Core Insights - Perimeter Solutions, Inc. reported a net loss of $90.7 million for the third quarter of 2025, with an adjusted net income of $125.5 million [1][5][26] - The company achieved an adjusted EBITDA of $186.3 million, reflecting a 9% increase compared to the previous year [1][5][22] - The loss per diluted share was $0.62, while the adjusted earnings per diluted share improved to $0.82 from $0.75 in the prior year [1][5][26] Financial Performance - Net sales for the third quarter increased by 9% to $315.4 million, compared to $288.4 million in the same quarter last year [5][16] - Fire Safety segment net sales rose by 9% to $273.4 million, while Specialty Products segment net sales increased by 15% to $42.0 million [5][16] - Year-to-date net sales reached $550.1 million, a 16% increase from $474.7 million in the prior year [5][16] Segment Performance - Adjusted EBITDA for the Fire Safety segment increased by 13% to $177.2 million, while the Specialty Products segment saw a 29% decrease to $9.1 million [5][16] - Year-to-date adjusted EBITDA rose by 20% to $295.7 million, with the Fire Safety segment contributing $265.0 million, a 24% increase [5][16] Capital Expenditures and Investments - The company invested $5.0 million in capital expenditures during the third quarter [12] - On September 12, 2025, Perimeter's Specialty Products segment acquired assets and technical data rights for certain product lines for $12.0 million [12] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $340.6 million, up from $198.5 million at the beginning of the period [18][21] - Net cash provided by operating activities was $219.5 million for the nine months ended September 30, 2025 [20]

Core Insights - Carillon Tower Advisers reported a continued upward trend in equity markets, driven by AI advancements, reduced inflation from tariffs, and potential interest rate cuts by the U.S. Federal Reserve [1] - The Russell 2000® Growth Index increased by 12.19% in Q3 2025, slightly underperforming the Russell 2000 Value Index, which rose by 12.60% [1] Company Overview: Perimeter Solutions, Inc. (NYSE:PRM) - Perimeter Solutions, Inc. specializes in manufacturing and distributing firefighting products and lubricant additives, with a market capitalization of $3.144 billion as of October 28, 2025 [2] - The stock experienced a one-month return of -4.11% but gained 58.22% over the past 52 weeks, closing at $21.47 per share [2] Performance and Strategic Developments - The stock price of Perimeter Solutions was positively influenced by a strong earnings report, showcasing effective operational execution and contributions from recent acquisitions [3] - A new multi-year agreement with the largest customer in its fire-retardant business was announced, indicating a more stable business model than previously perceived [3] Hedge Fund Interest - Perimeter Solutions was held by 28 hedge fund portfolios at the end of Q2 2025, a decrease from 37 in the previous quarter, indicating a decline in popularity among hedge funds [4] - While the company has potential as an investment, certain AI stocks are viewed as having greater upside potential and lower downside risk [4]

Core Viewpoint - Perimeter Solutions will release its financial results for Q3 2025 on October 30, 2025, before market opening [1] Financial Results Announcement - The company will host a conference call at 8:30 a.m. ET on the same day to discuss the results [2] - The call will be led by CEO Haitham Khouri, CFO Kyle Sable, and Head of Investor Relations Seth Barker [2] - Access to the live webcast will be available on Perimeter's investor relations website [2] Company Overview - Perimeter Solutions is headquartered in St. Louis, Missouri, and operates in the Fire Safety and Specialty Products industries [3] - The company has two operating segments: Fire Safety and Specialty Products [3] - The Fire Safety segment offers fire retardants, firefighting foams, and related specialized equipment and services [3] - The Specialty Products segment focuses on non-fire safety markets, with a significant application in Phosphorus Pentasulfide (P2S5) based lubricant additives [3] - The Specialty Products segment also includes IMS, which manufactures electronic or electro-mechanical components for various end markets, emphasizing aftermarket repair and replacement [3]

