Perimeter Solutions(PRM) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Results 1.1 Key Financial Highlights Perimeter Solutions experienced a net loss in Q2 2025, yet achieved significant growth in net sales and adjusted EBITDA | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | Net Loss / Income (Millions USD) | $(32.2) | $21.7 | $(53.9)M | | Loss / Earnings Per Diluted Share | $(0.22) | $0.14 | $(0.36) | | Adjusted Net Income (Millions USD) | $57.1 | N/A | N/A | | Adjusted Earnings Per Diluted Share | $0.39 | $0.25 | $0.14 | | Net Sales (Millions USD) | $162.6 | $127.3 | +28% | | Adjusted EBITDA (Millions USD) | $91.3 | $64.9 | +41% | [2][5] 1.2 Segment Performance Both Fire Safety and Specialty Products segments achieved strong growth in net sales and adjusted EBITDA in Q2 2025 Q2 2025 Segment Performance | Segment Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | Fire Safety Net Sales (Millions USD) | $120.3 | $98.5 | +22% | | Specialty Products Net Sales (Millions USD) | $42.4 | $28.7 | +47% | | Fire Safety Segment Adjusted EBITDA (Millions USD) | $77.7 | $55.6 | +40% | | Specialty Products Segment Adjusted EBITDA (Millions USD) | $13.7 | $9.3 | +48% | [5] 2.0 Year-to-Date 2025 Results 2.1 Key Financial Highlights Year-to-date 2025, Perimeter Solutions achieved net income, reversing a prior year loss, driven by strong growth in net sales and adjusted EBITDA Year-to-Date 2025 Key Financial Highlights | Metric | YTD 2025 | YTD 2024 | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | Net Income / Loss (Millions USD) | $24.5 | $(60.9) | +$85.4M | | Earnings / Loss Per Diluted Share | $0.16 | $(0.42) | +$0.58 | | Non-GAAP Adjusted Earnings Per Share | $0.41 | $0.23 | +$0.18 | | Net Sales (Millions USD) | $234.7 | $186.3 | +26% | | Adjusted EBITDA (Millions USD) | $109.4 | $77.0 | +42% | [5] 2.2 Segment Performance Year-to-date, Fire Safety sales and adjusted EBITDA surged, while Specialty Products sales grew with stable adjusted EBITDA Year-to-Date 2025 Segment Performance | Segment Metric | YTD 2025 | YTD 2024 | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | Fire Safety Sales (Millions USD) | $157.4 | $123.7 | +27% | | Specialty Products Sales (Millions USD) | $77.2 | $62.6 | +23% | | Fire Safety Segment Adjusted EBITDA (Millions USD) | $87.7 | $55.4 | +58% | | Specialty Products Segment Adjusted EBITDA (Millions USD) | $21.7 | $21.6 | Relatively flat | [5][6] 3.0 Capital Allocation Perimeter Solutions actively managed capital in Q2 2025, repurchasing shares and resolving a lawsuit by acquiring assets for cash - The company repurchased 2.9 million shares of common stock at an average price of $11.13 per share during the quarter ended June 30, 2025[7] - In May 2025, Perimeter Solutions settled a trade secret lawsuit with a subsidiary of Compass Minerals International, Inc., concurrently acquiring related assets for $20 million in cash[7] 4.0 Conference Call and Webcast Perimeter Solutions announced a conference call and webcast for Q2 2025 results, providing access details for live participation and replay - A conference call to discuss Q2 2025 financial results was scheduled for Thursday, August 7, 2025, at 8:30 AM ET, accessible via specific dial-in numbers[8] - The conference call was simultaneously webcast on Perimeter's investor relations website, with a slide presentation available for reference[9] - A replay of the webcast and conference call was available after the live event, with specific access details valid until September 6, 2025[9] 5.0 About Perimeter Solutions Perimeter Solutions is a global leader in fire safety and specialty products, structured into two reporting segments 5.1 Fire Safety Segment The Fire Safety segment focuses on fire management products, supported by specialized equipment and a global emergency resupply network - The Fire Safety segment formulates and manufactures fire management products for wildfires, structural fires, flammable liquid fires, and other fire types[11] - This segment also provides specialized equipment (e.g., airbase retardant storage, mobile bases) and services, including an emergency resupply network for approximately 150 airtanker bases in North America and other global customer locations[11] 5.2 Specialty Products Segment The Specialty Products segment develops products for non-fire safety markets, including P2S5-based additives and Smart Manufacturing Solutions - The Specialty Products segment focuses on non-fire safety markets, with its largest application being phosphorus pentasulfide (P2S5)-based lubricant additives, also used in pesticides, mining chemicals, and emerging electric battery technologies[12] - This segment includes Smart Manufacturing Solutions (IMS), a manufacturer of electronic/electromechanical components for large medical systems, communications infrastructure, energy infrastructure, defense systems, and industrial systems, with a focus on aftermarket repair and replacement[12] 6.0 Forward-looking Information This section contains forward-looking statements subject to risks and uncertainties, with no obligation to update unless legally required - This press release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, identifiable by words such as "anticipate," "intend," "plan," and similar future-period expressions[13] - These statements are not guarantees of performance and involve risks, uncertainties (some beyond the company's control), and assumptions that could cause actual financial results to differ materially from those anticipated in the forward-looking statements, including risk factors described in the company's filings with the U.S. Securities and Exchange Commission (SEC), such as its Annual Report on Form 10-K for the year ended December 31, 2024[14] - Perimeter undertakes no obligation to update any forward-looking statements, whether as a result of new information, future developments, or otherwise, except as may be required by law[15] 7.0 Condensed Consolidated Financial Statements This section presents Perimeter Solutions, Inc. and its subsidiaries' unaudited condensed consolidated financial statements, including operations, balance sheets, and cash flows 7.1 Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income Q2 2025 saw a net loss despite sales growth, while year-to-date achieved net income, reversing a prior year loss Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) | Metric (Thousands USD) | 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 | | Total operating expenses | $127,722 | $28,249 | $78,068 | $123,815 | | Operating (loss) income | $(26,226) | $45,018 | $51,581 | $(29,846) | | Net (loss) income | $(32,161) | $21,650 | $24,525 | $(60,908) | | Total comprehensive (loss) income | $(8,041) | $20,661 | $56,530 | $(67,440) | | Diluted (Loss) earnings per share | $(0.22) | $0.14 | $0.16 | $(0.42) | [17] 7.2 Condensed Consolidated Balance Sheets Total assets, liabilities, and stockholders' equity all increased as of June 30, 2025, compared to December 31, 2024 Condensed Consolidated Balance Sheets (Unaudited) | Metric (Thousands USD) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total current assets | $420,079 | $394,024 | | Total assets | $2,486,262 | $2,416,394 | | Total current liabilities | $103,964 | $62,488 | | Total liabilities | $1,307,631 | $1,259,124 | | Total stockholders' equity | $1,178,631 | $1,157,270 | [19] 7.3 Condensed Consolidated Statements of Cash Flows Net cash from operations increased year-to-date, but significant cash use in investing and financing led to a net decrease in cash Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric (Thousands USD) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 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 and cash equivalents, end of period | $140,658 | $43,162 | [21] 8.0 Non-GAAP Financial Metrics Perimeter Solutions uses non-GAAP metrics like Adjusted EBITDA and Adjusted EPS to provide a clearer understanding of business performance 8.1 Adjusted EBITDA Adjusted EBITDA grew significantly in Q2 2025 and year-to-date, reflecting strong operational performance after specific adjustments - Adjusted EBITDA is defined as (loss) income before income taxes, plus net interest and other financing expenses, depreciation, and amortization, consistently adjusted for certain non-recurring, unusual, or non-operating items such as restructuring costs, founders advisory fees, stock-based compensation expense, and foreign currency (gain) loss[23] Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Metric (Thousands USD) | Q2 2025 Total | Q2 2024 Total | | :-------------------------------- | :------------ | :------------ | | (Loss) income before income taxes | $(33,848) | $34,130 | | Depreciation and amortization | $17,924 | $16,359 | | Interest and financing expense | $9,930 | $10,590 | | Founders advisory fees - related party | $96,883 | $588 | | Non-recurring expenses | $307 | $23 | | Stock-based compensation expense | $2,238 | $2,994 | | Foreign currency (gain) loss | $(2,096) | $224 | | Segment Adjusted EBITDA | $91,338 | $64,908 | Adjusted EBITDA Reconciliation (Six Months Ended June 30) | Metric (Thousands USD) | YTD 2025 Total | YTD 2024 Total | | :-------------------------------- | :------------- | :------------- | | Income (loss) before income taxes | $35,331 | $(52,702) | | Depreciation and amortization | $34,817 | $32,771 | | Interest and financing expense | $19,574 | $21,238 | | Founders advisory fees - related party | $16,270 | $68,921 | | Non-recurring expenses | $1,775 | $563 | | Stock-based compensation expense | $4,909 | $4,736 | | Foreign currency (gain) loss | $(3,255) | $1,517 | | Segment Adjusted EBITDA | $109,421 | $77,044 | 8.2 Adjusted Net Income and Adjusted Earnings Per Share Adjusted net income and EPS were significantly higher than GAAP net loss, indicating improved profitability after non-GAAP adjustments - Adjusted net income is defined as net (loss) income plus amortization, certain non-recurring items, founders advisory fees, stock-based compensation expense, foreign currency (gain) loss, and the tax impact of these non-GAAP adjustments; adjusted EPS is adjusted net income divided by adjusted diluted shares[26] Adjusted Net Income and Adjusted Earnings Per Share Reconciliation (Three Months Ended June 30) | Metric (Thousands USD, except per share) | Q2 2025 | Q2 2024 | | :-------------------------------------- | :------ | :------ | | GAAP net (loss) income | $(32,161) | $21,650 | | Amortization | $14,604 | $13,755 | | Founders advisory fees - related party | $96,883 | $588 | | Non-recurring expenses | $307 | $23 | | Stock-based compensation expense | $2,238 | $2,994 | | Foreign currency (gain) loss | $(2,096) | $224 | | Tax impact of non-GAAP adjustments | $(22,631) | $(3,441) | | Adjusted Net Income | $57,144 | $35,793 | | GAAP (Loss) Earnings Per Share (diluted) | $(0.22) | $0.14 | | Adjusted Earnings Per Share (diluted) | $0.39 | $0.25 | Adjusted Net Income and Adjusted Earnings Per Share Reconciliation (Six Months Ended June 30) | Metric (Thousands USD, except per share) | YTD 2025 | YTD 2024 | | :-------------------------------------- | :------- | :------- | | GAAP net income (loss) | $24,525 | $(60,908) | | Amortization | $28,703 | $27,526 | | Founders advisory fees - related party | $16,270 | $68,921 | | Non-recurring expenses | $1,775 | $563 | | Stock-based compensation expense | $4,909 | $4,736 | | Foreign currency (gain) loss | $(3,255) | $1,517 | | Tax impact of non-GAAP adjustments | $(11,694) | $(8,632) | | Adjusted net income | $61,233 | $33,723 | | GAAP Earnings (Loss) Per Share (diluted) | $0.16 | $(0.42) | | Adjusted Earnings Per Share (diluted) | $0.41 | $0.23 |