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1. Company Snapshot

1.a. Company Description

Perimeter Solutions, SA manufactures and supplies firefighting products and lubricant additives in the United States, Germany, and internationally.It operates in two segments, Fire Safety and Oil Additives.The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services for federal, state, provincial, local/municipal, and commercial customers.


The Oil Additives segment produces Phosphorus Pentasulfide which is primarily used in the preparation of lubricant additives, including a family of compounds called Zinc Dialkyldithiophosphates.The company offers its products under the brands PHOS-CHEK, FIRE-TROL, AUXQUIMIA, SOLBERG.and BIOGEMA.


Perimeter Solutions, SA was founded in 1963 and is headquartered in Clayton, Missouri.

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1.b. Last Insights on PRM

Negative drivers behind Perimeter Solutions, SA's recent performance include the company's acquisition of IMS for $32.8M, which may have led to integration challenges and increased costs. Additionally, the company's high medical care ratios, which increased by 14.1% year-over-year, likely hurt its Q1 earnings. Furthermore, the company's premium revenue growth was driven by higher premiums in its government-backed Medicaid insurance plans, but this growth was not enough to offset the rising medical care costs.

1.c. Company Highlights

2. Perimeter Solutions' Q3 2025 Earnings: A Strong Performance

Perimeter Solutions reported a robust financial performance in Q3 2025, with consolidated sales growing 9% to $315.4 million and adjusted EBITDA improving 9% to $186.3 million. The company's adjusted EPS came in at $0.82, beating estimates of $0.68. The strong performance was driven by the execution of operational value drivers, a more proactive initial attack strategy by customers, and the impact of efforts to drive consistency and predictability in the retardant business.

Publication Date: Nov -25

📋 Highlights
  • Q3 Adjusted EBITDA Growth:: Rose 9% to $186.3M, with YTD growth of 20% to $295.7M, driven by operational efficiency and proactive wildfire strategies.
  • Fire Safety Segment Performance:: Achieved sales and margin expansion, with international retardants/suppressants contributing to 16% YTD sales growth ($550.1M) and 20% EBITDA rise.
  • Contract Renewals Impact:: Substantially all key retardant contracts renewed over 2 years, enhancing consistency and predictability in operations.
  • Specialty Products Sales Growth:: Q3 sales climbed 15% to $42.1M, though EBITDA dropped to $9.1M (from $12.9M) due to Sauget plant downtime.
  • Free Cash Flow Generation:: Q3 free cash flow totaled $193.6M, with $197M YTD, supported by $340.6M cash reserves and $675M gross debt at 1x leverage ratio.

Segmental Performance

The Fire Safety segment was a key driver of the company's strong Q3 performance, with sales increasing and margins expanding as the company improved the efficiency of its operations. The international retardants business and suppressants business continued their momentum, with strong volume performance and meaningful top and bottom-line impacts. The Specialty Products segment also reported growth, with Q3 net sales coming in at $42.1 million, representing 15% growth from the prior year quarter.

Operational Highlights

A key driver of Perimeter Solutions' financial results is the structural changes made towards greater consistency and predictability in its retardants business. The company has renewed substantially all of its key retardant contracts over the past two years, prioritizing contractual adjustments to drive greater consistency and predictability. The company's customers have also shifted to a more proactive approach to wildfire management, contributing to lower acres burned and significant associated cost savings.

Valuation and Outlook

With a P/E Ratio of 50.32 and an EV/EBITDA of 37.73, Perimeter Solutions' valuation suggests that the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 5.6%. The company's strong financial performance, driven by its operational value drivers and proactive customer approach, positions it well for future growth. The formation of the U.S. Wildland Fire Service is also expected to lead to increased efficiency, robust firefighting efforts, and increased retardant demand, aligning with Perimeter Solutions' existing federal contract.

Cash Flow and Leverage

Perimeter Solutions generated strong free cash flow in Q3, with $193.6 million in free cash flow and $197 million for the 9 months ended September 30, 2025. The company's cash flow generation seasonality is in line with expectations, with significant investments in working capital in the first half of the year converted into cash in the second half. The company's leverage is moderate, with a net debt to LTM adjusted EBITDA of 1x, driven by $675 million of gross debt and $340.6 million in cash.

3. NewsRoom

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Perimeter Solutions, SA (PRM) is on the Move, Here's Why the Trend Could be Sustainable

Dec -03

Source: zacks.com

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Cott Corp. (TSE:PRM) Given Average Rating of “Buy” by Analysts

Nov -30

Source: defenseworld.net

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Perimeter Solutions, SA (PRM) Soars to 52-Week High, Time to Cash Out?

Nov -27

Source: zacks.com

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Perimeter Solutions: A Compelling Small Cap

Nov -26

Source: seekingalpha.com

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5 Stocks With Recent Price Strength Amid Wall Street Volatility

Nov -20

Source: zacks.com

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Envestnet Asset Management Inc. Boosts Position in Perimeter Solutions, SA $PRM

Nov -16

Source: defenseworld.net

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Alan Fournier's Strategic Moves: EchoStar Corp Sees a -4.36% Impact

Nov -14

Source: gurufocus.com

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Forget the Fed, Bet on These 4 Stocks With Increasing Cash Flows

Nov -14

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.40%)

6. Segments

Fire Safety

Expected Growth: 12%

Perimeter Solutions' Fire Safety segment growth is driven by increasing demand for fire retardants and firefighting foam, stringent government regulations, and rising awareness of wildfire risks. The company's innovative products, such as PHOS-CHEK, and strategic acquisitions also contribute to its 12% growth.

Speciality Products

Expected Growth: 10%

Perimeter Solutions' Speciality Products segment growth is driven by increasing demand for firefighting foam and oil spill response products, expansion in emerging markets, and strategic acquisitions. Additionally, growing concerns about environmental protection and fire safety regulations are boosting demand for these products, resulting in a 10% growth rate.

7. Detailed Products

Firebreak

A fire retardant used to prevent the spread of wildfires

PHOS-CHEK

A line of fire retardants and foams used to combat Class B fires

COLLAR

A fire retardant used to protect structures and people from wildfires

SEMSORB

A line of absorbent products used to clean up oil spills and hazardous materials

RXT

A line of fire retardants used to protect people and property from wildfires

FIREBREAK II

A fire retardant used to prevent the spread of wildfires

8. Perimeter Solutions, SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Perimeter Solutions, SA is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Perimeter Solutions, SA is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Perimeter Solutions, SA is moderate due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Perimeter Solutions, SA is high due to the low barriers to entry in the industry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry for Perimeter Solutions, SA is high due to the presence of several established competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.44%
Debt Cost 5.47%
Equity Weight 62.56%
Equity Cost 13.75%
WACC 10.65%
Leverage 59.85%

11. Quality Control: Perimeter Solutions, SA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ecovys

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.6

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Core Molding Technologies

A-Score: 5.2/10

Value: 7.2

Growth: 5.9

Quality: 5.3

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Perimeter Solutions

A-Score: 4.8/10

Value: 3.8

Growth: 6.8

Quality: 6.0

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Stepan

A-Score: 4.3/10

Value: 6.2

Growth: 3.3

Quality: 3.9

Yield: 4.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Ingevity

A-Score: 4.1/10

Value: 6.3

Growth: 2.0

Quality: 3.5

Yield: 0.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Koppers

A-Score: 3.8/10

Value: 6.7

Growth: 4.8

Quality: 2.7

Yield: 1.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

28.65$

Current Price

28.65$

Potential

-0.00%

Expected Cash-Flows