Recent Insider Transactions Derivative • May 13
CFO & Principal Accounting Officer exercised options and sold US$4.8m worth of stock On the 12th of May, Kyle Sable exercised 200k options at a strike price of around US$3.89 and sold these shares for an average price of US$27.67 per share. This trade did not impact their existing holding. Since September 2025, Kyle has not owned shares directly. Company insiders have collectively sold US$44m more than they bought, via options and on-market transactions in the last 12 months. Price Target Changed • May 11
Price target increased by 14% to US$37.00 Up from US$32.50, the current price target is an average from 2 analysts. New target price is 15% above last closing price of US$32.16. Stock is up 172% over the past year. The company is forecast to post a net loss per share of US$1.26 next year compared to a net loss per share of US$1.37 last year. Live News • May 09
Perimeter Solutions Secures US$500 Million Contract and Faces Operational Challenges at Sauget Facility Perimeter Solutions reports strong Q1 2026 performance, citing operational value drivers and diversified earnings streams.
The company secured a milestone $500m contract with the U.S. Defense Logistics Agency, with management expecting revenue impact to begin in late 2026 and reach about $50m in 2027.
Management highlights operational headwinds at the Sauget facility tied to the controlling owner Flexsys, and is pursuing legal action aimed at restoring operating discipline and safety standards.
For you as an investor, a key takeaway is the mix of growth opportunity and operational friction. The $500m Defense Logistics Agency contract signals meaningful future business for Perimeter Solutions, although management only expects it to affect results from late 2026, with an estimated $50m revenue uplift in 2027. That timing detail matters if you are considering how quickly new contracts might influence reported financials.
At the same time, the Sauget facility issues indicate that not everything is running smoothly across the asset base. Management’s decision to pursue legal remedies suggests an active approach to operational control and safety concerns, but it also introduces uncertainty around potential costs, timelines and outcomes. Overall, the update highlights the company’s focus on niche market positioning while it balances growth initiatives with efforts to improve execution at problem assets. Price Target Changed • May 07
Price target increased by 13% to US$34.50 Up from US$30.50, the current price target is an average from 2 analysts. New target price is 18% above last closing price of US$29.36. Stock is up 149% over the past year. The company is forecast to post a net loss per share of US$1.26 next year compared to a net loss per share of US$1.37 last year. Reported Earnings • May 07
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: US$0.47 (up from US$0.38 in 1Q 2025). Revenue: US$125.1m (up 74% from 1Q 2025). Net income: US$72.9m (up 29% from 1Q 2025). Profit margin: 58% (down from 79% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Chemicals industry in the US. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has increased by 55% per year, which means it is well ahead of earnings. Announcement • Apr 22
Perimeter Solutions, Inc. to Report Q1, 2026 Results on May 06, 2026 Perimeter Solutions, Inc. announced that they will report Q1, 2026 results Pre-Market on May 06, 2026 Announcement • Apr 21
Perimeter Solutions, Inc., Annual General Meeting, May 28, 2026 Perimeter Solutions, Inc., Annual General Meeting, May 28, 2026. Recent Insider Transactions • Mar 08
Co-Chairman of the Board recently sold US$7.8m worth of stock On the 6th of March, William Thorndike sold around 325k shares on-market at roughly US$24.00 per share. This transaction amounted to 3.5% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was William's only on-market trade for the last 12 months. Price Target Changed • Mar 05
Price target decreased by 7.6% to US$30.50 Down from US$33.00, the current price target is an average from 2 analysts. New target price is 25% above last closing price of US$24.33. Stock is up 155% over the past year. The company is forecast to post a net loss per share of US$1.28 next year compared to a net loss per share of US$1.37 last year. Reported Earnings • Feb 27
Third quarter 2025 earnings released: US$0.62 loss per share (vs US$0.61 loss in 3Q 2024) Third quarter 2025 results: US$0.62 loss per share (further deteriorated from US$0.61 loss in 3Q 2024). Revenue: US$315.4m (up 9.4% from 3Q 2024). Net loss: US$90.7m (loss widened 1.7% from 3Q 2024). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Chemicals industry in the US. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Feb 26
