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SPRING, Texas - Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH), a $247 million market cap company, reported second-quarter net sales of $47.9 million, a 27.7% increase compared to $37.5 million in the same period last year, driven by higher sales volumes in the Middle East and North America. The company maintains strong financial health with a 34.8% gross margin and healthy liquidity, as indicated by InvestingPro data.
The pre-insulated piping systems manufacturer posted income before taxes of $2.8 million for the quarter ended July 31, 2025, down from $5.6 million in the prior-year period. Despite the quarterly decline, the company has demonstrated remarkable market performance, with a 154% return over the past year. The company’s backlog stood at $157.8 million, representing a 14.3% increase from January 31, 2025, and more than double the backlog reported at the end of last year’s second quarter.
Net income attributable to common stock was $0.9 million, compared to $3.3 million in the second quarter of fiscal 2024. The decrease was primarily due to higher general and administrative expenses, which rose to $10 million from $6 million, including a one-time $2.1 million charge related to accelerated executive compensation following the departure of the previous CEO.
For the six months ended July 31, 2025, net sales increased 31.8% to $94.6 million, with net income attributable to common stock rising to $5.8 million, up 23% from $4.7 million in the same period last year.
The company also announced it has initiated a review of strategic alternatives to maximize shareholder value, including potential sale of divisions or the entire company. Energy Capital Solutions is serving as financial advisor for this strategic review. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with moderate leverage indicated by a debt-to-equity ratio of 0.48. Subscribers can access 8 additional ProTips and comprehensive valuation metrics at InvestingPro.
"As we seek to close the gap between Perma-Pipe’s public market valuation and the Company’s sum-of-the-parts value, the Board has authorized a comprehensive review of strategic alternatives," said Perma-Pipe Chairman Jon Biro in a press release statement.
The company noted its public float now exceeds $75 million, changing its status from a Smaller Reporting Company to an accelerated filer effective for the fiscal year ending January 31, 2026.
In other recent news, Perma-Pipe International Holdings, Inc. reported significant changes within its board of directors. At the company’s annual meeting, directors David B. Brown and Robert J. McNally tendered their resignations after failing to secure a majority of votes from shareholders. The company’s nominating and corporate governance committee is tasked with recommending whether to accept these resignations, with a decision expected by July 25. Additionally, CEO David J. Mansfield resigned from the board, effective immediately, and decided not to stand for re-election. Mansfield’s departure follows his eight-year tenure as CEO and board member, with the company clarifying that his resignation was not due to any disagreements over company operations or policies. During the annual meeting, Jon C. Biro and Ibrahim Al Kuwari were successfully elected as directors, receiving a majority of votes. David J. Mansfield had already resigned from the board before the meeting, leading to the election of four directors in total. These developments mark a period of transition for Perma-Pipe International as it navigates changes in its leadership structure.
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