Perimeter Solutions (NYSE:PRM) Posts Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Perimeter Solutions (NYSE:PRM) issued its earnings results on Friday. The company reported $0.35 EPS for the quarter, missing the consensus estimate of $0.43 by ($0.08), FiscalAI reports. The business 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 Performance

PRM traded down $6.60 during trading on Friday, hitting $30.63. The stock had a trading volume of 6,417,994 shares, compared to its average volume of 1,318,354. The company has a 50 day moving average price of $33.95 and a 200-day moving average price of $29.33. The firm has a market cap of $5.00 billion, a price-to-earnings ratio of -22.86 and a beta of 1.90. Perimeter Solutions has a one year low of $15.43 and a one year high of $38.17. The company has a debt-to-equity ratio of 1.01, a current ratio of 3.09 and a quick ratio of 1.61.

Insider Transactions at Perimeter Solutions

In other news, CEO Haitham Khouri sold 117,511 shares of the business’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $31.19, for a total value of $3,665,168.09. Following the completion of the sale, the chief executive officer owned 1,874,615 shares of the company’s stock, valued at approximately $58,469,241.85. The trade was a 5.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Kyle Sable sold 150,000 shares of the company’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $31.52, for a total transaction of $4,728,000.00. Following the completion of the transaction, the chief financial officer owned 20,000 shares in the company, valued at $630,400. This trade represents a 88.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 6,385,514 shares of company stock worth $217,464,393 over the last quarter. 13.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Perimeter Solutions

Several hedge funds and other institutional investors have recently bought and sold shares of PRM. Arax Advisory Partners boosted its stake 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 buying an additional 577 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake 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 valued at $31,000 after purchasing an additional 389 shares in the last quarter. EverSource Wealth Advisors LLC bought a new stake in shares of Perimeter Solutions in the 2nd quarter valued at $42,000. Comerica Bank boosted its position in Perimeter Solutions by 45.0% during the first quarter. Comerica Bank now owns 4,267 shares of the company’s stock valued at $43,000 after acquiring an additional 1,324 shares during the last quarter. Finally, Ancora Advisors LLC grew its stake 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 purchasing an additional 2,190 shares during the period. Institutional investors and hedge funds own 89.93% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on PRM shares. JPMorgan Chase & Co. began coverage on shares of Perimeter Solutions in a research report on Thursday, July 9th. They set an “overweight” rating and a $50.00 price objective for the company. CJS Securities initiated coverage on shares of Perimeter Solutions in a research report on Tuesday, June 9th. They issued a “market outperform” rating and a $48.00 price objective on the stock. Wall Street Zen cut shares of Perimeter Solutions from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. UBS Group lifted their target price on shares of Perimeter Solutions from $30.00 to $34.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Finally, Weiss Ratings upgraded shares of Perimeter Solutions from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $43.00.

Perimeter Solutions Company Profile

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.