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Perma-Pipe International Holdings, Inc. (PPIH)·Q1 2026 Earnings Summary

Executive Summary

  • Perma-Pipe delivered a strong Q1 2026 (three months ended April 30, 2025) with revenue of $46.7M and diluted EPS of $0.61, driven by higher activity in both the Americas and MENA regions; backlog reached $131.1M at April 30, 2025 .
  • Year-over-year, revenue rose 36.2% and net income attributable to common stock increased 243% to $4.95M; gross profit improved to $16.7M on higher volumes and execution .
  • Sequentially, revenue increased versus Q4 FY2024 ($45.0M), supported by robust demand and backlog momentum heading into the year .
  • No formal guidance was issued; management emphasized momentum in MENA and market share gains in North America as the key catalysts for continued performance .

What Went Well and What Went Wrong

What Went Well

  • Record first-quarter performance with revenue up 36.2% YoY to $46.7M and net income to common up 243% YoY to $4.95M .
  • Backlog strengthened to $131.1M at April 30, 2025, more than double April 30, 2024 levels ($63.1M), supporting visibility into future quarters .
  • Management tone confident: “We are pleased with the level of business activity… in both the Americas and MENA region, which produced comparable results in the first quarter… momentum heading into the remaining quarters” — Saleh Sagr, CEO .

What Went Wrong

  • No formal guidance ranges provided, limiting near-term estimate anchoring; commentary remained directional without quantitative outlook .
  • Sequential comparison shows Q2 2026 EPS fell to $0.10 on higher G&A including one-time executive compensation acceleration ($2.0M), underscoring expense sensitivity and potential volatility in margins .
  • Elevated effective tax rate in Q2 2026 (54%) in a subsequent quarter highlights potential variability in net margin conversion if similar items recur (context for trend analysis) .

Financial Results

Note: PPIH states “Years, results, and balances described as 2025, 2024, and 2023 are for the fiscal year ended January 31, 2026, 2025, and 2024, respectively.” Q1 2026 refers to quarter ended April 30, 2025 .

MetricQ4 FY2024 (Quarter ended Jan 31, 2025)Q1 2026 (Quarter ended Apr 30, 2025)Q2 2026 (Quarter ended Jul 31, 2025)
Revenue ($USD Millions)$45.0 $46.7 $47.9
Net Income to Common ($USD Millions)N/A$4.95 $0.85
Diluted EPS ($USD)N/A$0.61 $0.10
Gross Profit ($USD Millions)N/A$16.7 $14.4
Operating Income ($USD Millions)N/A$7.89 N/A
Net Income Margin (%)N/A10.6% (4.952/46.747) 1.8% (0.851/47.9)
Gross Profit Margin (%)N/A35.8% (16.724/46.747) 30.1% (14.4/47.9)

KPIs

KPIQ4 FY2024Q1 2026Q2 2026
Backlog ($USD Millions)$138.1 (as of Jan 31, 2025) $131.1 (as of Apr 30, 2025) $157.8 (as of Jul 31, 2025)

Vs Estimates (S&P Global)

  • Consensus EPS and revenue estimates for Q1 2026 and Q2 2026 were unavailable/insufficient from S&P Global for PPIH; actual revenue shown below for context. Values retrieved from S&P Global.*
MetricQ1 2026Q2 2026
Revenue Consensus Mean ($USD)N/A*N/A*
Primary EPS Consensus Mean ($USD)N/A*N/A*
Actual Revenue ($USD)$46.747M*$47.902M*

Guidance Changes

  • No formal quantitative guidance was provided in Q1 2026 press materials. Management commentary was directional (momentum, market share gains, MENA development participation). N/A where not disclosed .
MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2026N/AN/AMaintained (no formal guidance)
MarginsFY2026N/AN/AMaintained (no formal guidance)
OpExFY2026N/AN/AMaintained (no formal guidance)
Tax RateFY2026N/AN/AMaintained (no formal guidance)

Earnings Call Themes & Trends

  • No Q1 2026 earnings call transcript could be located. Themes inferred from press releases.
TopicPrevious Mentions (Q3 FY2025)Previous Mentions (Q4 FY2024)Current Period (Q1 2026)Trend
Regional mix (Americas/MENA)Higher sales volumes in Middle East and North America Backlog expanded entering FY2025 Comparable performance in Americas and MENA; momentum into rest of year Stable/positive
Backlog visibility$138.1M at Jan 31, 2025 Strengthened into year-end $131.1M at Apr 30, 2025; +108% YoY vs Apr 30, 2024 Improving YoY
Expenses/one-time itemsN/AN/AN/A in Q1; Q2 saw $2.0M one-time charge impacting EPS Mixed (expense sensitivity)
Strategic alternativesN/AN/ANot addressed in Q1; initiated in Q2 FY2026 New in Q2

Management Commentary

  • “Sales for the first quarter were $46.7 million… Net income attributable to common stock of $5.0 million… Backlog currently stands at $131.1 million…” — Saleh Sagr, President and CEO .
  • “We are pleased with the level of business activity… momentum heading into the remaining quarters… continue to capitalize on this momentum and drive further participation in development plans in MENA and gain additional market share in the North America region.” — Saleh Sagr .
  • Q2 context: Higher G&A due to one-time executive compensation acceleration ($2.0M) affected profitability in the subsequent quarter .

Q&A Highlights

  • A Q1 2026 earnings call transcript was not found; no Q&A details available in public document sources searched .

Estimates Context

  • S&P Global consensus estimates for PPIH Q1 2026 and Q2 2026 were unavailable/insufficient; actual revenues are provided for context. Values retrieved from S&P Global.*
  • Implication: Post-Q1 strength and Q2 expense-driven EPS compression suggest estimates may need to consider backlog support versus potential expense variability in future quarters .

Key Takeaways for Investors

  • Q1 2026 was a standout quarter: revenue +36% YoY, net income +243% YoY; gross margin ~36% on strong volume and execution .
  • Backlog strength ($131.1M at Apr 30, 2025) provides multi-quarter visibility; Q2 backlog later increased to $157.8M, underpinning demand .
  • Expense sensitivity is a watch item: Q2’s one-time charge demonstrated volatility in EPS conversion despite revenue growth .
  • Geographic diversification is working: comparable performance in Americas and MENA supports resilience and market share gains .
  • Near-term trading: Positive Q1 momentum and backlog could support sentiment; monitor any updates on expense structure and potential strategic alternatives (initiated Q2) for stock-moving catalysts .
  • Medium-term thesis: Execution on MENA development plans and North America share gains, with disciplined OpEx, should sustain margin trajectory; estimate models should incorporate backlog conversion timing and potential non-recurring items .

Footnote: Per PPIH, references to “2025” correspond to the fiscal year ended January 31, 2026, etc., and Q1 2026 refers to quarter ended April 30, 2025 .