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Perma-Pipe International Holdings
(NASDAQ:PPIH)
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Rating:74Outperform
Price Target:
$33.00
▲(23.92% Upside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by improved financial performance (strong revenue and margin expansion with improving leverage), supported by constructive technical momentum (price above key moving averages with positive MACD). Valuation is reasonable on P/E but lacks dividend support, while the earnings call adds a positive tilt via backlog-driven second-half expectations, tempered by margin/cost and geopolitical execution risks.
Positive Factors
Revenue and margin expansion
Sustained revenue growth alongside a major gross-margin improvement indicates stronger execution and a healthier earnings profile. If the company can preserve margins near its stated targets, the expanded revenue base should support operating leverage and more durable profitability over the next several quarters.
Negative Factors
Uneven cash conversion
Recent cash generation has improved, but the history of volatile operating and free cash flow shows that reported earnings do not consistently translate into deployable cash. Working-capital demands and project timing may therefore constrain funding flexibility and make future expansion more dependent on credit availability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin expansion
Sustained revenue growth alongside a major gross-margin improvement indicates stronger execution and a healthier earnings profile. If the company can preserve margins near its stated targets, the expanded revenue base should support operating leverage and more durable profitability over the next several quarters.
Read all positive factors
Perma-Pipe International Holdings (PPIH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$248.56M
Dividend YieldN/A
Average Volume (3M)93.00K
Price to Earnings (P/E)16.1
Beta (1Y)1.12
Revenue Growth24.78%
EPS Growth52.53%
CountryUS
Employees909
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.92
Shares Outstanding8,195,179
10 Day Avg. Volume97,695
30 Day Avg. Volume92,997
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)2.56
Price to Sales (P/S)1.10
P/FCF Ratio-182.85
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$38.00Price Target Upside42.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.11
Revenue Forecast (FY)$221.00M
Perma-Pipe International Holdings Business Overview & Revenue Model
Company Description
Perma-Pipe International Holdings, Inc., along with its subsidiaries, specializes in the engineering, design, manufacturing, and sale of specialized piping and leak detection solutions. Its product portfolio includes jacketed district heating and ...
How the Company Makes Money
PPIH primarily makes money by selling engineered pre-insulated piping systems and associated services on a project-by-project basis. Its core revenue stream is the manufacture and supply of pre-insulated pipe, fittings, and related components (oft...
Perma-Pipe International Holdings Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 03, 2026
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.Positive Updates
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.
Negative Updates
Uncollectible Receivable Charge
Second-quarter results included a $3.9 million charge related to an uncollectible accounts receivable balance with a specific customer. Management concluded that a full write-off was appropriate, is not currently pursuing recovery, and said any future collection would be recognized as a subsequent recovery.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management said it is “well-positioned for a strong second half of the fiscal year,” “barring a material worsening of market and geopolitical conditions,” and that first-half performance “positions us well for a strong 2026”; it expects approximately 40%-50% of the $142.3 million backlog to convert to revenue in the third quarter, Ohio to ramp up to full production by early 2027, and the data centers market to be very active for the next few years, lasting until about 2030 or 2031. Management’s objective remains to return consolidated gross margins to higher than 30s, with revenue growth expected to outpace corporate overheads and provide operating leverage; tariffs are expected to “subside and go back to normal in the future,” and the products pipeline is in excess of $900 million, including opportunities “in excess of $100 million.”Perma-Pipe International Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Jan 2026 | Apr 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 226.11M | 210.93M | 158.38M | 150.67M | 142.57M | 138.55M |
| Gross Profit | 70.38M | 69.49M | 53.25M | 41.46M | 38.30M | 32.53M |
| EBITDA | 33.47M | 34.52M | 24.04M | 16.15M | 15.45M | 13.57M |
| Net Income | 15.58M | 17.04M | 8.98M | 10.47M | 5.95M | 6.06M |
Balance Sheet | ||||||
| Total Assets | 232.63M | 217.49M | 165.24M | 155.71M | 122.97M | 123.40M |
| Cash, Cash Equivalents and Short-Term Investments | 31.78M | 18.72M | 15.72M | 5.84M | 5.77M | 8.21M |
| Total Debt | 53.04M | 46.86M | 33.25M | 32.79M | 29.38M | 34.54M |
| Total Liabilities | 121.63M | 111.19M | 82.14M | 83.73M | 65.18M | 68.94M |
| Stockholders Equity | 93.49M | 90.64M | 72.14M | 65.71M | 57.78M | 54.46M |
Cash Flow | ||||||
| Free Cash Flow | 13.65M | -1.27M | 11.05M | 3.63M | -8.22M | -4.84M |
| Operating Cash Flow | 23.82M | 9.17M | 13.93M | 14.73M | -1.24M | -2.57M |
| Investing Cash Flow | -10.11M | -10.42M | -2.85M | -11.10M | -6.38M | -2.25M |
| Financing Cash Flow | 2.81M | 6.59M | -907.00K | -3.26M | 4.54M | 6.23M |
Perma-Pipe International Holdings Technical Analysis
Positive
26.63
Price Trends
27.18
Positive
28.21
Positive
29.69
Positive
Market Momentum
1.07
Negative
69.36
Neutral
71.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPIH, the sentiment is Positive. The current price of 26.63 is below the 20-day moving average (MA) of 29.19, below the 50-day MA of 27.18, and below the 200-day MA of 29.69, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 69.36 is Neutral, neither overbought nor oversold. The STOCH value of 71.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPIH.
Perma-Pipe International Holdings Risk Analysis
Perma-Pipe International Holdings disclosed 22 risk factors in its most recent earnings report. Perma-Pipe International Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Perma-Pipe International Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $248.56M | 16.06 | 17.21% | ― | 24.78% | 52.53% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $779.99M | 136.05 | 1.31% | ― | 10.50% | ― | |
52 Neutral | $648.39M | -347.00 | -0.31% | ― | 2.13% | -107.14% | |
51 Neutral | $146.60M | -0.03 | -54.20% | 0.48% | ― | ― | |
50 Neutral | $159.64M | -0.30 | -1054.21% | ― | -8.13% | ― | |
48 Neutral | $454.78M | -3.71 | -53.29% | 6.79% | -49.12% | 59.96% |
* Industrials Sector Average
PPIH
Perma-Pipe International Holdings
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8.28
36.06%
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Perma-Pipe International Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Perma-Pipe International Boosts Liquidity With Global Credit Facility
Positive
Aug 27, 2026
On August 25, 2026, Perma-Pipe International Holdings closed a new global credit agreement with J.P. Morgan providing a $75 million secured revolving credit facility, a $14 million term loan and up to $50 million of incremental capacity, replacing...
Executive/Board ChangesShareholder Meetings
Perma-Pipe Shareholders Back Board, Pay and Auditor
Positive
Jun 29, 2026
On June 24, 2026, Perma-Pipe International Holdings held its Annual Meeting of stockholders, where shareholders elected five directors — Ibrahim Al Kuwari, Jon Biro, Saleh Sagr, Richard Sherrill, and Nancy Zakhour — to serve until the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.