First quarter Net Income of $72.9M and Adjusted Net Income of $9.0M
Continued value driver execution and recent acquisitions drove first quarter Adjusted EBITDA of $41.2M
First quarter Earnings Per Diluted Share of $0.44 and Adjusted Earnings Per Diluted Share of $0.06
Entered into key five-year contracts with the United States Defense Logistics Agency for suppressants and with California Department of Forestry for retardants in April 2026
CLAYTON, Mo., May 06, 2026 (GLOBE NEWSWIRE) -- Perimeter Solutions, Inc. $(PRM)$ ("Perimeter," "Perimeter Solutions," or the "Company"), a leading provider of industrial products and services that support critical and complex customer missions across a range of niche applications, today reported financial results for its first quarter ended March 31, 2026.
First Quarter 2026 Results
-- Net sales increased 74% to $125.1 million in the first quarter, as
compared to $72.0 million in the prior year quarter.
-- Fire Safety net sales increased 22% to $45.5 million, as compared
to $37.1 million in the prior year quarter.
-- Specialty Products net sales increased 128% to $79.6 million, as
compared to $34.9 million in the prior year quarter.
-- Net income during the first quarter was $72.9 million, or $0.44 earnings
per diluted share, as compared to net income of $56.7 million, or $0.36
earnings per diluted share in the prior year quarter.
-- First quarter non-GAAP adjusted earnings per diluted share was $0.06, as
compared to non-GAAP adjusted earnings per diluted share of $0.03 in the
prior year quarter.
-- Adjusted EBITDA increased 128% to $41.2 million in the first quarter, as
compared to $18.1 million in the prior year quarter.
-- Fire Safety Segment Adjusted EBITDA increased 85% to $18.7 million,
as compared to $10.1 million in the prior year quarter.
-- Specialty Products Segment Adjusted EBITDA increased 181% to $22.5
million, as compared to $8.0 million in the prior year quarter.
-- Reconciliation tables for non-GAAP measures are available in the attached
schedules.
Capital Allocation
-- On January 22, 2026, the Company acquired the outstanding capital stock
of Medical Manufacturing Technologies, LLC ("MMT") for a total cash
purchase price, net of cash acquired of $682.3 million which was funded
with cash on hand and proceeds from a senior secured notes offering. MMT
is included within the Specialty Products segment.
-- The Company invested $5.8 million in capital expenditures during the
quarter ended March 31, 2026.
Conference Call and Webcast
As previously announced, Perimeter Solutions management will hold a conference call at 8:30 a.m. ET on Wednesday, May 6, 2026 to discuss financial results for the first quarter 2026. The conference call can be accessed by dialing (877) 407-9764 (toll-free) or (201) 689-8551 (toll).
The conference call will also be webcast simultaneously on Perimeter's website , accessed under the Investor Relations page. The webcast link will be made available on the Company's website prior to the start of the call; go to the investor relations page of our website to the News & Events menu and click on "Events & Presentations."
A slide presentation will also be available for reference during the conference call; go to the investor relations page of our website to the News & Events menu and click on "Events & Presentations."
Following the live webcast, a replay will be available on the Company's website. A telephonic replay will also be available approximately three hours after the call and can be accessed by dialing (877) 660-6853 (toll-free) or (201) 612-7415 (toll) and using Access ID "13758345". The telephonic replay will be available until June 6, 2026 (11:59 p.m. ET).
About Perimeter Solutions
Perimeter Solutions (NYSE: PRM) is a leading provider of industrial products and services that support critical and complex customer missions across a range of niche applications. Perimeter's focus on superior customer service, paired with our Value Driver-focused operating strategy, decentralized operating model, and focus on driving value via capital allocation and capital structure management, fulfills our dual mandate: to serve customers and create value for stockholders. Perimeter is comprised of two segments, Fire Safety, including fire retardants and fire suppressants, and Specialty Products, which currently spans lubricant additives, electronic and electro-mechanical components, and highly engineered machinery for the medical device industry. Perimeter expects to continue expanding its portfolio through organic growth and value creating acquisitions.
Forward-looking Information
This press release may contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods.
Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although Perimeter believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company's actual financial results and cause them to differ materially from those anticipated in any forward-looking statements, including the risk factors described from time to time by us in our filings with the Securities and Exchange Commission ("SEC"), including, but not limited to, the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Stockholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements.
Any forward-looking statement made by Perimeter in this press release speaks only as of the date on which it is made. Perimeter undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
SOURCE: Perimeter Solutions, Inc.
