Perma-Pipe International Holdin (PPIH) research, news, and more from GeoInvesting

Company description

Thu, 06 Jun 2013 04:00:00 GMT

MFRI, Inc. is a multi-line company engaged in the following businesses: pre-insulated specialty piping systems for oil and gas gathering, district heating and cooling and other applications; custom-designed industrial filtration products to remove particulates from dry gas streams; and installation of heating, ventilation and air conditioning for large buildings.

Research

Thu, 16 Apr 2026 14:57:32 GMT

Perma-Pipe International Holdin (NASDAQ:PPIH) ($34.24; $277.1M market cap) announced Q4 and full-year 2025 results:

Q4 sales of $55.1 million vs. $45.0 million in the prior year, in line with analyst estimates of $55.0 million
Q4 2025 EPS: $0.60 vs. $0.22 in the prior year, above analyst estimates of $0.44
Full-year sales of $210.9 million vs. $158.4 million in the prior year, in line with analyst estimates of $211.0 million
Full-year 2025 EPS: $2.09 vs. $1.12 in the prior year, above analyst estimates of $1.73

Management Commentary:

“Growth was driven by higher sales volumes in both the Middle East and North America, with improved margins and strong operational execution.”

“Our backlog remains at historically strong levels. We continue to see meaningful multi-regional expansion, particularly across North America and the Middle East, reinforcing sustained global demand for our solutions.”

“Our fiscal 2025 results represent a landmark achievement for the Company… This record performance was driven by broad-based strength across our global footprint, with significant growth contributions from the Middle East and North America. Our ability to scale across these diverse markets while maintaining disciplined margin performance has enabled us to convert top-line momentum into meaningful bottom-line value for our shareholders.”

“To sustain this trajectory, we have entered into a long-term lease for a new production facility in Ohio (AI data centers).”

“Supporting our long-term growth strategy, we also finalized a new credit facility with J.P. Morgan Chase.”

“With record earnings as our foundation and a modernized capital structure as our fuel, we enter the remainder of 2026 with strong confidence in our ability to scale our global operations and drive meaningful shareholder returns”

Our Quick Take

These strong results are starting to prove that analyst estimates are probably too conservative. One thing that stood out to us with PPIH is how conservative analyst estimates look. For the upcoming year, they’re modeling just $225M in revenue and EPS of $1.72. These estimates seem conservative considering 2025 sales came in at $210.9M with full-year EPS of $2.09.

Furthermore, they’ve now put up two quarters in a row of over $0.60 EPS. This tells us that gross margins are holding and that we can start modeling higher levels of EPS moving forward.

If we take into account strength in the Middle East and North America, driven by core piping demand, plus incremental upside from the new U.S. facility targeting data center end markets, we think estimates are likely too low and will need to move higher.

The one negative aspect to point out is PPIH’s backlog, which stood at $121.6M as of the end of Q4 2025, compared to $148.9M in Q3 2025 and $138.1M in Q4 2024.

To be perfectly honest, I kind of even like it more now than when we originally started covering the stock on GeoInvesting, even though it’s up a bunch. If investors sell this off on the backlog number, we would see it as a huge position add.

We still have to read the 10-K to determine if any more risks popped up because of the Middle East conflict.

Maj

Perma-Pipe International Holdings, Inc. provides engineered piping and leak detection systems, including insulated piping for district energy, containment systems for hazardous fluids, and anti-corrosion coatings for pipelines used in oil, gas, and water transportation.

Research

Sun, 22 Mar 2026 04:00:00 GMT

Perma-pipe International Holdin (NASDAQ:PPIH) announced facility expansion plans and provided an operational update on its Middle East and North Africa presence, in light of the Iran war.

PPIH, an insulated piping systems manufacturer, announced plans to open a new facility in the U.S. Northeast in Q2 2026, focused on the AI-driven data center market and district heating and cooling.

The company reaffirmed operational continuity in its Middle East and North Africa (MENA) region despite regional conflicts, and confirmed that following a review of strategic alternatives, its board determined that continuing as an independent public company best serves shareholder value.

Management also indicated it sees growing opportunities across AI, cloud computing, and digital infrastructure, and is diversifying into new product lines in the industrial and water sectors. We view the new U.S. facility announcement as meaningful, given that management had previously been more measured about the AI and data center opportunity.