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to US$23.50. The fair value is estimated to be US$29.99, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 25% over the last 3 years. Meanwhile, the company has become profitable. Announcement • Feb 13
Perimeter Solutions, Inc. to Report Q4, 2025 Results on Feb 26, 2026 Perimeter Solutions, Inc. announced that they will report Q4, 2025 results Pre-Market on Feb 26, 2026 Announcement • Jan 01
Perimeter Solutions, Inc. Provides an Update on Stockholder Class Action Lawsuit On October 1, 2025, Plaintiff Bruce Taylor (“Plaintiff”), a purported stockholder of Perimeter filed a putative class action complaint (“Complaint”) in the Court of Chancery of the State of Delaware (“Court”) against the Company and two members of Board of Directors, Haitham Khouri, and Vivek Raj (the “Director Defendants” and collectively, with the Company, the “Defendants”) under the caption Taylor v. Perimeter Solutions, Inc., C.A. No. 2025-1118-JTL (the “Action”). Plaintiff alleged that Defendants breached the Company’s certificate of incorporation and violated Section 141 of the Delaware General Corporation Law by permitting the Director Defendants to serve as directors until 2027 without standing for annual elections. The Defendants believe that the allegations of the Complaint were meritless, deny those allegations, and deny that any violation of applicable law has occurred. Solely to minimize expenses and distraction and to avoid the uncertainty of any litigation, however, on October 29, 2025, Perimeter’s Board of Directors adopted resolutions approving or confirming, as applicable, the election of the Director Defendants (including to any vacancies on the Board of Directors). On October 30, 2025, the Company filed a Form 10-Q disclosing that the Director Defendants will stand for election at the 2026 annual meeting and annually thereafter. Plaintiff agreed that these actions (the “Mooting Actions”) mooted his claims. On November 7, 2025, the parties entered into a proposed Stipulation and Order Dismissing the Action as Moot and Retaining Jurisdiction to Determine Plaintiff’s Counsel’s Application for an Award of Attorneys’ Fees and Expenses (the “Stipulation and Proposed Order”), pursuant to which the Court would retain jurisdiction regarding any application Plaintiff might make for an award of attorneys’ fees, which the Court entered. The Court retained jurisdiction to approve a form of notice concerning attorneys’ fees payable to Plaintiff in connection with the Mooting Actions. Following negotiation among the parties, with the intent to avoid further litigation and legal costs, and not as an admission of any of the Plaintiff’s claims, the Company subsequently agreed to pay $725,000 in attorneys’ fees and expenses in full satisfaction of any and all claims by Plaintiff and all of his counsel for fees and expenses in the Action. On December 22, 2025, the Court entered an order closing the Action, subject to the Company filing an affidavit with the Court confirming that this notice has been issued. In entering the order, the Court was not asked to review, and did not pass judgment on, the payment of the attorneys’ fees and expenses or their reasonableness. Recent Insider Transactions Derivative • Dec 14
General Counsel notifies of intention to sell stock Noriko Yokozuka intends to sell 138k shares in the next 90 days after lodging an Intent To Sell Form on the 12th of December. If the sale is conducted around the recent share price of US$28.44, it would amount to US$3.9m. Since March 2025, Noriko has owned 47.16k shares directly. Company insiders have collectively sold US$13m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Nov 02
Vice-Chairman notifies of intention to sell stock Edward Goldberg intends to sell 736k shares in the next 90 days after lodging an Intent To Sell Form on the 31st of October. If the sale is conducted around the recent share price of US$23.64, it would amount to US$17m. Since March 2025, Edward has owned 222.96k shares directly. Company insiders have collectively sold US$15m more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Oct 31
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: US$0.62 loss per share (further deteriorated from US$0.61 loss in 3Q 2024). Revenue: US$315.4m (up 9.4% from 3Q 2024). Net loss: US$90.7m (loss widened 1.7% from 3Q 2024). Revenue exceeded analyst estimates by 32%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 1.4% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Chemicals industry in the US. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to US$25.85, the stock trades at a forward P/E ratio of 73x. Average forward P/E is 16x in the Chemicals industry in the US. Total returns to shareholders of 261% over the past three years. Announcement • Oct 17