CONTACT: ir@perimeter-solutions.com
PERIMETER SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and
Comprehensive Income
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended March 31,
----------------------------------
2026 2025
-----------
Net sales $ 125,069 $ 72,030
Cost of goods sold 74,282 43,877
------------ -----------
Gross profit 50,787 28,153
------------ -----------
Operating expenses (income):
Selling, general and
administrative expense 23,061 16,299
Amortization expense 22,599 14,099
Founders advisory fees - related
party (76,378) (80,613)
Other operating expense 9,018 561
------------ -----------
Total operating income (21,700) (49,654)
------------ -----------
Operating income 72,487 77,807
------------ -----------
Other expense (income):
Interest expense, net 24,356 9,644
Foreign currency gain (1,351) (1,159)
Other (income) expense, net (364) 143
------------ -----------
Total other expense, net 22,641 8,628
------------ -----------
Income before income taxes 49,846 69,179
Income tax benefit (expense) 23,090 (12,493)
------------ -----------
Net income 72,936 56,686
Other comprehensive (loss) income,
net of tax:
Foreign currency translation
adjustments (6,566) 7,885
------------ -----------
Total comprehensive income $ 66,370 $ 64,571
============ ===========
Earnings per share:
Basic $ 0.47 $ 0.38
Diluted $ 0.44 $ 0.36
Weighted average number of shares
outstanding:
Basic 153,863,650 148,556,284
Diluted 165,074,373 156,727,696
PERIMETER SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share data)
March 31, 2026 December 31, 2025
---------------- ---------------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 91,624 $ 325,927
Accounts receivable, net 87,536 64,363
Inventories 191,026 139,634
Prepaid expenses and other
current assets 27,987 34,049
----------- --------------
Total current assets 398,173 563,973
Property, plant and equipment,
net 101,296 85,138
Operating lease right-of-use
assets 37,297 30,152
Finance lease right-of-use assets 5,490 5,713
Goodwill 1,365,415 1,065,211
Customer lists, net 924,377 628,189
Technology and patents, net 200,318 184,804
Tradenames, net 125,297 86,330
Other assets, net 6,715 3,497
----------- --------------
Total assets $ 3,164,378 $ 2,653,007
=========== ==============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 38,408 $ 30,301
Accrued expenses and other
current liabilities 61,322 47,212
Founders advisory fees payable
- related party 25,839 95,726
Deferred revenue 3,322 1,879
----------- --------------
Total current liabilities 128,891 175,118
Long-term debt, net 1,209,650 669,122
Operating lease liabilities, net
of current portion 32,858 27,860
Finance lease liabilities, net of
current portion 5,560 5,694
Deferred income taxes 121,788 80,410
Founders advisory fees payable -
related party 338,480 440,697
Preferred stock 117,753 115,904
Preferred stock - related party 586 1,293
Other non-current liabilities 3,963 3,590
----------- --------------
Total liabilities 1,959,529 1,519,688
----------- --------------
Commitments and contingencies
Stockholders' equity:
Common stock, $0.0001 par
value per share,
4,000,000,000 shares
authorized; 188,505,219 and
174,818,216 shares issued;
163,127,063 and 149,440,060
shares outstanding at March
31, 2026 and December 31,
2025, respectively 19 17
Treasury stock, at cost;
25,378,156 shares at March
31, 2026 and December 31,
2025 (168,197) (168,197)
Additional paid-in capital 2,106,116 2,100,958
Accumulated other
comprehensive loss (12,936) (6,370)
Accumulated deficit (720,153) (793,089)
----------- --------------
Total stockholders' equity 1,204,849 1,133,319
----------- --------------
Total liabilities and
stockholders' equity $ 3,164,378 $ 2,653,007
=========== ==============
PERIMETER SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended March 31,
------------------------------------
2026 2025
----------
Cash flows from operating
activities:
Net income $ 72,936 $ 56,686
Adjustments to reconcile net
income to net cash (used in)
provided by operating activities:
Founders advisory fees - related
party (change in fair value) (76,378) (80,613)
Depreciation and amortization
expense 27,139 16,893
Interest and payment-in-kind on
preferred stock 1,904 1,833
Stock-based compensation 2,598 2,671
Non-cash lease expense 2,513 1,395
Deferred income taxes (27,055) 8,927
Amortization of deferred
financing costs 709 444
Foreign currency gain (1,351) (1,159)
Loss on disposal of assets 17 3
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable 3,424 11,830
Inventories (3,099) 2,145
Prepaid expenses and current
other assets 878 766
Accounts payable (976) (3,513)
Deferred revenue 219 4,564
Income taxes payable, net 5,338 1,660
Accrued expenses and other
current liabilities 2,399 7,253
Founders advisory fees - related
