Perma-Pipe Reports 47% Revenue Growth to $61.1 Million in Latest Quarter

Perma-Pipe International Holdings, Inc. reported significant financial growth in its latest quarterly filing, with net sales reaching $61.1 million for the three months ended October 31, 2025, compared to $41.6 million for the same period in 2024. This represents a 47% increase, driven primarily by higher sales volumes in both the Middle East and North America. For the nine-month period, net sales totaled $155.8 million, up from $113.4 million in the prior year, marking a 37% increase. The company's gross profit also saw a substantial rise, reaching $21.0 million for the quarter and $52.2 million for the nine months, compared to $14.1 million and $38.1 million, respectively, in the previous year.

Operating expenses increased to $9.6 million for the third quarter, up from $8.5 million in 2024, largely due to higher payroll and professional fees. However, the company managed to improve its income from operations to $11.4 million, compared to $5.6 million in the prior year. Net income attributable to common stock was $6.3 million for the quarter, a significant increase from $2.5 million in the same period last year. For the nine months, net income attributable to common stock rose to $12.1 million from $7.2 million, reflecting improved project execution and increased sales activity.

In terms of strategic developments, Perma-Pipe has expanded its market presence through a joint venture with Gulf Insulation Group, which was established in June 2023. This partnership aims to enhance the company's capabilities in manufacturing and selling pre-insulated piping systems in Saudi Arabia, Kuwait, and Bahrain. The joint venture has contributed to the company's operational growth, with total assets from the venture amounting to $44.8 million as of October 31, 2025.

Operationally, Perma-Pipe reported an increase in cash and cash equivalents to $27.2 million, up from $15.7 million at the beginning of the fiscal year. The company also noted a rise in accounts receivable, which increased by $13.5 million, reflecting the growth in sales. The total debt as of October 31, 2025, was $29.7 million, compared to $24.5 million at the end of January 2025, indicating a strategic approach to financing its growth initiatives.

Looking ahead, Perma-Pipe anticipates continued growth driven by increased demand in its key markets. The company believes its current cash position and available credit facilities will be sufficient to support its operations and strategic initiatives over the next 12 months. However, it also acknowledged ongoing challenges related to internal controls over financial reporting, which it is actively working to remediate. The management is focused on enhancing its financial reporting processes and controls to ensure compliance and accuracy in its financial statements.