Perma-Pipe International Holdings Reports Strong Third Quarter and Year-to-Date Financial Results for Fiscal 2025
Perma-Pipe International Holdings, Inc., a global leader in pre-insulated piping systems and leak detection solutions, today announced its financial results for the third quarter ended October 31, 2025, highlighting significant growth in revenue, profitability, and backlog driven by strong demand across its core markets.
For the third quarter of fiscal 2025, Perma-Pipe reported net sales of $61.1 million, representing a substantial increase of $19.5 million, or 46.9%, compared to $41.6 million in the same period last year. The growth was primarily fueled by higher sales volumes in both the Middle East and North America, reflecting sustained demand for the Company’s solutions in energy, infrastructure, and district heating projects.
Gross profit for the quarter rose to $21.0 million, up $6.9 million from $14.1 million in the prior-year quarter. This improvement was largely attributable to increased activity levels and improved operating leverage. Gross margins benefited from better project execution as higher volumes flowed through the Company’s cost structure.
Selling, general, and administrative expenses for the quarter totaled $8.3 million, compared to $7.3 million in the third quarter of fiscal 2024. The increase was primarily driven by higher payroll and professional fees, including approximately $0.5 million associated with Sarbanes-Oxley Section 404 compliance costs following the Company’s transition from a small reporting company to an accelerated filer. Selling expenses increased slightly to $1.3 million, reflecting modest payroll-related increases.
Net interest expense remained flat year over year at $0.5 million. The Company’s effective tax rate for the quarter declined to 27%, compared to 32% in the prior-year period, reflecting a favorable mix of income across various tax jurisdictions.
As a result of these factors, net income attributable to common stock rose sharply to $6.3 million, an increase of $3.8 million, or 152.0%, compared to $2.5 million in the third quarter of fiscal 2024.
Commenting on the results, President and Chief Executive Officer Saleh Sagr stated, “Our third quarter performance reflects continued momentum across our global operations. Strong demand in both the Middle East and North America, combined with disciplined execution, enabled us to deliver significant growth in revenue and profitability.”
Nine-Month Fiscal 2025 Performance
For the nine months ended October 31, 2025, Perma-Pipe reported net sales of $155.8 million, representing an increase of $42.4 million, or 37.4%, compared to $113.4 million in the prior-year period. Similar to the quarterly results, the year-to-date increase was driven by higher sales volumes across the Middle East and North America.
Gross profit for the nine-month period reached $52.2 million, up from $38.1 million in the prior year, reflecting increased activity levels and improved operating efficiency. General and administrative expenses rose to $26.1 million from $19.5 million, primarily due to higher payroll and professional fees. This increase also included approximately $1.0 million related to Sarbanes-Oxley compliance and a one-time compensation charge of approximately $2.0 million associated with the departure of the Company’s previous CEO.
Selling expenses remained relatively stable at $3.5 million for the nine-month period, compared to $3.8 million last year, while net interest expense declined to $1.3 million from $1.5 million, reflecting lower interest rates during the current fiscal year.
The Company’s effective tax rate for the nine-month period was 29%, compared to 28% in the prior year. The slight increase was driven by product mix across tax jurisdictions and limitations related to the deductibility of the one-time executive compensation charge.
Net income attributable to common stock for the nine months totaled $12.1 million, an increase of $4.9 million, or 68.1%, compared to $7.2 million in the same period of fiscal 2024.
As of October 31, 2025, Perma-Pipe’s backlog stood at $148.9 million, representing an increase of $10.8 million, or 7.8%, compared with $138.1 million as of January 31, 2025. Notably, backlog at the end of the third quarter of fiscal 2025 was more than 30% higher than the backlog reported at the end of the third quarter of the prior fiscal year, underscoring sustained demand across both North America and the Middle East and North Africa (MENA) region.
Mr. Sagr noted that year-to-date revenues for fiscal 2025 have already reached approximately the same level as full-year fiscal 2024 revenues. Additionally, year-to-date net income of $12.1 million has exceeded full-year fiscal 2024 results, with one quarter remaining in the current fiscal year.
“These results represent the highest quarterly and year-to-date earnings since our transition from MFRI to Perma-Pipe in 2017,” Mr. Sagr added. “They reflect meaningful operational and financial improvement across the organization.”
Strategic Progress
The Company continues to benefit from sustained activity in its core markets and improved operating leverage. Strong performance in the Middle East and North America highlights the ongoing strengthening of Perma-Pipe’s global platform. Strategic initiatives, including investment in the new Qatar facility, are already yielding results, with more than $5.0 million in awards secured for execution during the remainder of fiscal 2025.
Source Link:https://www.businesswire.com/
