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Perimeter Solutions
(NYSE:PRM)
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Rating:51Neutral
Price Target:
$33.00
▼(-2.16% Downside)
Action:Reiterated
Date:08/05/26
PRM scores in the low-50s primarily due to pressured financial performance (deeply negative TTM margins and increased leverage despite positive/free cash flow) and weak near-term technical momentum (negative MACD, sub-40 RSI, and price below key short/intermediate moving averages). The latest earnings call provides some support via reiterated cash-flow framework, solid liquidity and leverage metrics, but is offset by a large GAAP net loss and significant operational/safety disruptions at the Sauget PDI facility plus near-term Fire Safety contract timing headwinds. Valuation is also constrained by a negative P/E tied to losses.
Positive Factors
Cash Generation
Sustained positive and growing free cash flow provides durable financial flexibility to fund capex, support working capital, pursue targeted M&A, and service debt. Over a multi-quarter horizon this cash generation helps absorb earnings volatility and underpins strategic investments without immediate equity raises.
Negative Factors
Deep GAAP Losses and Margin Deterioration
Large GAAP losses and sharply negative margins undermine durable profitability and reduce retained earnings, constraining internal capital for reinvestment. Persistent headline losses can limit strategic optionality, complicate stakeholder confidence, and delay a sustainable recovery even if adjusted metrics are stronger.
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Positive Factors
Negative Factors
Cash Generation
Sustained positive and growing free cash flow provides durable financial flexibility to fund capex, support working capital, pursue targeted M&A, and service debt. Over a multi-quarter horizon this cash generation helps absorb earnings volatility and underpins strategic investments without immediate equity raises.
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Perimeter Solutions (PRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.99B
Dividend YieldN/A
Average Volume (3M)1.70M
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth24.25%
EPS Growth-515.23%
CountryUS
Employees356
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-2.20
Shares Outstanding163,127,060
10 Day Avg. Volume1,293,603
30 Day Avg. Volume1,695,137
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.61
Price to Sales (P/S)6.27
P/FCF Ratio19.64
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$43.75Price Target Upside29.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.61
Revenue Forecast (FY)$883.82M
Perimeter Solutions Business Overview & Revenue Model
Company Description
Perimeter Solutions, Inc. is a global manufacturer and supplier specializing in fire suppression products and chemical additives for lubricants. Its operations are organized into two main divisions: Fire Safety and Oil Additives. The Fire Safety d...
How the Company Makes Money
Perimeter Solutions primarily makes money by selling fire-safety chemical products, with revenue largely tied to demand for wildfire suppression and related preparedness. A key revenue stream is wildland firefighting chemicals (such as long-term f...
Perimeter Solutions Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Neutral
The call presents a mix of strong operational progress and strategic wins (double‑digit revenue growth, sizable adjusted EBITDA gains, Specialty Products surge, acquisition of Monaco, solid liquidity and disciplined capital allocation) alongside meaningful near-term and structural negatives (a large GAAP net loss, serious safety and production issues at the Sauget PDI plant with legal intervention, and temporary Fire Safety margin pressure from federal pricing step-down and DLA delivery timing). Management frames the negatives as discrete or recoverable (expecting DLA ramp, CAL FIRE offset, and remedies for the Flexsys/Sauget issues) and emphasizes repeatable operational value drivers and pipeline M&A upside. Overall, positives and growth drivers are substantial but balanced by material operational and accounting headwinds that keep the outlook cautious in the near term.Positive Updates
Strong Top-Line and Adjusted EBITDA Growth
Q2 net sales increased 31% year-over-year to $213.8M; Q2 adjusted EBITDA rose 16% year-over-year to $105.6M. Year-to-date net sales up 44% to $338.9M and YTD adjusted EBITDA increased 34% to $146.7M.
Negative Updates
Large GAAP Net Loss in Q2 and Year-to-Date
Reported Q2 net loss of $181.6M ($1.11 per diluted share) vs. a net loss of $32.2M in Q2 2025; first half net loss $108.7M vs. prior year net income of $24.5M — a material negative on GAAP earnings despite stronger adjusted metrics.
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Q2-2026 Updates
Positive
Negative
Strong Top-Line and Adjusted EBITDA Growth
Q2 net sales increased 31% year-over-year to $213.8M; Q2 adjusted EBITDA rose 16% year-over-year to $105.6M. Year-to-date net sales up 44% to $338.9M and YTD adjusted EBITDA increased 34% to $146.7M.