Perimeter Solutions, Inc. to Report Q3, 2025 Results on Oct 30, 2025 Perimeter Solutions, Inc. announced that they will report Q3, 2025 results at 9:30 AM, US Eastern Standard Time on Oct 30, 2025 Recent Insider Transactions • Sep 16
Independent Director recently sold US$561k worth of stock On the 11th of September, Vivek Raj sold around 25k shares on-market at roughly US$22.45 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$11m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Sep 05
President of Fire Safety notifies of intention to sell stock Jeffrey Emery intends to sell 300k shares in the next 90 days after lodging an Intent To Sell Form on the 4th of September. If the sale is conducted around the recent share price of US$22.28, it would amount to US$6.7m. Since March 2025, Jeffrey has not owned shares directly (This sale likely refers to shares that have not yet been received). Company insiders have collectively sold US$9.3m more than they bought, via options and on-market transactions in the last 12 months. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$21.53, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 17x in the Chemicals industry in the US. Total returns to shareholders of 112% over the past three years. Price Target Changed • Aug 25
Price target increased by 24% to US$23.00 Up from US$18.50, the current price target is an average from 2 analysts. New target price is 8.4% above last closing price of US$21.21. Stock is up 86% over the past year. The company is forecast to post earnings per share of US$1.02 next year compared to a net loss per share of US$0.041 last year. Reported Earnings • Aug 08
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: US$0.22 loss per share (down from US$0.15 profit in 2Q 2024). Revenue: US$162.6m (up 28% from 2Q 2024). Net loss: US$32.2m (down 249% from profit in 2Q 2024). Revenue exceeded analyst estimates by 16%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to stay flat during the next 3 years compared to a 4.5% growth forecast for the Chemicals industry in the US. Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Jul 30
Perimeter Solutions, Inc. to Report Q2, 2025 Results on Aug 07, 2025 Perimeter Solutions, Inc. announced that they will report Q2, 2025 results Pre-Market on Aug 07, 2025 Price Target Changed • Jul 09
Price target increased by 16% to US$18.50 Up from US$16.00, the current price target is an average from 2 analysts. New target price is 16% above last closing price of US$15.91. Stock is up 105% over the past year. The company is forecast to post earnings per share of US$1.39 next year compared to a net loss per share of US$0.041 last year. Recent Insider Transactions • May 16
Independent Director recently sold US$1.2m worth of stock On the 15th of May, Vivek Raj sold around 102k shares on-market at roughly US$11.93 per share. This transaction amounted to 22% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth US$2.3m. Insiders have been net sellers, collectively disposing of US$7.0m more than they bought in the last 12 months. Recent Insider Transactions Derivative • May 14
Independent Director notifies of intention to sell stock Vivek Raj intends to sell 450k shares in the next 90 days after lodging an Intent To Sell Form on the 13th of May. If the sale is conducted around the recent share price of US$11.82, it would amount to US$5.3m. Since September 2024, Vivek's direct individual holding has decreased from 717.91k shares to 471.23k. Company insiders have collectively sold US$4.3m more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • May 09
First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2025 results: EPS: US$0.38 (up from US$0.57 loss in 1Q 2024). Revenue: US$72.0m (up 22% from 1Q 2024). Net income: US$56.7m (up US$139.2m from 1Q 2024). Profit margin: 79% (up from net loss in 1Q 2024). The move to profitability was primarily driven by lower expenses. Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to stay flat during the next 3 years compared to a 4.2% growth forecast for the Chemicals industry in the US. Over the last 3 years on average, earnings per share has increased by 107% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Board Change • May 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 9 experienced directors. No highly experienced directors. Independent Director Jorge Valladares was the last director to join the board, commencing their role in 2024. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • May 01
Perimeter Solutions, Inc. to Report Q1, 2025 Results on May 08, 2025 Perimeter Solutions, Inc. announced that they will report Q1, 2025 results Pre-Market on May 08, 2025 Announcement • Apr 21
Perimeter Solutions, Inc., Annual General Meeting, May 29, 2025 Perimeter Solutions, Inc., Annual General Meeting, May 29, 2025. Announcement • Apr 10
