Perma-Pipe International Holdings, Inc., announces $4 million in Contract Awards in the Americas Region

Rhea-AI Summary

Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) has secured three projects in the Americas region with a combined value exceeding $4 million USD. The projects will be executed in the company's facilities in Canada and the U.S. Two of the awards are for anticorrosion coating services in the western Canadian oil and gas market, while the third is for double-containment, pre-insulated piping solutions for a pharmaceutical plant expansion in the northeast U.S.

Marc Huber, Sr. Vice President for Perma-Pipe's Americas region, highlighted the strong demand for their services in North America. David Mansfield, President and CEO, emphasized the strategic importance of these awards for the company's growth in the region. Perma-Pipe International Holdings, Inc. is a global leader in pre-insulated piping and leak detection systems, operating in fifteen locations across six countries.

Positive

• Secured three new projects worth over $4 million USD in the Americas region
• Diversified project portfolio across oil and gas and pharmaceutical industries
• Demonstrates strong demand for company's services in North America
• Strategic importance for growth in the Americas region

Negative

• None.

Insights

Financial Analyst

The $4 million in contract awards for Perma-Pipe International Holdings (PPIH) is a positive development, representing a significant portion of the company's market cap of $104.5 million. These projects diversify PPIH's revenue streams across oil & gas and pharmaceutical sectors, potentially reducing industry-specific risks.

The awards highlight PPIH's strong market position in North America, particularly in Canada and the U.S. This geographic focus could provide stability and growth opportunities, especially given the current geopolitical climate favoring domestic energy production.

However, investors should note that while these contracts are substantial, they may not significantly alter PPIH's long-term financial outlook. The company's ability to secure and execute such projects consistently will be important for sustained growth and profitability.

Industrial Engineering Expert

PPIH's contract awards demonstrate the company's technical prowess in specialized piping solutions. The projects span critical applications:

• Anticorrosion coating for oil & gas infrastructure
• Double-containment, pre-insulated piping for pharmaceutical facilities

These high-value, engineered solutions suggest PPIH has a competitive edge in niche markets. The pharmaceutical project, in particular, indicates potential for expansion into high-growth sectors beyond traditional oil & gas markets.

The company's global presence, with 15 locations across 6 countries, positions it well to capitalize on diverse market opportunities and mitigate regional economic fluctuations. This geographical spread could be a significant advantage in securing future contracts and expanding market share.

SPRING, Texas--(BUSINESS WIRE)-- Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has been awarded three projects in the Americas region. The aggregate amount of these three projects is more than 4 million USD.

These project awards will be executed in Perma-Pipe’s facilities in Canada and the U.S.

• Two awards for the provision of anticorrosion coating services for the oil and gas market in western Canada.
• One award for the provision of double-containment, pre-insulated piping solutions for a pharmaceutical plant expansion in the northeast U.S.

Marc Huber, Sr. Vice President for Perma-Pipe’s Americas region commented, “These awards highlight the strong demand for our pipe coating services and pre-insulated pipe solutions in North America. We look forward to reliably executing these recent awards and continuing to accelerate our growth in North America.”

David Mansfield, President and CEO commented, "We are excited about these significant awards which have strategic importance to Perma-Pipe in the Americas region.”

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/20240925805971/en/

Perma-Pipe International Holdings, Inc.

David Mansfield, President and CEO

Perma-Pipe Investor Relations

847.929.1200

investor@permapipe.com

Source: Perma-Pipe International Holdings, Inc.

FAQ

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

Perma-Pipe International Holdings (PPIH) has been awarded three projects with an aggregate value of more than $4 million USD in the Americas region.

In which industries are the new PPIH contracts for?

The new contracts for PPIH are in the oil and gas industry (two projects for anticorrosion coating services in western Canada) and the pharmaceutical industry (one project for double-containment, pre-insulated piping solutions in the northeast U.S.).

Where will Perma-Pipe International Holdings (PPIH) execute the newly awarded projects?

Perma-Pipe International Holdings (PPIH) will execute the newly awarded projects in their facilities located in Canada and the United States.

What types of services will PPIH provide for the new contracts in the Americas region?

For the new contracts, PPIH will provide anticorrosion coating services for oil and gas projects in western Canada and double-containment, pre-insulated piping solutions for a pharmaceutical plant expansion in the northeast U.S.