Research

Thu, 19 Mar 2026 15:09:10 GMT

Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) ($28.30; $229.0M market cap) announced several corporate updates:

Expansion into U.S. Northeast: Perma-Pipe is expanding operations with a new facility in the Northeast U.S., focusing on the AI-driven data center market and District Heating and Cooling, set to open in Q2 2026.
Investment in AI and Technology Infrastructure: The company aims to capitalize on the growing AI data center sector, reinforcing its leadership in technology infrastructure and supporting next-generation technology markets.
MENA Operations: Perma-Pipe reaffirmed its strong operational presence in the Middle East and North Africa, ensuring business continuity despite regional conflicts.
Market Dynamics: The company sees significant opportunities in AI, cloud computing, and digital infrastructure, positioning itself to meet the rising demand for advanced data center solutions while diversifying into new product lines in industrial and water sectors.
Strategic Plan & Shareholder Value: After reviewing strategic alternatives, Perma-Pipe’s Board decided that continuing its current growth strategy as an independent public company is the best way to maximize shareholder value.

Our Quick Take:
The stock has recently pulled back as tensions in the Middle East have increased. However, management is now stating that, despite the conflicts, their operations have not been impacted.

Regarding the new U.S. facility, we think this is big news because it is primarily focused on the AI/data center markets. In a previous interview, management had downplayed the AI/data center opportunity, this new facility suggests they may have been too conservative.

Research

Fri, 12 Dec 2025 05:00:00 GMT

Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) ($29.29; $237.07M market cap) announced Q3 2025 results:

Q3 sales of $61.1 million vs. $41.6 million in the prior year
Q3 diluted EPS of $0.77 vs. $0.31 in the prior year
Q3 income before income taxes of $10.9 million vs. $5.1 million in the prior year
Backlog at $148.9 million as of October 31, 2025, up from $138.1 million at January 31, 2025
Net income attributable to common stock rose to $6.3 million vs. $2.5 million in the prior year
Growth driven by higher volumes in both the Middle East and North America, with improved operating leverage and a lower effective tax rate

Management comments:

“For the three months ended October 31, 2025, net sales were $61.1 million, an increase of $19.5 million, or 46.9%, compared to $41.6 million in the same quarter of the prior year. Growth was driven by higher sales volumes in both the Middle East and North America. Gross profit was $21.0 million, up $6.9 million from $14.1 million last year, reflecting higher activity levels. Selling, general and administrative expenses increased to $8.3 million from $7.3 million, primarily due to higher payroll and professional fees, including approximately $0.5 million relating to Sarbanes-Oxley 404 compliance in connection with our transition from a small reporting company to an accelerated filer. The Company’s effective tax rate (“ETR”) was 27%, compared to 32% in the prior-year quarter, reflecting the impact of product mix in various tax jurisdictions. As a result, net income attributable to common stock was $6.3 million, an increase of $3.8 million, or 152.0%, compared to $2.5 million in the third quarter of fiscal 2024,” noted President and CEO Saleh Sagr.

For the nine months ended October 31, 2025, net sales were $155.8 million, an increase of $42.4 million, or 37.4%, compared to $113.4 million in the prior-year period. The increase was primarily attributable to higher sales volumes in both the Middle East and North America. Gross profit was $52.2 million, compared to $38.1 million in the prior year period, reflecting increased activity levels during the current year. General and administrative expenses were $26.1 million, up from $19.5 million, due to higher payroll and professional fees, including approximately $1.0 million relating to Sarbanes-Oxley 404 compliance in connection with our transition from a small reporting company to an accelerated filer. This also includes a one-time compensation charge of approximately $2.0 million related to the departure of the previous CEO. The Company’s effective tax rate was 29%, compared to 28% in the prior-year period. The increase in the Company's tax rate was impacted due to product mix in various tax jurisdictions and as a result of a tax limitation relating to the one-time charge in connection with the previous CEO's departure. Net income attributable to common stock increased to $12.1 million, an increase of $4.9 million, or 68.1%, compared to $7.2 million in the same period of fiscal 2024,” Mr. Sagr commented.

Our Quick Take:

We honestly did not expect this kind of great quarter. If you remember, last quarter the stock sold off even though EPS was up, because it was sequentially down from Q1 and there was some margin pressure, and investors got nervous. We said at the time not to worry, that it was temporary, backlog was strong, and margins should recover.

That view was reinforced by conversations we had with other investors who spoke with management, which gave us more confidence. Because of that, we actually added the stock to our new Top Five Fave (2025) Model Portfolio.