Core Insights - The Lazard US Systematic Small Cap Equity ETF (SYZ) has an annualized total return of 3.56% since its inception, outperforming the benchmark Russell 2000 Index, which has a return of -0.04% [1] - The ETF was converted from a mutual fund on September 12, 2023, and has been trading for 17 days as an ETF [1] - The ETF's portfolio consists of 427 small-cap stocks selected through a proprietary automated process, with market caps ranging from $54.5 million to $15.9 billion [6] Investment Opportunities - The ETF's valuation metrics show an average price-to-cash flow ratio of 9.93x, significantly lower than the Russell 2000's 15.07x, and a free cash flow yield of 6.57%, compared to the index's 1.98% [7] - Notable holdings in the ETF include Mueller Industries (MLI), which has nearly doubled its market cap from $5.5 billion to $10.9 billion in 22 months, and is trading at 14.6 times its 2025 earnings per share estimate of $6.75 [9] - Perimeter Solutions (PRM), the ETF's seventh-largest holding, has seen a 73% increase in its stock price in 2025, with sales growth of 26% to $234.7 million in the first half of 2025 [10][11] - Willdan Group (WLDN) has a market cap of $1.4 billion and reported a 27.5% increase in net revenues to $180.3 million in the first half of 2025, with a full-year revenue guidance of $345 million [17][19] Market Context - The ETF's recent performance is set against a backdrop where U.S. stocks experienced a decline for the first time in eight trading sessions, while gold prices reached a record high of over $4,000 [5] - The small-cap sector is gaining attention as large-cap stocks have become expensive, prompting a shift in focus towards smaller companies [4]

Core Insights - Perimeter Solutions has signed a transformative five-year agreement with the USDA, enhancing wildfire response capabilities and providing over $150 million in savings to the federal government and taxpayers [1][12] Company Developments - The contract ensures a full conversion to Perimeter's powder retardant technology and includes significant upgrades to air tanker base capacity and capabilities, transitioning to full-service operations at most federal tanker bases [2] - Under the agreement, 100% of Perimeter's retardant for federal use will be manufactured in the United States, reinforcing support for American manufacturing and supply chain diversification [3] Industry Impact - The partnership aims to modernize the federal fire retardant specification and qualification process, setting new standards for performance, safety, and reliability in wildfire management [5] - The agreement is seen as a commitment to American firefighters and communities, enhancing the operational excellence and fiscal responsibility in wildfire management [4]

Group 1 - Perimeter has increased approximately 6% since the last recommendation three weeks ago, indicating positive market performance [1] - The quarterly results and management commentary provide further support for the initial investment thesis, highlighting operational leverage in Fire Safety and continued growth in Specialty Products [1] - The focus is on small and midcap companies with asymmetric upsides, suggesting a strategic investment approach in these sectors [1] Group 2 - The analyst has a diverse background, having worked in the Industrials and chemicals sector, as well as in finance and technology at a Canadian charity, which enriches the analysis [1] - The combination of execution experience and analytical skills is emphasized as a key factor in enhancing investment insights [1]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 reached $91.3 million, reflecting a 41% increase year-over-year, while year-to-date adjusted EBITDA was $109.4 million, up 42% [4][20][25] - Q2 GAAP loss per share was $0.22 compared to GAAP earnings per share of $0.14 in the prior year quarter, while adjusted EPS for Q2 was $0.39, up from $0.25 [20][21] - Year-to-date GAAP earnings per share improved to $0.16 from a loss of $0.42 in the same period last year [21] Business Line Data and Key Metrics Changes - Fire Safety segment revenue for Q2 was $120.3 million, a 22% year-over-year increase, and year-to-date revenue was $157.4 million, up 27% [16] - Specialty Products segment Q2 net sales were $42.4 million, a 47% increase from the prior year, with year-to-date net sales reaching $77.2 million, up 23% [19] - Fire Safety's adjusted EBITDA for Q2 was $77.7 million, representing a 40% increase over last year, while Specialty Products adjusted EBITDA rose to $13.7 million from $9.3 million in the prior year [18][20] Market Data and Key Metrics Changes - U.S. wildfire activity was approximately normal in the first half of 2025, with expectations that the full