Perimeter Solutions (NYSE:PRM) Posts Earnings Results, Beats Expectations By $0.04 EPS

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

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 10.7%

Shares of PRM stock traded down $2.82 on Thursday, reaching $23.55. 2,129,492 shares of the company’s stock traded hands, compared to its average volume of 872,128. The company has a market capitalization of $3.48 billion, a P/E ratio of 56.07 and a beta of 1.96. Perimeter Solutions has a 12-month low of $8.76 and a 12-month high of $29.88. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.72 and a current ratio of 2.22. The business’s 50 day moving average price is $27.47 and its two-hundred day moving average price is $24.80.

Insiders Place Their Bets

In other news, CFO Kyle Sable sold 100,000 shares of the company’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $28.47, for a total value of $2,847,000.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. 10.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Perimeter Solutions

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PRM. Invesco Ltd. grew its holdings in shares of 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 acquiring an additional 791,558 shares in the last quarter. State of Tennessee Department of Treasury purchased a new position in Perimeter Solutions in the fourth quarter valued at about $139,000. Mackenzie Financial Corp purchased a new stake in shares of Perimeter Solutions during the 4th quarter worth about $242,000. Empowered Funds LLC acquired a new stake in shares of Perimeter Solutions during the 4th quarter valued at about $417,000. Finally, Voloridge Investment Management LLC bought a new stake in shares of Perimeter Solutions in the 4th quarter valued at approximately $6,681,000. Hedge funds and other institutional investors own 89.93% of the company’s stock.

Analyst Ratings Changes

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

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.