Now we need to do some homework to see how sustainable this level of performance is based on the backlog, but overall, this was a great quarter, and we’re very pleasantly surprised. I do have an interview with the company coming up in a couple of weeks, which should help give us more color.

Perma-Pipe International Holdings, Inc., together with its subsidiaries, designs, engineers, manufactures, and sells specialty piping and leak detection systems in the United States, Canada, the Middle East, North Africa, Europe, India, and internationally.

Valuation:

Trailing P/E: 15.8x
Q3 Run Rate, 10.4x

Research

Thu, 25 Sep 2025 15:29:02 GMT

Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) ($23.72; $191.9M market cap) announced it has engaged Energy Capital Solutions to assist the Company in evaluating its strategic alternatives.

“Perma-Pipe’s successful execution of its business plans over the past 3 years, including geographic, market and product expansion, has resulted in rapidly increasing backlog and profitable growth. The Company is now considering a wide range of strategic alternatives to further enhance its business performance and shareholder value.

Perma-Pipe is an engineered piping infrastructure manufacturer, with operations in North America, the Middle East, and India. The Company is a global leader in engineered pre-insulated piping solutions, along with leak detection and containment systems. Perma-Pipe’s systems are used by blue-chip customers around the world and have market applications including district heating and cooling, energy infrastructure, industrial / manufacturing, AI / IT datacenter cooling and leak detection, and environmental protection.

Perma-Pipe is growing rapidly, with impressive results for the first half of 2025, with sustainable growth in customers, backlog, gross profit and revenue over the prior year.

Backlog is up 109% year over year, to $157.8 million.
1H25 Sales is up 32% from 1H24, to $94.6 million.
1H25 Gross Profit is up 30% from 1H24, to $31.1 million
Strategic capital expenditure completed for new manufacturing facilities in MENA.
Completed C-suite transition to next generation leadership.”

Our Quick Take:

The company originally disclosed that it hired an investment banker in their Q2 report published last week.

Recall that PPIH dropped 20% on the earnings as investors questioned falling margins and lack of insider buying despite record backlog and a board-led strategic review, though longer-term holders may have seen the pullback from highs as an overreaction.

The fact that PPIH is reiterating the hire in a separate release with a summary of company achievement, to us, is extremely bullish, even going out of the way to mention their involvement in the data center market.

Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) is a global leader in pre-insulated piping and leak detection systems for oil and gas, district heating and cooling, and other applications.

Research

Mon, 15 Sep 2025 19:08:42 GMT

Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) ($31.00; $247.4M market cap) announced Q2 2025 results:

Q2 sales of $47.9 million vs. $37.5 million in the prior year
Q2 EPS: $0.10 vs. $0.40 in the prior year
Q2 Non-GAAP EPS of $0.46 vs $0.52
EPS was negatively impacted by one time cost including severance ($2.1M) and a facility upgrade, although the company did not disclose the amount associated with facility upgrade.
Backlog at April 30, 2025 was $131.1 million vs. $63.1 million at April 30, 2024

"Our strong first-half results reflect both the continued momentum in our core markets and the benefits of improved operating leverage. The Middle East and North America remain key growth engines for the business, and we are seeing positive contributions from both regions. While we absorbed higher G&A costs this period, including the one-time charge related to leadership transition, we also made strategic investments in establishing our new Qatar facility, supported by more than $5 million of new awards to be delivered before year-end. We remain confident in our ability to drive profitable growth and strengthen our competitive position in the markets we serve,”

Perma-Pipe International Holdings, Inc. Initiates Exploration of Strategic Alternatives to Maximize Shareholder Value

"The Company is evaluating a wide range of value creation alternatives including, but not limited to, continued execution of the Company’s business plan, a tax-efficient sale of one or more of the Company’s divisions or a sale of the entire Company.

“As we seek to close the gap between Perma-Pipe’s public market valuation and the Company’s sum-of-the-parts value, the Board has authorized a comprehensive review of strategic alternatives,” said Perma-Pipe Chairman Jon Biro. “We are approaching this process with constructive discipline and an open mind, and we will be assisted by our outside advisors and guided by our continued commitment to maximize shareholder value.”

Our take:

The stock was down 20% in early trading
It was priced for perfection. So, although we understand why the stock is pulling back, we view this as an overreaction for investors with longer term perspectives, especially given that the Board is evaluating strategic alternatives, and backlog is at record highs.
Recall that PPIH was a top performer in our Buy on Pullback Model Portfolio #13 (BOP), which is now closed. At the right price, it might make sense to add PPIH to a future BOP.
On the negative side:
- Gross margins were 30% down from a more normalized GM of 35%. So, we need more color on the margins in the backlog.
- If the Board feels that the stock is undervalued, why aren’t the Board or management buying stock in the open market?

