Perimeter reported consolidated revenue in 2025 $652.9 million (16% increase) and adjusted EBITDA of $331.7 million (up 18%), with management citing expanding base profitability, more predictable fire safety cash flows due to a shift to fixed/recurring contracts and an active M&A playbook.
Ongoing operational and security issues in the Sauget P2S5 Installation (operated by Flexsys) materially reduced production and introduced variability in the Specialty Products business; Perimeter says it has contractual rights to take over operations, but Flexsys/One Rock is blocking it and has filed litigation.
Closed perimeter MMT Acquisition in January 2026 for $685 million (funded with cash and $550 million in new notes), adding approximately $140 million of revenue and $50 million of adjusted EBITDA on a 2025 basis, with pro forma net leverage close to 3.0x, below the company’s target of 4.0x.
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Perimeter Solutions (NYSE:PRM) reported fourth-quarter and full-year 2025 results in its earnings call, emphasizing what management described as a sustained expansion in “structural earnings power,” improved predictability in its fire retardant business and a more active M&A strategy following recent acquisitions.
CEO Haitham Khouri said 2025 reinforced three key themes: broadening base profitability, increasing financial consistency and establishing an M&A playbook through the IMS and MMT acquisitions.
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Khouri attributed the company’s increased earnings power to the “rigorous application” of its operational value drivers: winning profitable new business, driving productivity improvements and increasing customer value supported by value-based pricing. He also noted a shift in fire retardant contract structures, moving away from purely volume-based models toward “more fixed and recurring structures,” which he said reduces sensitivity to fire season volatility.
In Fire Safety, Khouri cited examples of new business and operational initiatives, including entry into the “railroad-applied preventive retardant” sector in Europe, expansion of air services, continued global penetration of fluorine-free products, and productivity improvements tied to a new retardant manufacturing facility outside Sacramento. He also noted the growth of offerings for retardants such as suppressors, including “new multipurpose AD foams.”
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Khouri spent a significant portion of his remarks discussing ongoing operational and safety issues at the Sauget Lenore P2S5 facility operated by Flexsys. It said the unplanned downtime “substantially reduced production volumes” and negatively affected the financial results of the P2S5 business, and described the “recurring security incidents” as part of a broader pattern of declining performance since One Rock Capital acquired Flexsys in 2021.
Perimeter previously exercised what it says is its contractual right to assume operation of the Sauget plant, but Khouri said Flexsys and One Rock have refused to allow the transition. He called the negotiations “bad faith” and said Perimeter is seeking legal solutions in ongoing litigation, while also evaluating strategic and legal alternatives to ensure continuity of supply and restore previous financial performance. Until the issue is resolved, Khouri said investors should expect continued variability in P2S5’s business.
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Khouri said IMS is focused on acquiring proprietary product lines and applying Perimeter’s operating playbook to drive profitable growth. He said IMS closed several product line acquisitions in 2025, including one in the fourth quarter, and expects the company to invest “tens of millions of dollars annually” in high-IRR product line acquisitions over time.
Khouri also discussed Medical Manufacturing Technologies (MMT), which closed in January 2026. He described MMT as a manufacturer of engineering machinery and proprietary aftermarket components used in the production of minimally invasive medical devices, including catheters and guide wires. He highlighted attributes including MMT’s position in a specialized industry where quality and reliability are critical, a historical pattern of high-single-digit to low-double-digit organic growth and a large installed base that drives recurring aftermarket demand for proprietary consumables, parts and services. Management also highlighted MMT’s acquisition track record.
Khouri said MMT posted approximately $140 million in revenue and $50 million in adjusted EBITDA in 2025, adding that early implementation of Perimeter’s value drivers supported the acquisition thesis. The company expects MMT’s 2026 results to show significant year-over-year growth as operational changes take effect.
Chief Financial Officer Kyle Sable reported consolidated revenue of $652.9 million in 2025, up 16% from the prior year, and adjusted EBITDA increased 18% to $331.7 million. In the fourth quarter, revenue increased 19% to $102.8 million and adjusted EBITDA increased 9% to $36.0 million.
