“`html
Perma-Pipe International Holdings, Inc. (PPIH) reported a significant decline of 26.4% in share value following the earnings announcement for the quarter ending July 31, 2025, contrasting with a 0.5% gain in the S&P 500 index during the same period. The fiscal second quarter results revealed earnings per share decreased to 10 cents from 40 cents in the previous year, while net sales increased by 27.7% to $47.9 million.
Despite the top-line growth driven by higher sales volumes in the Middle East and North America, net income attributable to common stock plummeted 74% to $0.9 million, largely due to rising general and administrative expenses, including a one-time $2.1 million charge related to executive compensation. The company’s backlog reached $157.8 million, up 14.3% year-to-date, reflecting strong demand and future revenue visibility.
Additionally, PPIH transitioned to accelerated filer status with the SEC, implicating stricter reporting timelines starting with the fiscal year ending January 31, 2026. The effective tax rate surged to 54% from 23% in the prior year, exacerbating profitability pressures.
“`
