Perma-Pipe Reports Strong Q2 Growth Amid Strategic Expansion into Middle East
Perma-Pipe International Holdings (NASDAQ:PPIH) reported a strong second-quarter performance, with net sales rising 24.4% year-over-year to $59.6 million and its backlog increasing by 17% to $142.3 million as of July 31. The company is shifting from traditional pipe sales toward infrastructure development in the Middle East, supported by a growing pipeline of active quoting work valued at $900 million. Key developments include new production facilities in Ohio and Qatar, with plans for full production starting early next year, and product qualification with Saudi Aramco. A joint venture with Welspun in Jordan marks Perma-Pipe's first entry into pipe manufacturing, tied to the National Water Carrier Program and regional reconstruction efforts. Despite these gains, gross margin dipped slightly due to higher material costs, logistics expenses, and a $3.9 million write-off from one customer’s financial issues. The company also noted that ongoing Middle East conflicts are increasing shipping and commodity costs.
Tickers: $PPIH
Topics: Backlog Growth Infrastructure Joint Ventures Middle East Expansion