Perimeter Solutions MMT Acquisition Call December 11, 2025 Disclaimer Certain statements in this presentation and discussion are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on Perimeter Solutions, Inc.'s (the "Company") expectations, intentions and projections regarding the Company's future performance, anticipated events or trends and other matters that are not historical facts. Words such as "anticipate," "estimate," "seek," "expect," ...

Core Viewpoint - Arcline Investment Management has agreed to sell its portfolio company Medical Manufacturing Technologies to Perimeter Solutions for $685 million, marking a significant transaction in the medical device manufacturing sector [1][4]. Company Overview - Medical Manufacturing Technologies (MMT), based in Charlotte, North Carolina, is a leading global provider of medical device manufacturing solutions, serving over 1,000 customers, including major medical technology OEMs and CDMOs [2]. - MMT specializes in the production of complex interventional medical devices such as catheters, guidewires, stents, and microcoils, operating with over 350 employees across 14 production facilities [2]. Investment Strategy - Since acquiring MMT in 2020, Arcline has implemented a disciplined strategy to enhance the company's capabilities, resulting in significant revenue and EBITDA growth, alongside 13 targeted acquisitions that expanded MMT's offerings in automation and specialty manufacturing [3]. - The strategy focused on building a scaled provider of mission-critical manufacturing technologies for medical device OEMs and CDMOs [3]. Transaction Details - The transaction is anticipated to close in the first quarter of 2026, pending regulatory approvals and customary closing conditions [4]. - Financial advisors for the transaction include William Blair and Houlihan Lokey, while legal advisors are Kirkland & Ellis LLP and Fredrikson & Byron P.A. [4].

Core Viewpoint - Perimeter Solutions, Inc. has announced a definitive agreement to acquire Medical Manufacturing Technologies LLC for approximately $685 million in cash, which includes certain tax benefits [1][2]. Company Overview - Medical Manufacturing Technologies LLC (MMT) is a leading provider of highly engineered machinery and aftermarket consumables for minimally invasive medical devices, generating nearly all revenue from proprietary products, with about half from the aftermarket [2]. - MMT is projected to generate approximately $140 million in revenue and $50 million in Adjusted EBITDA for the full year of 2025 [2]. Strategic Fit - The acquisition of MMT aligns with Perimeter Solutions' operating strategy, focusing on recurring and growing aftermarket services that meet stringent regulatory standards [3]. - MMT has a strong track record of organic and M&A-driven growth, which Perimeter expects to continue [3]. Financial Structure - Perimeter plans to fund the acquisition through $500 million of new secured debt financing and $185 million in cash on hand [4]. - Following the acquisition, Perimeter anticipates a net leverage profile of approximately 2.7 times net debt to combined Adjusted EBITDA for the last twelve months ended September 30, 2025 [5]. Transaction Timeline - The acquisition is expected to close in the first quarter of 2026, pending regulatory approvals and customary closing conditions [5].

Core Thesis - Perimeter Solutions, Inc. has shown strong performance with a significant increase in share price and positive growth in net sales, driven by its Fire Safety and Specialty Products segments [2][5] Financial Performance - Perimeter Solutions reported Q3 2025 net sales of $315 million, reflecting a 9% year-over-year growth, with Fire Safety growing by 9% and Specialty Products by 15% [2] - The company's adjusted EBITDA reached $329 million, achieving a 52% margin, which is over 10 percentage points higher than five years ago, indicating improved operational discipline and strategic investments [4] Segment Analysis - The Fire Safety segment benefited from a normalized fire season and a new USDA directive, increasing demand for fire retardants [2] - The suppressants business contributed an additional $12.4 million in revenue year-over-year, supported by higher volumes and productivity gains [3] - The IMS business added $10.8 million in revenue, marking a strategic move into a higher growth vertical compared to the legacy P2S5 business [4] Operational Challenges - The Specialty Products segment faced challenges due to operational issues at a Flexsys-operated P2S5 plant, including unplanned downtime and safety failures amid ongoing litigation [3] Market Position and Outlook - The company has a dominant position in fire retardants and strong pricing power, with a bullish outlook on operational execution and margin expansion [5]

Core Viewpoint - Perimeter Solutions, SA (PRM) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price gains [1][2]. Earnings Estimate Revisions - Analysts have shown increasing optimism regarding the earnings prospects of Perimeter Solutions, leading to higher earnings estimates, which are expected to positively influence the stock price [2]. - The earnings estimate for the current quarter is $0.09 per share, reflecting a decrease of 30.8% compared to the previous year, but the Zacks Consensus Estimate has increased by 50% over the last 30 days with no negative revisions [6]. - For the full year, the earnings estimate stands at $1.36 per share, representing a 22.5% increase from the previous year, with a consensus estimate increase of 11.48% due to positive revisions [7][8]. Zacks Rank and Performance - Perimeter Solutions has achieved a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock price outperformance [3][9]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][9]. Recent Stock Performance - Over the past four weeks, shares of Perimeter Solutions have increased by 10.3%, suggesting investor confidence in the company's earnings growth prospects driven by favorable estimate revisions [10].

Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock price trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings revisions to maintain momentum [1][2]. Group 1: Stock Performance - Perimeter Solutions, SA (PRM) has shown a solid price increase of 23.8% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has also increased by 13.8% over the last four weeks, suggesting that the upward trend is still intact [5]. - PRM is currently trading at 97.1% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - PRM holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors to identify stocks like PRM that are on an uptrend supported by strong fundamentals [3]. - There are additional stocks that meet the criteria of the "Recent Price Strength" screen, providing further investment opportunities [8].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Perimeter Solutions, SA (PRM) - PRM currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [2][3] - Over the past week, PRM shares increased by 4.03%, while the Zacks Chemical - Specialty industry declined by 1.7% [5] - In the last quarter, PRM shares rose by 24.64%, and over the past year, they increased by 120.4%, significantly outperforming the S&P 500, which rose by 5.43% and 14.79% respectively [6] Trading Volume - PRM's average 20-day trading volume is 1,166,714 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for PRM increased, while none decreased, raising the consensus estimate from $1.10 to $1.36 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [9] Conclusion - Given the positive momentum indicators and earnings outlook, PRM is positioned as a strong buy candidate for investors seeking short-term opportunities [11]

Core Viewpoint - Perimeter Solutions, SA has demonstrated strong stock performance, with a 30.1% increase over the past month and a 117.3% rise since the beginning of the year, outperforming both the Zacks Basic Materials sector and the Zacks Chemical - Specialty industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $0.82 against a consensus estimate of $0.68 in its latest earnings report on October 30, 2025 [2]. - For the current fiscal year, Perimeter Solutions, SA is projected to achieve earnings of $1.36 per share on revenues of $639.71 million, reflecting a 22.52% increase in EPS and a 14.04% increase in revenues [3]. - The forecast for the next fiscal year indicates expected earnings of $1.46 per share on revenues of $665 million, representing year-over-year changes of 7.35% and 3.95%, respectively [3]. Valuation Metrics - The stock currently trades at 20.4 times the current fiscal year EPS estimates, which is above the peer industry average of 18.9 times [7]. - On a trailing cash flow basis, the stock trades at 18.4 times compared to the peer group's average of 12 times, indicating a valuation that does not place the company in the top tier from a value perspective [7]. Zacks Rank and Style Scores - Perimeter Solutions, SA holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, which is a significant indicator for potential investment [8]. - The company has a Value Score of D, while its Growth and Momentum Scores are both A, resulting in a combined VGM Score of B [6][9].

Core Insights - Perimeter Solutions, Inc. (PRM) has shown exceptional performance in Q3, delivering stellar results that have attracted attention [1] - The company's stock has increased over 100% year-to-date, significantly outperforming the market [1] Company Performance - PRM's stock performance indicates strong investor confidence and market positioning, reflecting a successful year for the company [1] - The impressive Q3 results contribute to the overall positive outlook for PRM, suggesting potential for continued growth [1]

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the need for sound fundamentals and positive earnings estimates to maintain momentum. Group 1: Trend Analysis - The trend in short-term investing is crucial, as it can lead to significant profits if sustained [1] - A common issue is that trends may reverse before exiting a trade, resulting in capital losses [2] - A "Recent Price Strength" screen can help identify stocks on an uptrend supported by strong fundamentals [3] Group 2: Company Case Study - Perimeter Solutions, SA (PRM) - PRM has shown a solid price increase of 30% over the past 12 weeks, indicating investor confidence in its potential upside [4] - The stock has also increased by 10.5% over the last four weeks, suggesting that the upward trend is still intact [5] - PRM is trading at 87.3% of its 52-week high-low range, indicating a potential breakout [5] Group 3: Fundamental Strength - PRM holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6] - The Zacks Rank system has a strong track record, with Rank 1 stocks averaging a +25% annual return since 1988 [7] - The Average Broker Recommendation for PRM is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7] Group 4: Additional Opportunities - Besides PRM, there are other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [8] - The article encourages exploring over 45 Zacks Premium Screens tailored to different investing styles for potential winning stock picks [8]