Perma-Pipe(PPIH) - 2025 Q4 - Annual Results

Financial Performance - Net sales for the fourth quarter and full year 2024 were $45.0 million and $158.4 million, representing increases of $4.8 million and $7.7 million compared to the prior year[2]. - Income before taxes was $5.3 million for the fourth quarter and $18.5 million for the full year 2024, an increase of $2.1 million and $8.6 million year-over-year[3]. - Net income after taxes for the fourth quarter and full year 2024 was $1.5 million and $9.0 million, with a decrease of $1.5 million compared to $10.5 million last year, primarily due to a one-time non-cash tax benefit in the prior year[4]. - Adjusted income before tax for the year was $19.0 million, up from $11.1 million in the previous year, reflecting improved operational performance[26]. Backlog and Project Awards - The backlog increased significantly to $138.1 million, a 102% increase compared to $68.4 million at the same time last year[5]. - The company secured several large-scale project awards, positioning itself for future mega-projects, particularly in Qatar and Saudi Arabia[7]. Profitability and Expenses - Gross profit for the year was $53.2 million, or 34% of net sales, compared to $41.5 million, or 28% of net sales in the previous year, driven by higher sales volumes and improved margins[9]. - General and administrative expenses rose to $28.0 million from $22.6 million, primarily due to higher compensation costs and professional fees[10]. - Interest expense decreased to $1.9 million from $2.3 million, attributed to reduced borrowings and lower interest rates[11]. Taxation - The effective tax rate for the year was 29.1%, a change from (33.6%) in the prior year, largely due to changes in income mix across tax jurisdictions[13].