Perimeter Group Reports Third Quarter 2026 Financial Results
Perimeter Group Inc. (PRM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Perimeter Group Reports Third Quarter 2026 Financial Results November 5, 2026 Third quarter Net Income of $304.5M and Adjusted Net Income of $144.3M Continued Value Driver execution and recent acquisitions drove third quarter Adjusted EBITDA of $223.5M Third quarter
How this was made
The 30-second read
Why it matters
The earnings release provides fresh quantitative data on profitability and growth, offering a clear trading catalyst.
Market read
The strong earnings and acquisition update give traders a fresh basis for positioning PRM, with potential upside in the short term.
What to watch
The acquisition of Monaco adds integration risk and may affect near‑term cash flow.
Third quarter Net Income of $304.5M and Adjusted Net Income of $144.3M; Continued Value Driver execution and recent acquisitions drove third quarter Adjusted EBITDA of $223.5M
Third-quarter net sales increased 24% to $389.9 million, Adjusted EBITDA increased 20% to $223.5 million, and both reporting segments grew. GAAP net income was affected by a $239,469 (in thousands) reduction in founders advisory fees, while adjusted net income was $144.3 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30GAAP | $389.9M | – | 24% |
| Cost of goods sold, three months ended September 30GAAP | $151.5M | – | – |
| Gross profit, three months ended September 30GAAP | $238.4M | – | – |
| Selling, general and administrative expense, three months ended September 30GAAP | $30.74M | – | – |
| Amortization expense, three months ended September 30GAAP | $24.77M | – | – |
| Founders advisory fees - related party, three months ended September 30GAAP | −$239.5M | – | – |
| Other operating expense, three months ended September 30GAAP | $5.86M | – | – |
| Total operating (income) expenses, three months ended September 30GAAP | −$178.1M | – | – |
| Operating income (loss), three months ended September 30GAAP | $416.5M | – | – |
| Interest expense, net, three months ended September 30GAAP | $20.37M | – | – |
| Foreign currency loss (gain), three months ended September 30GAAP | $294K | – | – |
| Other expense (income), net, three months ended September 30GAAP | $383K | – | – |
| Income (loss) before income taxes, three months ended September 30GAAP | $395.4M | – | – |
| Income tax (expense) benefit, three months ended September 30GAAP | −$90.94M | – | – |
| Net income (loss), three months ended September 30GAAP | $304.5M | – | – |
| Earnings per share, basic, three months ended September 30GAAP | $1.86 | – | – |
| Earnings per share, diluted, three months ended September 30GAAP | $1.74 | – | – |
| Adjusted net income, three months ended September 30non-GAAP | $144.3M | – | – |
| Adjusted earnings per share, diluted, three months ended September 30non-GAAP | $0.85 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $223.5M | – | 20% |
| Net sales, nine months ended September 30GAAP | $728.7M | – | 32% |
| Gross profit, nine months ended September 30GAAP | $407.0M | – | – |
| Operating income (loss), nine months ended September 30GAAP | $285.9M | – | – |
| Net income (loss), nine months ended September 30GAAP | $195.8M | – | – |
| Earnings per share, diluted, nine months ended September 30GAAP | $1.14 | – | – |
| Adjusted net income, nine months ended September 30non-GAAP | $212.9M | – | – |
| Adjusted earnings per share, diluted, nine months ended September 30non-GAAP | $1.27 | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $370.3M | – | 25% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Fire Safety, three months ended September 30The release identified continued Value Driver execution and recent acquisitions as drivers of third-quarter Adjusted EBITDA, but did not provide a segment-specific revenue driver. | $312.6M | – | 14% |
| Specialty Products, three months ended September 30The release identified continued Value Driver execution and recent acquisitions as drivers of third-quarter Adjusted EBITDA, but did not provide a segment-specific revenue driver. | $77.3M | – | 84% |
| Fire Safety, nine months ended September 30No segment-specific revenue driver was stated for the year-to-date period. | $487M | – | 13% |
| Specialty Products, nine months ended September 30No segment-specific revenue driver was stated for the year-to-date period. | $241.7M | – | 103% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- On July 30, 2026, the Company completed the acquisition of Monaco Enterprises, Inc. for a total cash purchase price, net of cash acquired, of $117.1 million, funded with cash on hand and proceeds from existing credit facilities.
- The Company invested $12.7 million in capital expenditures during the quarter ended September 30, 2026.
- Purchase of property and equipment was $31,200 (in thousands) for the nine months ended September 30, 2026.
- Purchase of businesses, net of cash acquired, was $799,416 (in thousands) for the nine months ended September 30, 2026.
What drove it
- Third-quarter net sales increased 24% to $389.9 million.
- Fire Safety net sales increased 14% to $312.6 million and Fire Safety Segment Adjusted EBITDA increased 14% to $201.6 million.
- Specialty Products net sales increased 84% to $77.3 million and Specialty Products Segment Adjusted EBITDA increased 140% to $21.9 million.
- The Company stated that continued Value Driver execution and recent acquisitions drove third-quarter Adjusted EBITDA of $223.5 million.
- The $239,469 (in thousands) reduction in founders advisory fees - related party was a material contributor to GAAP operating income and net income in the quarter.
Concerns
- Interest expense, net was $20,369 (in thousands) in the third quarter, compared with $9,870 (in thousands) in the prior-year quarter.
- Long-term debt, net increased to $1,210,852 (in thousands) at September 30, 2026 from $669,122 (in thousands) at December 31, 2025.
- Nine-month net cash provided by operating activities was $73,502 (in thousands), compared with $219,549 (in thousands) in the prior-year period.
