Perma-Pipe revenue jumps 24% to $59.6M in Q2 2026
Perma-Pipe delivered double-digit quarterly sales and EPS growth, increased backlog, and secured a larger global credit facility while absorbing sizable one-time charges.
Rhea-AI Filing Summary
Perma-Pipe International Holdings, Inc. (PPIH) reported strong growth for the quarter ended July 31, 2026, with net sales of $59.6 million, up 24.4% from $47.9 million a year earlier, driven by higher volumes in North America and MENA. Net income attributable to common stock rose to $2.5 million, or $0.31 per diluted share, versus $0.9 million, or $0.10 per diluted share, despite a $3.9 million charge for an uncollectible receivable and about $0.5 million of Ohio start-up costs. Gross profit increased to $17.4 million, though gross margin eased to 29.2% from 30.1% on higher materials, logistics, and ramp-up costs.
Operating cash flow in the quarter was about $7.2 million, lifting cash to $31.8 million. Backlog reached $142.3 million, up from $121.6 million at January 31, 2026, supported by over $67 million in new orders. The company also replaced its prior asset-based facility with a new global credit agreement providing approximately $90 million of committed capacity plus up to $50 million of incremental capacity.
Positive
- Net sales grew 24.4% year-over-year to $59.6 million, reflecting stronger volumes in both North America and MENA.
- Diluted EPS tripled to $0.31 from $0.10, with net income attributable to common stock rising to $2.5 million.
- Backlog increased to $142.3 million, supported by more than $67 million of new orders in the quarter.
- Operating cash flow strengthened, with $7.2 million generated in Q2 and $13.3 million in the first six months, boosting cash to $31.8 million.
Negative
- Gross margin declined to 29.2% from 30.1%, pressured by higher materials and logistics costs and Ohio start-up expenses.
- Six-month income before income taxes fell to $7.8 million from $10.2 million, a significant year-over-year decline on a GAAP basis.
- A $3.9 million uncollectible receivable charge and $0.5 million of Ohio start-up costs weighed on profitability.
- Total debt increased to $36.1 million from $32.5 million between January 31 and July 31, 2026, with $17.3 million drawn on the prior revolver and $23.0 million on the new revolving facility at closing.
Filing Explained
The refinancing replaced the prior facility, leaving $23 million drawn on a $75 million revolver plus a $14 million term loan.
The company reports that its
At closing, the new structure comprised a
8-K Event Classification
Key Figures
Key Terms
backlog financial
asset-based revolving credit facility financial
Adjusted income before tax financial
non-controlling interest financial
memorandum of understanding financial
Earnings Snapshot
FAQ
How did PPIH’s revenue perform in the second quarter of 2026?
How did PPIH’s backlog change as of July 31, 2026?
What were Perma-Pipe’s key non-recurring items in Q2 2026?
How much cash flow from operations did PPIH generate in Q2 2026?
What are the main terms of Perma-Pipe’s new global credit facility?
How did PPIH’s adjusted income before tax compare year over year?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Results of Operations and Financial Condition.
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Financial Statements and Exhibits.
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Exhibits. The following exhibit is being furnished herewith:
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| (99.1) | Press Release of Perma-Pipe International Holdings, Inc., dated September 9, 2026, regarding its financial results for its second quarter ended July 31, 2026 | |
| (104) | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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PERMA-PIPE INTERNATIONAL HOLDINGS, INC.
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Date: September 9, 2026
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By:
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/s/ Matthew Lewicki
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Matthew Lewicki
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Vice President and Chief Financial Officer
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Exhibit 99.1
Perma-Pipe International Holdings, Inc. Announces Second Quarter 2026 Financial Results
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Net Sales Increased 24% Year-over-Year to $59.6 Million |
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Gross Profit Up 21% to $17.4 Million |
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Net Income Attributable to Common Stock Increased $1.6 Million to $2.5 Million, or $0.31 per Diluted Share, Including a $3.9 Million Receivable Provision and a $1.6 Million Discrete Tax Benefit |
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Backlog of $142.3 Million Supported by More Than $67 Million of Q2 Awards |
The Woodlands, Texas - September 9, 2026 - Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) ("Perma-Pipe" or the "Company"), a global leader in engineered pipe services specializing in anti-corrosion coatings, insulation solutions, containment systems, custom fabrication and leak detection, today announced financial results for the second quarter of fiscal 2026 ended July 31, 2026.