season will not be exceptionally mild [18][34] - International operations, including Canada, Europe, the Middle East, and Asia Pacific, contributed positively to revenue growth due to severe conditions [17] Company Strategy and Development Direction - The company aims to provide high-quality products and exceptional service while delivering private equity-like returns with public market liquidity, focusing on three operational pillars: owning exceptional businesses, applying operational value drivers, and decentralized management [5][6][8] - Significant capital investment of nearly $62 million was made in Q2, including capital expenditures, share repurchases, and asset purchases to support the retardant business [4][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of Q2 performance, indicating that there were no one-time factors affecting results [50] - The company is committed to resolving operational challenges at the Saje plant and expects ongoing impacts until control is regained [58] Other Important Information - The company settled litigation with Compass Minerals for $20 million, which included the acquisition of surplus assets and the return of intellectual property [10][59] - Capital expenditures for Q2 were $12.8 million, with a focus on growth and productivity initiatives [24][26] Q&A Session Summary Question: What is the range of normal wildfire activity? - Management indicated that a normal fire season is roughly 6 million to 7 million acres burned in the contiguous U.S., excluding Alaska [32][34] Question: Is there an inverse relationship between revenue per acre burned and acres burned? - Management confirmed that large swings in acres can lead to muted changes in retardant usage due to resource availability and operational factors [38][40] Question: How has resource availability evolved? - Management noted that California has expanded its air tanker fleet, which improves resource availability, and emphasized the importance of contract structures to support resource availability [44][45] Question: How sustainable is the Q2 performance in Fire Safety? - Management stated that Q2 performance is sustainable and not driven by one-time factors [50] Question: What was the impact of the Saje plant outages on financial performance? - Management acknowledged significant impacts from ongoing operational issues at the Saje plant, which are expected to continue until control is regained [58]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 reached $91.3 million, reflecting a 41% increase year-over-year, while year-to-date adjusted EBITDA was $109.4 million, up 42% [4][19][24] - Q2 GAAP loss per share was $0.22 compared to GAAP earnings per share of $0.14 in the prior year quarter, while adjusted EPS for Q2 was $0.39, up from $0.25 [19][20] - Year-to-date GAAP earnings per share improved to $0.16 from a loss of $0.42 in the same period last year [20] Business Line Data and Key Metrics Changes - Fire Safety segment revenue for Q2 was $120.3 million, a 22% year-over-year improvement, and year-to-date revenue was $157.4 million, a 27% gain [15] - Specialty Products segment Q2 net sales were $42.4 million, a 47% increase from the prior year, with year-to-date net sales reaching $77.2 million, up 23% [18] - Fire Safety's adjusted EBITDA for Q2 was $77.7 million, representing a 40% increase over last year, while Specialty Products adjusted EBITDA rose to $13.7 million from $9.3 million in the prior year [17][19] Market Data and Key Metrics Changes - U.S. wildfire activity was approximately normal in the first half of 2025, with expectations that the full season will not be exceptionally mild [17][18] - International operations, including Canada, Europe, the Middle East, and Asia Pacific, contributed positively to revenue growth due to severe conditions [15][16] Company Strategy and Development Direction - The company aims to provide high-quality products and exceptional service while delivering private equity-like returns with public market liquidity [5] - The strategy is built on three operational pillars: owning exceptional businesses, applying operational value drivers, and operating in a decentralized manner [6] - Significant investments were made in capital expenditures, with nearly $62 million allocated in Q2, including the opening of a new retardant production facility in Sacramento, California [4][9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the normalized fire activity and the operational performance of the business, while remaining prepared for varying