Perma‑Pipe International Holdings, Inc. reported third‑quarter 2025 results that surpassed expectations, with net sales climbing 46.9% to $61.1 million from $41.6 million a year earlier. The jump was driven by robust demand in the Middle East and North America, where the company’s pre‑insulated piping solutions are used in data‑center cooling and large‑scale infrastructure projects, including a $52 million award from Saudi Aramco.
Gross profit rose to $21.0 million, up $6.9 million from $14.1 million in Q3 2024, reflecting a slight margin expansion from 33.9% to 34.3%. The improvement stems from a higher mix of high‑margin projects and disciplined cost management, offsetting modest increases in raw‑material costs that affected the broader industry.
Net income attributable to common stock reached $6.3 million, a 152% increase over $2.5 million in the same quarter last year. The surge is largely attributable to higher activity levels and the exclusion of a $0.5 million one‑time Sarbanes‑Oxley 404 compliance charge and a $2.0 million executive‑compensation charge related to the former CEO’s departure, which were excluded from operating results.
Backlog as of October 31, 2025, stood at $148.9 million, up 7.8% from $138.1 million at the end of January 31, 2025. The growth reflects new contracts in data‑center cooling and Saudi Aramco projects, underscoring sustained demand for the company’s products and positioning it for continued revenue expansion.
The nine‑month net income of $12.1 million, the highest since the company’s transition from MFRI to Perma‑Pipe in 2017, signals strong operational momentum. Management highlighted the backlog expansion and project awards as evidence of a healthy order pipeline, while noting that ongoing supply‑chain constraints and geopolitical risks remain potential headwinds.
Overall, the results demonstrate that Perma‑Pipe’s strategic focus on high‑growth sectors and disciplined cost control are translating into higher revenue, improved margins, and a robust backlog, reinforcing confidence in the company’s near‑term performance.
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