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PI

Perma-Pipe International Holdings, Inc. (PPIH)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2025 results (quarter ended October 31, 2025) and the associated 8‑K 2.02 press release and earnings call transcript were not available as of this report; third‑party trackers indicate the Q3 release is expected in December 2025 .
  • Momentum into Q3 remained favorable following strong Q1 and mixed Q2: Q1 delivered record first‑quarter profitability, while Q2 revenue grew 27.7% YoY but EPS was depressed by a one‑time $2.1M executive compensation acceleration and a 54% ETR tied to jurisdictional mix and the one‑time item .
  • Strategic positioning advanced during the quarter with a $30M set of awards and formal Saudi Aramco approval in KSA, expanding addressable O&G opportunities; the ongoing strategic alternatives review announced in Q2 remains a potential stock catalyst .
  • Backlog strength supports near‑term visibility: backlog rose from $131.1M at April 30, 2025 to $157.8M at July 31, 2025 heading into Q3, more than double YoY at Q2 end, with growth across North America and MENA .

What Went Well and What Went Wrong

What Went Well

  • Strong demand and execution: Q1 net sales grew 36% YoY to $46.7M and net income attributable to common rose to $5.0M, driven by volume in both the Middle East and North America .
  • Backlog momentum: “Backlog stood at $157.8 million at July 31, 2025… more than double the backlog reported at the end of last year’s second quarter,” with broad‑based growth (North America and MENA) .
  • Strategic access expansion: Saudi Aramco technical and commercial approval plus ~$30M awards in Q3 broaden Middle East oil & gas exposure and pipeline for future awards .

What Went Wrong

  • Q2 profitability impacted by one‑time items: A $2.1M accelerated executive compensation charge and higher G&A pressured earnings; diluted EPS was $0.10 vs $0.40 in the prior‑year quarter .
  • Elevated tax rate: Q2 effective tax rate rose to 54% vs 23% YoY due to jurisdictional mix (notably UAE income) and deduction limits tied to the one‑time compensation acceleration .
  • Increased operating expense intensity: Q2 total operating expenses increased to $11.236M from $7.332M YoY on higher payroll and professional fees, including investment to establish a Qatar facility .

Financial Results

Note: Q3 FY2025 (ended Oct 31, 2025) results were not yet reported as of this analysis.

MetricQ1 FY2025 (3 months ended Apr 30, 2025)Q2 FY2025 (3 months ended Jul 31, 2025)Q3 FY2025 (3 months ended Oct 31, 2025)
Revenue ($USD Millions)$46.747 $47.902 — (Not yet reported)
Gross Profit ($USD Millions)$16.724 $14.423 — (Not yet reported)
Gross Profit Margin %36% 30% — (Not yet reported)
Total Operating Expenses ($USD Millions)$8.835 $11.236 — (Not yet reported)
Operating Income ($USD Millions)$7.889 $3.187 — (Not yet reported)
Net Income Attrib. to Common ($USD Millions)$4.952 $0.851 — (Not yet reported)
Diluted EPS ($)$0.61 $0.10 — (Not yet reported)
Effective Tax Rate %21% 54% — (Not yet reported)

Non‑GAAP (Q2 FY2025)

MetricQ2 FY2025
Adjusted Income Before Tax ($USD Millions)$4.857
Adjustments Detail$2.018M executive comp acceleration; $0.088M other one‑time charges

Segment breakdown

  • The company reports one reportable segment; no segment revenue breakout is provided .

KPIs and backlog

KPIQ1 FY2025Q2 FY2025Q3 FY2025
Backlog at period end ($USD Millions)$131.1 (Apr 30, 2025) $157.8 (Jul 31, 2025) — (Not yet disclosed)
Notable Awards/Approvals (Within Q3 period)——~$30M awards; Saudi Aramco approval (KSA)

Estimates vs actuals

  • Wall Street consensus (S&P Global) for Q3 FY2025 could not be retrieved during this session due to rate limits; will update upon availability. Results vs estimates are therefore not shown [Values from S&P Global unavailable due to rate limits].