conditions [17][18] - The company is committed to resolving operational challenges at the Saje plant and expects ongoing impacts until control is regained [12][55] - Management highlighted the importance of expanding the air tanker fleet to improve resource availability and support fire suppression efforts [39][42] Other Important Information - The company settled litigation with Compass Minerals for $20 million, which included the return of intellectual property and acquisition of surplus assets [10][56] - Capital expenditures for Q2 were $12.8 million, with a focus on growth and productivity initiatives [24][25] - The company repurchased 2.9 million shares for approximately $32 million in Q2, indicating a strategic approach to share repurchases [26] Q&A Session Summary Question: Clarification on normal wildfire activity range - Management confirmed that a normal fire season is roughly in the range of 6 million to 7 million acres burned in the contiguous U.S., excluding Alaska [29][30] Question: Inverse relationship between revenue per acre burned and acres burned - Management acknowledged the complexity of the relationship, noting that large swings in acres can lead to smaller changes in retardant usage due to resource availability [34][39] Question: Sustainability of Q2 Fire Safety performance - Management indicated that the performance in Q2 is sustainable and not driven by one-time factors [47][48] Question: Impact of outages on Specialty Products growth - Management noted that ongoing operational issues at the Saje plant have negatively impacted performance, but the IMS acquisition contributed positively to growth [50][55] Question: Details on the $20 million settlement with Compass - Management confirmed that the settlement included both intangibles and assets valued at approximately $5 million [56] Question: Changes in contract structure with government for fire suppression - Management is working on mutually beneficial changes to de-variabilize the business and improve predictability in cash flows [59][60]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited condensed consolidated financial statements for the period ended June 30, 2025, show improved net income and increased operating cash flow [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $420,079 | $394,024 | | Accounts receivable, net | $121,416 | $56,048 | | Inventories | $150,049 | $116,347 | | **Total Assets** | **$2,486,262** | **$2,416,394** | | **Total Current Liabilities** | $103,964 | $62,488 | | Long-term debt, net | $668,439 | $667,774 | | **Total Liabilities** | **$1,307,631** | **$1,259,124** | | **Total Stockholders' Equity** | **$1,178,631** | **$1,157,270** | - The increase in total assets was primarily driven by a significant rise in **accounts receivable** and **inventories**, reflecting seasonal business activity. Total liabilities also increased, mainly due to higher current liabilities including deferred revenue and founders advisory fees payable[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $162,639 | $127,276 | $234,669 | $186,320 | | Gross profit | $101,496 | $73,267 | $129,649 | $93,969 | | Operating (loss) income | $(26,226) | $45,018 | $51,581 | $(29,846) | | Net (loss) income | $(32,161) | $21,650 | $24,525 | $(60,908) | | Diluted (Loss) EPS | $(0.22) | $0.14 | $0.16 | $(0.42) | - For the six months ended June 30, 2025, the company reported **net income of $24.5 million**, a significant improvement from a net loss of $60.9 million in the prior-year period. This was driven by a **26% increase in net sales** and a substantial decrease in 'Founders advisory fees' expense, which fell from $68.9 million to $16.3 million[16](index=16&type=chunk) - For the three months ended June 30, 2025, the company posted a **net loss of $32.2 million**, compared to a net income of $21.7 million in the same period of 2024. The loss was primarily due to a large **$96.9 million expense for 'Founders advisory fees - related party'**, which reflects the change in fair value of the liability[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,894 | $11,418 | | Net cash (used in) provided by investing activities | $(42,803) | $187 | | Net cash used in financing activities | $(40,560) | $(14,784) | | **Net change in cash and cash equivalents** | **$(57,798)** | **$(4,114)** | - **Cash from operations increased to $20.9 million** for the first six months of 2025 from $11.4 million in the prior year, despite a significant increase in accounts receivable, aided by higher net income and deferred