Perma‑Pipe International Holdings, Delivering Record Q1 Fiscal 2025 Financial Performance in a Milestone Quarter
Perma-Pipe International Holdings, a global leader in pre‑insulated piping and leak detection systems serving industries such as oil and gas, as well as district heating and cooling, today released its financial results for the first quarter of fiscal year 2025, ended April 30, 2025. The Company posted exceptional quarterly results, delivering record revenues, significant profitability, and a robust backlog — underscoring strong macro demand across key geographies, as well as continued improvements in operational efficiency and financial discipline.
Quarterly Highlights
Revenue Growth
Perma‑Pipe reported net sales totaling $46.7 million, a remarkable increase from $34.3 million in Q1 fiscal 2024. This $12.4 million rise, or 36.2%, reflects an expansion in sales volumes, particularly within North America and the Middle East and North Africa (MENA) region — both of which delivered double-digit growth in the quarter. The Company attributed this growth to heightened demand in energy infrastructure, as well as an increasingly diverse client base.
Net Income Surge
Perma-Pipe Net income attributable to common stockholders reached $5.0 million, compared to $1.4 million in the prior-year quarter — a 243% surge. This substantial improvement was driven by increased project volume, enhanced margin mix, and scalable improvements in project execution.
Backlog Strengthened
At quarter-end, the Perma-Pipe Company’s backlog stood at $131.1 million, a decrease from $138.1 million at January 31, 2025. However, when compared with the same date a year ago—the April 30, 2024 level of $63.1 million—this represents a striking 108% increase, or $68.0 million. This expansion in backlog eloquently demonstrates the sustained momentum in contract wins and speaks to strong future revenue visibility.
Leadership Commentary
“Our first quarter performance represents a breakthrough achievement for Perma‑Pipe — both sales and net income reached their highest levels for any first quarter since we evolved from MFRI in 2017,” stated Saleh Sagr, President and CEO. “Notably, our quarterly profits account for over 55% of the total net income recorded in fiscal 2024. This is a testament to strong execution, diverse market engagement, and superior operational leverage. We are exceptionally well‑positioned as we progress through fiscal 2025.”
Perma-Pipe He emphasized strong regional dynamics: “Our Americas and MENA operations delivered comparably impressive results this quarter. This balanced performance across geographies reinforces the strength of our global strategy. As we move forward, this first quarter creates positive momentum, which we’re confident in building upon — both through organic opportunities in North America and strategic development initiatives in MENA.”
What’s Driving Growth?
- Market Demand in Energy and Infrastructure
Perma-Pipe The recent uptick in global energy investments, including natural gas and industrial heating infrastructure, is fueling demand for Perma‑Pipe’s insulated piping solutions. The surge in capital projects in MENA, driven by both international oil companies and sovereign wealth initiatives, contributed significantly to the backlog. - Geographic Diversification
The Company’s ability to generate similar revenue growth in North America and MENA highlights the effectiveness of its geographic diversification strategy. Perma-Pipe While North America continued to deliver stable demand, strategic wins in MENA projects during Q1 provided a meaningful lift. - Marginal Leverage and Improved Project Execution
Perma-Pipe Management reported that improved gross margin — up from 31% to 36% — was primarily a result of optimized product mix and scalable cost control. In addition, the Company continues to control general and administrative costs, focusing incremental investments on talent recruitment and technical services. - Operational Strength and Discipline
Although general and administrative (G&A) expenses rose from $6.1 million to $7.7 million (reflecting investments in human capital and professional services), these costs remain commensurate with revenue growth. Margins continue to reflect efficient scaling of the business. Selling expenses and interest costs remained stable year-over-year, while effective tax rates improved — driven by a favorable jurisdictional mix of income across the Americas and MENA.
