Perma-Pipe International Holdings Inc

Perma-Pipe International Holdings reported second-quarter net sales of $59.6 million, up 24.4% year over year, with backlog reaching $142.3 million as of July 31, up 17% from $121.6 million at the start of the fiscal year on January 31. The company added $67.8 million in new orders during the quarter and pointed to a $900 million pipeline of active quoting and proposal work, while its leak detection unit has locked in 80% of its full-year bookings target. Two new plants are driving the expansion: an Ohio facility aimed at the data center market ramping toward full production in early 2027, and a Qatar plant serving QatarEnergy and regional customers, while Saudi Aramco has qualified a new Perma-Pipe product line for its energy expansion program. The company also signed a memorandum of understanding with Welspun to form a joint venture in Jordan tied to the National Water Carrier Program, and secured a new $90 million credit facility with JPMorgan Chase plus $50 million of additional incremental capacity. Gross margin slipped to 29.2% from 30.1% a year earlier, weighed down by $500,000 in Ohio startup costs and a $3.9 million full write-off of a receivable tied to a single customer's deteriorating finances, while six-month net income attributable to common stock fell to $4.3 million from $5.8 million and total debt rose to $36.1 million from $32.5 million.