33% Rise in Net Sales Fuels Growth
Perma-Pipe International Holdings, Inc. reported record financial results for the fiscal year 2025. Net sales soared by 33% to $210.9 million, compared to $158.4 million in the prior year. Net income also saw a significant increase, rising 89% to $17 million. In the fourth quarter, net sales amounted to $55.1 million, marking a 22.4% rise from the previous year. This growth was largely due to increased sales volumes in both the Middle East and North America. Gross profit for the quarter was $17.3 million, reflecting higher activity levels, while selling, general, and administrative expenses increased slightly to $10.3 million, primarily due to higher payroll costs.
President and CEO Saleh Sagr stated, “Our fiscal 2025 results represent a landmark achievement for the Company. Total revenues of $210.9 million and net income attributable to common stockholders of $17.0 million mark our highest level of earnings in the Company’s modern operating history.” For the full year, the company achieved a gross profit of $69.5 million, a significant increase from $53.2 million in the prior year. Selling, general, and administrative expenses stood at $40.1 million, up from $32.9 million, driven by higher payroll and professional fees, including a $1.0 million cost related to Sarbanes-Oxley compliance.
The effective tax rate for the year was 24.9%, a reduction from 29.1% in the previous year, due to variations in product mix across different tax jurisdictions. However, the one-time charge associated with the departure of the previous CEO, amounting to $2.0 million, partially offset the reduction in the effective tax rate. The backlog at the end of January 2026 was reported at $121.6 million, reflecting the company’s strong operational execution and successful conversion of sales orders into revenue. The effective tax rate for the fourth quarter was 12.3%, down from 32.1% in the previous year, contributing to the net income attributable to common stock which increased by $3.1 million, reaching $4.9 million.
Strategic Developments and Future Plans
Perma-Pipe has secured a new production facility in Ohio, which will serve as a logistics centre for the Northeast and New England corridors. This facility aims to enhance the company’s operational agility by localizing production for its district heating and cooling offerings. Perma-Pipe finalised a new credit facility with J.P. Morgan Chase, aimed at optimizing the company’s cost of capital. This agreement is expected to bolster the next phase of Perma-Pipe’s global expansion.
The company’s backlog stood at $121.6 million, indicating successful conversion of sales orders into revenue, thereby demonstrating its robust market position. This backlog reflects strong operational execution during the quarter.
Last updated: 17 April 2026, 7:19 am