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Company Guidance
Perimeter reiterated detailed cash-flow and capital-allocation guidance: annual cash interest of ~ $75M (Q2 cash interest $19.6M), tax‑deductible depreciation & amortization of $60–65M annually (Q2 D&A $11.7M), a cash tax rate of ~20% or better (Q2 cash taxes $7.7M vs $12.3M Y/Y), and annual capex of $30–40M (Q2 capex $12.7M with full‑year spending expected toward the upper end to support new retardant bases, expanded suppressants capacity and MMT productivity). They expect working‑capital investment of ~10–15% of revenue growth (Q2 performance consistent with that framework), and maintained a target leverage posture with quarter‑end net debt / LTM adjusted EBITDA ≈ 3.1x, a blended coupon of 5.6% on long‑dated debt maturing 2029 and 2034, and liquidity of ≈ $83M cash plus a $200M undrawn revolver (post‑Monaco total liquidity > $150M). Operationally, they expect DLA deliveries under the $500M contract to begin ramping in H2 with incremental contributions into 2027–2028, foam deliveries to federal customers to resume in Q3, and CAL FIRE pricing to offset the first‑year federal pricing step‑down (excluding those two Q2 headwinds Fire Safety EBITDA would have grown double digits).Perimeter Solutions Financial Statement Overview
Summary
Income Statement
26
Negative
Balance Sheet
45
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 757.07M | 652.86M | 560.97M | 322.11M | 360.50M | 362.34M |
| Gross Profit | 367.53M | 375.15M | 317.09M | 128.29M | 128.65M | 172.62M |
| EBITDA | -300.15M | -123.08M | 59.32M | 200.04M | 205.61M | -529.53M |
| Net Income | -339.59M | -206.37M | -5.91M | 67.49M | 91.76M | -661.52M |
Balance Sheet | ||||||
| Total Assets | 3.24B | 2.65B | 2.42B | 2.32B | 2.46B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 82.78M | 325.93M | 198.46M | 52.80M | 126.75M | 225.55M |
| Total Debt | 1.37B | 707.09M | 692.74M | 689.70M | 684.30M | 664.13M |
| Total Liabilities | 2.22B | 1.52B | 1.26B | 1.16B | 1.32B | 1.50B |
| Stockholders Equity | 1.02B | 1.13B | 1.16B | 1.15B | 1.14B | 1.08B |
Cash Flow | ||||||
| Free Cash Flow | 103.84M | 208.56M | 172.86M | -9.24M | -48.78M | 62.60M |
| Operating Cash Flow | 134.57M | 238.15M | 188.39M | 193.00K | -40.17M | 72.35M |
| Investing Cash Flow | -764.25M | -106.82M | -42.94M | -14.89M | -10.25M | -1.23B |
| Financing Cash Flow | 578.31M | -8.97M | 8.35M | -64.45M | -48.81M | -761.43M |
Perimeter Solutions Risk Analysis
Perimeter Solutions disclosed 37 risk factors in its most recent earnings report. Perimeter Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Perimeter Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $3.33B | 21.12 | 7.16% | 2.91% | 1.33% | 57.45% | |
66 Neutral | $2.76B | 28.51 | 7.12% | 1.34% | 7.79% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.97B | 16.22 | 9.16% | 1.71% | -0.57% | 81.10% | |
51 Neutral | $4.99B | -13.91 | -30.38% | ― | 24.25% | -515.23% | |
46 Neutral | $2.11B | -15.05 | -7.67% | 3.45% | 0.60% | -920.33% | |
44 Neutral | $2.50B | -6.08 | -170.31% | 2.06% | 0.34% | -1414.08% |
* Basic Materials Sector Average
PRM
Perimeter Solutions
35.26
17.45
97.98%
FUL
H.B. Fuller Company
61.07
5.72
10.34%
OLN
Olin
18.59
0.47
2.61%
AVNT
Avient
45.69
13.89
43.67%
KWR
Quaker Chemical
169.95
44.72
35.71%
CC
Chemours Company
15.75
4.32
37.80%
Perimeter Solutions Corporate Events
Executive/Board ChangesShareholder Meetings
Perimeter Solutions Stockholders Back Governance at 2026 Meeting
Positive
May 28, 2026
Perimeter Solutions, Inc. operates in the industrial and specialty chemicals sector, with a focus on products and services used in fire safety and related applications. The company serves customers that depend on reliable performance and regulator...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.