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Perma-Pipe's Q2 Earnings Soar Y/Y on Strong MENA Demand
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Perma-Pipe International Holdings, Inc. (PPIH - Free Report) reported a significant improvement in its financial performance for the second quarter of 2024. The company's net income attributable to common stock was $3.3 million, translating to earnings per share of 40 cents. This represents a substantial increase when compared to $1 million, or 13 cents per share in the second quarter of 2023.
Revenue also saw a positive trend, with net sales amounting to $37.5 million for the quarter, up 7% from $35.1 million in the same period last year. The metric was driven by increased demand across key markets, particularly in the Middle East and North Africa (MENA) region. The $2.4 million year-over-year increase in sales, coupled with improved pricing and volume growth, indicates the effectiveness of PPIH's strategic positioning in these high-demand regions.
Perma-Pipe's second-quarter 2024 results demonstrated significant year-over-year improvement in both revenues and profitability, driven by increased sales volumes, margin expansion, and strong performance in key international markets. With a growing backlog and continued demand for its specialized products, PPIH is well-positioned for further growth in the coming quarters.
Perma-Pipe International Holdings, Inc. Price, Consensus and EPS Surprise
The company achieved a gross profit of $13.5 million, or 36% of net sales, a significant increase from $9.5 million, or 27% of net sales, year over year. This was primarily due to increased sales volumes and improved margins stemming from an advantageous product mix.
Expense Management
General and administrative expenses increased slightly to $6 million from $5.3 million, attributed to higher payroll expenses and professional service fees. Selling expenses remained stable at around $1.4 million, demonstrating effective control over sales-related expenditures.
Backlog
The growth in the backlog, which stood at $75.5 million as of July 31, 2024, up from $68.5 million as of Jan. 31, 2024, indicates sustained demand and future revenue potential.
Balance Sheet Position (As of July 31, 2024)
Perma-Pipe had $9.5 million in cash and cash equivalents, an increase from $5.8 million as of Jan. 31, 2024.
Total assets stood at $159.2 million, an increase from $155.7 million as of Jan. 31, 2024.
Current liabilities amounted to $56.5 million, showing a slight decrease from $57.7 million as of Jan. 31, 2024.
Total stockholders' equity increased to $68.6 million, up from $65.7 million as of Jan. 31, 2024.
Decline in Cash Flows
Perma-Pipe generated $3.8 million of net cash from operations in the six months ended July 31, 2024, an increase from $3.5 million in the prior-year comparable period.
Other Developments
In terms of future growth, PPIH’s expansion in the MENA region continues to be a focal point. During the second quarter of 2024, the company secured two major project awards in this region, collectively valued at over $46 million. These new contracts, combined with the current backlog, position PPIH for sustained growth in the second half of fiscal 2024.
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Perma-Pipe's Q2 Earnings Soar Y/Y on Strong MENA Demand
Perma-Pipe International Holdings, Inc. (PPIH - Free Report) reported a significant improvement in its financial performance for the second quarter of 2024. The company's net income attributable to common stock was $3.3 million, translating to earnings per share of 40 cents. This represents a substantial increase when compared to $1 million, or 13 cents per share in the second quarter of 2023.
Revenue also saw a positive trend, with net sales amounting to $37.5 million for the quarter, up 7% from $35.1 million in the same period last year. The metric was driven by increased demand across key markets, particularly in the Middle East and North Africa (MENA) region. The $2.4 million year-over-year increase in sales, coupled with improved pricing and volume growth, indicates the effectiveness of PPIH's strategic positioning in these high-demand regions.
Perma-Pipe's second-quarter 2024 results demonstrated significant year-over-year improvement in both revenues and profitability, driven by increased sales volumes, margin expansion, and strong performance in key international markets. With a growing backlog and continued demand for its specialized products, PPIH is well-positioned for further growth in the coming quarters.
Perma-Pipe International Holdings, Inc. Price, Consensus and EPS Surprise
Perma-Pipe International Holdings, Inc. price-consensus-eps-surprise-chart | Perma-Pipe International Holdings, Inc. Quote
Key Business Metrics
Gross Profit and Operational Efficiency
The company achieved a gross profit of $13.5 million, or 36% of net sales, a significant increase from $9.5 million, or 27% of net sales, year over year. This was primarily due to increased sales volumes and improved margins stemming from an advantageous product mix.
Expense Management
General and administrative expenses increased slightly to $6 million from $5.3 million, attributed to higher payroll expenses and professional service fees. Selling expenses remained stable at around $1.4 million, demonstrating effective control over sales-related expenditures.
Backlog
The growth in the backlog, which stood at $75.5 million as of July 31, 2024, up from $68.5 million as of Jan. 31, 2024, indicates sustained demand and future revenue potential.
Balance Sheet Position (As of July 31, 2024)
Perma-Pipe had $9.5 million in cash and cash equivalents, an increase from $5.8 million as of Jan. 31, 2024.
Total assets stood at $159.2 million, an increase from $155.7 million as of Jan. 31, 2024.
Current liabilities amounted to $56.5 million, showing a slight decrease from $57.7 million as of Jan. 31, 2024.
Total stockholders' equity increased to $68.6 million, up from $65.7 million as of Jan. 31, 2024.
Decline in Cash Flows
Perma-Pipe generated $3.8 million of net cash from operations in the six months ended July 31, 2024, an increase from $3.5 million in the prior-year comparable period.
Other Developments
In terms of future growth, PPIH’s expansion in the MENA region continues to be a focal point. During the second quarter of 2024, the company secured two major project awards in this region, collectively valued at over $46 million. These new contracts, combined with the current backlog, position PPIH for sustained growth in the second half of fiscal 2024.