Perma-Pipe International Holdings (PPIH) Q1 2026 earnings summary

Executive summary

• Net sales increased 36% year-over-year to $46.7 million for the quarter ended April 30, 2025, driven by higher sales volumes in the Middle East and North America.

• Net income attributable to common stock rose to $5.0 million, a 243% increase from $1.4 million in the prior year quarter, reflecting improved project execution and margins.

• Backlog at April 30, 2025, was $131.1 million, more than double the $63.1 million at April 30, 2024.

• Both sales and net income marked record Q1 performance since 2017.

• Gross profit margin improved to 36% from 31% year-over-year, primarily due to favorable product mix and increased activity.

Financial highlights

• Gross profit was $16.7 million (36% of sales), up from $10.5 million (31% of sales) year-over-year.

• General and administrative expenses increased to $7.7 million from $6.1 million, mainly due to higher payroll and professional fees.

• Earnings per share (diluted) were $0.61, up from $0.18 in the prior year quarter.

• Cash and cash equivalents rose to $18.8 million from $15.7 million at the start of the quarter.

• Working capital increased to $58.9 million from $54.7 million sequentially.

Outlook and guidance

• Management expects continued billing and collection of contract assets and unbilled receivables within one year.

• The company anticipates that actions taken to remediate internal control weaknesses will strengthen financial reporting over time.

• Management expects to capitalize on strong Q1 momentum, targeting further growth in MENA and North America.

• The company is well-positioned to participate in development plans and gain additional market share.