Perma‑Pipe International Holdings, Inc. reported fourth‑quarter 2025 results that saw net sales climb 22.4% to $55.1 million, up from $45.0 million a year earlier. Gross profit increased by $2.1 million to $17.3 million, giving the company a Q4 gross margin of 33%, higher than the 31% figure previously cited. The jump in revenue was driven by stronger volumes in the Middle East and North America, where the company’s pre‑insulated piping and leak‑detection systems continue to capture demand from oil and gas, district heating, and emerging data‑center projects.
The revenue growth was largely supported by a surge in data‑center contracts, which added to the company’s traditional oil‑and‑gas and district‑heating businesses. In the Middle East, new pipeline projects and retrofits for existing infrastructure boosted sales, while in North America the company secured several large‑scale district‑heating contracts that benefited from favorable pricing and a mix of high‑margin products.
CEO Saleh Sagr said, "Our fiscal 2025 results represent a landmark achievement for the Company. Total revenues of $210.9 million and net income attributable to common stockholders of $17.0 million mark our highest level of earnings in the Company’s modern operating history." He added, "With record earnings as our foundation and a modernized capital structure as our fuel, we enter the remainder of 2026 with strong confidence in our ability to scale our global operations and drive meaningful shareholder returns."
Operating cash flow for the full year 2025 was $9.2 million, down from $13.9 million in 2024, reflecting an accounts‑receivable build. Despite the decline in full‑year cash flow, the company’s backlog grew to $210 million, providing a strong earnings visibility cushion. The company also announced a new credit facility with JPMorgan Chase to support continued expansion into data‑center markets and other high‑growth regions.
Investors responded positively to the results, citing record revenue, improved gross margins, and a robust backlog that signals continued demand. The company’s strategic investments in new facilities and a modernized capital structure were highlighted as key drivers of its long‑term growth trajectory.
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