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Perimeter Solutions Reports First Quarter 2026 Financial Results

First quarter Net Income of 729M and Adjusted Net Income of 90M Continued value driver execution and recent acquisitions drove first quarter Adjusted EBITDA of 412M First quarter Earnings Per Diluted Share of 044 and Adjusted Earnings Per Diluted Share of 006 Entered into key fiveyear 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 NYSE 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 1251 million in the first quarter as compared to 720 million in the prior year quarter Fire Safety net sales increased 22 to 455 million as compared to 371 million in the prior year quarterSpecialty Products net sales increased 128 to 796 million as compared to 349 million in the prior year quarter Net income during the first quarter was 729 million or 044 earnings per diluted share as compared to net income of 567 million or 036 earnings per diluted share in the prior year quarterFirst quarter nonGAAP adjusted earnings per diluted share was 006 as compared to nonGAAP adjusted earnings per diluted share of 003 in the prior year quarterAdjusted EBITDA increased 128 to 412 million in the first quarter as compared to 181 million in the prior year quarter Fire Safety Segment Adjusted EBITDA increased 85 to 187 million as compared to 101 million in the prior year quarterSpecialty Products Segment Adjusted EBITDA increased 181 to 225 million as compared to 80 million in the prior year quarter Reconciliation tables for nonGAAP 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 6823 million which was funded with cash on hand and proceeds from a senior secured notes offering MMT is included within the Specialty Products segmentThe Company invested 58 million in capital expenditures during the quarter ended March31 2026 Conference Call and Webcast As previously announced Perimeter Solutions management will hold a conference call at 830 am ET on Wednesday May6 2026 to discuss financial results for the first quarter 2026 The conference call can be accessed by dialing 877 4079764 tollfree or 201 6898551 toll The conference call will also be webcast simultaneously on Perimeters website httpsirperimetersolutionscom accessed under the Investor Relations page The webcast link will be made available on the Companys website prior to the start of the call go to the investor relations page of our website to the News amp Events menu and click on Events amp 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 amp Events menu and click on Events amp Presentations Following the live webcast a replay will be available on the Companys website A telephonic replay will also be available approximately three hours after the call and can be accessed by dialing 877 6606853 tollfree or 201 6127415 toll and using Access ID 13758345 The telephonic replay will be available until June 6 2026 1159 pm 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 Perimeters focus on superior customer service paired with our Value Driverfocused 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 electromechanical components and highly engineered machinery for the medical device industry Perimeter expects to continue expanding its portfolio through organic growth and value creating acquisitions Forwardlooking Information This press release may contain forwardlooking statements within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995 Forwardlooking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forwardlooking statements Forwardlooking 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 forwardlooking statements are not guarantees of performance or results and involve risks uncertainties some of which are beyond the Companys control and assumptions Although Perimeter believes any forwardlooking statements are based on reasonable assumptions you should be aware that many factors could affect the Companys actual financial results and cause them to differ materially from those anticipated in any forwardlooking 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 Companys Annual Report on Form 10K for the year ended December 31 2025 Stockholders potential investors and other readers should consider these factors carefully in evaluating the forwardlooking statements Any forwardlooking 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 forwardlooking statement whether as a result of new information future developments or otherwise except as may be required by law SOURCE Perimeter Solutions Inc CONTACT irperimetersolutionscom PERIMETER SOLUTIONS INC AND SUBSIDIARIESCondensed Consolidated Statements of Operations and Comprehensive Incomein thousands except share and per share dataUnauditedThree Months Ended March 3120262025Net sales12506972030Cost of goods sold7428243877Gross profit5078728153Operating expenses incomeSelling general and administrative expense2306116299Amortization expense2259914099Founders advisory fees related party7637880613Other operating expense9018561Total operating income2170049654Operating income7248777807Other expense incomeInterest expense net243569644Foreign currency gain13511159Other income expense net364143Total other expense net226418628Income before income taxes4984669179Income tax benefit expense2309012493Net income7293656686Other comprehensive loss income net of taxForeign currency translation adjustments65667885Total comprehensive income6637064571Earnings per shareBasic047038Diluted044036Weighted average number of shares outstandingBasic153863650148556284Diluted165074373156727696 PERIMETER SOLUTIONS INC AND SUBSIDIARIESCondensed Consolidated Balance Sheetsin thousands except share dataMarch 31 2026December 31 2025ASSETSUnauditedCurrent assetsCash and cash equivalents91624325927Accounts receivable net8753664363Inventories191026139634Prepaid expenses and other current assets2798734049Total current assets398173563973Property plant and equipment net10129685138Operating lease rightofuse assets3729730152Finance lease rightofuse assets54905713Goodwill13654151065211Customer lists net924377628189Technology and patents net200318184804Tradenames net12529786330Other assets net67153497Total assets31643782653007LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilitiesAccounts payable3840830301Accrued expenses and other current liabilities6132247212Founders advisory fees payable related party2583995726Deferred revenue33221879Total current liabilities128891175118Longterm debt net1209650669122Operating lease liabilities net of current portion3285827860Finance lease liabilities net of current portion55605694Deferred income taxes12178880410Founders advisory fees payable related party338480440697Preferred stock117753115904Preferred stock related party5861293Other noncurrent liabilities39633590Total liabilities19595291519688Commitments and contingenciesStockholders equityCommon stock 00001 par value per share 4000000000 shares authorized 188505219 and 174818216 shares issued 163127063 and 149440060 shares outstanding at March31 2026 and December31 2025 respectively1917Treasury stock at cost 25378156 shares at March31 2026 and December31 2025168197168197Additional paidin capital21061162100958Accumulated other comprehensive loss129366370Accumulated deficit720153793089Total stockholders equity12048491133319Total liabilities and stockholders equity31643782653007 PERIMETER SOLUTIONS INC AND SUBSIDIARIESCondensed Consolidated Statements of Cash Flowsin thousandsUnauditedThree Months Ended March 3120262025Cash flows from operating activitiesNet income7293656686Adjustments to reconcile net income to net cash used in provided by operating activitiesFounders advisory fees related party change in fair value7637880613Depreciation and amortization expense2713916893Interest and paymentinkind on preferred stock19041833Stockbased compensation25982671Noncash lease expense25131395Deferred income taxes270558927Amortization of deferred financing costs709444Foreign currency gain13511159Loss on disposal of assets173Changes in operating assets and liabilities net of acquisitionsAccounts receivable342411830Inventories30992145Prepaid expenses and current other assets878766Accounts payable9763513Deferred revenue2194564Income taxes payable net53381660Accrued expenses and other current liabilities23997253Founders advisory fees related party cash settled957266677Operating lease liabilities1903994Finance lease liabilities119127Other net2428241Net cash used in provided by operating activities8896123746Cash flows from investing activitiesPurchase of property and equipment58014813Purchase of businesses net of cash acquired68229410000Net cash used in investing activities68809514813Cash flows from financing activitiesCommon stock repurchased8183Proceeds from exercises of options300041Principal payments on finance lease obligations179251Proceeds from issuance of longterm debt550000Payment of debt issuance costs10057Net cash provided by used in financing activities5427648393Effect of foreign currency on cash and cash equivalents111054Net change in cash and cash equivalents2343031594Cash and cash equivalents beginning of period325927198456Cash and cash equivalents end of period91624200050Supplemental disclosures of cash flow informationCash paid for interest1546Cash received paid for income taxes2034530 NonGAAP Financial Metrics The Company provides nonGAAP financial measures for Adjusted EBITDA Segment Adjusted EBITDA Adjusted Net Income and Adjusted Earnings Per Share data as supplemental information regarding the Companys business performance The Company believes that these nonGAAP financial measures are useful to investors because they provide investors with a better understanding of the Companys past financial performance and future