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Perma-Pipe International Holdings reported second quarter fiscal 2026 results on 9 September, for the quarter ended 31 July.
The headline: the underlying business grew faster than the reported numbers suggest.
Net sales grew 24.4% to $59.6 million.
Gross profit grew 20.7% to $17.4 million.
Adjusted income before tax grew 70% to $8.3 million.
GAAP diluted EPS grew to $0.31 from $0.10, after absorbing a $3.9 million receivable write-off.
Backlog reached $142.3 million, up from $121.6 million at year-end and $136.5 million at the end of Q1.
$67.8 million of new orders were booked in the quarter.
Net debt fell to $4.3 million from $13.8 million at year-end, with $13.3 million of operating cash flow in the first half against a $1.3 million outflow a year ago.
Then, on 25 August, the company closed a new global credit facility with JPMorgan Chase: a $75 million revolver, a $14 million term loan, up to $50 million of incremental capacity and $30 million of letter-of-credit availability. Around $90 million of committed capital at closing, against a previous facility of $18 million.
This is also the first quarter Perma-Pipe has hosted an earnings call. Management said it will now be a regular quarterly event, and they have appointed an IR agency. For a company that until recently communicated almost entirely through press releases, that is a change in posture worth noting.
In the rest of this post, I cover:
The quarterly numbers and what the $3.9 million charge does and does not tell us
Margins, and why they are sitting below the 30%+ level management is targeting
The backlog, the $67.8 million of new orders, and what management said about third-quarter conversion
The JPMorgan facility and what it changes about the projects Perma-Pipe can bid on
The Jordan joint venture with Welspun, the Aramco qualification, and the data center comments
What I am watching from here