Group 1 - Perimeter Solutions, SA (PRM) is a notable stock in the Basic Materials sector, currently outperforming its peers with a year-to-date return of 19.5% compared to the sector average of 13.7% [1][4] - The Zacks Rank for Perimeter Solutions, SA is 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past 90 days, the Zacks Consensus Estimate for PRM's full-year earnings has increased by 67.6%, reflecting improved analyst sentiment [4] Group 2 - Perimeter Solutions, SA is part of the Chemical - Specialty industry, which includes 37 companies and has an average year-to-date gain of 6.5%, further highlighting PRM's strong performance [6] - Silvercorp (SVM), another stock in the Basic Materials sector, has returned 54.7% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The Mining - Miscellaneous industry, to which Silvercorp belongs, has an average year-to-date return of 15.5% [6]

Group 1 - Perimeter Solutions, SA (PRM) shares increased by 8.5% to close at $15.27, with a notable trading volume, and a total gain of 13.5% over the past four weeks [1] - The company has opened a new PHOS-CHEK facility in McClellan Park, Sacramento, CA, which is one of the most advanced fire-retardant production facilities globally, covering an area of 110,000 square feet [2] - This new facility will produce three key fire retardants: PHOS-CHEK MVP-Fx, PHOS-CHEK 259-Fx, and PHOS-CHEK LCE20-Fx, bringing the total number of PHOS-CHEK production facilities to seven across the U.S. and Canada [3] Group 2 - Perimeter Solutions is expected to report quarterly earnings of $0.28 per share, reflecting a year-over-year increase of 100%, with revenues projected at $133.75 million, up 5.1% from the previous year [4] - The consensus EPS estimate for Perimeter Solutions has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5] - Perimeter Solutions holds a Zacks Rank of 2 (Buy), indicating positive market sentiment, while another company in the same industry, CSW Industrials, has seen a slight decline in stock price [5]

Core Viewpoint - Perimeter Solutions has opened a new 110,000-square-foot PHOS-CHEK production and distribution facility in Sacramento, California, to enhance its capabilities in responding to increasing wildfire demands across North America [1][2][3]. Group 1: Facility Details - The new facility at McClellan Park is designed to be one of the most advanced fire retardant production sites globally, featuring state-of-the-art equipment and a sophisticated HEPA filtration system that ensures virtually zero emissions [2][9]. - This facility can produce up to 360,000 pounds of PHOS-CHEK fire retardant daily, supporting rapid delivery to airbases across North America [9][4]. Group 2: Strategic Importance - The investment in the McClellan facility reflects the company's commitment to innovation, reliability, and environmental stewardship, enhancing its ability to respond to wildfire emergencies effectively [3][4]. - With the addition of this site, Perimeter Solutions now operates seven PHOS-CHEK production facilities and seven distribution sites across the U.S. and Canada, ensuring 24/7 support for firefighting efforts [2][4]. Group 3: Product Offerings - The McClellan facility will produce three of the company's most utilized fire retardants: PHOS-CHEK MVP-Fx, PHOS-CHEK 259-Fx, and PHOS-CHEK LCE20-Fx, which are designed for both aerial and ground applications [7][10]. - These products are critical for firefighting agencies, particularly in light of forecasts predicting heightened wildfire activity for the 2025 season [4].

Core Insights - Petrobras has awarded a multi-year contract to Geospace Technologies for the deployment of the OptoSeis Permanent Reservoir Monitoring system in the Mero Fields 3 and 4, emphasizing its commitment to advanced technology for improved oil recovery and production efficiency in the Santos Basin [1][9] Project Overview - The project will involve the installation of nearly 500 km of the OptoSeis PRM system over an area of 140 square kilometers on the Mero seabed, located 180 km off the coast of Rio de Janeiro [2][9] - The contract is set to commence in June 2025 and includes engineering, procurement, construction, and system operations, with Blue Marine Telecom managing the installation [3] Technology Details - The OptoSeis system, developed by PGS and now owned by Geospace, is designed to enhance oil production monitoring at the Mero field, having previously demonstrated its capabilities in the Jubarte field [4][8] - Equipped with multicomponent sensors, the OptoSeis system captures seismic energy with high fidelity and low noise levels, ensuring superior data quality compared to existing technologies [5] Mero Field Overview - The Mero field is situated in ultra-deep waters of the Santos Basin, with depths ranging from 1,800 to 2,100 meters, and has a total installed capacity of 770,000 barrels of oil per day across its FPSO units [6] - The field is operated by a consortium led by Petrobras, in collaboration with Shell Brasil, TotalEnergies, CNODC, CNOOC, and Pré-Sal Petróleo S.A. [7] Strategic Implications - The selection of the OptoSeis system highlights Petrobras' leadership in deploying innovative technologies for complex offshore environments, aiming to maximize asset value while ensuring environmental responsibility [8]

Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock trends for successful short-term investing, highlighting the need for sound fundamentals and positive earnings estimates to maintain momentum. Group 1: Stock Performance - Perimeter Solutions, SA (PRM) has shown a solid price increase of 43.1% over the past 12 weeks, indicating strong investor interest [3] - The stock has also increased by 10.1% over the last four weeks, suggesting that the upward trend is still intact [4] - Currently, PRM is trading at 80.8% of its 52-week high-low range, indicating a potential breakout opportunity [4] Group 2: Fundamental Strength - PRM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5] - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6] Group 3: Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like PRM that are on an uptrend with strong fundamentals [2] - It also mentions that there are over 45 Zacks Premium Screens available for investors to find potential winning stock picks based on their investing style [7]

Company Overview - Perimeter Solutions, SA (PRM) currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [3][4] - The company has shown strong price performance, with shares up 30.46% over the past three months and 63.33% over the last year [7] Price Performance - Over the past week, PRM shares increased by 2.9%, outperforming the Zacks Chemical - Specialty industry, which rose by 1.03% [6] - The monthly price change for PRM is 19.51%, significantly higher than the industry's 4.62% [6] Trading Volume - PRM's average 20-day trading volume is 1,019,817 shares, indicating a bullish trend when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for PRM has moved higher, increasing the consensus estimate from $0.68 to $1.14 [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [10]

Table of Contents OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO PERIMETER SOLUTIONS, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________ FORM 10-Q __________________________ Commission File Number 001-41027 _______________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 3 ...

Group 1 - Perimeter Solutions, SA reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of a loss of $0.09 per share, and showing improvement from a loss of $0.19 per share a year ago, resulting in an earnings surprise of 133.33% [1] - The company achieved revenues of $72.03 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.11%, and compared to year-ago revenues of $59.04 million, indicating consistent revenue growth [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2 - The stock has underperformed the market, losing about 19.8% since the beginning of the year, while the S&P 500 declined by 4.3% [3] - The current consensus EPS estimate for the coming quarter is $0.18 on revenues of $132.75 million, and for the current fiscal year, it is $0.68 on revenues of $531 million [7] - The Zacks Industry Rank for Chemical - Specialty is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - First quarter adjusted EBITDA reached $18.1 million, reflecting a 49% increase compared to the previous year [5][15] - Consolidated first quarter sales increased by 22% to $72 million compared to the prior year [15] - GAAP EPS for Q1 was $0.36, compared to a loss of $0.57 in the same period last year [19] Business Line Data and Key Metrics Changes - Fire Safety revenue was $37.2 million, up 48% from last year, with adjusted EBITDA of $10.1 million compared to a small loss in the same period last year [15][16] - Specialty Products segment saw a net sales increase of $7.5 million due to the IMS acquisition, offset by a $6.5 million decrease in the base business due to unplanned plant downtime [16][17] - Specialty Products Q1 adjusted EBITDA decreased to $8 million from $12.4 million in the prior year quarter [17] Market Data and Key Metrics Changes - Elevated wildfire activity in North America contributed positively to the quarter, particularly in California [12][13] - International markets returned to more typical fire activity levels, with increased use of retardant across several regions [13] Company Strategy and Development Direction - The company aims to provide high-quality products and exceptional service while delivering private equity-like returns [6][8] - The strategy is built on three operational pillars: owning exceptional businesses, applying operational value drivers, and operating in a decentralized manner [7][9] - The recent acquisition of IMS is expected to enhance the company's operational capabilities and expand its portfolio of proprietary components [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the retardant business has close to no economic sensitivity, while the suppressant business is largely tied to emergency response [40][41] - There is confidence in the continued demand for chlorine-free foams, with no signs of slowdown in customer conversions [45] - The company remains disciplined in its approach for the full year, focusing on implementing operational value drivers [23] Other Important Information - The company generated free cash flow of $18.9 million in Q1 2025 [20] - Capital expenditures were consistent with expectations at $4.8 million, primarily supporting growth and productivity initiatives [21] - The company repurchased 900,000 shares for approximately $8 million in Q1 [22] Q&A Session Summary Question: Impact of tariffs on EBITDA exposure - Management indicated that the 2% to 3% EBITDA exposure is primarily cost-based, with efforts to mitigate this impact [26][27] Question: Customer exposure to supply chain issues - Management noted limited visibility down the supply chain but does not expect significant demand changes [28] Question: Expectations for suppressants sales in Q2 and Q3 - Management expects improvement in sales as the year progresses, following a tough comp in Q1 [29] Question: Competitive dynamics in the fire retardants market - Management stated that the competitive environment has changed, with less likelihood of alternative chemistries being qualified soon [32][34] Question: Economic sensitivity of business lines - Management clarified that the retardant business has close to zero economic sensitivity, while the phosphorus pentasulfide business is modestly impacted by economic fluctuations [40][42] Question: Customer enthusiasm for chlorine-free products - Management has not observed any slowdown in customer enthusiasm for switching to chlorine-free foams [45][46]