"Our second quarter results reflect continued commercial momentum and the fundamental strength of our end markets," stated President and Chief Executive Officer Saleh Sagr. "We grew net sales year-over-year, added over $67 million in new orders to backlog, and continued to expand Perma-Pipe’s footprint in strategic markets to capture strong secular demand, particularly for localized infrastructure solutions. Importantly, we delivered year-over-year growth in net income attributable to common stockholders, which underscores the earnings power of the platform we are building."
"Operationally, we continued to build a strong foundation for sustainable, long-term growth," continued Mr. Sagr. "We commenced operations and have ramped production at our new Ohio facility, in part to support higher demand in the U.S. market. In MENA, we are expanding our Qatar facility to meet local demand and, subsequent to quarter-end, entered into a memorandum of understanding to form a joint venture in Jordan. Initially, we will serve a key role in the supply chain for a large-scale, water-security, government-supported infrastructure program through the joint venture; longer term, we will support cross-border water, oil and gas, energy, and infrastructure projects."
Concluded Mr. Sagr, "We enter the second half of the year with momentum, supported by our strong backlog, a growing pipeline of RFP and quoting activity, and a new global credit facility that together set the stage for Perma-Pipe’s next stage of growth. With disciplined execution and a product portfolio aligned with our customers’ infrastructure priorities, we are confident in our ability to convert the opportunities before us into sustainable, long-term value for our shareholders."
Second Quarter Fiscal 2026 Results
Net sales were $59.6 million for the three months ended July 31, 2026, an increase of $11.7 million, or 24.4%, compared to $47.9 million in the same quarter of the prior year. The increase was driven by higher sales volumes in both North America and the MENA region.
Gross profit was $17.4 million, an increase of $3.0 million, or 20.7%, compared to $14.4 million in the prior-year quarter, reflecting increased activity levels. Gross margin was 29.2%, compared to 30.1% in the prior-year quarter, reflecting increased materials and logistics costs that are having impact on global operations, as well as ramp-up costs associated with the Company’s new Ohio manufacturing facility.
General and administrative expenses were $11.9 million, compared to $10.0 million in the prior-year quarter. The current quarter included a $3.9 million charge related to an uncollectible account receivable from a specific customer and approximately $0.5 million of start-up costs at the Company’s new Ohio manufacturing facility, partially offset by lower personnel costs, as the prior-year quarter included a $2.0 million non-recurring charge for the acceleration of certain executive compensation expenses in connection with an executive departure.
Selling expenses were $1.3 million, compared to $1.2 million in the prior-year quarter.
Income from operations was $4.3 million, compared to $3.2 million in the prior-year quarter.
Net interest expense was $0.5 million, compared to $0.4 million in the prior-year quarter. The increase was primarily driven by incremental borrowings.
Income before income taxes was $3.9 million, compared to $2.8 million in the same quarter of the prior year. Adjusted income before taxes was $8.3 million, compared with $4.9 million last year. For the six-month period, Adjusted income before taxes was $12.5 million, compared with $12.3 million in the same period last year (non-GAAP).
Income tax expense was $0.6 million, compared to $1.5 million in the prior-year quarter. The Company’s effective tax rate was approximately 16%, compared to 54% in the prior-year quarter. The lower rate in the current quarter primarily reflects a discrete tax benefit of approximately $1.6 million related to the uncollectible account receivable recognized during the quarter. The prior-year rate reflected changes in the mix of income and loss across the jurisdictions in which the Company operates, which can cause the effective rate to vary meaningfully from period to period.
Net income attributable to common stock was $2.5 million, or $0.31 per diluted share, compared to $0.9 million, or $0.10 per diluted share, in the prior-year quarter.
Cash and cash equivalents at the end of the second quarter of fiscal 2026 totaled $31.8 million, up $3.5 million from $28.3 million at the end of the first quarter. During the second quarter, operating activities provided approximately $7.2 million of cash, driven by net income and favorable changes in working capital, principally the collection of accounts receivable and higher accounts payable. Capital expenditures were approximately $2.0 million in the second quarter of fiscal 2026.
