New York: Perma-Pipe International Holdings Inc has reported a notable increase in its fiscal year 2024 (FY24) sales, with a significant backlog doubling to US$138 million. The piping systems manufacturer announced a full-year net income of US$9.0 million, a decrease from the previous year's US$10.5 million, primarily due to the absence of a one-time US$5.9 million non-cash tax benefit recognized in 2023.
According to BERNAMA News Agency, excluding the impact of the tax gain, the company's net income saw a rise of US$4.4 million, reflecting stronger operational performance. The fourth quarter net sales amounted to US$45.0 million, an increase of US$4.8 million, while annual sales reached US$158.4 million, marking a 7.7 percent year-over-year increase. This growth was driven by higher sales volumes in regions such as the Middle East and Canada.
David Mansfield, the chief executive officer of Perma-Pipe, highlighted the company's substantial backlog growth, which more than doubled to US$138.1 million, representing a 102 percent year-over-year increase. He emphasized the strong contributions from the firm's Saudi joint venture and the initial success of the new Vars, Ontario facility in Canada. These factors position Perma-Pipe for continued growth into fiscal 2025.
The company reported quarterly and full-year income before taxes of US$5.3 million and US$18.5 million, respectively, which were driven by a strategic shift toward higher-margin products and services. The gross profit improved to US$53.2 million, or 34 percent of sales, compared to US$41.5 million, or 28 percent, in the prior year.
General and administrative expenses rose to US$28.0 million, reflecting increased compensation and professional fees. However, selling expenses decreased by US$0.4 million, benefiting from reduced borrowings and lower rates. Looking forward, Mansfield pointed to recent large-scale project wins and strong performance in key regions, including the Middle East and North America, as factors driving continued growth and positioning the company for future mega-project participation.