Perimeter Solutions Gives Firefighters A Tactical Advantage in Fire Suppression with SOLBERG SPARTAN Class A/B Foam Perimeter Solutions kicked off the opening of FDIC 2025 by announcing SOLBERG SPARTAN™? 1% Fluorine-Free Class A/B Foam Concentrate. This foam technology was designed to give firefighters a tactical advantage to achieve total fire suppression on structure, wildland, vehicle, gasoline, and dumpster fires. Engineered for rapid knockdown, SOLBERG SPARTAN also cuts water demand by 40%, helping firefighters to maximize every drop, while reducing strain on critical resources and allowing crews to operate more efficiently. It is compatible with conventional firefighting equipment, such as inline eductors, self-inducting nozzles, low-exp expansion non-air aspirating and air aspirating nozzles, monitors, medium-expansion foam devices, and compressed air foam systems (CAFS). With similar viscosity to Class A foam, SOLBERG SPARTan is also compatible with onboard proportioning systems. SOLBERG SPARTAN enters the market with three key certifications: UL 162/ULC S654 Listed - 1% for Class B Hydrocarbon Non-Water Miscible Fuel Fires; UL/ULC Classified - 0.1% for Class A fires and 0.25% for Class B Non-Water Miscible Fires; Class A Wetting Agent in accordance with ANSI/NFPA 18. Recent Insider Transactions • Mar 18
Independent Director recently sold US$2.3m worth of stock On the 14th of March, Vivek Raj sold around 250k shares on-market at roughly US$9.17 per share. This transaction amounted to 35% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$5.8m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Mar 16
Independent Director notifies of intention to sell stock Vivek Raj intends to sell 250k shares in the next 90 days after lodging an Intent To Sell Form on the 14th of March. If the sale is conducted around the recent share price of US$9.03, it would amount to US$2.3m. Since March 2024, Vivek's direct individual holding has increased from 717.91k shares to 721.23k. Company insiders have collectively sold US$2.0m more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Feb 20
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: US$0.041 loss per share (down from US$0.44 profit in FY 2023). Revenue: US$561.0m (up 74% from FY 2023). Net loss: US$5.91m (down 109% from profit in FY 2023). Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) missed analyst estimates. Revenue is expected to decline by 2.4% p.a. on average during the next 2 years, while revenues in the Chemicals industry in the US are expected to grow by 4.4%. Over the last 3 years on average, earnings per share has increased by 112% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Feb 07
Perimeter Solutions, Inc. to Report Q4, 2024 Results on Feb 20, 2025 Perimeter Solutions, Inc. announced that they will report Q4, 2024 results Pre-Market on Feb 20, 2025 Recent Insider Transactions • Nov 26
Independent Director recently sold US$641k worth of stock On the 22nd of November, Tracy Cool sold around 50k shares on-market at roughly US$12.81 per share. This transaction amounted to 22% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth US$3.2m. Insiders have been net sellers, collectively disposing of US$3.5m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Nov 24
Independent Director notifies of intention to sell stock Tracy Cool intends to sell 50k shares in the next 90 days after lodging an Intent To Sell Form on the 22nd of November. If the sale is conducted around the recent share price of US$12.81, it would amount to US$640k. Since March 2024, Tracy's direct individual holding has increased from 229.33k shares to 229.65k. Company insiders have collectively sold US$1.4m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Nov 17
CEO & Director recently sold US$3.2m worth of stock On the 15th of November, Haitham Khouri sold around 260k shares on-market at roughly US$12.13 per share. This transaction amounted to 15% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Haitham's only on-market trade for the last 12 months. Price Target Changed • Nov 13
Price target increased by 10% to US$16.00 Up from US$14.50, the current price target is an average from 2 analysts. New target price is 32% above last closing price of US$12.10. Stock is up 185% over the past year. The company is forecast to post earnings per share of US$0.67 for next year compared to US$0.44 last year. Recent Insider Transactions Derivative • Nov 11
Co-Chairman of the Board exercised options to buy US$1.8m worth of stock. On the 6th of November, William Thorndike exercised options to buy 125k shares at a strike price of around US$12.00, costing a total of US$1.5m. This transaction amounted to 3.7% of their direct individual holding at the time of the trade. Since March 2024, William's direct individual holding has increased from 3.41m shares to 3.53m. Company insiders have collectively bought US$1.8m more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Oct 23