party (cash settled) (95,726) (6,677)
Operating lease liabilities (1,903) (994)
Finance lease liabilities (119) (127)
Other, net (2,428) (241)
------------ ----------
Net cash (used in) provided by
operating activities (88,961) 23,746
------------ ----------
Cash flows from investing
activities:
Purchase of property and equipment (5,801) (4,813)
Purchase of businesses, net of
cash acquired (682,294) (10,000)
------------ ----------
Net cash used in investing
activities (688,095) (14,813)
------------ ----------
Cash flows from financing
activities:
Common stock repurchased -- (8,183)
Proceeds from exercises of options 3,000 41
Principal payments on finance
lease obligations (179) (251)
Proceeds from issuance of
long-term debt 550,000 --
Payment of debt issuance costs (10,057) --
------------ ----------
Net cash provided by (used in)
financing activities 542,764 (8,393)
------------ ----------
Effect of foreign currency on cash
and cash equivalents (11) 1,054
------------ ----------
Net change in cash and cash
equivalents (234,303) 1,594
------------ ----------
Cash and cash equivalents, beginning
of period 325,927 198,456
------------ ----------
Cash and cash equivalents, end of
period $ 91,624 $ 200,050
============ ==========
Supplemental disclosures of cash
flow information:
Cash paid for interest $ 154 $ 6
Cash (received) paid for income
taxes $ (2,034) $ 530
Non-GAAP Financial Metrics
The Company provides non-GAAP financial measures for Adjusted EBITDA, Segment Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings Per Share data as supplemental information regarding the Company's business performance. The Company believes that these non-GAAP financial measures are useful to investors because they provide investors with a better understanding of the Company's past financial performance and future results. The Company's management uses these non-GAAP financial measures when it internally evaluates the performance of its business and makes operating decisions, including internal operating budgeting, performance measurement, and discretionary compensation.
Adjusted EBITDA and Segment Adjusted EBITDA
Adjusted EBITDA and Segment Adjusted EBITDA are defined as income (loss) before income taxes plus net interest and other financing expenses, and depreciation and amortization, adjusted on a consistent basis for certain non-recurring, unusual or non-operational items. These items include (i) restructuring, (ii) acquisition related costs, (iii) founder advisory fee expenses, (iv) stock-based compensation expense, (v) purchase accounting impact and (vi) foreign currency loss (gain). To supplement the Company's condensed consolidated financial statements presented in accordance with U.S. GAAP, Perimeter is providing a summary to show the computations of Adjusted EBITDA and Segment Adjusted EBITDA, which are non-GAAP measures used by the Company's management and by external users of Perimeter's financial statements, such as debt and equity investors, commercial banks and others, to assess the Company's operating performance as compared to that of other companies, without regard to financing methods, capital structure or historical cost basis. Adjusted EBITDA and Segment Adjusted EBITDA should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP (in thousands).
(Unaudited) Three Months Ended March 31, 2026 Three Months Ended March 31, 2025
----------------------------------
Specialty Specialty
Fire Safety Products Total Fire Safety Products Total
------------ --------- --------- ------------ --------- -----------
Income (loss)
before income
taxes $ 62,127 $(12,281) $ 49,846 $ 58,878 $ 10,301 $ 69,179
Depreciation
and
amortization 14,492 12,647 27,139 12,765 4,128 16,893
Interest and
financing
expense 10,455 13,901 24,356 5,954 3,690 9,644
Founders
advisory fees
- related
party (66,890) (9,488) (76,378) (69,327) (11,286) (80,613)
Non-recurring
expenses(1) 132 259 391 234 673 907
Acquisition
costs 10 8,958 8,968 -- 561 561
Stock-based
compensation
expense 716 1,882 2,598 1,576 1,095 2,671
Purchase
accounting
impact(2() -- 5,590 5,590 -- -- --
Foreign
currency
(gain) loss (2,351) 1,000 (1,351) 5 (1,164) (1,159)
------- ------- ------- ------- ------- -------
Segment Adjusted
EBITDA $ 18,691 $ 22,468 $ 41,159 $ 10,085 $ 7,998 $ 18,083
======= ======= ======= ======= ======= =======
(1) For the three months ended March 31, 2026, $0.3 million
was related to litigation costs arising from a contractual
dispute regarding control of the P(2) S(5) facility,
which is currently operated by Flexsys Chemical Company,
and $0.1 million was related to restructuring and
other non-recurring costs. For the three months ended
March 31, 2025, $0.5 million was related to restructuring
and other non-recurring costs, and $0.4 million was
related to the Redomiciliation Transaction.
