SPRING, TEXAS -- Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced financial results for the fourth quarter and 2024 fiscal year ended January 31, 2025.

“Sales for the fourth quarter and full year 2024 show moderate growth and were $45.0 million and $158.4 million, resulting in increases of $4.8 million and $7.7 million, compared to the prior year.

Income before taxes was $5.3 million and $18.5 million in the fourth quarter and for the full year 2024, which increased by $2.1 million and $8.6 million, compared to the prior year. This significant increase was a result of our focus on higher margin products and services that contributed to improved margin performance.

Net income after taxes and minority interest was $1.5 million and $9.0 million in the fourth quarter and for the full year 2024. Although 2024 net income was a decrease of $1.5 million, compared to $10.5 million last year, the reduction was due to a one-time non-cash tax benefit of $5.9 million in the prior year after being allowed to recognize the benefit of past tax losses. Excluding the impact of the tax benefit, net income after taxes and minority interest was an increase of $4.4 million,” noted CEO David Mansfield.

“Backlog has exhibited significant growth throughout the year and now stands at $138.1 million, resulting in a 102% increase, as compared to the prior year. The increase in backlog enables us to be well-positioned to begin fiscal 2025,” Mr. Mansfield commented.

“We have achieved considerable milestones throughout the year, demonstrated by income before taxes, improved margins, and significant growth in backlog. The joint venture in Saudi Arabia that was formed in 2023 continues to exceed expectations, and we are beginning to see increased activity at the new Vars, Ontario facility in Canada,” Mr. Mansfield continued.

“2024 was a strong year for the Company. Our ability to secure several large-scale project awards provides good momentum in 2025, as well as positioning Perma-Pipe as a viable supplier for future mega-projects. This includes the opportunities in Qatar. The success of the joint venture has enabled us to establish a greater presence in Saudi Arabia, and we are encouraged by the recent positive developments occurring in North America,” Mr. Mansfield concluded.

Fiscal 2024 Results

Net sales were $158.4 million and $150.7 million in the years ended January 31, 2025 and 2024, respectively. The increase of $7.7 million was primarily a result of higher sales volumes in the Middle East and Canada.

Gross profit was $53.2 million, or 34% of net sales and $41.5 million, or 28% of net sales, in the years ended January 31, 2025 and 2024, respectively. The increase of $11.7 million was driven by higher sales volumes and improved gross margins in the Middle East and Canada.

General and administrative expenses were $28.0 million and $22.6 million in the years ended January 31, 2025 and 2024, respectively. The increase of $5.4 million was primarily related to higher compensation costs and professional fees.

Selling expenses were $4.9 million and $5.5 million in the years ended January 31, 2025 and 2024, respectively. The decrease of $0.6 million was driven by lower payroll expenses during the year.

Interest expense was $1.9 million and $2.3 million in the years ended January 31, 2025 and 2024, respectively. The decrease of $0.4 million was related to decreased borrowings and, to a lesser extent, lower interest rates.

Other income was $0.1 million, as compared to other expense of $1.2 million in the years ended January 31, 2025 and 2024, respectively. The change relates mainly to a one-time non-recurring charge in connection with a non-cash pre-tax settlement resulting from the termination of the Company’s pension plan.

The Company’s worldwide effective tax rates (“ETR”) were 29.1% and (33.6%) in the years ended January 31, 2025 and 2024, respectively. The change in ETR was largely due to changes in the mix of income and loss in various tax jurisdictions and the release of the partial domestic valuation allowance in the prior year. For further information, see Note 7 - Income taxes, in the Notes to Consolidated Financial Statements.

Net income attributable to common stock was $9.0 million and $10.5 million in the years ended January 31, 2025 and 2024, respectively. The decrease in net income was a result of the changes discussed above, less amounts attributable to non-controlling interest.

Perma-Pipe International Holdings, Inc.

Perma-Pipe International Holdings, Inc. (the “Company”) is a global leader in pre-insulated piping and leak detection systems for oil and gas gathering, district heating and cooling, and other applications. It uses its extensive engineering and fabrication expertise to develop piping solutions that solve complex challenges regarding the safe and efficient transportation of many types of liquids. In total, the Company has operations at fourteen locations in six countries.