EarningsQ2 2026 Earnings Report
DE:MF3 Q2 2026 EPS Results
Actual EPS€0.28
Consensus EPS€0.49
Beat/MissMissed by -€0.21
One Year Ago EPS€0.09
DE:MF3 Q2 2026 Revenue Results
Actual Revenue€53.15M
Expected Revenue€45.68M
Beat/MissBeat by +€7.47M
YoY Revenue Growth+24.35%
Earnings Announcement Details
QuarterQ2 2026
Date09/09/2026
TimeBefore Open
Conference CallWednesday, September 9, 2026
DE:MF3 Upcoming Earnings
Perma-Pipe International Holdings's next earnings date is estimated for December 3, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:MF3 Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive, supported by 24% second-quarter sales growth, higher quarterly earnings, $67.8 million of new orders, backlog growth to $142.3 million, improved operating cash flow, lower net debt, facility expansions, strong leak detection bookings, and a favorable second-half outlook. The main negatives were the $3.9 million receivable write-off, first-half declines in operating income and net income, lower year-to-date gross margin, higher operating expenses, facility ramp costs, tariff and Middle East-related cost pressures, and geopolitical uncertainty.Company Guidance
Second-Quarter Revenue and Earnings Growth
Second-quarter net sales were $59.6 million, up approximately 24% year-over-year from $47.9 million. Net income attributable to common stock increased to $2.5 million, or $0.31 per diluted share, from $0.9 million, or $0.10 per diluted share, in the year-ago period.
Full-Year 2025 Record Results
Perma-Pipe entered fiscal 2026 following record fiscal 2025 results, including net sales of $210.9 million, up 33% year-over-year; net income attributable to common stock of $17 million, up 89%; and year-end backlog of $121.6 million.
Strong New Orders and Backlog Growth
The company secured $67.8 million of new orders during the quarter, including significant awards from the oil and gas and infrastructure markets and new mission-critical applications for leak detection. Quarter-end backlog was $142.3 million, compared with $121.6 million at January 31, 2026, and substantially all of the backlog is expected to be completed within the next 12 months.
North American and MENA Volume Growth
First-half net sales were $109.8 million, up approximately 16% from $94.6 million in the prior-year period. Growth in both the quarter and first six months reflected higher volumes in the MENA and North America regions.
Ohio Facility Operational and Ramping
The Ohio facility went operational and ramped production during the quarter. Management said it extends the company's reach, expands its ability to serve customers, supports the North American growth strategy, and provides additional capacity as demand develops. The facility is primarily geared toward the data center market and other district heating and cooling offerings.
Qatar Facility Production Ramp
Production ramped at the Qatar facility, which is positioned to serve QatarEnergy, described as the world's largest LNG exporter, as well as regional and international markets. Management said the ramp underscores the growing importance of MENA and the strategy of locating manufacturing capacity close to customers and served markets.
Leak Detection Bookings Progress
The leak detection business has secured approximately 80% of its full-year bookings target. Management highlighted opportunities to expand PermAlert and distributed fiber optic sensing capabilities across water, energy, oil and gas, district heating and cooling, and other critical infrastructure applications.
Digital Infrastructure Expansion
Perma-Pipe recently secured a Middle East digital infrastructure award, described as a greenfield opportunity with commercial providers and a proof point for leak detection technology beyond North America. The company is also extending its U.S. digital infrastructure strength into Canada and the Middle East and is developing relationships with equipment manufacturers to embed its leak detection technology into their product offerings.
Recurring-Service Strategy in Heating and Cooling
The company is developing multiyear service agreements that pair installed heating and cooling systems with ongoing monitoring and support, creating a service-based offering over the life of the asset.
Saudi Aramco Product Qualification
Saudi Aramco qualified Perma-Pipe's new product line designed for the Kingdom's energy expansion program. Management said this provides access to one of the world's largest markets for pipe coating solutions and an important competitive advantage in the region.
Canadian Market Recovery
Management reported a recovery in Canadian market activity during the second quarter, which, together with the Saudi Aramco qualification and other regional developments, supports expectations for a stronger second half.
Jordan Welspun Joint Venture Opportunity
The proposed Welspun joint venture would establish local manufacturing capability in Jordan, provide an immediate project opportunity through Jordan's National Water Carrier Program, expand Perma-Pipe into pipe manufacturing for the first time, and support potential water, energy, and infrastructure projects across Jordan and the Levant. Management stated that the National Water Carrier project is not yet a definitive award and has not been included in backlog.
Improved Cash Flow and Net Debt Position
Cash and cash equivalents were $31.8 million at July 31, 2026, compared with $18.7 million at January 31, 2026. Net cash provided by operating activities was $13.3 million in the first six months, compared with a use of cash of $1.3 million in the prior-year period. Net debt was approximately $4.3 million at quarter-end versus approximately $13.8 million at the previous fiscal year-end.
Expanded JPMorgan Credit Facility
The new global JPMorgan Chase facility includes a $75 million revolving credit facility and a $14 million term loan, representing approximately $90 million of commitments at closing, plus access to up to an additional $50 million of incremental capacity. It includes up to $30 million of letter-of-credit availability and supports working capital, letters of credit, general corporate purposes, and permitted acquisitions.
Operating Cash Investment and Growth Capacity
Capital expenditures were $3.2 million in the first six months. Management said the new credit facility improves the company's ability to fund expansion, compete for and execute large projects, including opportunities in excess of $100 million, while supporting organic growth in Qatar, MENA, Jordan, North America, and potential acquisitions that add technology, customers, geographic reach, or recurring revenue.
Large Product Opportunity Pipeline
Management stated that the company's products pipeline exceeds $900 million, while cautioning that it is not saying the company will win all of those opportunities.
Index Inclusion and Investor Visibility
Perma-Pipe joined the Russell 2000 and Russell 3000 Indexes in June, which management said broadens visibility within the investment community and increases awareness among institutional investors and the broader capital markets. The company also introduced regular quarterly earnings calls and recently engaged Alliance Advisors as its investor relations agency of record.
Positive Second-Half Outlook
Management said the company enters the second half of fiscal 2026 with healthy momentum from backlog, a growing pipeline of RFP and quoting opportunities, and regional business development initiatives. It expects approximately 40%-50% of backlog to convert to revenue in the third quarter and said it is well-positioned for a strong second half, barring a material worsening of market and geopolitical conditions.
Sales Organization and Talent Investments
The company has been restructuring its global sales network and adding resources at the business-unit, regional, and corporate levels to oversee sales and business development opportunities. Management said it continues to upgrade talent and add resources to help scale the business.
DE:MF3 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed