Perimeter Solutions (PRM) Q1 2026 earnings summary

Executive summary

• Net sales rose 74% year-over-year to $125.1 million in Q1 2026, driven by organic growth, acquisitions, and execution of value drivers.

• Adjusted EBITDA increased 128% to $41.2 million, reflecting strong operational performance and margin improvement.

• Net income reached $72.9 million ($0.44 per diluted share), up from $56.7 million ($0.36 per share) last year.

• Specialty Products segment saw significant growth, largely due to the $682.3 million acquisition of Medical Manufacturing Technologies (MMT).

• Secured major five-year contracts with the U.S. Defense Logistics Agency ($500 million) and California Department of Forestry, increasing earnings visibility.

Financial highlights

• Q1 2026 consolidated revenue reached $125.1 million, up 74% year-over-year; adjusted EBITDA more than doubled to $41.2 million from $18.1 million.

• Fire Safety revenue was $45.4 million (+22% YoY), adjusted EBITDA $18.7 million (+85% YoY); Specialty Products revenue was $79.6 million (+128% YoY), adjusted EBITDA $22.5 million (+181% YoY).

• Gross profit increased 80% to $50.8 million, with gross margin improving to 40.6% from 39.1% year-over-year.

• Earnings per diluted share was $0.44; adjusted EPS was $0.06, both up from prior year.

• Cash and cash equivalents at quarter-end were $91.6 million, down from $325.9 million at year-end, mainly due to the MMT acquisition.

Outlook and guidance

• Management expects continued growth in both Fire Safety and Specialty Products, supported by recent acquisitions and new government contracts.

• Expect $50 million incremental DLA revenue in 2027, with further ramp-up through 2028 and beyond.

• Annual interest expense expected at ~$75 million; capital expenditures to reach $30–$40 million for the year.

• Cash tax rate expected at ~20% or better over time.

• The company anticipates sufficient liquidity for at least the next 12 months.