Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) announced its financial results for the second quarter of fiscal 2026, which ended July 31, 2026. The company reported net sales of $59.6 million for the quarter, representing a 24.4% increase compared to the same period in the prior year.
Gross profit for the quarter totaled $17.4 million, an increase of $3.0 million from the prior year. However, the company noted that gross margin decreased to 29.2% from 30.1% in the prior-year quarter. The company attributed this decline to increased materials and logistics costs, as well as ramp-up costs associated with its new Ohio manufacturing facility.
Net income attributable to common stockholders was $2.5 million, or $0.31 per diluted share, compared to $0.9 million, or $0.10 per diluted share, in the prior year. This increase was driven by higher sales volumes and a discrete tax benefit of approximately $1.6 million related to an uncollectible account receivable. The quarter included a $3.9 million charge for the uncollectible receivable and $0.5 million in start-up costs for the Ohio facility.
At the end of the quarter, the company reported a backlog of $142.3 million. During the quarter, the company secured more than $67 million in new orders, including significant awards in the oil and gas sector in the MENA region and Canada. The company also entered into a new global credit agreement with JPMorgan Chase Bank, N.A., which provides a $75.0 million revolving credit facility and a $14.0 million term loan facility.
