Perma-Pipe International: Fundamentals Improved, Valuation Less Compelling
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Fernanda Galvez Jalil970 FollowersFollow5ShareSavePlay(8min)CommentsSummaryPerma-Pipe International delivered record Q3 2025 revenue and margins, fundamentally resetting expectations for earnings power and backlog quality.PPIH's $148.9 million backlog is up 30% YoY, with improved end-market diversification, notably increased data center exposure supporting structural growth.Despite strong execution, PPIH remains project-driven and exposed to capital spending cycles, limiting its defensiveness and introducing ongoing volatility risks.After a 36% rally, I rate PPIH as Hold; a pullback below $30/share would materially improve risk/reward and reintroduce attractive upside. Standart/iStock via Getty Images Investment thesis Note: This is an update to my previous article. Shares of Perma-Pipe International Holdings, Inc. (PPIH) rose 11% the day after the company reported its Q3 2025 results, where the company delivered record revenueThis article was written byFernanda Galvez Jalil970 FollowersFollowMy name is María Fernanda and I'm currently studying an MBA. My inspiration investors are Warren Buffett, Peter Lynch and Terry Smith, so I look for quality companies at a reasonable valuation. I believe that, in the long term, fundamentals are what drive the share price, so I look to predict what a business's earnings per share will do.Analyst’s Disclosure:I/we have a beneficial long position in the shares of PPIH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.