- Accounts receivable and inventories increased to $176,572 (in thousands) and $221,522 (in thousands), respectively, at September 30, 2026, from $64,363 (in thousands) and $139,634 (in thousands) at December 31, 2025.
- Third-quarter adjusted results included $3,676 (in thousands) of purchase accounting impact - inventory step up and $5,965 (in thousands) of acquisition costs.
What to watch
- Fire Safety and Specialty Products revenue growth following the Monaco acquisition completed on July 30, 2026.
- Cash conversion after $799,416 (in thousands) of nine-month purchases of businesses, net of cash acquired.
- Debt, interest expense, and cash following $550,000 (in thousands) of proceeds from issuance of long-term debt during the nine-month period.
- The effect of founders advisory fees - related party on GAAP results. The third-quarter amount was $(239,469) (in thousands), versus $247,684 (in thousands) in the prior-year quarter.
- No financial guidance was provided in the filing.
Balance sheet and cash flow
- Cash and cash equivalents were $115,911 (in thousands) at September 30, 2026, compared with $325,927 (in thousands) at December 31, 2025.
- Long-term debt, net was $1,210,852 (in thousands) at September 30, 2026, compared with $669,122 (in thousands) at December 31, 2025.
- Total assets were $3,395,700 (in thousands) at September 30, 2026, compared with $2,653,007 (in thousands) at December 31, 2025.
- Total liabilities were $2,066,121 (in thousands) at September 30, 2026, compared with $1,519,688 (in thousands) at December 31, 2025.
- Net cash provided by operating activities was $73,502 (in thousands) for the nine months ended September 30, 2026, compared with $219,549 (in thousands) in 2025.
- Net cash used in investing activities was $830,616 (in thousands) for the nine months ended September 30, 2026, compared with $59,825 (in thousands) in 2025.
- Net cash provided by financing activities was $547,054 (in thousands) for the nine months ended September 30, 2026, compared with net cash used in financing activities of $21,582 (in thousands) in 2025.
- Net change in cash and cash equivalents was $(210,016) (in thousands) for the nine months ended September 30, 2026, compared with $142,191 (in thousands) in 2025.
Analysis
Perimeter reported broad-based third-quarter growth. Net sales increased 24% to $389.9 million, with Fire Safety sales increasing 14% to $312.6 million and Specialty Products sales increasing 84% to $77.3 million. The company attributed third-quarter Adjusted EBITDA of $223.5 million to continued Value Driver execution and recent acquisitions. Segment Adjusted EBITDA was $201.6 million for Fire Safety and $21.9 million for Specialty Products.
GAAP profitability changed sharply from the prior-year loss. Net income was $304.5 million, or $1.74 per diluted share, compared with a net loss of $90.7 million, or a loss of $0.62 per diluted share. This result included a $(239,469) (in thousands) founders advisory fees - related party amount, compared with $247,684 (in thousands) of expense in the prior-year quarter. On the company’s non-GAAP basis, adjusted net income was $144.3 million and adjusted diluted EPS was $0.85, compared with $125.5 million and $0.82, respectively.
The nine-month results also show revenue and Adjusted EBITDA growth, with net sales of $728.7 million, up 32%, and Adjusted EBITDA of $370.3 million, up 25%. However, cash conversion was lower in the nine-month period: net cash provided by operating activities was $73,502 (in thousands), compared with $219,549 (in thousands) in the prior-year period. The cash flow statement reported increases in accounts receivable and inventories, along with $799,416 (in thousands) of purchases of businesses, net of cash acquired.
Capital allocation centered on acquisitions and related funding. Perimeter completed the Monaco acquisition for a total cash purchase price, net of cash acquired, of $117.1 million, funded with cash on hand and existing credit facilities. For the nine months, the company reported $550,000 (in thousands) of proceeds from issuance of long-term debt, and long-term debt, net rose to $1,210,852 (in thousands) at September 30, 2026. Cash and cash equivalents declined to $115,911 (in thousands) from $325,927 (in thousands) at December 31, 2025.
The release provided no forward financial guidance. Key reported items to monitor are the sustainability of Specialty Products growth, the contribution of acquired businesses, operating cash flow after working-capital movements and acquisition spending, and the increased debt and interest-expense burden. Third-quarter interest expense, net was $20,369 (in thousands), compared with $9,870 (in thousands) in the prior-year quarter.
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax rate guidance
- Prior outlook for comparison
- Gross margin for the third quarter and nine-month period
- Free cash flow
- Dividend information
- Third-quarter operating cash flow
- Third-quarter free cash flow
- Named executive quotes
- Segment-specific qualitative revenue drivers
- Prior-quarter comparisons for reported metrics
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Perimeter Group (NYSE: PRM) is a provider of industrial products and services, recently renamed from Perimeter Solutions.
Ticker impact
Perimeter Group reported Q3 2026 results with net income of $304.5M, EPS $1.74 and 24% sales growth, a material earnings surprise.
upward pressure as market prices in the earnings beat and higher guidance
The company posted a large profit swing from a loss year‑over‑year and double‑digit sales growth, which typically drives buying.
Market effects
Fire safety and specialty products segments show strong growth, supporting the industrial safety sector.
North American industrial suppliers may see increased investor interest.
Limited to investors tracking US‑listed industrial manufacturers.
Counterpoint
If the earnings beat is already priced in, the stock could face short‑term profit‑taking.
Key entities
- companyPerimeter Group Inc.
Industrial products and services provider, ticker PRM.
- acquired companyMonaco Enterprises, Inc.
Acquired for $117.1M, now part of the Fire Safety segment.
