Perma-Pipe International Holdings (PPIH) risk factors, FY2025 10-K

Perma-Pipe International Holdings's FY2025 10-K, filed May 01, 2025, lists 19 risk factors in 4 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
194 groups
Section length
4k wordsItem 1A

Perma-Pipe International Holdings's biggest risks in the FY2025 10-K

  • International sales comprised 66.6% of 2025 revenue, making foreign regulations, government actions, and expansion execution central risks.
  • Project timing, cancellations, progress billing, cost estimates, and defective materials can disrupt revenue, cash flow, and margins.
  • Liquidity risks include debt covenant compliance, sustained positive cash flow, and collection of a $1.8 million Middle East retention receivable.

The risks most specific to Perma-Pipe International Holdings

  • Business Condition Risks

    The Company's results of operations could be adversely affected by changes in international regulations and other activities of government agencies related to the Company’s operations

    Foreign customers generated 66.6% of 2025 sales, exposing the company to international regulations, government actions, and expansion risks.

  • Financial Risks

    The Company may experience changes in estimates which could result in a reduction or elimination of previously recorded revenues and profit in connection with "over time" revenue recognition

    Cost estimate changes on over-time contracts could reduce or eliminate revenue and profit already recognized.

  • Business Condition Risks

    The Company may not be able to successfully negotiate progress-billing arrangements for its large contracts, which could adversely impact the Company’s working capital needs, cash flows and credit risk

    Failure to secure progress billing on large contracts could increase working-capital needs, pressure cash flows, and raise customer credit exposure.

  • Financial Risks

    The Company extended credit to a customer for a project in the Middle East in 2013 and, if the Company is unable to collect this account receivable, its future profitability could be adversely impacted

    A $1.8 million Middle East project retention receivable remains outstanding and is payable only when the system is commissioned.

  • Business Condition Risks

    Product and service orders included in the Company’s backlog may be reduced or cancelled

    Customers may cancel or modify backlog orders, reducing expected revenue and leaving the company with incurred production costs.

  • Business Condition Risks

    Delays in the timing of order receipt, execution, delivery and acceptance for the Company’s products generally negatively impact the Company’s operating results

    Delays in receiving orders, executing projects, delivering products, or obtaining customer acceptance can hurt results for individual reporting periods.

  • Market Condition Risks

    The Company may be unable to purchase raw materials at favorable prices, or maintain beneficial relationships with its suppliers, which could result in a shortage of supply, or increased pricing

    Steel and other key components may become unavailable or sharply more expensive, disrupting production and margins.

  • Financial Risks

    The Company may be unable to maintain compliance with existing debt covenants, repay its debt or renew its expiring international credit facilities

    Debt covenant breaches could accelerate revolving-facility borrowings, while expiring international credit facilities may not be renewed.

  • Market Condition Risks

    The Company's operations and earnings may be significantly affected by changes in oil and gas prices

    Lower oil and gas prices could reduce demand for the company's products and weaken operations and financial condition.

  • Business Condition Risks

    The Company may not be able to recover costs and damages from vendors that supply defective materials

    Defective vendor materials may force repairs, remakes, or replacements costing more than the company can recover from suppliers.

All 19 risk factors

Headings as the filing states them, in filing order.

Market Condition Risks

  1. 01The Company's operations and earnings may be significantly affected by changes in oil and gas prices
  2. 02The Company may be unable to purchase raw materials at favorable prices, or maintain beneficial relationships with its suppliers, which could result in a shortage of supply, or increased pricing
  3. 03Decreases in government spending on projects using the Company’s products, and challenges to the Company’s customers’ liquidity and availability of capital funds, may adversely impact demand for the Company’s products

Financial Risks

  1. 04The Company may be unable to maintain compliance with existing debt covenants, repay its debt or renew its expiring international credit facilities
  2. 05The Company may be unable to maintain sustained levels of profitability or positive cash flows in the future
  3. 06The Company extended credit to a customer for a project in the Middle East in 2013 and, if the Company is unable to collect this account receivable, its future profitability could be adversely impacted
  4. 07The Company may be impacted by interpretations and changes in tax regulations and legislation which could adversely affect the Company's results of operations
  5. 08The Company’s inability to establish and maintain effective internal control over financial reporting could harm its business and financial results
  6. 09The Company may experience changes in estimates which could result in a reduction or elimination of previously recorded revenues and profit in connection with "over time" revenue recognition

Business Condition Risks

  1. 10Delays in the timing of order receipt, execution, delivery and acceptance for the Company’s products generally negatively impact the Company’s operating results
  2. 11The Company may not be able to successfully negotiate progress-billing arrangements for its large contracts, which could adversely impact the Company’s working capital needs, cash flows and credit risk
  3. 12Aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates could drive down the Company's profits and reduce the Company's revenue
  4. 13The Company may be subject to claims for damages for defective products
  5. 14The Company may not be able to recover costs and damages from vendors that supply defective materials
  6. 15Product and service orders included in the Company’s backlog may be reduced or cancelled
  7. 16The Company's results of operations could be adversely affected by changes in international regulations and other activities of government agencies related to the Company’s operations

General Risks

  1. 17The Company may be unable to retain its senior management and key personnel
  2. 18The Company may not be able to achieve the expected benefits from its growth initiatives
  3. 19The Company's information technology systems may be negatively affected by cybersecurity threats

Other Perma-Pipe International Holdings 10-Ks

  • FY2026 10-K risk factors
    20 risks1 new4 reworded

    Iran-related geopolitical tensions are newly identified as a risk to international operations, projects, market access, and personnel and asset security.

    Filed Apr 16, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.