The company’s net income fell to $1.8 million, or 22 cents a share, a steep drop from the $5 million, or 61 cents a share, recorded during the same period last year. Despite the bottom-line pressure, revenue climbed 7.5% to $50.3 million, buoyed by increased sales activity across North America and the MENA region. Chief Executive Saleh Sagr confirmed that while geopolitical volatility slowed the execution of specific contracts, no projects have been canceled. Investors remain wary, pushing the stock down nearly 16% year-to-date as the company grapples with the logistical constraints of operating in unstable territories.
Perma-Pipe Shares Slide as Middle East Conflict Disrupts Projects
Shares of Perma-Pipe International tumbled 18% on Tuesday, sliding to $25.65 after the company reported a sharp contraction in first-quarter profit. The decline follows significant project delays across the Middle East, where regional instability has hampered the piping system manufacturer's ability to recognize revenue on schedule.
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