Research

Mon, 30 Jun 2025 15:46:29 GMT

Potential Perma-Pipe International Holdin (NASDAQ:PPIH) Information Arbitrage

We wanted to give a quick “props” to GeoInvesting Premium subscriber @gjmckinley for surfacing what looks like a fresh piece of Information Arbitrage on Perma-Pipe International Holdin (NASDAQ:PPIH). An under-the-radar page on PPIH’s PermAlert website outlines a suite of leak detection solutions tailored specifically for data center environments, including hyperscalers, colocation providers, and high-density server rooms.

While PPIH has had this page published since 2020, what likely caught @gjmckinley’s eye is how the breadth and specificity of the messaging changed as of May 2025.

This adds weight to the data center narrative we noticed not too long ago, when we serendipitously, shortly after adding the stock to our Buy On Pullback (BOP) Model Portfolio #1 (in March 2025), first noticed early signs (in April 2025) of PPIH positioning itself to benefit from data center infrastructure growth trends, amidst an already hot market.

The page demonstrates that PPIH isn’t just dabbling—it’s actively developing offerings meant to address mission-critical infrastructure needs in modern data centers. Actually, we

Because this page is somewhat buried within the PermAlert site and hasn’t been widely shared or discussed in investor-facing materials, there’s a good chance it has flown under the radar for most of the market. In our view, this is classic InfoArb: public, verifiable, and potentially impactful, yet still underappreciated.

We recently added PPIH to our Data Center Screen in early June 2025, before its strong push to a new high of $24.50 last Thursday, 73.91% higher than its addition to the screen, and now posting a 64.95% gain in BOP #13. (data as of close on 6/27/2025)

You can see why we originally added PPIH to BOP #13, here. As you will find, the narrative has taken positive turns since then.

Research

Fri, 13 Jun 2025 18:51:42 GMT

Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) ($14.57; $116.3M market cap) announced Q1 2025 results:

Q1 sales of $46.7 million vs. $34.3 million in the prior year
Q1 EPS: $0.62 vs. $0.18 in the prior year
Backlog at April 30, 2025 was $131.1 million vs. $63.1 million at April 30, 2024

“Backlog currently stands at $131.1 million, a decrease of $7.0 million, compared to $138.1 million at January 31, 2025. However, the Company has experienced a significant increase in backlog of $68.0 million, or 108%, compared to $63.1 million at April 30, 2024. We feel encouraged with the level of backlog we have obtained, which remains more than double the level of reported backlog at the end of the first quarter last year,” Mr. Sagr continued.

“Our first quarter results represent unprecedented performance on behalf of the Company as both sales and net income attributable to common stock are the highest levels of performance in the first quarter since transitioning from MFRI to Perma-Pipe in 2017. Additionally, net income attributable to common stock during the first quarter represents approximately 55% of the Company’s full year fiscal 2024 results,” noted President and CEO Saleh Sagr.

“We are pleased with the level of business activity we are experiencing in various markets, which contributed to the overall increase in sales and earnings during the first fiscal quarter. Additionally, we are very encouraged by the level of performance in both the Americas and MENA region, which produced comparable results in the first quarter,” Mr. Sagr commented.

“The strength of our first quarter results provides significant momentum heading into the remaining quarters of fiscal 2025. We feel well-positioned that the Company will continue to capitalize on this momentum and drive further participation in development plans in MENA and gain additional market share in the North America region,” Mr. Sagr concluded.

Research

Wed, 28 May 2025 15:24:46 GMT

Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) ($13.42; $107.1M market cap) announced new contract win in Qatar:

"In response to this important award, we will begin executing the project from a temporary facility in Doha, ensuring timely delivery and uninterrupted service to our client. Simultaneously, we are advancing the construction of our permanent facility in Qatar, which will serve as a long-term base for our regional operations. We are deeply grateful to our customers for their continued trust and confidence in Perma-Pipe’s capabilities." – Adham Sharkawy, Senior Vice President of Perma-Pipe’s MENA region

"Expanding in Doha has been an important goal for Perma-Pipe and is a key step in expanding our presence in the MENA region. Our plan shows our strong commitment to the Qatari market and supports our goal for steady growth and local investment. The new facility will be an important base for our work in Qatar and will help us serve markets in Southeast Asia." – Saleh Sagr, President