Guidance Changes

No formal quantitative guidance was found in Q1 and Q2 FY2025 press releases; the company announced a strategic alternatives review in Q2. We will update this section upon Q3 release.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2025 / Q3None located in Q1/Q2 documents None located in Q1/Q2 documents Maintained (no guidance)
Margins / OpEx / OI&E / TaxFY2025 / Q3None located None located Maintained (no guidance)
Strategic ReviewOngoingAnnounced Q2Ongoing; advisors engaged —

Earnings Call Themes & Trends

Note: Q3 FY2025 earnings call transcript was not available as of this report.

TopicPrevious Mentions (Q1 FY2025)Previous Mentions (Q2 FY2025)Current Period (Q3 FY2025)Trend
Backlog and demandBacklog $131.1M; highest first‑quarter performance; strong Americas and MENA Backlog $157.8M, +109% YoY; strong NA and MENA Awards ~$30M; Aramco approval in KSA broadens access Improving
Regional mixGrowth in Middle East and North America Growth in Middle East and North America; Qatar facility set‑up Expanded KSA O&G access via Aramco approval Positive
Operating leverage / marginsHigher gross margin (36%) on mix Gross margin 30%; non‑recurring G&A and tax effects TBD on Q3; watch mix/one‑time itemsMixed
Strategic alternatives—Strategic alternatives process initiated; ECS/Gray Reed engaged Ongoing (no outcome updates) Catalyst building
Tax rateETR 21% ETR 54% due to mix and one‑time comp TBDVolatile
Filings/Status—Transition to accelerated filer post‑Q2 public float test No new updateNeutral

Management Commentary

  • “Backlog stood at $157.8 million at July 31, 2025… more than double the backlog reported at the end of last year’s second quarter, with growth across both North America and the MENA region.” — President & CEO Saleh Sagr .
  • “Our strong first‑half results reflect both the continued momentum in our core markets and the benefits of improved operating leverage… we also made strategic investments in establishing our new Qatar facility… We remain confident in our ability to drive profitable growth.” — Saleh Sagr .
  • Q1 context: “Sales for the first quarter were $46.7 million… Net income attributable to common stock of $5.0 million… highest levels of performance in the first quarter since transitioning from MFRI to Perma‑Pipe in 2017.” — Saleh Sagr .

Q&A Highlights

  • Q3 FY2025 earnings call transcript and Q&A were not available at the time of this report; we will incorporate key Q&A themes upon release.

Estimates Context

  • We attempted to retrieve S&P Global consensus for Q3 FY2025 (EPS and revenue) but were unable to due to S&P Global daily rate limits during this session; we will refresh once access resets [Values from S&P Global unavailable due to rate limits].
  • Third‑party trackers show expected timing for Q3 2025 results in early December 2025; consensus coverage may be limited for this micro‑cap name .

Key Takeaways for Investors

  • Backlog strength into Q3 provides revenue visibility; $157.8M at Q2 end and incremental ~$30M of awards plus KSA Aramco approval enhance the medium‑term pipeline .
  • Expect Q3 EPS to be sensitive to mix, execution, and any residual one‑time items after Q2’s $2.1M comp acceleration and 54% ETR; watch for normalization of tax and G&A .
  • Strategic alternatives review is a live catalyst; any update (asset sales or a sale of the company) could be stock‑moving .
  • Regional expansion is a core driver: investments in Qatar and Aramco approval in Saudi expand MENA opportunities alongside North American demand .
  • Filing status upgrade to accelerated filer implies tighter reporting timelines and expanded disclosure requirements going forward .
  • Near‑term trading: absent Q3 numbers today, shares may respond to headlines on the strategic review and Middle East wins; the printed Q3 release (expected December) will reset estimate trajectories and narrative .

References to primary documents and filings:

  • Q1 FY2025 press release (Apr 30, 2025 period)
  • Q2 FY2025 8‑K and press release (Jul 31, 2025 period)
  • Q3 period awards/Aramco approval press release (Sep 24, 2025)
  • Third‑party earnings‑date trackers