the three months ended
For the twelve months ended
January 31,
2026
January 31,
2025
January 31,
2026
January 31,
2025
Income before income tax (GAAP as reported)
$
6,407
$
5,250
$
27,493
$
18,468
Acceleration of certain executive compensation
-
-
2,018
-
Litigation settlement
-
-
-
35
Other one-time charges
-
-
88
517
Adjusted income before tax
$
6,407
$
5,250
$
29,599
$
19,020
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Contacts
Perma-Pipe International Holdings, Inc.
Saleh Sagr
President, CEO, and Director
Perma-Pipe Investor Relations
281.941.2445
investor@permapipe.com