Perimeter Solutions, SA to Report Q3, 2024 Results on Nov 12, 2024 Perimeter Solutions, SA announced that they will report Q3, 2024 results Pre-Market on Nov 12, 2024 Price Target Changed • Aug 06
Price target increased by 14% to US$11.38 Up from US$10.00, the current price target is an average from 2 analysts. New target price is 12% above last closing price of US$10.20. Stock is up 77% over the past year. The company is forecast to post earnings per share of US$0.14 for next year compared to US$0.44 last year. Reported Earnings • Aug 02
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: US$0.15 (down from US$0.33 in 2Q 2023). Revenue: US$127.3m (up 67% from 2Q 2023). Net income: US$21.7m (down 58% from 2Q 2023). Profit margin: 17% (down from 68% in 2Q 2023). Revenue exceeded analyst estimates by 45%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Chemicals industry in the US. Announcement • Jul 18
Perimeter Solutions, SA to Report Q2, 2024 Results on Aug 01, 2024 Perimeter Solutions, SA announced that they will report Q2, 2024 results at 9:30 AM, US Eastern Standard Time on Aug 01, 2024 Recent Insider Transactions • Jun 14
Independent Director recently bought US$300k worth of stock On the 11th of June, Jorge Valladares bought around 42k shares on-market at roughly US$7.15 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • May 09
First quarter 2024 earnings released: US$0.57 loss per share (vs US$0.06 profit in 1Q 2023) First quarter 2024 results: US$0.57 loss per share (down from US$0.06 profit in 1Q 2023). Revenue: US$59.0m (up 35% from 1Q 2023). Net loss: US$82.6m (down US$92.0m from profit in 1Q 2023). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Chemicals industry in the US. Announcement • May 03
Perimeter Solutions, SA to Report Q1, 2024 Results on May 09, 2024 Perimeter Solutions, SA announced that they will report Q1, 2024 results Pre-Market on May 09, 2024 Price Target Changed • Apr 18
Price target increased by 25% to US$10.00 Up from US$8.00, the current price target is an average from 2 analysts. New target price is 43% above last closing price of US$6.99. Stock is down 5.5% over the past year. The company is forecast to post earnings per share of US$0.21 for next year compared to US$0.44 last year. Announcement • Apr 13
Perimeter Solutions, SA, Annual General Meeting, May 23, 2024 Perimeter Solutions, SA, Annual General Meeting, May 23, 2024, at 14:00 Central European Standard Time. Location: offices of Maples and Calder (Luxembourg) SARL 12E, rue Guillaume Kroll Luxebourg Luxembourg Agenda: To elect as directors the eight nominees as set forth in the accompanying Proxy Statement with terms expiring at the 2025 Annual Meeting of Shareholders, or until their respective successors are elected and qualified; to approve, on an advisory basis, the compensation of our named executive officers ( Say on Pay"); to approve the appointment of KPMG LLP as the independent registered public accounting firm of the Company for the year ending December 31, 2024, and KPMG Audit S.r.l. as the statutory auditor of the Company for the year ending December 31, 2024; and to consider other matters. Price Target Changed • Apr 08
Price target increased by 9.7% to US$8.50 Up from US$7.75, the current price target is an average from 2 analysts. New target price is 13% above last closing price of US$7.51. Stock is up 1.3% over the past year. The company is forecast to post earnings per share of US$0.21 for next year compared to US$0.44 last year. Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to US$7.21, the stock trades at a forward P/E ratio of 43x. Average forward P/E is 17x in the Chemicals industry in the US. Total loss to shareholders of 7.1% over the past year. Price Target Changed • Feb 28
Price target increased by 15% to US$7.75 Up from US$6.75, the current price target is an average from 2 analysts. New target price is 30% above last closing price of US$5.98. Stock is down 31% over the past year. The company is forecast to post earnings per share of US$0.17 for next year compared to US$0.44 last year. Reported Earnings • Feb 23
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: US$0.44 (down from US$0.57 in FY 2022). Revenue: US$322.1m (down 11% from FY 2022). Net income: US$67.5m (down 27% from FY 2022). Profit margin: 21% (down from 26% in FY 2022). Revenue exceeded analyst estimates by 6.0%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals industry in the US. Announcement • Feb 15
Perimeter Solutions, SA to Report Q4, 2023 Results on Feb 22, 2024 Perimeter Solutions, SA announced that they will report Q4, 2023 results Pre-Market on Feb 22, 2024 Announcement • Nov 18
