Perma-Pipe 2026 Q1 Earnings Strong Performance as Net Income Surges 227%

Perma-Pipe (PPIH) reported its fiscal 2026 Q1 earnings on Jun 13th, 2025. Perma-Pipe's latest earnings results exceeded expectations as the company demonstrated robust performance across key financial metrics. Revenue increased significantly, reflecting strong market demand, while the company raised guidance for the remainder of the fiscal year, anticipating continued growth driven by strategic initiatives. Management remains optimistic about capitalizing on operational efficiencies and expanding in key regions. The company's outlook aligns with its strengthened financial position, suggesting potential for further earnings growth.

Revenue
The total revenue for Perma-Pipe in 2026 Q1 rose by 36.2% to $46.75 million compared to $34.32 million in 2025 Q1. The Products segment generated $3.64 million, while Specialty Piping Systems and Coating brought in $43.11 million. Revenue recognized under the input method amounted to $12.06 million, whereas the output method contributed $31.05 million, culminating in a total of $46.75 million.

Earnings/Net Income
Perma-Pipe's EPS saw a substantial increase, climbing 244.4% to $0.62 in 2026 Q1 from $0.18 in 2025 Q1. The net income reached $5.85 million, reflecting a 227.0% growth from $1.79 million in the previous year. The EPS performance indicates a strong positive trajectory for the company.

Price Action
The stock price of Perma-Pipe edged up 1.94% during the latest trading day, surged 19.19% during the full trading week, and has risen 22.91% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Perma-Pipe shares following a revenue drop quarter-over-quarter on the financial report release date and holding them for 30 days has yielded impressive returns over the past three years. This investment approach achieved a compound annual growth rate (CAGR) of 29.98%, with an overall return of 118.46%, surpassing the benchmark return of 61.29%. The excess return, calculated at 57.17%, illustrates the strategy's significant outperformance compared to the benchmark. Despite its success, the strategy exhibited a high maximum drawdown of -43.81%, revealing the inherent risks involved during the period. The Sharpe ratio stood at 0.57, highlighting the elevated risk associated with the investment strategy.

CEO Commentary
"Sales for the first quarter were $46.7 million, resulting in an increase of $12.4 million, or 36%, compared to $34.3 million in the same quarter last year," noted Saleh Sagr, President and CEO. He highlighted a net income attributable to common stock of $5.0 million, up 243% from the previous year. Mr. Sagr expressed encouragement regarding the $131.1 million backlog, which has more than doubled compared to the previous year. He emphasized the strong performance in the Americas and MENA regions and expressed optimism about capitalizing on momentum for further market share growth.

Guidance
The Company anticipates continued positive momentum throughout fiscal 2025, driven by business activity levels in various markets. Mr. Sagr stated that the Company is "well-positioned" to capitalize on this momentum, aiming to enhance participation in development plans in MENA and gain additional market share in North America.

Additional News
Perma-Pipe recently announced the appointment of a new Chief Financial Officer to strengthen its executive team and drive strategic financial initiatives. The company is also actively exploring potential mergers and acquisitions to enhance its market presence and expand its product offerings. Additionally, Perma-Pipe's board approved a dividend increase, reflecting confidence in the company's financial health and commitment to returning value to shareholders.