Perma-Pipe International Holdings (PPIH) Q2 2025 earnings summary

Executive summary

• Net sales increased 7% year-over-year to $37.5 million for the quarter and 11% to $71.8 million for the six months ended July 31, 2024, driven by higher sales volumes.

• Net income attributable to common stock rose to $3.3 million for the quarter and $4.7 million for the six months, up from $1.0 million and a loss of $0.1 million, respectively, in the prior year.

• Backlog grew to $75.5 million at July 31, 2024, a 10% increase since January 31, 2024, excluding $46 million in additional awards secured after quarter-end.

• Highest year-to-date net income since 2017, driven by increased infrastructure spending in Saudi Arabia, India, and the U.A.E.

Financial highlights

• Gross profit for the quarter was $13.5 million (36% margin), up from $9.5 million (27% margin) year-over-year; for the six months, $24.0 million (33% margin) versus $16.2 million (25% margin).

• General and administrative expenses increased to $6.0 million for the quarter and $12.1 million for the six months, mainly due to higher payroll and professional fees.

• Earnings per share for the quarter were $0.41 basic and $0.40 diluted; for the six months, $0.60 basic and $0.59 diluted.

• Interest expense remained stable at $0.5 million for the quarter and $1.0 million for the six months.

Outlook and guidance

• Management expects continued benefit from increased sales activity and improved margins, with ongoing focus on operational efficiency.

• Management expects continued strong demand, supported by infrastructure spending in key international markets.

• Backlog plus post-quarter awards signals robust future revenue streams.