Perimeter Solutions (NYSE:PRM) Posts Quarterly Earnings Results, Misses Expectations By $0.11 EPS

Perimeter Solutions (NYSE:PRM) released its quarterly earnings data on Thursday. The company reported $0.85 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.11), FiscalAI reports. The company had revenue of $389.87 million for the quarter, compared to analyst estimates of $381.45 million. Perimeter Solutions had a negative net margin of 44.86% and a positive return on equity of 19.15%.

Here are the key takeaways from Perimeter Solutions’ conference call:

• Q3 adjusted EBITDA rose 20% to $223.5 million, while net sales declined 24% to $389.9 million. Adjusted EPS was $0.85, compared with $0.82 a year earlier.
• Fire Safety revenue and adjusted EBITDA each increased 14%, with strength across product lines and geographies. DLA foam deliveries resumed, and the segment reported a 64.5% adjusted EBITDA margin despite the federal contract’s first-year pricing step-down.
• Specialty Products revenue rose 84% and adjusted EBITDA more than doubled, with MMT and IMS contributing to the segment’s growth. Management said MMT’s installed-base aftermarket business and IMS’s replacement electronics fit its recurring-revenue strategy.
• PDI’s supply reliability remains below customer requirements, and the company is expanding production and bringing on alternate suppliers. Management expects elevated costs and suppressed PDI EBITDA during the transition, without specifying when results will normalize.
• Perimeter generated $150.4 million of Q3 free cash flow and ended the quarter at 2.7x net leverage, with about $316 million in total liquidity. The company said this leaves capacity for customer-focused investment and potential acquisitions.

Perimeter Solutions Trading Up 0.9%

Shares of NYSE:PRM traded up $0.26 during midday trading on Thursday, reaching $28.36. The company had a trading volume of 2,850,004 shares, compared to its average volume of 1,104,460. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.93 and a current ratio of 1.57. Perimeter Solutions has a 1-year low of $20.38 and a 1-year high of $38.17. The firm has a market cap of $4.64 billion, a price-to-earnings ratio of -12.72 and a beta of 1.91. The company has a fifty day simple moving average of $29.07 and a two-hundred day simple moving average of $29.59.

Analyst Ratings Changes

PRM has been the topic of several recent research reports. Zacks Research raised shares of Perimeter Solutions from a “strong sell” rating to a “hold” rating in a research note on Thursday, October 15th. UBS Group cut their target price on shares of Perimeter Solutions from $42.00 to $38.00 and set a “buy” rating for the company in a research note on Tuesday, September 29th. Weiss Ratings upgraded shares of Perimeter Solutions from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday, October 19th. Wall Street Zen cut shares of Perimeter Solutions from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Perimeter Solutions from $45.00 to $40.00 and set an “overweight” rating on the stock in a research report on Tuesday, October 13th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $41.50.

Key Headlines Impacting Perimeter Solutions

Here are the key news stories impacting Perimeter Solutions this week:

• Positive Sentiment: Third-quarter revenue was $389.9 million, above the roughly $381.5 million consensus estimate. Adjusted EBITDA was $223.5 million, with the company citing continued execution of its value drivers and recent acquisitions. These results may offer support to the shares. Perimeter Group Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: Management outlined an annual capital spending plan of $30 million to $40 million. The investment could support operations, although its returns and impact on cash flow will depend on execution. Perimeter Group outlines annual capex plan
• Negative Sentiment: Adjusted EPS was $0.85, below analyst estimates of approximately $0.95–$0.96, though up from $0.82 a year earlier. The earnings shortfall may weigh on investor sentiment despite the revenue beat. The company also acknowledged a period of “distressed adjusted EBITDA” at PDI, signaling near-term pressure in that business. Perimeter Solutions Q3 earnings miss estimates PDI EBITDA outlook

Perimeter Solutions Company Profile

Perimeter Solutions, Inc (NYSE:PRM) is a specialty chemicals and fire-safety company that develops and supplies products used to prevent, control and suppress fires, as well as chemicals used in industrial applications. Its operations are organized primarily around fire-safety products and performance chemicals.

The company’s fire-safety portfolio includes PHOS-CHEK-branded wildfire retardants, firefighting foams, gels and other suppression products. These solutions are used by government agencies, fire departments, aviation and industrial customers, and other organizations involved in wildfire response, emergency preparedness and fire protection.

Perimeter Solutions also produces phosphorus-based specialty chemicals, including phosphorus pentasulfide, which is used in applications such as lubricant additives and other industrial processes.