(2) For the three months ended March 31, 2026, $5.6 million
was primarily related to the impact of purchase accounting
on the cost of inventory sold. The inventory acquired
received a purchase accounting step-up in basis.
Adjusted Net Income and Adjusted Earnings Per Share
The computation of Adjusted Earnings Per Share ("Adjusted EPS") is defined as Adjusted Net Income divided by adjusted diluted shares. Adjusted Net Income is defined as net income (loss) plus amortization, certain non-recurring, unusual or non-operational items, and the tax impact of these non-GAAP adjustments. These adjustments include (i) restructuring, (ii) acquisition related costs, (iii) founder advisory fee expenses, (iv) stock-based compensation expense, (v) purchase accounting impact and (vi) foreign currency loss (gain). Adjusted diluted shares is the weighted average diluted shares outstanding, adjusted by adding dilution for options excluded under U.S. GAAP due to a net loss, less dilution related to founders advisory fees. To supplement the Company's condensed consolidated financial statements presented in accordance with U.S. GAAP, Perimeter is providing a summary to show the computations of Adjusted Net Income and Adjusted EPS, which are non-GAAP measures used by the Company's management and by external users of Perimeter's financial statements, such as debt and equity investors, commercial banks and others, to assess the Company's operating performance as compared to that of other companies, without regard to financing methods, capital structure or historical cost basis. Adjusted EPS and Adjusted Net Income should not be considered alternatives to GAAP earnings (loss) per share ("GAAP EPS"), net income (loss), operating income (loss), cash flows provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP (in thousands, except share and per share data).
(Unaudited) Three Months Ended March 31,
2026 2025
--- --------------- --- ---------------
GAAP net income $ 72,936 $ 56,686
Adjustments:
Amortization 22,599 14,099
Founders advisory
fees - related
party (76,378) (80,613)
Non-recurring
expenses(1) 391 907
Acquisition costs 8,968 561
Stock-based
compensation
expense 2,598 2,671
Purchase accounting
impact(2) 5,590 --
Foreign currency
gain (1,351) (1,159)
Tax impact of
non-GAAP
adjustments((3)
() (26,319) 10,937
--- --------------- ---------------
Adjusted net income $ 9,034 $ 4,089
=== =============== === ===============
Shares used in computing
GAAP Earnings Per Share
(diluted) 165,074,373 156,727,696
Options((4) () -- --
Shares underlying
Founders fixed
advisory fees((5)
() (4,714,122) (7,071,183)
Shares underlying
Founders variable
advisory fees((6)
() -- --
--- --------------- --- ---------------
Shares used in computing
Adjusted Earnings Per
Share (diluted) 160,360,251 149,656,513
=== =============== === ===============
GAAP Earnings Per Share
(diluted) $ 0.44 $ 0.36
Adjusted Earnings Per
Share (diluted) $ 0.06 $ 0.03
____________________
(1) For the three months ended March 31, 2026, $0.3
million was related to litigation costs arising
from a contractual dispute regarding control of
the P(2) S(5) facility, which is currently
operated by Flexsys Chemical Company, and $0.1
million was related to restructuring and other
non-recurring costs. For the three months ended
March 31, 2025, $0.5 million was related to
restructuring and other non-recurring costs, and
$0.4 million was related to the Redomiciliation
Transaction.
(2) For the three months ended March 31, 2026, $5.6
million was primarily related to the impact of
purchase accounting on the cost of inventory sold.
The inventory acquired received a purchase
accounting step-up in basis.
(3) The tax impact of non-GAAP adjustments reflects the
total income tax expense commensurate with the
non-GAAP measure of profitability.
(4) The Company adds back the dilutive impact of
options if amounts were excluded for purposes of
GAAP EPS due to a GAAP net loss during the
period.
(5) As of March 31, 2026, a maximum of 2.4 million
shares were issuable within 12 months under the
Founders fixed advisory fee.
(6) Based on period end market prices as of March 31,
2026, no shares were issuable within 12 months
under the Founders variable advisory fee.
(END) Dow Jones Newswires
May 06, 2026 06:00 ET (10:00 GMT)