Perimeter Solutions (NYSE:PRM) Announces Earnings Results

Key Points

• Perimeter beat Q1 expectations with $0.06 EPS and $125.1M revenue, reporting a strong jump in profitability with adjusted EBITDA of $41.2M (vs. $18.1M a year ago) and net sales up 74%.
• The company secured a 5‑year foam contract with the DLA with a maximum value of $500M (management expects roughly $300M incremental uplift) ramping from late 2026, and renewed a 5‑year CAL FIRE retardant deal that includes a year‑1 price step‑up to support pricing and margins.
• Operational risk remains after the Sauget, IL facility experienced its worst downtime in history—prompting potential legal action and possible control changes—while integration of the ~$682M MMT acquisition is ongoing and leverage is about 3.2x net debt/LTM EBITDA with $92M cash and a $200M undrawn revolver.

Perimeter Solutions (NYSE:PRM - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.06 EPS for the quarter, beating analysts' consensus estimates of $0.02 by $0.04, Zacks reports. The firm had revenue of $125.07 million for the quarter, compared to analyst estimates of $121.80 million. Perimeter Solutions had a positive return on equity of 18.55% and a negative net margin of 26.93%.

Here are the key takeaways from Perimeter Solutions' conference call:

• Perimeter reported a strong Q1 with adjusted EBITDA of $41.2M (vs. $18.1M a year ago) and net sales of $125.1M (up 74%), which management says reflects a more durable, predictable earnings base driven by its operational value‑driver model.
• The company signed a 5‑year foam contract with the DLA with a maximum value of $500M (management expects ~two‑thirds, roughly $300M, incremental uplift), ramping from late 2026 and targeting steady‑state contribution in 2028.
• Perimeter renewed a 5‑year CAL FIRE retardant contract that includes a year‑1 price step‑up to align CAL FIRE pricing with other large customers, supporting improved pricing and margin durability.
• The Sauget, IL (Flexis‑operated) facility experienced the worst operational downtime in its history, materially disrupting production; Perimeter is pursuing legal remedies against One Rock and may assume control, creating near‑term operational and execution risk.
• Integration of the ~$682M MMT acquisition is progressing (product launches rising from 2 to 9 in 2026) and management expects better‑than‑initial results, while leverage is ~3.2x net debt/LTM EBITDA with $92M cash and a fully undrawn $200M revolver — providing growth capital but increasing scale and complexity.

Perimeter Solutions Trading Up 6.8%

Shares of Perimeter Solutions stock traded up $1.87 on Thursday, hitting $29.28. 2,702,900 shares of the company's stock traded hands, compared to its average volume of 1,171,725. The firm's 50-day moving average price is $25.37 and its two-hundred day moving average price is $26.20. The company has a debt-to-equity ratio of 0.60, a current ratio of 3.22 and a quick ratio of 2.42. The stock has a market capitalization of $4.78 billion, a PE ratio of -21.85 and a beta of 1.93. Perimeter Solutions has a one year low of $10.57 and a one year high of $31.92.

Insider Buying and Selling at Perimeter Solutions

In other news, Director William N. Thorndike, Jr. sold 125,000 shares of the firm's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $23.37, for a total value of $2,921,250.00. Following the transaction, the director directly owned 8,735,656 shares in the company, valued at $204,152,280.72. This trade represents a 1.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Over the last 90 days, insiders sold 450,000 shares of company stock valued at $10,722,750. Corporate insiders own 13.10% of the company's stock.

Institutional Investors Weigh In On Perimeter Solutions

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP boosted its holdings in Perimeter Solutions by 4.5% during the third quarter. Dimensional Fund Advisors LP now owns 5,145,141 shares of the company's stock worth $115,188,000 after buying an additional 221,290 shares during the last quarter. Janus Henderson Group PLC increased its stake in shares of Perimeter Solutions by 54.9% in the 4th quarter. Janus Henderson Group PLC now owns 3,691,773 shares of the company's stock valued at $101,634,000 after acquiring an additional 1,308,602 shares during the last quarter. State Street Corp raised its position in shares of Perimeter Solutions by 1.9% in the 4th quarter. State Street Corp now owns 3,200,527 shares of the company's stock valued at $88,111,000 after acquiring an additional 59,597 shares during the period. Balance Capital Partners L.P. bought a new position in Perimeter Solutions during the 4th quarter worth approximately $69,115,000. Finally, Bank of America Corp DE boosted its stake in Perimeter Solutions by 35.8% during the 2nd quarter. Bank of America Corp DE now owns 2,274,018 shares of the company's stock worth $31,654,000 after acquiring an additional 599,972 shares during the last quarter. Institutional investors own 89.93% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Zacks Research raised Perimeter Solutions from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, April 14th. Weiss Ratings lowered Perimeter Solutions from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Monday, March 2nd. Finally, UBS Group boosted their price objective on Perimeter Solutions from $30.00 to $34.00 and gave the stock a "buy" rating in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Perimeter Solutions has a consensus rating of "Moderate Buy" and a consensus price target of $34.50.

Perimeter Solutions Company Profile

Perimeter Solutions Ltd. NYSE: PRM is a global specialty chemicals company focused on delivering performance-driven solutions for the oil and gas, coatings, plastics, water treatment and packaging markets. Established as an independent publicly traded company in December 2019 following its spin-off from NewMarket Corporation, Perimeter Solutions has positioned itself as a leading provider of highly engineered chemical products designed to optimize upstream oil recovery, protect infrastructure and enhance the performance of industrial processes.

The company's core product portfolio spans several key segments.

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