Perma-Pipe Reports 36% Revenue Growth to $46.7 Million in Latest Quarter

Perma-Pipe International Holdings, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $46.7 million for the three months ended April 30, 2025, compared to $34.3 million in the same period last year, marking a 36% increase. The company's gross profit also saw a substantial rise, climbing to $16.7 million, or 36% of net sales, up from $10.5 million, or 31% of net sales, in the prior year. This increase in profitability was attributed to higher sales volumes, particularly in the Middle East and North America, as well as improved margins due to a favorable product mix.

Operating expenses increased to $8.8 million from $7.4 million year-over-year, primarily driven by higher general and administrative costs, which rose to $7.7 million from $6.1 million. Despite these rising costs, Perma-Pipe's income from operations surged to $7.9 million, up from $3.1 million in the previous year. The company reported a net income attributable to common stock of $4.9 million, a significant increase from $1.4 million in the same quarter of 2024. This growth in net income was largely due to enhanced project execution and increased sales volumes.

In terms of operational developments, Perma-Pipe has been actively expanding its market presence, particularly through its joint venture with Gulf Insulation Group, which was established in June 2023. This venture aims to enhance the company's footprint in Saudi Arabia, Kuwait, and Bahrain, focusing on the manufacture and sale of pre-insulated piping systems. The joint venture's assets and liabilities are included in Perma-Pipe's consolidated financial statements, reflecting a strategic move to bolster its capabilities in the region.

The company also reported improvements in its cash position, with cash and cash equivalents increasing to $18.8 million as of April 30, 2025, compared to $15.7 million at the end of January 2025. Perma-Pipe's working capital rose to $58.9 million, up from $54.7 million, supported by an increase in accounts receivable and cash reserves. The company maintained a strong borrowing capacity, with $5.0 million available under its North American credit facility and $14.5 million under foreign revolving credit agreements.

Looking ahead, Perma-Pipe anticipates continued growth driven by increased project activity and market demand. The company is focused on addressing material weaknesses in its internal controls over financial reporting, which were identified in its recent evaluations. Management has outlined a remediation plan aimed at strengthening these controls, which they believe will enhance the reliability of financial reporting and support the company's ongoing operational success.