"This award signifies a major milestone for Perma-Pipe and aligns with our strategic expansion into Qatar. This project not only demonstrates the strength of our solutions but also plays a vital role in solidifying our position in the market. We are confident that this achievement will fuel our continued growth and further enhance our reputation as a trusted leader in the industry." – David Mansfield, CEO

Research

Fri, 02 May 2025 04:00:00 GMT

Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) ($11.23; $89.6M market cap) announced Q4 and fiscal 2024 results:

Q4 sales of $45.0 million vs. $40.2 million in the prior year
Q4 EPS of $0.19 vs. $0.18 in the prior year
Full year sales of $158.4 million vs. $150.7 million in the prior year
Full year EPS of $1.21 vs. $0.82 in the prior year
Backlog of $138.1 million at January 31, 2025 (inferring $0.87 attributable to backlog EPS), compared to $68.5 million at January 31, 2024
Overall, we expected a better quarter, as the fourth-quarter earnings per share were sequentially down from third-quarter earnings per share of $.31, despite reporting higher sales. Regardless, PPIH has always been a play on capitalizing on higher growth opportunities in the Middle East and new product categories. The high backlog could indicate that we are getting closer to that inflection point in growth.

Management Commentary:

"We have achieved considerable milestones throughout the year, demonstrated by income before taxes, improved margins, and significant growth in backlog. The joint venture in Saudi Arabia that was formed in 2023 continues to exceed expectations, and we are beginning to see increased activity at the new Vars, Ontario facility in Canada."

"2024 was a strong year for the Company. Our ability to secure several large-scale project awards provides good momentum in 2025, as well as positioning Perma-Pipe as a viable supplier for future mega-projects. This includes the opportunities in Qatar. The success of the joint venture has enabled us to establish a greater presence in Saudi Arabia, and we are encouraged by the recent positive developments occurring in North America."

Perma-Pipe International Holdings, Inc. provides engineered piping solutions, specializing in insulated and jacketed piping systems for district heating and cooling, as well as containment systems for transporting hazardous fluids and chemicals.

Research

Thu, 10 Apr 2025 14:03:48 GMT

Perma-Pipe International Holdin (NASDAQ:PPIH) ($11.32; $90.3M market cap) announced new project awards in excess of $27 million.

"These major project awards reflect the increasing demand for Perma-Pipe’s solutions. This demand is being fueled by market growth in data centers, rising investments in pharmaceuticals and industrial sectors, and the expansion of midstream energy projects.”

Saleh Sagr, President, stated, “The consistent influx of new awards and expanding backlog clearly demonstrates the trust our clients have in our products and services. Our strategic product diversification and geographical expansion have been vital in driving this growth, opening new markets, and ensuring our continued success.”

PPIH is a global leader in pre-insulated piping and leak detection systems for oil and gas gathering, district heating and cooling, and other applications.

Research

Mon, 23 Dec 2024 05:00:00 GMT

Perma-Pipe International Holdin (NASDAQ:PPIH)($11.50; $92M market cap) announced Q3 2024 results:

Sales of $41.6 million vs $45.7 million in the prior year
EPS of $0.31 vs EPS of $0.24 in the prior year

Backlog in the third quarter shows considerable growth and now stands at $114.2 million. This is the equivalent to approximately nine months revenue based upon prior years’ revenues. The continual strengthening of our backlog over the past two quarters is encouraging and provides a sense of optimism heading into next year. Additionally, backlog at the end of the third quarter represents the highest level since transitioning from MFRI to Perma-Pipe, which occurred in March 2017,” Mr. Mansfield continued.

“Our third quarter and fiscal 2024 year-to-date results continue to reflect exceptional performance, which has remained consistent throughout the year. It is worth noting that our net income attributable to common stock for the nine months ended October 31, 2024, represents the highest level of earnings on a year-to-date basis since transitioning from MFRI to Perma-Pipe,” said Mr. Mansfield.

“We are pleased with the level of business activity we have experienced and continue to see, as supported by the significant rise in backlog and share price. The increases in infrastructure spending in Saudi Arabia, India, and the U.A.E., represent key drivers of our overall improvement, for which the strength of our financial results further enables us to continue to execute on strategic initiatives,” concluded Mr. Mansfield.

