Perimeter Solutions, Inc.

Q2 2026 net sales increased 31% year over year to $213.8 million, and adjusted EBITDA rose 16% to $105.6 million. Reported net loss was $181.6 million, or $1.11 per diluted share, versus a net loss of $32.2 million, or $0.22 per diluted share, in Q2 2025. Adjusted net income increased to $59.6 million from $57.1 million, while adjusted diluted EPS was $0.35 versus $0.39 last year. For the first half, net sales increased 44% to $338.9 million and adjusted EBITDA rose 34% to $146.7 million. Fire Safety Q2 revenue increased 7% to $129.1 million and adjusted EBITDA rose to $78.8 million from $77.7 million; Specialty Products revenue doubled to $84.7 million and adjusted EBITDA increased to $26.8 million from $13.7 million. Management said Fire Safety EBITDA would have grown at a double-digit rate excluding the federal pricing step-down and DLA pause, and it expects Q3 to benefit as foam deliveries resume and CAL FIRE pricing offsets part of the federal pressure. Full-year capital expenditures are still expected to be $30 million to $40 million, annual cash interest about $75 million, and cash taxes approximately 20% or better over time. Monaco was acquired for approximately $120 million in cash, and quarter-end leverage was about 3.1x net debt to LTM adjusted EBITDA with approximately $83 million of cash and a fully undrawn $200 million revolver.

Haitham Khouri emphasized that Perimeter is building a portfolio of niche, mission-critical businesses and applying the same operational value-driver playbook across them. His tone was upbeat and confident, especially around Monaco, which he described as fitting Perimeter’s economic criteria and having a strong management team, proprietary differentiation, and recurring aftermarket revenue. He also framed Fire Safety as a long-term growth story supported by rising fire activity, expanding aerial firefighting fleets, and international investment in suppression resources.

Kyle Sable focused on the quarter’s financial mechanics and the company’s capital position. He quantified Q2 sales at $213.8 million, adjusted EBITDA at $105.6 million, adjusted EPS at $0.35, and net loss at $181.6 million, then walked through segment-level drivers: Fire Safety revenue of $129.1 million and EBITDA of $78.8 million, and Specialty Products revenue of $84.7 million and EBITDA of $26.8 million. On cash flow and capital allocation, he reiterated annual cash interest around $75 million, depreciation and amortization of $60 million to $65 million, capex of $30 million to $40 million, cash taxes around 20% or better over time, $83 million of cash at quarter end, and leverage of about 3.1x net debt to LTM adjusted EBITDA. He also said liquidity exceeds $150 million after Monaco, with more room expected in the third quarter as cash generation seasonally improves.

Analysts focused on whether Fire Safety margins could recover in the back half, how quickly the DLA-related suppressants business ramps, and what Monaco can contribute beyond its current installed base. Management said the Q2 margin pressure came from two temporary issues: the federal contract pricing step-down and the pause in DLA foam sales while the company prepared for the new contract; both are expected to ease, with the more substantial DLA ramp coming in 2027. On Monaco, management said the acquisition process was competitive and that the business has low-single-digit industry growth plus meaningful new business opportunities within DoD and other regulated government settings. Questions on Canada centered on the new fleet additions; management said the four retardant-capable aircraft are large air tankers with 3,000- to 4,000-gallon capacity and called them a meaningful long-term fleet expansion.