results The Companys management uses these nonGAAP 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 nonrecurring unusual or nonoperational items These items include i restructuring ii acquisition related costs iii founder advisory fee expenses iv stockbased compensation expense v purchase accounting impact and vi foreign currency loss gain To supplement the Companys condensed consolidated financial statements presented in accordance with US GAAP Perimeter is providing a summary to show the computations of Adjusted EBITDA and Segment Adjusted EBITDA which are nonGAAP measures used by the Companys management and by external users of Perimeters financial statements such as debt and equity investors commercial banks and others to assess the Companys 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 US GAAP in thousands UnauditedThree Months Ended March 31 2026Three Months Ended March 31 2025Fire SafetySpecialtyProductsTotalFire SafetySpecialtyProductsTotalIncome loss before income taxes621271228149846588781030169179Depreciation and amortization14492126472713912765412816893Interest and financing expense104551390124356595436909644Founders advisory fees related party66890948876378693271128680613Nonrecurring expenses1132259391234673907Acquisition costs1089588968561561Stockbased compensation expense71618822598157610952671Purchase accounting impact255905590Foreign currency gain loss235110001351511641159Segment Adjusted EBITDA18691224684115910085799818083 1For the three months ended March 31 2026 03 million was related to litigation costs arising from a contractual dispute regarding control of the P2S5 facility which is currently operated by Flexsys Chemical Company and 01 million was related to restructuring and other nonrecurring costs For the three months ended March 31 2025 05 million was related to restructuring and other nonrecurring costs and 04 million was related to the Redomiciliation Transaction2For the three months ended March 31 2026 56 million was primarily related to the impact of purchase accounting on the cost of inventory sold The inventory acquired received a purchase accounting stepup 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 nonrecurring unusual or nonoperational items and the tax impact of these nonGAAP adjustments These adjustments include i restructuring ii acquisition related costs iii founder advisory fee expenses iv stockbased 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 US GAAP due to a net loss less dilution related to founders advisory fees To supplement the Companys condensed consolidated financial statements presented in accordance with US GAAP Perimeter is providing a summary to show the computations of Adjusted Net Income and Adjusted EPS which are nonGAAP measures used by the Companys management and by external users of Perimeters financial statements such as debt and equity investors commercial banks and others to assess the Companys 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 US GAAP in thousands except share and per share data UnauditedThree Months Ended March 3120262025GAAP net income7293656686AdjustmentsAmortization2259914099Founders advisory fees related party7637880613Nonrecurring expenses1391907Acquisition costs8968561Stockbased compensation expense25982671Purchase accounting impact25590Foreign currency gain13511159Tax impact of nonGAAP adjustments32631910937Adjusted net income90344089Shares used in computing GAAP Earnings Per Share diluted165074373156727696Options4Shares underlying Founders fixed advisory fees547141227071183Shares underlying Founders variable advisory fees6Shares used in computing Adjusted Earnings Per Share diluted160360251149656513GAAP Earnings Per Share diluted044036Adjusted Earnings Per Share diluted0060031For the three months ended March31 2026 03 million was related to litigation costs arising from a contractual dispute regarding control of the P2S5 facility which is currently operated by Flexsys Chemical Company and 01 million was related to restructuring and other nonrecurring costs For the three months ended March 31 2025 05 million was related to restructuring and other nonrecurring costs and 04 million was related to the Redomiciliation Transaction2For the three months ended March 31 2026 56 million was primarily related to the impact of purchase accounting on the cost of inventory sold The inventory acquired received a purchase accounting stepup in basis3The tax impact of nonGAAP adjustments reflects the total income tax expense commensurate with the nonGAAP measure of profitability4The 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 period5As of March31 2026 a maximum of 24 million shares were issuable within 12 months under the Founders fixed advisory fee6Based on period end market prices as of March31 2026 no shares were issuable within 12 months under the Founders variable advisory fee