Perimeter Solutions (NYSE:PRM) Issues Earnings Results

Perimeter Solutions (NYSE:PRM) posted its earnings results on Wednesday. The company reported $0.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.04, Zacks reports. The company had revenue of $125.07 million during 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 Stock Up 8.1%

Shares of NYSE:PRM traded up $2.38 during trading on Friday, hitting $31.74. 1,042,082 shares of the company were exchanged, compared to its average volume of 1,075,922. Perimeter Solutions has a fifty-two week low of $11.49 and a fifty-two week high of $32.02. The stock has a market cap of $5.18 billion, a price-to-earnings ratio of -23.72 and a beta of 1.93. The company has a current ratio of 3.22, a quick ratio of 2.42 and a debt-to-equity ratio of 0.60. The firm has a fifty day moving average price of $25.37 and a two-hundred day moving average price of $26.20.

Insider Activity at Perimeter Solutions

In related news, Director William N. Thorndike, Jr. sold 100,000 shares of the firm’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $23.63, for a total value of $2,363,000.00. Following the completion of the transaction, the director directly owned 8,635,656 shares of the company’s stock, valued at approximately $204,060,551.28. This trade represents a 1.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last three months, insiders sold 450,000 shares of company stock valued at $10,722,750. Corporate insiders own 13.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. lifted its stake in Perimeter Solutions by 51.6% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,143 shares of the company’s stock valued at $31,000 after purchasing an additional 389 shares during the last quarter. Comerica Bank increased its position in Perimeter Solutions by 12.2% during the third quarter. Comerica Bank now owns 5,019 shares of the company’s stock worth $112,000 after buying an additional 547 shares during the last quarter. Arax Advisory Partners raised its stake in 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 buying an additional 577 shares during the period. Russell Investments Group Ltd. lifted its position in shares of Perimeter Solutions by 5.5% in the fourth quarter. Russell Investments Group Ltd. now owns 12,691 shares of the company’s stock valued at $349,000 after buying an additional 660 shares during the last quarter. Finally, Smartleaf Asset Management LLC lifted its position in shares of Perimeter Solutions by 29.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 4,666 shares of the company’s stock valued at $130,000 after buying an additional 1,048 shares during the last quarter. 89.93% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on PRM. Zacks Research raised shares of Perimeter Solutions from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, April 14th. Weiss Ratings downgraded shares of Perimeter Solutions from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Monday, March 2nd. Finally, UBS Group lifted their price target on shares of Perimeter Solutions from $30.00 to $34.00 and gave the stock a “buy” rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $34.50.

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.