Perma-Pipe International Holdings, Inc. Announces $15 Million in Contract Awards in the Americas and Middle East Regions

Rhea-AI Summary

Perma-Pipe International Holdings (Nasdaq: PPIH) has secured new contracts worth $15 million across the Americas ($9 million) and MENA region ($6 million). The projects will utilize the company's anti-corrosion coatings and XTRU-THERM® insulation system technology. The company's backlog has grown significantly from $75.0 million in July 2024 to over $100.0 million currently. The MENA projects primarily focus on district energy infrastructure in the GCC region, while the Americas awards reflect market strength in the USA and Canada.

Positive

• Secured new contracts worth $15 million across multiple regions
• Backlog increased from $75 million to over $100 million
• Geographic expansion and market position strengthening in both Americas and MENA regions

Negative

• None.

Insights

Financial Analyst

The $15 million in new contract awards represents a significant development for Perma-Pipe, substantially boosting their backlog from $75 million to over $100 million. This 33% increase in backlog demonstrates strong market demand and improved business momentum across key regions. The diversification across Americas ($9 million) and MENA ($6 million) markets reduces geographical concentration risk while showcasing the company's expanding global footprint.

The district energy infrastructure projects in the GCC region present particularly promising growth opportunities, given the region's continued investment in infrastructure development. For a company with a market cap of $110 million, these contract wins are material, representing approximately 13.6% of their market value. The growing backlog suggests improved revenue visibility and operational momentum for upcoming quarters.

SPRING, Texas--(BUSINESS WIRE)-- Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced $6 million in new project awards in the MENA region. Additionally, the company announced $9 million in new project awards in the Americas, demonstrating continual improvement in the region.

These new project awards will utilize Perma-Pipe’s anti-corrosion coatings capabilities and the XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene casing.

These new project awards further complement our backlog, which has experienced considerable growth. Backlog was $75.0 million at July 31, 2024 and is now in excess of $100.0 million.

Marc Huber, Sr. Vice President for Perma-Pipe’s Americas region, commented, “We are delighted with these awards which demonstrate the buoyancy in the Americas market and the continual strengthening of our position in the USA and Canada.”

Saleh Sagr, Sr. Vice President for Perma-Pipe’s MENA region, commented, “The latest awards in MENA largely serve the district energy infrastructure projects in the GCC region. These awards further confirm our leading market position and provide us the opportunity to demonstrate our industry-leading products and services to new customers”

David Mansfield, President and CEO, commented, “Growth in all regions has been part of our overall strategy, and we are proud to see this coming together, enabling Perma-Pipe to continue strengthening its leading market position.

Perma-Pipe International Holdings, Inc.

Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH, “Perma-Pipe”, or the “Company”) is a global leader in pre-insulated piping and leak detection systems for oil and gas, district heating and cooling, and other applications. It uses its extensive engineering and fabrication expertise to develop piping solutions that solve complex challenges regarding the safe and efficient transportation of many types of liquids. In total, Perma-Pipe has operations at fifteen locations in six countries.

Forward-Looking Statements

Certain statements and other information contained in this press release that can be identified by the use of forward-looking terminology constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby, including, without limitation, statements regarding the expected future performance and operations of the Company. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties include, but are not limited to, the following: (i) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) decreases in government spending on projects using the Company’s products, and challenges to the Company’s non-government customers’ liquidity and access to capital funds; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related to the Company's international business operations; (xvii) the Company’s ability to attract and retain senior management and key personnel; (xviii) the Company’s ability to achieve the expected benefits of its growth initiatives; (xix) the Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) the impact of cybersecurity threats on the Company’s information technology systems. Shareholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at https://www.sec.gov and under the Investor Center section of our website (http://investors.permapipe.com).

View source version on businesswire.com: https://www.businesswire.com/news/home/20241106065782/en/

Perma-Pipe International Holdings, Inc.

David Mansfield, President and CEO

Perma-Pipe Investor Relations

investor@permapipe.com

847.929.1200

Source: Perma-Pipe International Holdings, Inc.

FAQ

What is the total value of new contracts awarded to Perma-Pipe (PPIH) in 2024?

Perma-Pipe (PPIH) has been awarded new contracts totaling $15 million, with $9 million in the Americas and $6 million in the MENA region.

What is Perma-Pipe's (PPIH) current backlog value?

Perma-Pipe's (PPIH) backlog has grown from $75.0 million in July 2024 to over $100.0 million currently.

What technologies will Perma-Pipe (PPIH) use in these new projects?

Perma-Pipe will utilize its anti-corrosion coatings capabilities and the XTRU-THERM® insulation system, which features spray-applied polyurethane foam with high-density polyethylene casing.