revenue[23](index=23&type=chunk) - Investing activities used **$42.8 million**, primarily for property and equipment purchases (**$17.6 million**), intangible asset purchases (**$15.2 million**), and a business acquisition (**$10.0 million**)[23](index=23&type=chunk) - Financing activities used **$40.6 million**, dominated by **$40.4 million in common stock repurchases**[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company operates in two segments: Fire Safety and Specialty Products. In 2024, approximately **79% of revenues were from the United States**[26](index=26&type=chunk) - On March 28, 2025, the IMS division acquired assets and data rights for certain product lines for **$10.0 million in cash**[36](index=36&type=chunk) - In May 2025, the company settled trade secret litigation with a subsidiary of Compass Minerals International, Inc. and acquired related assets for **$20.0 million**, with **$15.2 million allocated to technology-related intangible assets**[37](index=37&type=chunk) - As of June 30, 2025, the company had **$675.0 million in Senior Notes due 2029** and no outstanding borrowings under its **$100.0 million Revolving Credit Facility**[43](index=43&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - On May 7, 2025, the Board re-established the limit for common stock repurchases at **$100.0 million**. As of June 30, 2025, **$78.3 million remained available** under the plan[70](index=70&type=chunk) Segment Net Sales (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Fire Safety | $120,284 | $98,538 | $157,447 | $123,693 | | Specialty Products | $42,355 | $28,738 | $77,222 | $62,627 | | **Total** | **$162,639** | **$127,276** | **$234,669** | **$186,320** | Segment Adjusted EBITDA (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Fire Safety | $77,659 | $55,639 | $87,744 | $55,398 | | Specialty Products | $13,679 | $9,269 | $21,677 | $21,646 | | **Total** | **$91,338** | **$64,908** | **$109,421** | **$77,044** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, noting a **26% increase in net sales** for the first six months of 2025, a **$24.5 million net income**, and strong liquidity with **$140.7 million cash** [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Consolidated Results - Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Net sales | $162,639 | $127,276 | $35,363 | 28% | | Gross profit | $101,496 | $73,267 | $28,229 | 39% | | Operating (loss) income | $(26,226) | $45,018 | $(71,244) | (158%) | | Net (loss) income | $(32,161) | $21,650 | $(53,811) | (249%) | - **Q2 2025 net sales increased 28% YoY**, driven by a **$21.7 million increase in the Fire Safety segment** and a **$13.7 million increase in the Specialty Products segment**, including **$9.3 million from recent acquisitions**[112](index=112&type=chunk) - The **Q2 2025 net loss** was driven by a **$96.9 million expense for Founders advisory fees**, reflecting the change in fair value of the liability due to an increase in the company's share price[115](index=115&type=chunk) Consolidated Results - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Net sales | $234,669 | $186,320 | $48,349 | 26% | | Gross profit | $129,649 | $93,969 | $35,680 | 38% | | Operating income (loss) | $51,581 | $(29,846) | $81,427 | (273%) | | Net income (loss) | $24,525 | $(60,908) | $85,433 | (140%) | - For the first six months of 2025, **net sales grew 26% YoY**. Fire Safety sales increased by **$33.7 million**, while Specialty Products sales rose by **$14.6 million**, including **$16.9 million from acquisitions**[118](index=118&type=chunk) [Business Segments Performance](index=41&type=section&id=Business%20Segments%20Performance) - **Fire Safety Segment Adjusted EBITDA increased by $22.0 million (39.5%) in Q2 2025** and **$32.3 million (58.3%) in the first six months of 2025** compared to the prior year periods, primarily due to higher net sales[124](index=124&type=chunk)[126](index=126&type=chunk) - **Specialty Products Segment Adjusted EBITDA increased by $4.4 million (47.5%) in Q2 2025**, driven by higher sales from acquisitions. For the first six months, it was relatively flat compared to the prior year[125](index=125&type=chunk)[127](index=127&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) - The company believes its existing **cash of $140.7 million**, cash from operations, and availability under its **$100.0 million Revolving Credit Facility** will be sufficient to meet its requirements for at least the next 12 months[133](index=133&type=chunk) - As of June 30, 2025, the company had **no