Financial Results: Perma-Pipe International Reports Q3 Performance
Perma-Pipe International Holdings, Inc., a global leader in pre-insulated piping and leak detection systems, has announced its Financial Results for the third quarter and fiscal year-to-date period ending October 31, 2024. These Financial Results highlight the company’s ongoing growth and operational efficiency.
Third Quarter Highlights
Perma-Pipe reported net sales of $41.6 million for the third quarter, a $4.1 million decrease compared to the same period in 2023, primarily due to the timing of project executions. Despite the decline in sales, the company achieved net income attributable to common stock of $2.5 million, a 29% increase from $1.9 million in Q3 2023. This growth reflects the company’s ability to optimize margins and improve operational efficiencies. These strong Financial Results demonstrate Perma-Pipe’s resilience and commitment to excellence.
For the nine months ending October 31, 2024, net sales totaled $113.4 million, a 3% increase from $110.5 million during the same period in 2023. Net income attributable to common stock surged to $7.2 million, a 294% increase from $1.8 million in 2023, further showcasing impressive Financial Results for the year.
David Mansfield, President and CEO, stated, “These Financial Results mark the highest year-to-date earnings since our transition from MFRI to Perma-Pipe in March 2017, reflecting our continued strong performance.”
Backlog Growth
The company’s backlog reached $114.2 million in Q3 2024, the highest level since its 2017 transition, equivalent to approximately nine months of revenue based on prior years. Mansfield highlighted that this substantial backlog growth provides confidence for future Financial Results in 2025. Key contributors to the backlog expansion include increased infrastructure spending in international markets like Saudi Arabia, India, and the UAE, solidifying Perma-Pipe’s global presence.
Detailed Third Quarter Financial Results
Perma-Pipe’s Q3 Financial Results showed several key developments:
- Gross Profit: Gross profit rose to $14.1 million (34% of net sales) from $13.2 million (29% of net sales) in 2023, driven by favorable product mix and improved margins.
- General and Administrative Expenses: These expenses increased to $7.3 million from $5.7 million in 2023 due to higher payroll and professional fees.
- Selling Expenses: Selling expenses decreased to $1.2 million from $1.5 million due to reduced payroll costs.
- Interest and Other Expenses: Net interest expense remained at $0.5 million, while other expenses fell by $0.4 million, thanks to foreign currency exchange rate improvements.
- Effective Tax Rate (ETR): The ETR increased to 32%, reflecting changes in tax benefits and the income mix across jurisdictions.
Fiscal 2024 Year-to-Date Financial Results
For the first nine months of fiscal 2024, the company’s Financial Results remained strong:
- Gross Profit: Reached $38.1 million (34% of net sales), up from $29.4 million (27% of net sales) in 2023, due to an improved product mix and better project execution.
- General and Administrative Expenses: Rose to $19.5 million from $16.4 million, driven by payroll and professional fees.
- Interest Expense: Declined to $1.5 million from $1.8 million, reflecting favorable interest rates.
- Net Income: Attributable to common stock soared to $7.2 million, compared to $1.8 million in 2023.
Strategic Outlook
Mansfield concluded, “The substantial growth in backlog and strong Financial Results position us well for the future. Our strategic investments in key markets, particularly infrastructure projects in the Middle East, are delivering positive outcomes, supporting our long-term growth plans.”
About Perma-Pipe International Holdings, Inc.
Perma-Pipe International Holdings, Inc. is a global leader in designing and manufacturing pre-insulated piping and leak detection systems for various industries, including oil and gas, district heating and cooling, and industrial applications. Operating from 14 locations across six countries, Perma-Pipe combines engineering expertise with innovation to deliver outstanding Financial Results year after year.
