Perimeter Solutions reported a full‑year net loss of $206.4 million, while adjusted net income reached $206.7 million on an adjusted EBITDA of $331.7 million. The company posted a diluted loss of $1.37 per share, but an adjusted earnings per share of $0.13, a beat of the consensus range of $0.106 to $0.11. Total revenue for the year was $652.9 million, up 16% from $561.0 million in 2024, and Q4 revenue of $102.8 million exceeded the consensus estimate of $94.99 million.
The Specialty Products segment drove the majority of the growth, with revenue rising 75% year‑over‑year to $44.7 million after the acquisition of add‑on product lines in Q4 2025. Fire Safety net sales fell 4% to $58.1 million, reflecting lower wildfire activity and a modest decline in legacy product demand. The MMT acquisition, completed on January 22 2026, added a new medical‑device manufacturing platform that is expected to contribute recurring revenue and broaden the company’s specialty product portfolio.
Perimeter’s adjusted EPS beat expectations by $0.02 to $0.13, largely because the acquisitions in Specialty Products and the MMT deal increased revenue mix and provided higher‑margin opportunities. Revenue beat the consensus by $7.8 million, driven by strong demand in Specialty Products and a 19% increase in Q4 revenue versus the prior year. The company’s pricing power and efficient cost management helped offset the impact of higher raw‑material costs and the one‑time founders advisory fee expense that drove the GAAP loss.
The GAAP net loss of $206.4 million, compared with a $5.9 million loss in 2024, was driven by a $435.2 million founders advisory fee and the increased leverage from the $685 million MMT acquisition. Adjusted EBITDA margin contracted to 35% from 38% in 2024, reflecting higher operating expenses and the integration costs associated with the new business. The pro‑forma net leverage ratio rose to 3.0x, raising concerns about the company’s debt profile and cash‑flow generation.
The MMT acquisition expands Perimeter’s footprint into the medical‑device manufacturing sector, adding a high‑margin, recurring‑revenue stream that complements its existing specialty product lines. Management expects the combined entity to generate strong free‑cash flow and to benefit from synergies in engineering, supply‑chain, and customer support. The deal also increases the company’s capital intensity, which is reflected in the higher leverage ratio and the need for disciplined capital allocation moving forward.
Investors reacted to the earnings release with a focus on the widening GAAP loss and the elevated leverage resulting from the MMT acquisition. While the company’s adjusted metrics and revenue beat expectations, the negative GAAP loss and margin compression signaled potential headwinds that may affect short‑term cash‑flow and long‑term profitability.
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