Perimeter Solutions, SA Announces CFO Changes Pursuant to a mutual agreement with Perimeter Solutions, SA (the “Company”), Charles Kropp will no longer serve as Chief Financial Officer or Principal Accounting Officer of the Company effective November 16, 2023. Kyle Sable, 42, will be promoted to Chief Financial Officer (and Principal Accounting Officer), effective upon Mr. Kropp’s departure. Since May 2022, Mr. Sable has served as Vice President, Strategy and Corporate Development for the Company, and has been responsible for leading mergers & acquisitions, capital markets, and strategy activities. Prior to joining the Company, Mr. Sable served as a Principal for Banbury Partners from April 2014 until September 2021, an investment fund based in Charlotte, North Carolina. Mr. Sable has more than 20 years of investing and strategy experience in private and public companies across several Tiger Management-heritage investment funds, Bain Capital and Bain & Company. Mr. Sable holds a Bachelor of Business Administration with High Distinction from the University of Michigan and a Master of Business Administration with Distinction from Harvard Business School. Valuation Update With 7 Day Price Move • Nov 16
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to US$4.25, the stock trades at a trailing P/E ratio of 31.9x. Average forward P/E is 16x in the Chemicals industry in the US. Total loss to shareholders of 56% over the past year. Reported Earnings • Nov 11
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: US$0.13 (down from US$0.48 in 3Q 2022). Revenue: US$142.7m (down 11% from 3Q 2022). Net income: US$19.3m (down 76% from 3Q 2022). Profit margin: 14% (down from 49% in 3Q 2022). Revenue missed analyst estimates by 5.0%. Earnings per share (EPS) also missed analyst estimates by 27%. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in the US. Announcement • Nov 04
Perimeter Solutions, SA to Report Q3, 2023 Results on Nov 09, 2023 Perimeter Solutions, SA announced that they will report Q3, 2023 results Pre-Market on Nov 09, 2023 Valuation Update With 7 Day Price Move • Oct 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$4.07, the stock trades at a trailing P/E ratio of 5.9x. Average forward P/E is 13x in the Chemicals industry in the US. Total loss to shareholders of 46% over the past year. Reported Earnings • Aug 03
Second quarter 2023 earnings released: EPS: US$0.33 (vs US$0.044 in 2Q 2022) Second quarter 2023 results: EPS: US$0.33 (up from US$0.044 in 2Q 2022). Revenue: US$76.1m (down 25% from 2Q 2022). Net income: US$52.0m (up US$44.8m from 2Q 2022). Profit margin: 68% (up from 7.2% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Chemicals industry in the US. Announcement • Jul 25
Perimeter Solutions, SA to Report Q2, 2023 Results on Aug 03, 2023 Perimeter Solutions, SA announced that they will report Q2, 2023 results Pre-Market on Aug 03, 2023 Price Target Changed • Jul 12
Price target decreased by 17% to US$9.50 Down from US$11.50, the current price target is an average from 2 analysts. New target price is 73% above last closing price of US$5.50. Stock is down 46% over the past year. The company is forecast to post a net loss per share of US$0.24 compared to earnings per share of US$0.57 last year. Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to US$7.00, the stock trades at a forward P/E ratio of 71x. Average forward P/E is 13x in the Chemicals industry in the US. Total loss to shareholders of 41% over the past year. Reported Earnings • May 11
First quarter 2023 earnings released: EPS: US$0.06 (vs US$0.24 in 1Q 2022) First quarter 2023 results: EPS: US$0.06 (down from US$0.24 in 1Q 2022). Revenue: US$43.9m (down 24% from 1Q 2022). Net income: US$9.43m (down 75% from 1Q 2022). Profit margin: 22% (down from 66% in 1Q 2022). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Chemicals industry in the US. Price Target Changed • Apr 19
Price target decreased by 12% to US$11.50 Down from US$13.00, the current price target is an average from 2 analysts. New target price is 54% above last closing price of US$7.47. Stock is down 33% over the past year. The company is forecast to post earnings per share of US$0.061 for next year compared to US$0.57 last year. Reported Earnings • Mar 03
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: US$0.57 (up from US$9.71 loss in FY 2021). Revenue: US$360.5m (flat on FY 2021). Net income: US$91.8m (up US$753.3m from FY 2021). Profit margin: 26% (up from net loss in FY 2021). Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) exceeded analyst estimates by 162%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Chemicals industry in the US. Seeking Alpha • Feb 18
Tourlite Capital - Perimeter Solutions: Checks All Our Boxes For An Investment Summary
Perimeter Solutions is a significant position in the fund which experienced an ~50% drawdown since we made our initial investment.