Research

Wed, 11 Sep 2024 04:00:00 GMT

Perma-Pipe International Holdin (NASDAQ:PPIH)($11.50; $92M market cap) announced strong Q2 2024 results:

Sales of $37.5 million vs $35.1 million in the prior year
EPS of $0.40 vs EPS of $0.13 in the prior year

“Backlog in the second quarter saw considerable growth and now stands at $75.5 million. This represents a 10% increase from the backlog at January 31, 2024. It should be noted that this backlog of $75.5 million excludes more than $46 million of additional awards that were secured subsequent to the end of the quarter relating to two projects in the MENA region, as announced in a press release issued on August 23, 2024. The aggregate amount of backlog at the end of the second quarter plus the two additional project awards is very encouraging,”

“We are pleased with the level of business activity we are experiencing in various markets as a result of increases in infrastructure spending, primarily attributable to Saudi Arabia, India, and the U.A.E. These are key drivers of our overall improvement in net sales and margins in the second quarter and on a year-to-date basis and for which we are encouraged by the strength of our financial results as it enables us to continue to execute on strategic initiatives,”

The most encouraging take away from this release is that the backlog is increasing nicely and that the company is starting to see some really nice earnings growth on only a slight increase in revenue, putting the company in a great position to increase earnings at an accelerated rate if they can start getting revenues to ramp.

As we reported in our recent coverage of the stock, the company is potentially in a position to finally grow on a more consistent basis as it provides products and services to certain Middle East regions that are putting forth long-term infrastructure projects.

PPIH is a global leader in pre-insulated piping and leak detection systems for oil and gas gathering, district heating and cooling, and other applications.

Research

Thu, 13 Jun 2024 20:15:09 GMT

Perma-Pipe International Holdin (NASDAQ:PPIH)($9.15; $71.2M market cap) announced strong Q1 2024 results:

Sales of $34.3 million vs $29.7 million in the prior year
EPS of $0.18 vs a loss of $0.14 in the prior year

“Our first quarter results demonstrate a strong start to the year. This is particularly encouraging given that the first quarter has always been the quietest period for the Company," noted President and CEO David Mansfield…

“…Given the strength of our first fiscal quarter results, we feel well-positioned to be able to capitalize on this momentum and continue to execute on various strategic initiatives, such as the Company's expansion into Qatar which is expected during this fiscal year, and further participation in the significant development plans in the MENA region,"

PPIH is a global leader in pre-insulated piping and leak detection systems for oil and gas gathering, district heating and cooling, and other applications.

Maj discussed Perma-Pipe International Holdings during yesterday’s MS Microcaps’ Starting Five Conference, highlighting its potential as an investment despite its historical passivity and some past accounting concerns.

The company, founded in 1993, operates primarily in the energy sector with a significant presence in the Middle East. Maj noted that PPIH has recently started taking more investor-friendly actions, including expanding its manufacturing facilities closer to key customers.

This move is expected to enhance operational efficiency and profitability. Additionally, PPIH stands to benefit from the substantial new long-term infrastructure spending in the Middle East, offering a potentially promising long-term growth runway.

Despite Maj stating this to be a risky investment, Maj believes that PPIH's current valuation, with a low PE ratio of under 10x presents a compelling opportunity for potential returns as the company shifts towards more consistent revenue growth and improved margins.

GeoBargain Notes

Wed, 05 Mar 2014 05:00:00 GMT

On June 19 2013 we added MFRI to the GeoBargain list @ $9.70

Catalyst:

Strong first quarter 2013 results. In our 6/19/2013 email we stated we believed EPS would grow significantly over the next three quarters. We expect the stock to move significantly higher from current levels.

We are now removing MFRI from the GeoSpeicial List @ $15.24

Current road block:

Quarterly comparison will begin to become more challenging and managment commentary suggest the business environment for certain filtration products will also be challenging.

Peak performance: Reached a high of $16.78 on 1/13/2014 for a maiximum potential return of 73%
Current Price: At current price of $15.24 MFRI shares are up 57% from original coding.

Comments & Business Outlook

Mon, 09 Dec 2013 05:00:00 GMT

Third Quarter 2013 Results

Net sales increased 23% to $58 million from $47.2 million in the 2012 quarter.
EPS were $0.95 vs $0.02 in the prior year.
The Company's backlog from continuing operations increased 9.3% or $8 million from October 31, 2012.

President and CEO Bradley Mautner commented, "MFRI turned in a strong year-over-year performance in the third quarter. Our sales and earnings increases were driven by Piping Systems, where our customers requested that we expedite orders in our backlog for key projects in Saudi Arabia and the United Arab Emirates ('U.A.E.'). The development work and start-up investments we made in 2011 and 2012 have proven very successful, demonstrating our ability to identify, win and effectively execute on major business opportunities worldwide and generate strong earnings for MFRI.

