Perma-Pipe(US:PPIH)2025-09-15 13:10Financial Performance - For the three months ended July 31, 2025, net sales were $47.9 million, an increase of $10.4 million, or 27.7%, compared to $37.5 million in the prior-year quarter[2]. - Gross profit for the same period was $14.4 million, up $0.9 million from $13.5 million last year, reflecting higher activity levels[2]. - Net income attributable to common stock was $0.9 million, down from $3.3 million in the second quarter of fiscal 2024, a decrease of $2.4 million[12]. - For the six months ended July 31, 2025, net sales were $94.6 million, an increase of $22.8 million, or 31.8%, compared to $71.8 million in the prior-year period[3]. - Net income attributable to common stock for the three months ended July 31, 2025, was $851 million, a decrease of 74.1% from $3,289 million in 2024[23]. - Adjusted income before tax for the three months ended July 31, 2025, was $4,857 million, compared to $5,590 million in 2024, reflecting a decrease of 13.1%[28]. Expenses and Liabilities - General and administrative expenses increased to $10.0 million from $6.0 million, primarily due to higher payroll and a one-time charge of $2.1 million related to executive compensation[2]. - Total operating expenses increased to $11,236 million, up 53.5% from $7,332 million in the prior year[23]. - Current liabilities increased to $66,815 million, up 23.6% from $54,063 million in the previous period[25]. - Interest expense for the three months ended July 31, 2025, was $415 million, a decrease of 19.3% from $514 million in 2024[23]. Taxation - The effective tax rate for the quarter was 54%, compared to 23% in the prior-year quarter, influenced by the one-time compensation charge[2]. Strategic Initiatives - The Company is exploring strategic alternatives to maximize shareholder value, including a potential sale of divisions or the entire Company[5]. - The Company has made strategic investments in establishing a new manufacturing facility in Qatar, supported by over $5 million in new awards to be delivered before year-end[4]. Backlog and Assets - Backlog stood at $157.8 million at July 31, 2025, an increase of $19.7 million, or 14.3%, from January 31, 2025, and an increase of $82.3 million, or 109.0%, from July 31, 2024[4]. - Total assets as of July 31, 2025, were $188,990 million, an increase of 14.4% from $165,241 million as of January 31, 2025[25]. - Stockholders' equity rose to $80,204 million, an increase of 11.5% from $72,138 million[25]. Earnings Per Share - Earnings per share attributable to common stock for the three months ended July 31, 2025, were $0.11, down from $0.41 in the same period of 2024[23].