Sep 9, 2026 earnings call — Facility ramp-up, backlog, and leak detection growth
Backlog rose to $142.3 million, supporting Ohio and Qatar ramp-ups and leak detection growth.
Revenue $0.1B (est $0.1B) · EPS $0.31 (est $0.55)
Key quotes
"So before we go ahead and ramp it up to full capacity production, we expect this to this facility to ramp up to full production by early 2027."
"Our leak detection business has already secured approximately 80% of its full-year bookings target."
"The joint venture the MOU proposes is consistent with our broader strategy of moving Perma-Pipe closer to our customers, expanding our addressable markets, increasing our participation in large infrastructure programs, and creating new avenues for long-term profitable growth."
Analyst Q&A 5
connection check
Q (Aruzhan Seifulla · Freedom Broker): The analyst greeted the team and asked if the call audio could be heard.
A: There was no management answer in this exchange; the operator opened the Q&A session.
tariffs and Ohio plant ramp-up
Q (Aruzhan Seifulla · Freedom Broker): First, whether new U.S. and Canadian tariffs will meaningfully affect input costs. Second, how Ohio facility utilization will develop and how much the ramp is driven by data centers.
A: Management said tariffs are affecting operations globally and they try to mitigate by sourcing locally, though not everything can be outsourced and they expect the impact to subside over time. They said the Ohio facility is ramping up to serve data centers and district cooling/heating, and they expect it to reach full production by early 2027; they also noted significant market share in leak detection systems for North American data centers and expect the market to be active through about 2030 or 2031.
"So tariffs globally are having an impact in business operations everywhere." — Saleh Sagr (CEO)
Welspun JV and bad debt
Q (Tom Thiel · Thiel Partners): Size and role of the Welspun joint venture and other opportunities with Welspun; and whether any of the $3.9 million bad debt charge might be recovered.
A: Management said the Welspun partnership establishes local manufacturing in Jordan to position the company for large infrastructure opportunities, with the National Carrier Water Project as the immediate anchor though the project is not yet awarded. Regarding the $3.9 million charge, they said it relates to a specific receivable, they concluded a full write-off was appropriate now, they are not pursuing recovery at this time, and any future collection would be recorded as a subsequent recovery to the income statement.
"The MOU really represents an important step forward to this, establishing the local manufacturing platform and position Perma-Pipe for this opportunity." — Saleh Sagr (CEO)
margins and sales expansion
Q (Maj Soueidan · Geoinvesting): How gross margins and operating expenses will evolve as the business broadens, and whether sales organization staffing will increase to enter new areas like data centers.
A: Management said the Ohio and Qatar facilities are absorbing fixed costs during ramp-up, which pressures margins now, but they expect higher utilization, improved product mix, and operating leverage to expand margins and aim to return consolidated gross margins to higher than 30s. They also said they are restructuring the global sales network, adding resources at business-unit, regional, and corporate levels, and upgrading talent to scale the business.
"As the business scales, we expect revenue growth to outpace corporate overheads and to provide operating leverage." — Saleh Sagr (CEO)
credit facility, project size, product mix
Q (Tyler McCullough · Raymond James): How the new global credit facility changes the company's operational ability to pursue larger projects and what portion of the Jordan Water Carrier Project might go to the joint venture; also whether U.S. and Canada demand is picking up and how product mix is changing.
A: Management said the global facility improves liquidity management, treasury efficiency, and flexibility to support growth and Jordan opportunities, and it enables the company to compete for much larger projects, noting they previously could not support opportunities in excess of $100 million. They described geographic and market diversification: North America work includes data centers and district energy, Canada includes oil and gas, MENA focuses on district cooling while moving into oil and gas and water, and they view Jordan as an immediate anchor for water opportunities.
"The global facility is really about positioning the company for continued growth and strengthening our ability to just manage the liquidity across the global entities." — Matthew Lewicki (CFO)