Financial Data and Key Metrics Changes - First quarter adjusted EBITDA reached $18.1 million, reflecting a 49% increase compared to the previous year [4][16] - Consolidated first quarter sales increased by 22% to $72 million compared to the prior year [16] - GAAP EPS for Q1 was $0.36, compared to a loss of $0.57 in the same period last year [17] Business Line Data and Key Metrics Changes - Fire Safety revenue was $37.2 million, up 48% from last year, with adjusted EBITDA of $10.1 million compared to a small loss in the same period last year [14] - Specialty Products segment net sales increased by $7.5 million due to the IMS acquisition, but adjusted EBITDA decreased to $8 million from $12.4 million due to unplanned plant downtime [15][16] Market Data and Key Metrics Changes - Elevated wildfire activity in North America contributed positively to the quarter, particularly in California [12] - International markets saw a return to typical fire activity levels in Australia, with increased use of retardant [13] Company Strategy and Development Direction - The company aims to provide high-quality products and exceptional service while delivering private equity-like returns [5] - The operational strategy is built on three pillars: owning exceptional businesses, applying operational value drivers, and operating in a decentralized manner [6][7] - The recent acquisition of IMS is expected to enhance the company's operational capabilities and product offerings [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q1 showed strong performance, they remain disciplined in their approach for the full year [20] - The company anticipates that the earnings power of the Specialty Products business will rebound to normalized levels in 2026 [16] Other Important Information - The company repurchased 900,000 shares for approximately $8 million in Q1, indicating a belief that shares were trading below intrinsic value [19] - The company has a favorable debt structure with a net debt to LTM adjusted EBITDA ratio of 1.7 times and substantial liquidity of around $200 million [20] Q&A Session Summary Question: Clarification on tariff exposure and mitigation - Management indicated that the 2% to 3% EBITDA exposure is primarily cost-based and they believe they can mitigate a reasonable proportion of that [23][25] Question: Customer exposure to supply chain issues - Management noted they have less visibility down the supply chain but do not expect significant changes in end market demand [26] Question: Expectations for Q2 and Q3 sales - Management expects improvement in sales as the year progresses, despite tough comps from the previous year [27] Question: Competitive dynamics in the fire retardant market - Management stated that the exit of a competitor has made it less likely for alternative materials to be qualified soon, reinforcing their market position [28][29] Question: Economic sensitivity of business lines - Management clarified that the retardant business has close to no economic sensitivity, while the suppressants business has minimal exposure to economic fluctuations [36][39] Question: Customer enthusiasm for chlorine-free products - Management has not seen any slowdown in customer conversions to chlorine-free products despite potential economic uncertainties [40][42] Question: Long-term assumptions for 2025 - Management indicated that there are no changes to their long-term assumptions for 2025 at this time [43][45]