Perimeter Solutions (PRM) AI Stock Analysis

• Market Cap: $3.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 19.12%
• EPS Growth: N/A
• Country: US
• Employees: 319
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.13
• Shares Outstanding: 149,440,060
• 10 Day Avg. Volume: 1,434,650
• 30 Day Avg. Volume: 1,015,442
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.61
• Price to Sales (P/S): 6.27
• P/FCF Ratio: 19.64
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 6.21
• Enterprise Value/Gross Profit: 10.81
• Enterprise Value/Ebitda: -28.96
• 1Y Price Target: $30.50
• Price Target Upside: 29.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.24
• Revenue Forecast (FY): $759.66M

• Rating: 50 Neutral
• Price Target: $23.50 ▼(-0.13% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by weak/volatile profitability (large 2025 GAAP loss and negative ROE) and poor near-term technicals (below key moving averages with negative MACD). High valuation (P/E ~62.6 and no dividend yield provided) further limits the score, partially offset by constructive earnings-call tone and guidance supported by revenue/adjusted EBITDA growth and solid liquidity.

Positive Factors

M&A diversification (MMT acquisition)

The completed $685M MMT acquisition brings proprietary machinery and high-margin aftermarket consumables into Perimeter’s portfolio, structurally diversifying revenue away from wildfire-season sensitivity. This broadens recurring aftermarket revenue streams and can smooth seasonality while improving long-term margin mix and cash visibility.

Shift toward fixed, recurring contracts

Management’s shift of wildland retardant contracts toward fixed and recurring structures reduces reliance on seasonal spot demand. Over months-to-years this increases revenue predictability, stabilizes working-capital needs, and enhances planning for production, capex and M&A integration, supporting more durable adjusted EBITDA generation.

Stronger balance sheet and improving free cash flow

Perimeter’s 2025 balance sheet shows solid equity capitalization and materially lower reported leverage versus prior years, while free cash flow improved to ~$209M. This financial flexibility enables disciplined tuck-in M&A, capex funding and revolver availability, providing resilience against seasonality and operational hiccups.

Negative Factors

Volatile profitability and GAAP loss

A large 2025 GAAP loss and very low EBITDA margin highlight profit volatility despite top-line growth. Persisting swings between adjusted and GAAP results impair return metrics (negative ROE), constrain retained-earnings buildup, and complicate long-term capital allocation and investor confidence if normalized profitability is not re-established.

Sauget P2S5 operational and safety failures

Recurring downtime and safety incidents at the Sauget P2S5 facility have materially reduced production volumes and created litigation risk. Until ownership/operational control is clarified, this structural uncertainty can depress base-product volumes, raise operating costs, and prolong recovery of Specialty Products margins and backlog conversion.

Higher pro forma leverage and interest burden after MMT financing

Funding the MMT deal with $550M of 6.25% notes raises pro forma leverage to ~3.0x and increases annual interest expense to roughly $75M. Elevated leverage and interest payments reduce financial flexibility for future tuck-ins, raise refinancing risk under adverse conditions, and make earnings sensitivity to operational setbacks more acute.

Perimeter Solutions Business Overview & Revenue Model

Company Description

Perimeter Solutions, SA manufactures and supplies firefighting products and lubricant additives in the United States, Germany, and internationally. It operates in two segments, Fire Safety and Oil Additives. The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services for federal, state, provincial, local/municipal, and commercial customers. The Oil Additives segment produces Phosphorus Pentasulfide which is primarily used in the preparation of lubricant additives, including a family of compounds called Zinc Dialkyldithiophosphates. The company offers its products under the brands PHOS-CHEK, FIRE-TROL, AUXQUIMIA, SOLBERG. and BIOGEMA. Perimeter Solutions, SA was founded in 1963 and is headquartered in Clayton, Missouri.

