Perimeter Group (PRM) investor relations material

Executive summary

• Q3 net sales rose 24% YoY to $389.9M and adjusted EBITDA increased 20% to $223.5M; adjusted diluted EPS was $0.85 versus $0.82.

• Q3 net income was $304.5M versus a $90.7M loss, materially affected by a $239.5M non-cash founder advisory fee credit.

• 9M net sales rose 32% to $728.7M and adjusted EBITDA increased 25% to $370.3M; acquired businesses drove much of the sales growth.

• Operating priorities include decentralized management, operational value drivers, profitable growth, productivity and customer-focused investment.

Financial highlights

• Q3 adjusted net income was $144.3M versus $125.5M; adjusted diluted EPS was $0.85 versus $0.82.

• Q3 GAAP diluted EPS was $1.74 versus a loss of $0.62; 9M net income was $195.8M versus a $66.1M loss, with diluted EPS of $1.14 versus a loss of $0.45.

• 9M adjusted net income was $212.9M versus $186.8M; adjusted diluted EPS was $1.27 versus $1.24.

• Q3 gross profit rose 20% YoY to $238.4M; gross margin was 61.1% versus 63.1%.

• Q3 free cash flow was $150.4M, including $163.1M of operating cash flow less $12.7M of property and equipment purchases.

Outlook and guidance

• Specialty Products Q4 adjusted EBITDA is expected to be modestly below its YTD average quarterly results, despite strength outside PDI.

• PDI will face temporary elevated costs as expanded in-house production and alternate supply sources come online; reliable supply remains the priority.

• Long-term assumptions include annual cash interest of ~$75M, tax-deductible D&A of $60M-$65M, capex of $30M-$40M and a cash tax rate of ~20% or lower.

• 2026 capex is expected at the high end of the $30M-$40M range; working-capital investment is expected to exceed the long-term 10%-15% of revenue growth. Excess fire-retardant inventory is expected to be worked through by Q2 2027.