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

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.