PPIH · Perma-Pipe International Holdings, Inc.

Perma-Pipe International Holdings, Inc. delivered record fiscal 2025 results, with net sales surging 33.1% to $210.9 million, driven by higher volumes in the Middle East, Canada, and the United States. Gross profit rose to $69.5 million (33% of sales), supported by increased activity and stable margins, though slightly down from 34% prior year. Operating expenses climbed to $40.0 million, reflecting higher payroll, professional fees including $1.0 million for Sarbanes-Oxley 404 compliance amid filer status transition, and a $2.0 million one-time CEO departure charge. Q4 showed similar strength, with sales up 22.4% to $55.1 million and gross profit up to $17.3 million. Effective tax rate improved to 24.9% from 29.1%, due to product mix across jurisdictions, boosting net income attributable to common stock 88.9% to $17.0 million ($2.09 diluted EPS). Backlog of $121.6 million signals robust demand and execution. Management highlighted multi-regional expansion and new initiatives: a long-term Ohio facility lease for AI data center-related district heating/cooling production to capture Northeast market share, and a new J.P. Morgan Chase credit facility standardizing global borrowing at better terms for expansion liquidity. CEO Saleh Sagr emphasized scaling operations for sustained shareholder returns, positioning the company strongly into 2026 despite no formal guidance provided.