$PRM earnings report

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.

Perimeter Solutions reported second-quarter net sales of $213.8 million, up 31% from $162.6 million in the prior year quarter. Growth was led by Specialty Products, where net sales increased 100% to $84.7 million, while Fire Safety net sales increased 7% to $129.1 million. Year-to-date net sales increased 44% to $338.9 million, with Specialty Products net sales up 113% to $164.4 million.

Adjusted EBITDA increased 16% to $105.6 million in the quarter. Fire Safety Segment Adjusted EBITDA increased 1% to $78.8 million, whereas Specialty Products Segment Adjusted EBITDA increased 96% to $26.8 million. For the year-to-date period, Adjusted EBITDA increased 34% to $146.7 million, with Specialty Products Segment Adjusted EBITDA increasing 127% to $49.3 million.

GAAP results were materially weaker. The company reported a net loss of $181.6 million, or $1.11 loss per diluted share, versus a $32.2 million net loss, or $0.22 loss per diluted share, in the prior year quarter. Total operating expenses were $ 320,887 (in thousands), including $ 266,255 (in thousands) of founders advisory fees - related party. Second-quarter non-GAAP adjusted earnings per diluted share were $0.35, compared with $0.39 in the prior year quarter.

Capital allocation centered on the July 30, 2026 acquisition of Monaco for a total cash purchase price, net of cash acquired of $120.0 million. The transaction was funded with cash on hand and proceeds from existing credit facilities, and the company expects Monaco to contribute more than $11 million of annualized Adjusted EBITDA at a purchase multiple of approximately 10.5x enterprise value to Adjusted EBITDA. At June 30, 2026, cash and cash equivalents were $ 82,776 (in thousands) and long-term debt, net was $ 1,210,247 (in thousands).

The release did not provide company financial guidance. The disclosed forward-looking operating item is Monaco's expected contribution of more than $11 million of annualized Adjusted EBITDA. Key reported items to monitor are Specialty Products' elevated growth contribution, Fire Safety's comparatively modest Adjusted EBITDA growth, founders advisory fees, interest expense, and the funding and integration of Monaco.