Perimeter Solutions Q2 Earnings Call Highlights

Perimeter Solutions NYSE: PRM reported second-quarter 2026 adjusted EBITDA of $105.6 million, up 16% from a year earlier, as growth in its Specialty Products portfolio and acquisitions helped offset temporary pressures in Fire Safety. The company said adjusted net income increased to $68.6 million from $61.2 million, while adjusted diluted earnings per share was unchanged at $0.41. Chief Executive Officer Haitham Khouri said second-quarter net sales increased 31% to $313.8 million. Year-to-date adjusted EBITDA rose 34% to $146.7 million. The company also announced that it closed the acquisition of Monaco Enterprises for approximately $120 million in cash following the end of the quarter. Monaco designs and manufactures fire alarm reporting and mass-notification networks used at more than 200 U.S. military installations globally. Fire Safety revenue rose 7% year over year to $129.1 million in the second quarter, while adjusted EBITDA increased to $78.8 million from $77.7 million. For the first half, segment revenue grew 11% to $174.5 million and adjusted EBITDA increased to $97.5 million from $87.8 million. Khouri and Chief Financial Officer Kyle Sable attributed the relatively modest quarterly EBITDA increase to two temporary factors: a 5% pricing reduction in the first year of the company’s federal retardant contract and minimal foam deliveries to the Defense Logistics Agency during a transition to a vendor-managed inventory model. Sable said the company incurred costs associated with preparing for the Defense Logistics Agency contract, including facility expansion, IT and logistics capabilities, and supply-chain inputs, while sales remained limited during the quarter. He said deliveries are expected to begin ramping in the second half of 2026, with a more substantial contribution anticipated beginning in 2027. “Absent those, we would’ve been double-digit EBITDA growth,” Sable said in response to an analyst question on the Fire Safety segment’s performance. Management expects the impact of the federal pricing step-down to be increasingly offset by contributions from its CAL FIRE agreement as fire activity shifts toward California in the second half. Khouri said recent fire activity in California, the Pacific Northwest and much of the Southwest represents “retardant-heavy acres,” compared with earlier-season fires in areas such as Florida, Georgia and Nebraska. Perimeter said fire-retardant demand in the U.S. was stronger year over year, supported by increased fire activity and aggressive initial-attack strategies. Canadian activity was lower than in the prior year, while strength in Europe offset slower conditions in Asia-Pacific. The company said g.