Perimeter posted a GAAP loss per share of $1.37 for 2025, down from a GAAP loss per share of $0.04 a year earlier. Adjusted EPS was $1.34, down from $1.11. In the fourth quarter, GAAP loss per share was $0.94 compared to GAAP earnings per share of $0.90 in the prior-year quarter, while adjusted earnings per share were $0.13 in both periods.
Segment performance
Fire safety: Full-year revenue was $488.9 million, up 12%, while fourth-quarter revenue declined 4% to $58.1 million. Full-year adjusted EBITDA increased 21% to $290.5 million; Fourth quarter adjusted EBITDA decreased 6% to $25.5 million.
Special products: Full-year revenue increased 31% to $163.9 million, including $41.2 million from acquisitions, partially offset by a $2.0 million decline in core business tied to downtime at Sauget. Fourth-quarter revenue increased 75% to $44.6 million, driven by $13.4 million from acquisitions and $5.7 million from the core business. Full-year adjusted EBITDA increased 3% to $41.2 million, and fourth-quarter adjusted EBITDA increased 85% to $10.4 million.
Sable said fire safety performance reflected execution across products and geographies. In suppressors, it cited $21.8 million of incremental revenue driven by higher volume and pricing, airport conversions and replacement demand in the installed base. In retardants, it pointed to growth outside North America, including increased sales in Australia and France, and progress in upstream markets such as Italy, including applications along railway lines. In North America, it said retardant revenue rose $12.6 million for the full year despite a decline in hectares burned in the United States, which management said underscored both the operating model and lower sensitivity to fire activity.
On hiring, Sable said the company continues to “decouple” revenue from fire activity by moving to fixed rates and away from more variable revenue, which he said improves “revenue quality” and predictability.
Sable said Perimeter deployed approximately $149 million of capital in 2025 across capital expenditures, bolt-on M&A and share buybacks, all evaluated with a minimum long-term target IRR of 15%. The company invested $26.5 million in capital expenditures during 2025 and repurchased $40.4 million in shares at the beginning of the year. It also invested $82 million to acquire IMS product lines and select fire safety assets from Compass, including a $40 million expansion in the fourth quarter.
In January 2026, Perimeter acquired MMT for $685 million in cash, funded with cash on hand and $550 million in newly issued senior secured notes. Sable said Perimeter also has $675 million in 5% fixed-rate bonds due 2029 and issued $550 million in 6.25% bonds due 2034. At year-end, the company reported $325.9 million in cash and equivalents and a $200 million undrawn revolver. Net leverage was 1.1 times at the end of the quarter; On a pro forma basis reflecting the MMT transaction and the new notes, leverage was approximately 3.0x, which Sable said remains below the company’s target “ideal” leverage level of 4.0x.
Looking ahead, Sable said updated long-term assumptions include annual interest expenses of approximately $75 million after MMT funding, capital expenditures of $30 million to $40 million per year and a cash tax rate expected to be “20% or better.”
During the Q&A, management reiterated that it is reluctant to provide a specific fixed-versus-variable split for retarding contracts, but said cash flows are “dramatically more predictable” than historically and should become increasingly predictable in 2026 as the most recent U.S. Forest Service contract takes effect. Management also said that while acres burned remains an imperfect metric for demand, they are still among the best indicators available, and that sensitivity of Perimeter’s revenue and EBITDA to changes in acres burned has become “dramatically muted” compared to its historical results.
At IMS, management said product line acquisitions are “more profitable” than typical mergers and acquisitions because proprietary, high-volume aftermarket product lines can be bought at more attractive multiples than entire companies.
Perimeter Solutions Ltd. (NYSE: PRM) is a global specialty chemicals company focused on delivering performance-based solutions for the oil and gas, coatings, plastics, water treatment and packaging markets. Established as an independent publicly traded company in December 2019 following its spin-off from NewMarket Corporation, Perimeter Solutions has positioned itself as a leading provider of highly engineered chemicals designed to optimize oil recovery, protect infrastructure and improve the performance of industrial processes.
The company’s core product portfolio spans several key segments.
The article “Highlights from Perimeter Solutions’ Fourth Quarter Earnings Calls” was originally published by MarketBeat.
