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Perimeter Solutions Inc

Perimeter Solutions Inc

PRM
$31.56USD↑+3.34%+1.02 today

MARKET CAP

5.2B

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$31 – $32

52W RANGE

$20
$38

AI Summary

Stalk
StalkMedium

PRM remains in a stage 4 downtrend with sequential lower highs and lows beneath declining short-term EMAs, but being oversold and mean-reversion eligible supports a tactical medium-term bullish bias. Under Momentum + EPS we defer entry, waiting for price to pull back into structural support such as the rising 200-day SMA rather than chasing strength.

  • ↑Q1 2026 net sales rose 74% YoY to $125.1M; adjusted EBITDA doubled to $41.2M.
  • ↑Monaco acquisition ($120M) enhances product offerings and drives synergy savings.
  • ↓Flexis-operated Sauget plant issues have reduced reliability and increased costs.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Perimeter Solutions, Inc. (NYSE: PRM) is a leading player in the specialty chemicals sector, specifically focusing on fire safety and related products. The company provides innovative fire retardant solutions that serve various markets, including government contracts. Perimeter aims to establish itself as a niche market leader by emphasizing safety and operational efficiency amid growing concerns around wildfires.

Bull says

  • ↑Q1 2026 net sales rose 74% YoY to $125.1M; adjusted EBITDA doubled to $41.2M.
  • ↑Monaco acquisition ($120M) enhances product offerings and drives synergy savings.
  • ↑Fixed federal and defense contracts to add ~$50M incremental revenue by 2027.
  • ↑Q2 fire safety revenue increased 7% YoY to $129.1M; adjusted EBITDA +16%.
  • ↑High growth and revision factors indicate upward earnings momentum.
  • ↑Manageable leverage and low-volatility factors imply financial stability.

Bear says

  • ↓Flexis-operated Sauget plant issues have reduced reliability and increased costs.
  • ↓New DoD foam contract incurred full cost run rates with minimal revenue.
  • ↓Regulatory scrutiny and court disputes at Sauget facility risk added compliance costs.
  • ↓Revenue still tied to unpredictable wildfire seasons, causing quarterly swings.
  • ↓Planned capex of $30–40M/year and negative free cash flow strain resources.
  • ↓Weak profitability metrics and balance-sheet vulnerabilities raise liquidity concerns.

Investment themes with PRM

Specialty Chemical↑ +0.35%

ECL · ALB · IFF

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 08-31-2026neutral

Transcript signals

Bull points

  • Revenue for the quarter came in at $120.3 million, reflecting the 22% year over year improvement, and $157.4 million year to date, a 27% gain. These results were primarily driven by our retardant products and related services.
  • Fire safety adjusted EBITDA for the quarter was $77.7 million, representing a 40% increase over last year, an $87.7 million year to date, marking a 58% gain.
  • Q2 net sales came in at $42.4 million, representing a 47% lift from the prior year. This performance reflects a $9.3 million contribution from the IMS acquisitions and a $4.4 million uplift from the base business.

Bear points

  • While Q2's operational challenges were less severe than those in Q1, ongoing downtime contributed to elevated costs in the business and dampened EBITDA.
  • we had free cash flow in Q2 of negative $15.6 million, primarily due to the seasonal build and networking capital as well as purchases of property and equipment.
  • One Rock Partners
Read full transcript analysis ›