How the Company Makes Money

Perimeter Solutions generates revenue through multiple key streams, primarily from the sale of firefighting foam products and associated equipment. The company has established long-term contracts with various governmental and industrial clients, which provide a steady flow of income. Additionally, PRM offers training services related to the application and management of its products, creating an additional revenue stream. Significant partnerships with emergency response agencies and collaborations with firefighting equipment manufacturers further bolster its market presence and financial performance. The company also benefits from ongoing demand for fire safety solutions across various industries, including aviation, oil and gas, and manufacturing, contributing to its overall earnings.

Perimeter Solutions Financial Statement Overview

Summary

Strong revenue growth and high gross margin are positives, and leverage appears very low in 2025. However, profitability is highly volatile with a large 2025 net loss and deeply negative ROE, while cash flow quality is mixed (strong recent free cash flow but very low 2025 operating cash flow and prior volatility).

Income Statement

Revenue has grown sharply over the period (up from $340M in 2020 to $653M in 2025), and gross margin remains strong in 2025 (~57%). However, profitability is volatile and recently weak: 2025 shows a large net loss (-$206M) and very low EBITDA margin (~3%), a steep deterioration from 2023–2024 levels. Overall, the top-line trajectory is positive, but the swing back to significant losses meaningfully drags the income statement quality.

Balance Sheet

The balance sheet shows strong equity capitalization (about $1.13B equity on $2.65B assets in 2025) and leverage appears very low in 2025 (debt-to-equity ~0.03), a major improvement versus 2020–2024 when leverage was materially higher (roughly ~0.60–2.36). The key weakness is returns: 2025 return on equity is deeply negative (about -18%) due to the net loss, indicating the capital base is not currently generating profits.

Cash Flow

Free cash flow is strong and improving recently (about $209M in 2025, up from ~$173M in 2024), which is a clear positive. That said, operating cash flow in 2025 is very low (~$6.7M) relative to the earnings loss, and the company has shown meaningful year-to-year volatility in cash generation (including negative free cash flow in 2022–2023). In short, free cash flow is a strength, but the underlying operating cash flow consistency is a concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	652.86M	560.97M	322.11M	360.50M	362.34M
Gross Profit	375.15M	317.09M	128.29M	128.65M	172.62M
EBITDA	-123.08M	61.95M	200.04M	195.86M	-529.53M
Net Income	-206.37M	-5.91M	67.49M	91.76M	-661.52M
Balance Sheet
Total Assets	2.65B	2.42B	2.33B	2.46B	2.58B
Cash, Cash Equivalents and Short-Term Investments	325.93M	198.46M	52.80M	126.75M	225.55M
Total Debt	33.55M	805.53M	798.26M	684.30M	664.13M
Total Liabilities	1.52B	1.26B	1.18B	1.32B	1.50B
Stockholders Equity	1.13B	1.16B	1.15B	1.14B	1.08B
Cash Flow
Free Cash Flow	208.56M	172.86M	-9.24M	-48.78M	62.60M
Operating Cash Flow	238.15M	188.39M	193.00K	-40.17M	72.35M
Investing Cash Flow	-106.82M	-42.94M	-14.89M	-10.25M	-1.23B
Financing Cash Flow	-8.97M	8.35M	-64.45M	-48.81M	-761.43M

Perimeter Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRM, the sentiment is Negative. The current price of 23.53 is below the 20-day moving average (MA) of 25.67, below the 50-day MA of 26.92, and above the 200-day MA of 21.84, indicating a neutral trend. The MACD of -0.90 indicates Positive momentum. The RSI at 33.91 is Neutral, neither overbought nor oversold. The STOCH value of 32.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRM.

Perimeter Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUL	63 Neutral	$3.18B	20.94	7.98%	1.54%	-1.30%	-36.69%
KWR	62 Neutral	$2.25B	-964.31	-0.64%	1.37%	0.08%	-107.33%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AVNT	59 Neutral	$3.36B	34.90	3.48%	3.48%	1.03%	-24.57%
CC	54 Neutral	$2.61B	-4.59	-113.20%	4.37%	2.12%	-579.74%
OLN	52 Neutral	$2.70B	―	-2.18%	3.91%	4.68%	-62.80%
PRM	50 Neutral	$3.56B	-7.30	-17.79%	―	19.12%	―

