Perimeter Solutions, S.A. Q4 FY2025 earnings call

• Structural earnings power expansion: 2025 results show sustainability of higher earnings power, direct result of operational value drivers. - Financial consistency: Change in retardant contract structures from volume-based to fixed/recurring, reducing sensitivity to fire season volatility; growth in international retardant and non-retardant businesses. - M&A: 2025 established M&A strategy with acquisitions of IMS and NMT. Fire safety: Won profitable new business, realized productivity benefits, increased customer value proposition; contracts shifted to fixed/recurring. Specialty products: IMS executed on strategy with product line acquisitions; DDI faced operational and safety challenges at Flexis-operated facility; MMT aligns with operational value driver strategy with specific attributes.

Fire safety: Full year revenue totaled $488.9 million, up 12%; adjusted EBITDA was $290.5 million, up 21%. Fourth quarter revenue was $58.1 million, down 4%; adjusted EBITDA was $25.5 million, down 6%. Specialty products: Revenue for the year reached $163.9 million, up 31% (driven by acquisitions); fourth quarter revenue was $44.6 million, up 75%. Full-year adjusted EBITDA for specialty products rose to $41.2 million, up 3%; fourth quarter increased to $10.4 million, up 85%. MMT: Recorded approximately $140 million in revenue and $50 million in adjusted EBDA in 2025. If acquired Jan 1, 2025, would have contributed ~$140M revenue and $50M adjusted EBITDA.

• Expect annual interest expense to be approximately $75 million driven by MMT acquisition funding. - Tax deductible depreciation, amortization, and other items expected to be $60 to $75 million annually. - Capital expenditures expected to run $30 to $40 million per year. - Working capital needs fluctuate seasonally, with annual change in working capital expected to be ~10% to 15% of revenue growth. - Priorities: Execute on customer commitment, integrate MMT and apply operational value drivers across portfolio, remain disciplined allocators of capital.

• P2S5 business: Operational and safety challenges at Flexis-operated Saget facility under One Rock's ownership, including unplanned downtime, recurring safety incidents; refusal to permit assumption of operation; ongoing variability in P2S5 business until control is regained.

Q: Josh Spector asked about fixed vs variable mix in fire retardants, metrics for driving volumes, and accretion of $40 million cash deployment into electro-optical assets.

A: Reluctant to break out fixed-variable split, but cash flows more predictable; best metric for volumes is US and North American acres burned; IRRs on IMS product line acquisitions are attractive.

Q: Dan Cutts asked about stack ranking growth prospects across product lines, opportunities in MMT's OEM vs aftermarket, and trends in international retardant.

A: Hesitate to stack rank, but all product lines have solid organic growth; all three operational value drivers applicable to MMT; won't comment on intra-quarter international retardant trends but see long-term secular growth drivers intact.