Perimeter Solutions (NYSE:PRM) Releases Earnings Results, Beats Estimates By $0.04 EPS

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

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 Trading Down 8.1%

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

Insider Activity

In other news, CFO Kyle Sable sold 100,000 shares of the company’s stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $28.47, for a total value of $2,847,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 10.00% of the company’s stock.

Institutional Inflows and Outflows

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

Analyst Ratings Changes

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