During the first six months of fiscal 2026, operating activities provided $13.3 million of cash, compared to $1.3 million used in the prior-year period, driven by favorable changes in working capital, most notably accounts receivable and accounts payable. Capital expenditures were $3.2 million for the first six months of fiscal 2026.
Total debt was $36.1 million at July 31, 2026, compared with $32.5 million at January 31, 2026.
At July 31, 2026, the Company had $17.3 million outstanding under its $18.0 million senior secured asset-based revolving credit facility with JPMorgan Chase Bank, N.A. Subsequent to quarter-end, on August 25, 2026, the Company entered into a new global credit agreement with JPMorgan that replaced this facility. The new facility consists of a $75.0 million revolving credit facility, which includes availability for letters of credit of up to $30.0 million, and a $14.0 million term loan facility, representing approximately $90 million of commitments at closing, together with access to up to an additional $50.0 million of incremental capacity. At closing, the Company borrowed $14.0 million under the term loan facility and, together with available cash, repaid the outstanding balance under its prior JPMorgan credit agreement; $23.0 million was outstanding under the new revolving credit facility at closing. Subsequent to quarter-end, the Company also repaid in full the mortgage note on its Alberta, Canada manufacturing plant using proceeds from the new facility.
Backlog and New Awards
Backlog was $142.3 million at July 31, 2026, compared to $136.5 million at April 30, 2026, and $121.6 million at January 31, 2026, and remains well diversified across geographies, customers, and end-markets. As previously announced on August 13, 2026, the Company secured more than $67 million in new orders during the second quarter, including significant oil and gas awards in MENA and Canada, the Company’s first critical-cooling infrastructure award in the MENA region, and continued backlog growth at its new Ohio manufacturing facility.
Conference Call and Webcast
The Company will host a conference call and webcast today at 7:30 a.m. CT/8:30 a.m. ET. During the conference call, management will review the financial and operating results and discuss Perma-Pipe’s corporate strategy. A question-and-answer session will follow. To listen to the live call, dial (877) 317-6789 or (412) 317-6789.
A telephonic replay will be available from 12:30 p.m. ET on the day of the call through Wednesday, September 16, 2026. To listen to the archived call, dial (855) 669-9658 or (412) 317-0088 and enter replay access code 2085365.
About Perma-Pipe International Holdings, Inc.
Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) is a global leader in engineered piping and corrosion protection solutions. The Company provides pre-insulated piping systems, leak detection systems, anti-corrosion coatings and related engineered products and services to customers across the energy, district energy, infrastructure, industrial, Oil & Gas, water transmission, and other critical infrastructure markets.
Perma-Pipe operates manufacturing and service facilities across North America, Middle East, North Africa, India and other strategic markets, enabling the Company to serve customers globally while providing local manufacturing and engineering capabilities.
For more information, visit www.permapipe.com.
Contacts:
Saleh Sagr, President and CEO Sanjay M. Hurry, Alliance Advisors IR
T: 847.929.1200 Perma-Pipe Investor Relations
investor@permapipe.com
Forward-Looking Statements
Certain statements and other information contained in this press release that can be identified by the use of forward-looking terminology constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby, including, without limitation, statements regarding the expected future performance and operations of the Company. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties include, but are not limited to, the following: (i) the impact of a health pandemic on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company's ability to repay its debt and renew expiring international credit facilities; (v) the Company's ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company's ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company's products; (ix) decreases in government spending on projects using the Company's products, and challenges to the Company's non-government customers' liquidity and access to capital funds; (x) the Company's ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company's ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company's ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company's backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related to the Company's international business operations; (xvii) the Company's ability to attract and retain senior management and key personnel; (xviii) the Company's ability to achieve the expected benefits of its growth initiatives; (xix) the Company's ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company's percentage-of-completion revenue recognition; (xxii) the Company's failure to establish and maintain effective internal control over financial reporting; and (xxiii) the impact of cybersecurity threats on the Company's information technology systems. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at https://www.sec.gov and under the Investor Center section of our website (http://investors.permapipe.com).
PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
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Three Months Ended July 31, |
Six Months Ended July 31, |
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2026 |
2025 |
2026 |
2025 |
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Net sales |
$ | 59,567 | $ | 47,902 | $ | 109,831 | $ | 94,648 | ||||||||
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Gross profit |
17,406 | 14,423 | 32,041 | 31,147 | ||||||||||||
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Total operating expenses |
13,153 | 11,236 | 23,152 | 20,070 | ||||||||||||
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Income from operations |
4,253 | 3,187 | 8,889 | 11,077 | ||||||||||||
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Interest expense, net |
507 | 415 | 1,111 | 821 | ||||||||||||
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Other (income) expense, net |
(122 | ) | 21 | (12 | ) | 70 | ||||||||||
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Income before income taxes |
3,868 | 2,751 | 7,790 | 10,186 | ||||||||||||
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Income tax expense |
604 | 1,489 | 1,935 | 3,070 | ||||||||||||
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Net income |
$ | 3,264 | $ | 1,262 | $ | 5,855 | $ | 7,116 | ||||||||
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Less: Net income attributable to non-controlling interest |
717 | 411 | 1,506 | 1,313 | ||||||||||||
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Net income attributable to common stock |
$ | 2,547 | $ | 851 | $ | 4,349 | $ | 5,803 | ||||||||
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Earnings per share attributable to common stock |
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Basic |
$ | 0.31 | $ | 0.11 | $ | 0.53 | $ | 0.73 | ||||||||
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Diluted |
$ | 0.31 | $ | 0.10 | $ | 0.53 | $ | 0.72 | ||||||||
PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
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July 31, 2026 |
January 31, 2026 |
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ASSETS |
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Current assets |
$ | 153,551 | $ | 146,734 | ||||
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Long-term assets |
79,079 | 70,752 | ||||||
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Total assets |
$ | 232,630 | $ | 217,486 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
$ | 70,127 | $ | 79,789 | ||||
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Long-term liabilities |
51,500 | 31,396 | ||||||
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Total liabilities |
121,627 | 111,185 | ||||||
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Non-controlling interests |
17,513 | 15,663 | ||||||
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Stockholders' equity |
93,490 | 90,638 | ||||||
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Total liabilities and equity |
$ | 232,630 | $ | 217,486 | ||||
Non-GAAP Financial Measures
The following information contains a reconciliation of the non-GAAP financial measure of adjusted income before tax and income before income tax prepared in accordance with generally accepted accounting principles ("GAAP") for the three and six months ended July 31, 2026, and 2025, respectively. This reconciliation is intended to provide investors with useful information in evaluating the Company's performance. Adjusted income before tax includes certain adjustments as identified below. This measure is not considered an alternative to income before income tax or other financial measures of performance that are prepared in accordance with GAAP. The Company believes that the exclusion of certain items from income before income tax allows investors to more effectively evaluate the Company's operating performance and identify trends that might not be apparent due to the variability and infrequent nature of these items. In addition, the Company believes this measure provides meaningful information to investors when comparing results between periods and performance with respect to the Company's peers.
Adjustments made for certain items are further described as follows: (i) Non-recurring customer charge (ii) Ohio start-up costs, (iii) one-time charge in connection with the acceleration of executive compensation; (iv) other non-recurring charges. As a result of these adjustments, some items that affect income before income tax may not be comparable to similar measures of other companies.
The following table provides a reconciliation of the GAAP and non-GAAP financial measure:
PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
ADJUSTED INCOME BEFORE TAX
(In thousands)
(Unaudited)
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Three Months Ended July 31, |
Six Months Ended July 31, |
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2026 |
2025 |
2026 |
2025 |
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Income before income tax (GAAP as reported) |
$ | 3,868 | $ | 2,751 | $ | 7,790 | $ | 10,186 | ||||||||
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Non-recurring customer charge |
3,952 | - | 3,952 | - | ||||||||||||
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Ohio start-up costs |
512 | - | 731 | - | ||||||||||||
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Acceleration of certain executive compensation |
- | 2,018 | - | 2,018 | ||||||||||||
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Other one-time charges |
- | 88 | - | 88 | ||||||||||||
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Adjusted income before tax |
$ | 8,332 | $ | 4,857 | $ | 12,473 | $ | 12,292 | ||||||||