Note 12 - Segment reporting

The Company operates under one segment: Piping Systems. The results are presented on a consolidated basis to the Chief Executive Officer who serves as the chief operating decision maker ("CODM"). The accounting policies of the Company's segment are the same as those described in the summary of significant accounting policies. For further information, see Note 2 - Significant accounting policies, in the Notes to Consolidated Financial Statements.

The CODM regularly reviews consolidated revenues, significant expenses, and consolidated net income attributable to common stock to make operating decisions and assess performance. The CODM uses this information in making company-wide decisions when determining how to allocate resources.

Significant expenses represent amounts that are regularly provided to the CODM and included in consolidated net income attributable to common stock. Additionally, the CODM regularly reviews asset information by our reporting segment in a manner that is consistent with the presentation on the Company's accompanying Consolidated Balance Sheets.

The following table summarizes the Company's revenues, net income attributable to common stock, and significant expenses:

	*Year ended January 31,*
	*2026*			*2025*

Net sales	$	210,925		$	158,384

Cost of sales
Labor		28,980			23,109
Materials		83,987			59,036
Depreciation and amortization		2,814			3,104
Other costs of sales		25,656			19,887
Total Cost of sales		141,437			105,136

Operating expenses
Salaries and wages		20,639			16,295
Depreciation and amortization		2,096			525
Other general and administrative expense		12,558			11,180
General and administrative expenses		35,293			28,000
Selling expense		4,746			4,947
Total operating expenses		40,039			32,947

Income from operations		29,449			20,301

Interest expense, net		1,822			1,940
Other income (expense)		(134	)		107
Income before income tax		27,493			18,468
Income tax expense		6,844			5,377
Net income		20,649			13,091
Less: Net income attributable to non-controlling interest		3,614			4,108
Net income attributable to common stock	$	17,035		$	8,983

Historical Timeline

Fiscal Year	Filed
2026	Apr 16, 2026	Showing above
2025	May 1, 2025

2017	Apr 14, 2017

2016	Apr 28, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Perma-Pipe International Holdings, Inc. Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures