With the release of its most recent earnings report, Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) stock experienced a notable increase on the US stock charts. PPIH stock price jumped 15.70% on Wednesday, concluding the trading activity at $11.57. Positive investor mood in reaction to the company’s excellent financial performance was a major factor driving this upward rise.
Perma-Pipe Shared Robust Financials And Market Growth
Recent results for Perma-Pipe continue to show the company’s strong commercial activity and expansion into new areas as net sales during the second quarter increased by $2.4 million over the prior quarter to $37.5 million.
Moreover, net income attributable to common stock increased by $2.3 million to a total of $3.3 million, a 222% increase. These startling figures demonstrate the growing demand for Perma-Pipe’s services, particularly given the surge in infrastructure investment in important countries like Saudi Arabia, India, and the United Arab Emirates.
Considerable Increase In Backlog
The company’s backlog reached $75.5 million in the second quarter with a double-digit rise. When compared to the backlog at the end of January 2024, this indicates a 10% rise. Notably, this figure excludes more than $46 million in additional awards secured after the quarter’s close, related to two significant projects in the Middle East and North Africa (MENA) region. These new contracts highlight Perma-Pipe’s strategic focus on serving rapidly expanding markets in this area.
PPIH Secured Strategic Project Awards In The MENA Region
Perma-Pipe last month announced the securing of two major projects in the MENA region, valued at over $46 million. These projects are part of substantial regional developments and will utilize Perma-Pipe’s advanced coating capabilities.
One of those capabilities is the XTRU-THERM insulation system, which has a high-density polyethylene shell and a spray-applied polyurethane foam jacket. These honors enhance the company’s strategic position in the Middle East in addition to being an essential part of its expansion goals.