By Adriano Marchese

Perma-Pipe International Holdings shares fell sharply Monday after the company said it will consider selling the business as part of a broader strategic review.

Shares fell 12% to $27.26.

The engineered pipe services company said it is evaluating a wide range of alternatives that include continuing its current business plan as well as the sale of parts or the whole business.

Chairman Jon Biro said the company is looking to close the gap between its public market valuation and the sum-of-the-parts value of the business.

"We are approaching this process with constructive discipline and an open mind, and we will be assisted by our outside advisors," Biro said.

The stock has performed strongly in 2025, rising about 80% since the start of the year, and up more than 120% over the last 52 weeks.

In its second quarter, Perma-Pipe generated $47.9 million in sales, up from $37.5 million a year earlier.

Net income fell to $851,000 from $3.29 million a year earlier, which on a per-share basis was a decline to 10 cents from 40 cents.

Costs were higher in the quarter, which included $10 million in general and administrative expenses, up from $6 million a year earlier, largely due to a higher payroll expense and professional fees.

The company also paid more in taxes. The effective tax rate was 54%, up from 23% a year earlier, due mainly to the mix of income and loss in various jurisdictions, primarily an increase in income in United Arab Emirates.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

September 15, 2025 09:49 ET (13:49 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.