Perimeter Solutions Corporate Events

Perimeter Solutions Completes Acquisition of Medical Manufacturing Technologies

On January 22, 2026, Perimeter Solutions completed its previously announced acquisition of Medical Manufacturing Technologies LLC (MMT) from Arcline Investment Management for approximately $685 million in cash, including certain tax benefits, funded with cash on hand and proceeds from a senior secured notes offering that closed on January 2, 2026. The deal brings into Perimeter’s portfolio a leading provider of highly engineered machinery and associated aftermarket consumables, parts and services used in the production of minimally invasive medical devices, a business in which nearly all revenue comes from proprietary products and roughly half from aftermarket activities, potentially diversifying Perimeter’s revenue base beyond its core fire safety and specialty chemicals operations and deepening its exposure to high-margin, recurring aftermarket demand in the medical technology manufacturing space.

The most recent analyst rating on (PRM) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.

Perimeter Solutions Issues Notes to Finance Strategic Acquisition

On January 2, 2026, Perimeter Holdings, LLC, an indirect wholly owned subsidiary of Perimeter Solutions, Inc., completed a $550 million offering of 6.250% senior secured notes due January 15, 2034, in a private placement exempt from SEC registration, with interest payable semi-annually starting July 15, 2026. The company plans to use the proceeds, along with cash on hand, to fund the acquisition of Medical Manufacturing Technologies, LLC and related transaction costs, with the notes fully and unconditionally guaranteed on a senior secured basis by Perimeter Intermediate, LLC and certain restricted subsidiaries and secured by a first-priority lien on substantially all of their assets; the notes carry customary covenants, redemption features including a mandatory redemption if the MMT deal is not completed by September 9, 2026 or is abandoned, and a change-of-control put right at 101% of principal, underscoring Perimeter’s effort to balance acquisition-driven growth with creditor protections and structured downside safeguards for investors.

The most recent analyst rating on (PRM) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.

Perimeter Solutions Secures New Credit Facility, Ends Lawsuit

On December 19, 2025, Perimeter Holdings, LLC, an indirect subsidiary of Perimeter Solutions, Inc., entered into an amended and restated credit agreement that established a senior secured revolving credit facility of up to $200 million, maturing in 2030 and backed by first-priority liens on substantially all assets of Perimeter Holdings and its guarantor subsidiaries, with features allowing increased commitments tied to EBITDA and leverage-based interest margins. Separately, the company resolved a stockholder class action filed on October 1, 2025, in Delaware Chancery Court challenging the board terms of two directors; after the board in late October 2025 confirmed the directors’ elections and disclosed that they will stand for election at the 2026 annual meeting and annually thereafter, the plaintiff agreed the claims were mooted, and on December 22, 2025, the court closed the case following the company’s agreement to pay $725,000 in attorneys’ fees and expenses, eliminating ongoing litigation risk and related distraction without any admission of wrongdoing.

The most recent analyst rating on (PRM) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.

Perimeter Solutions Announces $550M Notes Offering

On December 15, 2025, Perimeter Solutions announced that its subsidiary, Perimeter Holdings, LLC, plans to offer $550 million in senior secured notes due 2034. The proceeds are intended to fund the acquisition of Medical Manufacturing Technologies LLC, with contingencies in place if the acquisition does not proceed. This move is part of Perimeter Holdings’ strategy to expand its operations and improve its financial structure by amending its revolving credit facility.

The most recent analyst rating on (PRM) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.

Perimeter Solutions to Acquire Medical Manufacturing Technologies

On December 9, 2025, Perimeter Solutions announced a definitive agreement to acquire Medical Manufacturing Technologies LLC (MMT) for $685 million in cash. MMT specializes in machinery and consumables for minimally invasive medical devices, generating significant revenue from proprietary products and aftermarket services. The acquisition aligns with Perimeter’s strategy and is expected to be funded through new debt and cash on hand, closing in the first quarter of 2026. This move is anticipated to enhance Perimeter’s market position by integrating MMT’s growth and operational strengths into its decentralized structure.

The most recent analyst rating on (PRM) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.