Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) spilled the beans on their financial results for the fourth quarter and the fiscal year 2024 that ended on January 31, 2025. The company boasted net sales of $45.0 million for the quarter and $158.4 million for the year, showing a modest increase of $4.8 million and $7.7 million, respectively, compared to the previous year. Income before income taxes also saw a boost, reaching $5.3 million for the quarter and $18.5 million for the year, marking an increase of $2.1 million and $8.6 million from the prior year. CEO David Mansfield attributed this significant growth to the company’s focus on higher margin products and services, leading to improved margin performance.
On top of that, the company’s backlog stood at an impressive $138.1 million as of January 31, 2025, a whopping 102% increase from the previous year. Mansfield expressed his satisfaction with this growth, stating that it puts Perma-Pipe in a strong position to kick off fiscal 2025 with a bang.
Despite a slight dip in net income after taxes and minority interest to $1.5 million for the quarter and $9.0 million for the year in 2024, compared to $10.5 million in the prior year, Mansfield clarified that the decrease was largely due to a one-time non-cash tax benefit of $5.9 million in the prior year. Excluding this benefit, net income after taxes and minority interest actually saw an increase of $4.4 million.
Looking back at the fiscal year, Perma-Pipe reported net sales of $158.4 million, up from $150.7 million in the previous year. The company’s gross profit also saw a healthy increase to $53.2 million, representing 34% of net sales, compared to $41.5 million (28% of net sales) in the prior year. General and administrative expenses rose to $28.0 million, primarily due to higher compensation costs and professional fees, while selling expenses decreased slightly to $4.9 million.
Interest expense dropped to $1.9 million from $2.3 million, thanks to decreased borrowings and lower interest rates. Other income also saw a positive swing, turning from an expense of $1.2 million to income of $0.1 million. The company’s worldwide effective tax rates showed a significant improvement, moving from 33.6% to 29.1%.
Net income attributable to common stock landed at $9.0 million for the year, down from $10.5 million in the prior year, reflecting the changes in income, expenses, and taxes. Perma-Pipe International Holdings, Inc. remains a global leader in pre-insulated piping and leak detection systems, operating in six countries with operations at fourteen locations.
In a nutshell, Perma-Pipe had a solid year in 2024, with notable achievements in income before taxes, improved margins, and backlog growth. The company’s joint venture in Saudi Arabia continued to exceed expectations, while the new facility in Vars, Ontario, Canada, showed promising signs of activity. With several large-scale project awards under its belt, Perma-Pipe is gearing up for a successful 2025 and positioning itself as a key player in future mega-projects, including opportunities in Qatar.
As the company looks ahead, CEO David Mansfield expressed optimism about the positive developments taking place in North America and the expanding presence in Saudi Arabia. Despite the challenges and uncertainties in the business environment, Perma-Pipe remains focused on driving growth and delivering value to its shareholders and stakeholders.
In conclusion, Perma-Pipe’s financial performance in 2024 reflects a story of resilience, growth, and strategic positioning for the future. With a solid foundation and a proven track record, the company is poised to capitalize on new opportunities and navigate the ever-changing landscape of the industry.