"The demand environment for Piping Systems remains active and we are now pursuing a wide variety of promising opportunities worldwide of varying size and duration with the aim of diversifying our business from a product, project and geographic point of view. We are also pursuing certain ventures that offer the potential over the long term to replicate the success we have had in the Middle East. In the near term, we do expect fourth-quarter revenue and earnings to be lower than the third quarter's as we fulfill orders at a moderated pace relative to the unusually fast pace of recent quarters. This trend illustrates the variability in the timing of the projects we win and execute."

Mr. Mautner continued, "As expected, the business environment for certain filtration products continues to be challenging. Over the past year, we have implemented many initiatives to resize our fabric filter business and lower manufacturing costs in all our plants, which enabled us to contain the quarterly operating loss for Filtration Products even as revenue declined. While maintaining margin and expense controls, we are also focused on developing sales opportunities that should strengthen this segment of our business."

Comments & Business Outlook

Thu, 12 Sep 2013 04:00:00 GMT

Second Quarter 2013 Results

Sales increased 44% to $62 million in the current quarter from $43 million in the prior-year quarter.
Second quarter net income was $4.4 million compared to net loss of $1.4 million in the comparable prior-year's quarter.
Second quarter EPS were $0.63 vs a loss of $0.18 in the prior year quarter.
The Company's backlog from continuing operations has increased 61% or $46 million from July 31, 2012. The July 31, 2013 backlog rose $5 million or 4% to $121 million from January 31, 2013.

Bradley Mautner, President and CEO, said, "The record second quarter results were led by the terrific performance of the Piping Systems business as the team continued delivery of products for the large scale projects in Saudi Arabia and the U.A.E. In addition, piping systems' bookings in the second quarter for offshore pre-insulated piping, sub-sea equipment and other activities increased the backlog $11 million from the beginning of this year. We expect our active marketing efforts continue to add to our project base for future quarters.

"As we have been reporting, the filtration products segment faces a very difficult market for fabric filters but with improved margins and cost controls, we were able to achieve a profit compared to a loss in the prior year's quarter. There are many initiatives under way to improve the Filtration segment, yet soft demand for fabric filters will continue to provide a headwind in the coming quarters.

"Finally, during the quarter we made the strategic decision to exit the HVAC business via the sale of substantially all of its assets, which consisted primarily of backlog on existing orders. The backlog for this business was previously reported in corporate and other. We believe the focus on major project driven needs for our piping systems and on consumables in filtration remain an excellent platform for our manufacturing activities going forward."

Comments & Business Outlook

Wed, 19 Jun 2013 04:00:00 GMT

NILES, IL--(Marketwired - Jun 19, 2013) - (NASDAQ: MFRI) In press releases dated November 26, 2012 and February 5, 2013, the Company described major orders received by Perma Pipe Saudi Arabia in support of large-scale construction projects expanding the Haram Grand Mosque in Mecca and the King Abdul-Aziz International Airport in Jeddah. Those orders totaled nearly $50 million. Since then, the Company has received $55 million in new global orders, of which $25 million was reported in the first quarter backlog. The new global orders include:

several contracts exceeding $19 million for offshore pre-insulated piping and sub-sea equipment to support the construction of flow lines in the Gulf of Mexico,
additions to the two landmark Saudi projects, and
projects in Qatar, Abu Dhabi and other Gulf Cooperation Council ("GCC") markets awarded to our middle eastern subsidiaries.

Delivery of the new GCC orders has begun and we expect to commence production of the $19 million offshore orders in the fourth quarter of this year and complete all deliveries by mid-2014.

Fati Elgendy, President of Perma-Pipe, Inc., said, "We are honored to participate in the efforts to enhance the Kingdom of Saudi Arabia's capacity to accommodate religious tourism. These orders expand the chilled water infrastructure at the Holy Haram and provide insulated piping for district cooling plants as well as other utility infrastructure at the Jeddah airport. Additionally, Perma Pipe's subsidiary in the United Arab Emirates received several orders to provide piping for the district cooling utility infrastructure for Abu Dhabi Airport and at Qatar's flagship planned community named Lusail City. We believe these orders establish our subsidiaries in the GCC as the undisputed market leader and are another strong endorsement of our resolve to serve the high growth markets of the GCC."