outstanding borrowings** under its Revolving Credit Facility[137](index=137&type=chunk) - During the six months ended June 30, 2025, the company repurchased **3,774,675 shares for $40.4 million** under its Share Repurchase Plan[142](index=142&type=chunk)[151](index=151&type=chunk) - In February 2025, the company settled the 2024 Fixed Annual Advisory Amount by issuing **1,837,304 shares of Common Stock** and paying **$6.7 million in cash**[146](index=146&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates, interest rates on its variable-rate revolving credit facility, and commodity price fluctuations - Primary market risks include **foreign currency fluctuations**, **interest rate changes on variable-rate debt**, and **commodity price volatility**[154](index=154&type=chunk) - Foreign currency exposure is mainly to the **Euro, Canadian dollar, Norwegian krone, and Australian dollar**[155](index=155&type=chunk) - Interest rate risk is tied to the Revolving Credit Facility, which had **no outstanding balance** as of June 30, 2025[156](index=156&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The company's principal executive and financial officers concluded that **disclosure controls and procedures were effective** as of June 30, 2025[160](index=160&type=chunk) - **No material changes** were made to the internal control over financial reporting during the quarter ended June 30, 2025[161](index=161&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including AFFF litigation, but does not expect a material adverse effect on its financials - The company is involved in litigation related to **aqueous film forming foam (AFFF)** but does not expect it to have a material adverse effect[162](index=162&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported since the 2024 Annual Report - **No material changes** to the company's risk factors were reported since the 2024 Annual Report[163](index=163&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details common stock repurchases for the quarter ended June 30, 2025, with **2,886,221 shares repurchased** and a re-established **$100.0 million repurchase limit** Common Stock Repurchases for the Quarter Ended June 30, 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 1,071,885 | $9.70 | | May 2025 | 1,443,727 | $11.90 | | June 2025 | 370,609 | $12.28 | | **Total** | **2,886,221** | **N/A** | - On May 7, 2025, the Board re-established the limit for Common Stock repurchases at **$100.0 million**. As of June 30, 2025, approximately **$78.3 million remained available** for repurchase[166](index=166&type=chunk) [Other Items (Items 3, 4, 5, 6)](index=47&type=section&id=Other%20Items) Items 3 and 4 are not applicable, Item 5 notes no Rule 10b5-1 trading plan changes, and Item 6 lists report exhibits - **No defaults on senior securities or mine safety disclosures** were reported[167](index=167&type=chunk) - **No officers or directors adopted or terminated a Rule 10b5-1 trading arrangement** during the quarter[168](index=168&type=chunk)

Financial Performance - Fire Safety revenue increased by 22% to $120284 thousand in Q2 2025 and 27% to $157447 thousand YTD 2025[15] - Fire Safety adjusted EBITDA increased by 40% to $77659 thousand in Q2 2025 and 58% to $87744 thousand YTD 2025, with adjusted EBITDA margin of 65% in Q2 2025 and 56% YTD 2025[15] - Specialty Products revenue increased by 47% to $42355 thousand in Q2 2025 and 23% to $77222 thousand YTD 2025[15] - Specialty Products adjusted EBITDA increased by 48% to $13679 thousand in Q2 2025, but remained flat at $21677 thousand YTD 2025, with adjusted EBITDA margin of 32% in Q2 2025 and 28% YTD 2025[15] - Consolidated revenue increased by 28% to $162639 thousand in Q2 2025 and 26% to $234669 thousand YTD 2025[15] - Consolidated adjusted EBITDA increased by 41% to $91338 thousand in Q2 2025 and 42% to $109421 thousand YTD 2025, with adjusted EBITDA margin of 56% in Q2 2025 and 47% YTD 2025[15] Capital Structure and Allocation - Net debt to LTM adjusted EBITDA is 17x, with LTM adjusted EBITDA of $312671 thousand[18, 22, 33] - The company has $1407 million in cash and cash equivalents as of Q2 2025[22] - Capital expenditures for Q2 2025 were $97 million, with $200 million allocated to M&A and $322 million to share buybacks[18] Long-Term Assumptions - Annual interest expense is projected to be approximately $40 million[16] - Annual tax-deductible depreciation and amortization are projected to be approximately $20-25 million[16] - The cash tax rate is estimated to be around 20-25%[16]