Perma-Pipe International Holdings Reports Record First Quarter Fiscal 2025 Financial Results, Signals Strong Momentum for the Year Ahead
Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH), a global leader in advanced piping solutions, has reported an exceptionally strong financial performance for the first quarter of fiscal year 2025, which ended on April 30, 2025. This performance highlights the company’s continuing growth and its successful execution of business strategies in key regions across the globe.
Strong Start to the Fiscal Year with Record-Breaking Performance
The first quarter of fiscal 2025 marked a significant milestone for Perma-Pipe. According to the company’s President and Chief Executive Officer, Saleh Sagr, “Sales for the first quarter reached $46.7 million, an impressive increase of $12.4 million or 36.2% when compared to the $34.3 million reported during the same quarter last year.”
This surge in revenue reflects strong demand across various markets, particularly in the Middle East and North America, where strategic initiatives and execution efficiency have begun to yield substantial results.
In terms of profitability, Perma-Pipe experienced a substantial boost in net income attributable to common stockholders, which reached $5.0 million. This marks a remarkable increase of $3.6 million or 243% compared to the $1.4 million recorded during the first quarter of fiscal 2024. These results not only demonstrate effective operational management but also highlight the growing value the company is delivering to its shareholders.
Backlog Trends Reflect Long-Term Growth Potential
While the company’s current backlog stood at $131.1 million at the end of the quarter—down slightly from $138.1 million at the end of January 2025—it still represents an exceptionally robust position. More importantly, this figure illustrates a major increase of $68.0 million or 108% compared to the backlog of $63.1 million recorded at the end of April 2024.
Commenting on the backlog data, Mr. Sagr stated, “We are very encouraged by the scale of backlog we have secured, which is more than double the level reported at the end of the first quarter last year. It signals growing customer confidence and a strong pipeline of projects going forward.”
This solid backlog offers a positive forward-looking indicator, reinforcing the notion that Perma-Pipe is not only performing well in the present but is also building the foundation for sustained future growth.
A New Benchmark in Q1 Financial Performance
“Our first quarter results represent unprecedented performance on behalf of the company,” noted Mr. Sagr, emphasizing the historical significance of these achievements. “Both sales and net income attributable to common stock reached their highest levels for a first fiscal quarter since the company rebranded from MFRI to Perma-Pipe in 2017.”
He further elaborated that the net income earned in this quarter alone accounts for approximately 55% of the company’s total net income for the entire fiscal year 2024. This early accomplishment sets a strong tone for the remaining quarters of fiscal 2025 and positions the company to potentially outperform past annual records.
Geographic Diversification Fuels Performance
The company’s robust performance was driven in part by its diversified geographic footprint. Perma-Pipe operates manufacturing facilities and serves markets across North America, the Middle East, and India. During the first quarter, both the Americas and the Middle East and North Africa (MENA) regions delivered strong and comparable results.
“We are pleased with the level of business activity we are experiencing in various markets,” said Mr. Sagr. “In particular, the level of performance in both the Americas and MENA region during the quarter has been very encouraging. This underscores the success of our global strategy and regional execution.”
This regional balance is an important strength, as it helps insulate the company from market fluctuations in any one geography and allows it to leverage growth opportunities wherever they arise.
Key Financial Metrics for Q1 Fiscal 2025
In more detailed financial terms, Perma-Pipe reported:
- Net Sales: The company achieved $46.7 million in net sales for the quarter, up from $34.3 million in the same period last year. The 36% increase is primarily attributed to stronger sales volumes in the Middle East and North America, where key projects moved forward at pace.
- Gross Profit: Gross profit grew significantly to $16.7 million, which represented 36% of net sales. This is up from $10.5 million or 31% of net sales in the first quarter of fiscal 2024. The $6.2 million increase in gross profit was largely due to higher activity volumes and improved profit margins stemming from a more favorable product mix.
- General and Administrative Expenses: G&A expenses increased to $7.7 million, compared to $6.1 million in the previous year’s first quarter. The $1.6 million rise was largely the result of increased payroll costs and higher professional fees, indicative of expanded business operations and investment in organizational capability.
- Selling Expenses: These remained relatively steady, totaling $1.1 million compared to $1.2 million a year earlier. This consistency highlights the company’s disciplined approach to cost control, even amid expansion.
- Net Interest Expense: Interest expense was stable at $0.4 million, slightly down from $0.5 million during the same period last year, suggesting effective debt management.
- Other Expenses: These remained minimal, under $0.1 million for both Q1 2025 and Q1 2024, showing negligible impact on the bottom line.
- Effective Tax Rate (ETR): The ETR decreased to 21% from 30% year over year. This favorable change reflects a more advantageous mix of income and losses across the company’s various international jurisdictions.
- Net Income: As mentioned, net income attributable to common stock surged to $5.0 million from $1.4 million last year. This gain was mainly driven by the increase in sales volume and improved execution on projects that resulted in better margins.
Strategic Outlook and Forward Momentum
The first quarter of fiscal 2025 has clearly set the tone for what could be a record-breaking year for Perma-Pipe International Holdings. The combination of solid earnings, expanding backlogs, and geographic diversification presents a compelling story of sustainable growth.
Mr. Sagr concluded his remarks with an optimistic outlook: “The strength of our first quarter results provides significant momentum heading into the remaining quarters of fiscal 2025. We feel well-positioned to continue capitalizing on this momentum. Our goal is to deepen our participation in ongoing development plans in MENA and to further increase our market share in North America.”
He emphasized that the company will remain focused on strategic execution, customer satisfaction, and operational excellence—key pillars that have supported its current success.