Bradley Mautner, President and CEO, added, "The success of Perma-Pipe in continuing to secure these significant orders demonstrates our strong technical and commercial capabilities required for sophisticated insulated piping systems. Our ability to meet ever-changing customer requirements and willingness to go where needed differentiate us from others who serve these markets. I am particularly proud of Perma Pipe's proactive attitude as they address customer needs wherever they may arise around the globe."

Comments & Business Outlook

Tue, 11 Jun 2013 04:00:00 GMT

First Quarter 2013 Results

The Company's sales from continuing operations for the quarter increased 30% to $57.7 million from $44.5 million in the prior-year quarter.
EPS from continuing operations were $0.28 in the first quarter 2013 vs a loss of $0.38 in the prior year period.
The Company's backlog on April 30, 2013 was approximately $145 million, a slight increase from the prior quarter but almost 80% higher than the backlog at the end of April last year.

We are certainly pleased with the first quarter results. In addition to the $11.4 million pre-tax gain from the previously announced sale of substantially all of the Industrial Process Cooling segment assets, we posted a pretax profit from continuing operations of about $2 million. The improvement in liquidity provides resources to fuel our strategic expansion and growth opportunities. Also, this demonstrates that the strategy to invest in the Saudi expansion initiative and other operational improvement efforts are producing favorable results. The team in the Middle East has done an excellent job to scale up production activities to support challenging project requirements. Major order booking success during the past year has resulted in a backlog nearly 80% greater than a year ago. Our efforts to improve operational efficiency, cost reductions and working capital utilization continue. This is especially important as we finance the needs that result from our significant growth in backlog. All of these elements should provide a solid base for continued revenue growth and profitable performance in the quarters to come."

Comments & Business Outlook

Thu, 06 Jun 2013 04:00:00 GMT

Full Year 2012 Results

Net sales were $212 million in 2012, a decrease of 9% from $233.5 million in 2011.
Before non-cash charges described above, the net loss was $4.5 million compared to net loss of $5 million in 2011
Backlog- The Company's backlog on January 31, 2013 was $148 million, up 78% from the prior year. Additionally, since January 31, 2013, piping systems has received approximately $27 million of additional orders, which were highlighted in a February 5, 2013 press release.

"The information in our 2012 annual report filing, this press release and our recent announcement of the sale of the U.S. assets of our Thermal Care business describe an important time for our Company. We have taken the strategic decision to focus our resources on our two large reportable segments: filtration products and piping systems. From an operating standpoint, we are largely a project driven company. Therefore, the dramatic 78% growth in backlog, not including the additional orders won during the first quarter this year will take time to turn into sales and profits. Fiscal 2012 was difficult operationally, as extremely weak market demand for fabric filters continued and we built backlog in piping, but did not yet realize the benefits. We expect to realize these benefits in 2013 and are working actively to size the fabric filter business to the lower demand expected in the near term. There are also programs now under way to lower manufacturing costs, improve working capital turns and control capital expenses. However, based on the recent results, accounting rules require us to record the large non-cash impairments that resulted in 75% of the reported loss per share for the year. I fully expect that we will perform in our core businesses at a level that will ultimately make use of tax benefits that have now been fully reserved.

"This year also contained some unusual expenses for audit, tax consulting and other professional services related to our strategic initiatives to drive improved operating performance in filtration and piping systems. Additionally, we invested nearly $1 million in startup costs for Saudi Arabia in 2012. It has taken two years of development and investment, but we have now transitioned from the startup phase to being fully operational. Therefore, those costs will not recur and we expect profitable revenue to begin this year. The momentum we have built is important, and we are focused on getting the most out of our opportunities this year. We also know that in order to drive ongoing profitable growth, we must explore new product initiatives, geographical expansion opportunities and alliances to further enhance our future for 2014 and beyond."

Bradley Mautner continued: "The decision to generate and redeploy capital from the sale of Thermal Care U.S. assets was not an easy one. It is a business started by the predecessor of MFRI in the 1960's, and it has generally been a steady contributor to the Company. More recently, the team led by Steve Buck did an excellent job of managing its recovery from the deep and lengthy recession that began in 2008. As we studied the various choices to support our emerging growth initiatives and larger market places, it became apparent that this was the appropriate choice for MFRI and our shareholders. We appreciate the efforts of the Thermal Care team and know they will bring a strong level of expertise and professionalism to complement IPEG's portfolio. We certainly wish them all the best going forward."