Perimeter Solutions (NYSE:PRM) Announces Quarterly Earnings Results

Perimeter Solutions (NYSE:PRM) posted its earnings results on Thursday. The company reported $0.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.09 by $0.04, Zacks reports. The company had revenue of $102.75 million during the quarter, compared to analysts’ expectations of $94.05 million. Perimeter Solutions had a net margin of 12.26% and a return on equity of 17.33%.

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

• Structural earnings expansion: 2025 adjusted EBITDA rose 18% to $331.7 million and adjusted EPS increased ~21%, which management attributes to sustained application of its operational value drivers.
• Contract mix shift in Fire Safety: Retardant contracts have moved from volume‑based to more fixed and recurring structures and growing international and non‑retardant businesses, reducing sensitivity to fire‑season volatility and improving revenue predictability.
• Sauget P2S5 operational and safety issues: Recurring downtime and safety incidents at the Flexsys‑operated Sauget plant have hurt production and results, and Perimeter is in litigation after One Rock blocked its contractual right to assume operations, creating ongoing volatility in the P2S5 business.
• Accelerated M&A strategy: Perimeter is deploying capital into IMS product‑line tuck‑ins and closed the MMT acquisition (pro forma ~ $140M revenue, $50M adj. EBITDA), expected to drive growth but funded in part with $550M of new notes and higher interest expense.
• Liquidity and capital discipline: The company ended the year with $325.9M cash, an undrawn $200M revolver, no maintenance covenants on its debt facility, and says it will target ≥15% IRRs on capital deployment, leaving capacity for further value‑creating M&A.

Perimeter Solutions Stock Down 8.1%

Perimeter Solutions stock traded down $2.14 during midday trading on Thursday, hitting $24.24. 1,100,780 shares of the stock were exchanged, compared to its average volume of 843,248. Perimeter Solutions has a 52-week low of $8.76 and a 52-week high of $29.88. The business’s 50-day moving average price is $27.47 and its 200-day moving average price is $24.80. The company has a quick ratio of 1.72, a current ratio of 2.22 and a debt-to-equity ratio of 0.61. The stock has a market capitalization of $3.58 billion, a price-to-earnings ratio of 57.64 and a beta of 1.96.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Zacks Research lowered Perimeter Solutions from a “strong-buy” rating to a “hold” rating in a report on Wednesday, December 17th. Morgan Stanley set a $35.00 price objective on shares of Perimeter Solutions in a research report on Monday, December 15th. UBS Group lowered shares of Perimeter Solutions from a “buy” rating to a “neutral” rating and raised their price target for the stock from $30.00 to $31.00 in a research report on Monday, January 12th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Perimeter Solutions in a report on Thursday, January 22nd. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $33.00.

Insiders Place Their Bets

In related news, CFO Kyle Sable sold 100,000 shares of the company’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $28.47, for a total value of $2,847,000.00. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders own 10.00% of the company’s stock.

Institutional Investors Weigh In On Perimeter Solutions

A number of large investors have recently added to or reduced their stakes in the company. Invesco Ltd. grew its holdings in Perimeter Solutions by 157.3% during the 4th quarter. Invesco Ltd. now owns 1,294,686 shares of the company’s stock valued at $35,643,000 after buying an additional 791,558 shares in the last quarter. State of Tennessee Department of Treasury bought a new position in shares of Perimeter Solutions during the fourth quarter worth $139,000. Mackenzie Financial Corp bought a new position in shares of Perimeter Solutions during the fourth quarter worth $242,000. Empowered Funds LLC bought a new stake in Perimeter Solutions in the 4th quarter valued at $417,000. Finally, Voloridge Investment Management LLC bought a new stake in Perimeter Solutions in the 4th quarter valued at $6,681,000. Institutional investors own 89.93% of the company’s stock.

About Perimeter Solutions

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.