Perimeter Solutions (NYSE:PRM) Releases Earnings Results, Misses Estimates By $0.11 EPS

Perimeter Solutions (NYSE:PRM) posted its earnings results on Thursday. The company reported $0.85 EPS for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.11), FiscalAI reports. Perimeter Solutions had a negative net margin of 44.86% and a positive return on equity of 19.15%. The company had revenue of $389.87 million during the quarter, compared to analysts’ expectations of $381.45 million.

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

• Q3 adjusted EBITDA rose 20% to $223.5 million, while net sales declined 24% to $389.9 million. Adjusted EPS was $0.85, compared with $0.82 a year earlier.
• Fire Safety revenue and adjusted EBITDA each increased 14%, with strength across product lines and geographies. DLA foam deliveries resumed, and the segment reported a 64.5% adjusted EBITDA margin despite the federal contract’s first-year pricing step-down.
• Specialty Products revenue rose 84% and adjusted EBITDA more than doubled, with MMT and IMS contributing to the segment’s growth. Management said MMT’s installed-base aftermarket business and IMS’s replacement electronics fit its recurring-revenue strategy.
• PDI’s supply reliability remains below customer requirements, and the company is expanding production and bringing on alternate suppliers. Management expects elevated costs and suppressed PDI EBITDA during the transition, without specifying when results will normalize.
• Perimeter generated $150.4 million of Q3 free cash flow and ended the quarter at 2.7x net leverage, with about $316 million in total liquidity. The company said this leaves capacity for customer-focused investment and potential acquisitions.

Perimeter Solutions Stock Performance

NYSE:PRM traded down $0.14 during trading hours on Friday, reaching $28.00. 285,423 shares of the company’s stock were exchanged, compared to its average volume of 1,296,213. The firm has a market capitalization of $4.58 billion, a price-to-earnings ratio of -12.59 and a beta of 1.91. The company has a 50-day moving average of $29.07 and a 200 day moving average of $29.59. The company has a quick ratio of 0.93, a current ratio of 1.57 and a debt-to-equity ratio of 1.19. Perimeter Solutions has a 1-year low of $20.38 and a 1-year high of $38.17.

Wall Street Analyst Weigh In

PRM has been the subject of several research analyst reports. Weiss Ratings upgraded shares of Perimeter Solutions from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, October 19th. JPMorgan Chase & Co. dropped their price objective on Perimeter Solutions from $45.00 to $40.00 and set an “overweight” rating on the stock in a report on Tuesday, October 13th. Wall Street Zen cut Perimeter Solutions from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Zacks Research raised Perimeter Solutions from a “strong sell” rating to a “hold” rating in a report on Thursday, October 15th. Finally, UBS Group reduced their target price on Perimeter Solutions from $42.00 to $38.00 and set a “buy” rating for the company in a report on Tuesday, September 29th. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $41.50.

Trending Headlines about Perimeter Solutions

Here are the key news stories impacting Perimeter Solutions this week:

• Positive Sentiment: Revenue of $389.9 million topped analyst estimates of about $381.5 million. The company also reported $223.5 million in adjusted EBITDA, citing continued execution of value drivers and recent acquisitions. Perimeter Group Q3 results
• Neutral Sentiment: The company announced it completed its name change from Perimeter Solutions, Inc. to Perimeter Group Inc.; its ticker remains PRM. Perimeter Group Q3 results
• Negative Sentiment: Adjusted EPS was $0.85, below analyst estimates of roughly $0.95–$0.96, though it was up from $0.82 a year earlier. The earnings miss could weigh on sentiment despite the revenue beat. Q3 earnings miss
• Negative Sentiment: Management outlined annual capital spending of $30 million–$40 million while acknowledging a period of “distressed adjusted EBITDA” at PDI, signaling near-term operating pressure and investment needs. Capex and PDI EBITDA outlook

About Perimeter Solutions

Perimeter Solutions, Inc (NYSE:PRM) is a specialty chemicals and fire-safety company that develops and supplies products used to prevent, control and suppress fires, as well as chemicals used in industrial applications. Its operations are organized primarily around fire-safety products and performance chemicals.

The company’s fire-safety portfolio includes PHOS-CHEK-branded wildfire retardants, firefighting foams, gels and other suppression products. These solutions are used by government agencies, fire departments, aviation and industrial customers, and other organizations involved in wildfire response, emergency preparedness and fire protection.

Perimeter Solutions also produces phosphorus-based specialty chemicals, including phosphorus pentasulfide, which is used in applications such as lubricant additives and other industrial processes.