Perimeter Solutions (NYSE:PRM) Releases Earnings Results, Misses Expectations By $0.08 EPS

Perimeter Solutions (NYSE:PRM) released its quarterly earnings data on Friday. The company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.08), FiscalAI reports. The company had revenue of $213.81 million for the quarter, compared to the consensus estimate of $216.89 million. Perimeter Solutions had a positive return on equity of 18.29% and a negative net margin of 26.93%.

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

• Strong second-quarter results: Revenue increased 31% year over year to $313.8 million, while adjusted EBITDA rose 16% to $105.6 million; year-to-date adjusted EBITDA was up 34% to $146.7 million.
• Fire Safety earnings are expected to improve in the second half: Management said the 5% federal contract pricing step-down and temporary pause in Defense Logistics Agency foam deliveries weighed on Q2, but deliveries are resuming and CAL FIRE pricing should offset much of the impact, with the new DLA contract ramping into 2027 and 2028.
• Monaco acquisition expands the portfolio: Perimeter paid approximately $120 million for a provider of proprietary fire alarm and mass-notification systems installed at more than 200 U.S. military sites. More than 95% of Monaco’s sales come from its installed base, creating an annuity-like aftermarket stream, while management sees additional growth across military branches and regulated government markets.
• Long-term retardant demand is supported by fleet expansion: Canada is adding four new 4,000-gallon retardant-capable air tankers, while Texas, other U.S. states, and European markets are also expanding aerial firefighting infrastructure, potentially creating meaningful multi-year volume growth.
• PDI remains pressured by the Sauget facility disruption: Production problems at Flexsys’ Illinois plant continued to reduce Specialty Products earnings, although Perimeter expects conditions to improve as capacity is restored and is taking steps to reduce PDI’s reliance on the facility.

Perimeter Solutions Stock Down 17.7%

NYSE PRM traded down $6.60 during trading on Friday, reaching $30.63. The company’s stock had a trading volume of 6,417,954 shares, compared to its average volume of 1,318,354. The company has a current ratio of 3.09, a quick ratio of 1.61 and a debt-to-equity ratio of 1.01. Perimeter Solutions has a 1-year low of $15.43 and a 1-year high of $38.17. The business has a 50-day moving average price of $33.95 and a 200-day moving average price of $29.33. The stock has a market capitalization of $5.00 billion, a PE ratio of -22.86 and a beta of 1.90.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on PRM shares. Weiss Ratings raised Perimeter Solutions from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday. Morgan Stanley upped their price objective on shares of Perimeter Solutions from $35.00 to $40.00 and gave the company an “overweight” rating in a research note on Monday, May 11th. JPMorgan Chase & Co. started coverage on shares of Perimeter Solutions in a report on Thursday, July 9th. They issued an “overweight” rating and a $50.00 target price for the company. Zacks Research downgraded shares of Perimeter Solutions from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 10th. Finally, UBS Group upped their price target on shares of Perimeter Solutions from $30.00 to $34.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Perimeter Solutions currently has an average rating of “Moderate Buy” and a consensus price target of $43.00.

Insider Buying and Selling

In other news, major shareholder Windacre Partnership Llc sold 1,875,000 shares of the company’s stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $33.90, for a total transaction of $63,562,500.00. Following the completion of the sale, the insider owned 16,148,621 shares in the company, valued at approximately $547,438,251.90. This represents a 10.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Jeffrey Emery sold 53,537 shares of the company’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $33.45, for a total value of $1,790,812.65. Following the sale, the insider directly owned 53,537 shares of the company’s stock, valued at $1,790,812.65. The trade was a 50.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 6,385,514 shares of company stock worth $217,464,393 over the last ninety days. 13.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of PRM. Arax Advisory Partners boosted its position in shares of Perimeter Solutions by 122.8% in the fourth quarter. Arax Advisory Partners now owns 1,047 shares of the company’s stock valued at $29,000 after acquiring an additional 577 shares during the period. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Perimeter Solutions by 51.6% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,143 shares of the company’s stock valued at $31,000 after buying an additional 389 shares during the period. EverSource Wealth Advisors LLC acquired a new stake in Perimeter Solutions during the second quarter worth about $42,000. Ancora Advisors LLC grew its position in Perimeter Solutions by 219.0% during the third quarter. Ancora Advisors LLC now owns 3,190 shares of the company’s stock worth $71,000 after buying an additional 2,190 shares in the last quarter. Finally, Kemnay Advisory Services Inc. bought a new stake in Perimeter Solutions in the 4th quarter valued at $99,000. 89.93% of the stock is currently owned by institutional investors and hedge funds.

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.