Perimeter’s shares sold off over 10%.
Based on our 2023 projections, at the current share price of around $9, Perimeter is trading around a 6% free cash flow yield.
We see a path to near $1 per share of free cash flow by 2025.
The following segment was excerpted from this fund letter.
Perimeter Solutions (PRM)
Perimeter is the sole qualified provider of aerial fire retardant for many applications. This mission critical product represents a small portion of its customers’ spend, and revenue is recurring in nature as long-term secular tailwinds (growth in number and size of fires) support growth. Perimeter is led by what we consider to be an experienced, best-in-class, capital allocation focused management team.
Perimeter checks our boxes for an investment. It is a market leader in a growing market, strong cash flow generation and return on capital, talented management team, trading at an attractive valuation.
On December 12th, Morgan Stanley published a note from management’s road show:
“PRM's major competitive moat in its core market remains its greatest value proposition — and the greatest investor debate… Near term, it seems likely that Fortress (the potential entrant) will reach full qualification for usage by the US Forest Service in 2023. However, this will likely carry more headline than practical risk. The real point of contention is whether it is logistically efficient for firefighting agencies to use multiple, non-compatible fire-retardant solutions.”
Perimeter’s shares sold off over 10%. We agree that the risk is more in the headline than risk to the underlying business and market share.
We believe there are a few reasons the stock continues to trade where it does today:
1. Concern over the approval of a potential competitor's product for aerial use
The risk of a competitor taking market share is unlikely. Perimeter is currently the only supplier with USDA approval. While it is likely Fortress will be approved in the near-term, Perimeter’s infrastructure and integration into the supply chain provides a lasting competitive advantage to help maintain market share. This, combined with the fact that Perimeter’s product represents only ~3% of customers suppression spend, makes it challenging and unlikely for Federal and State agencies to switch providers.
2. Variability in earnings as a result of variation in fire season
We understand fire seasons are not perfectly linear but the overall trend in acres burned continues to support unit growth. We believe there was some misunderstanding of the fire suppression market this year. This year’s fire season had a large number of acres burned in Alaska. Since fire retardants are not often used in remote locations where the fire is not a threat to humans or infrastructure, this did not provide support to Perimeters volumes.
3. Some investors are turned away by unique compensation structure
In our view, if it’s a clearly defined plan and you can model it out, you can account for it going forward. We like a management team that is paid to perform and has skin in the game.
Revenue should be able to compound around 10% from a combination of increased volumes and mid-single digit price increases. Volume growth will be fueled by continued increases in acres burned, larger fires, and further stretched out fire seasons. Outside of its North American Fire business, additional growth should come from underpenetrated international markets and the Specialty Products segment. International is currently around 20% of revenues and gaining traction. The second leg of Perimeter, which gets less focus and represents 1/3rd of revenues, is Specialty Products which, as of the third quarter, has grown year-over-year revenues 40% and has more than doubled EBITDA. Announcement • Jan 19
Ernest Kremling to Leave Perimeter Solutions, SA as Chief Operating Officer In connection with the operational realignment of Perimeter Solutions, SA (the “Company”), which is designed to drive localized operational execution and accountability, the corporate role of Chief Operating Officer has been eliminated and Ernest Kremling, Chief Operating Officer, has left the company effective January 13, 2023. Recent Insider Transactions Derivative • Dec 09
Vice Chairman & Director notifies of intention to sell stock Haitham Khouri intends to sell 370k shares in the next 90 days after lodging an Intent To Sell Form on the 2nd of December. If the sale is conducted around the recent share price of US$11.04, it would amount to US$4.1m. Since June 2022, Haitham's direct individual holding has decreased from 1.41m shares to 1.22m. Company insiders have collectively sold US$1.9m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Dec 08
Vice Chairman & Director recently sold US$2.0m worth of stock On the 6th of December, Haitham Khouri sold around 188k shares on-market at roughly US$10.59 per share. This transaction amounted to 13% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$1.9m more than they bought in the last 12 months. Board Change • Nov 16
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. No experienced directors. No highly experienced directors. Independent Director Vivek Raj is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 05
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: US$0.48. Revenue: US$160.5m (down 18% from 3Q 2021). Net income: US$78.7m (up 51% from 3Q 2021). Profit margin: 49% (up from 27% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates significantly. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Chemicals industry in the US.