Perma-Pipe: The Growth Is Back, And The Valuation Is Still Cheap

Fernanda Galvez Jalil 1.24K Followers Follow Summary Perma-Pipe maintains a BUY rating, supported by re-accelerating revenue growth and a stabilizing backlog after a weak Q1. PPIH's Q2 2026 revenue grew 24.4% YoY to $59.6M, beating expectations, while backlog rose to $142.3M, signaling renewed demand momentum. Margins lag revenue growth as Ohio and Qatar facilities ramp up. Management targets gross margins above 30% as operating leverage improves. Monty Rakusen/DigitalVision via Getty Images Investment Thesis Perma-Pipe International ( PPIH ) has spent the past year investing in capacity, expanding its geographic footprint, and positioning itself for new sources of demand, but the market hasn't really rewarded that progress yet. The latest quarter This article was written by Fernanda Galvez Jalil 1.24K Followers Follow My 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 no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PPIH over the next 72 hours. 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.