Perma-Pipe International Q2 sales rise on higher volumes

• Sales volumes - Higher sales volumes in North America and MENA drove net sales growth.
• Cost pressures - Increased materials and logistics costs, plus ramp-up costs at the new Ohio facility, reduced gross margin.
• Receivable charge and tax benefit - Results included a $3.9 million charge for an uncollectible receivable and a $1.6 million discrete tax benefit.

The company said its strong backlog and growing RFP pipeline support its outlook for continued growth.

Perma-Pipe expects expanded Ohio and Qatar facilities to meet higher demand in key markets.

The company said a new joint venture in Jordan is supporting large-scale infrastructure projects.

Perma-Pipe International's fiscal second-quarter net sales rose 24% year over year, driven by higher volumes.

Q2 net income attributable to common stock increased, aided by a discrete tax benefit and a receivable provision.

The company said backlog reached $142.3 million, supported by more than in new second-quarter awards.