Perimeter Solutions, Inc. Q1 FY2026 earnings call

Strategy summary - Goal is to provide high-quality products/service and private equity-like returns. Built on three pillars: own exceptional businesses, apply operational value drivers, operate businesses in decentralized manner.### Fire safety operations - Q1 adjusted EBDA 41.2M reflects organic and acquired growth. Successful implementation of operational value drivers. Renewed fire contracts: five-year $500M suppressants agreement with DLA, renewal of retardant contract with CAL FIRE with price increase. National wildfire landscape: U.S. Wildland Fire Service formation benefits existing federal contract.### Specialty product segment - PDI: Sauge, Illinois facility had substantial unplanned downtime, but PDI team blew revenue and adjusted EBITDA slightly year over year. MMT: Integration proceeding smoothly, new product development accelerated, productivity improvements, cultural alignment good. IMS: Acquisitions benefit from resources, team applying operational value drivers to acquired product lines.

Fire safety: Q1 revenue was $45.4 million, up 22% year-over-year, adjusted EBITDA was $18.7 million, nearly double the prior year. Specialty products: Q1 revenue was $79.6 million, an increase of 128% year-over-year, adjusted EBITDA was $22.5 million, up from $8 million in the prior year period. Fire safety's performance was driven by operational value drivers and diversification. Specialty products saw growth from acquisitions and resilience in the base business despite operational headwinds at Flexus-operated facility.

Long-term assumptions - Assumptions unchanged. Annual interest expense ~$75M, first quarter cash interest expense $24.4M including bridge facility commitment for MMT deal. Tax-deductible depreciation and amortization $60 - $65M annually. Cash tax rate ~20% or better. Capital expenditures $30 - $40M per year, first quarter $5.8M. Working capital investment ~10 - 15% of revenue growth. ### Capital allocation - Completed MMT acquisition funded by cash and new debt. Continue organic investment. M&A framework targets businesses meeting criteria. Retain flexibility, modestly levered, ample liquidity. Capital structure disciplined with long-dated fixed-rate debt, net debt to LTM adjusted EBITDA ~3.2 times.

PDI facility - Sarge facility experienced substantial unplanned downtime due to lack of resources, personnel, and operational discipline from One Rock Capital's mismanagement. Legal avenues are being pursued to address this.

Q: Can you talk about the new suppressants contract a bit more?

A: It's us taking share in the suppressant space. We listened to DLA's needs, invested in R&D, CapEx, vendor-managed inventory, packaging, and staffing. Uplift in 2027 expected to be ~$50M above current run rate with DLA. Both contracts have annual price escalators.

Q: On input costs, what protections do you have?

A: Have strong contractual protections, operational team has inventory and is ahead of price changes, no material impact to margins this year.

Q: On preemptive strike strategy, is it an incremental earnings tailwind?

A: Aggressive initial attack can drive more retardant usage, supports growth in air tanker fleet, provides downside protection, reduced variability in EBITDA.Q: On service revenue in fire safety, what's the breakdown and margin?

A: Majority service revenue tied to retardants, includes all service revenue for various contracts. Viewed as a bundled suite with one margin.