Perimeter Solutions (PRM) Q4 2024 earnings summary

Executive summary

• Achieved FY 2024 revenue of $561.0M and Adjusted EBITDA of $280.3M, with a margin of ~50%, driven by strong Fire Safety and Specialty Products growth and operational improvements.

• Adjusted EBITDA nearly tripled over three years, reflecting a 26% CAGR and margin expansion of 1,100 basis points.

• Maintains market leadership in fire retardants, suppressants, and specialty products, focusing on high-barrier, mission-critical markets.

• Responded effectively to major wildfires in Southern California, demonstrating operational preparedness.

• Capital allocation targets private-equity-like returns (15%+) with public market liquidity.

Financial highlights

• FY 2024 consolidated revenue rose 74% to $561M; Adjusted EBITDA up 190% to $280.3M; Adjusted EBITDA margin reached 50%.

• Q4 2024 revenue increased 45% to $86.2M; Q4 Adjusted EBITDA up 193% to $32.9M.

• Q4 GAAP EPS was $0.90; Adjusted EPS was $0.13. Full-year GAAP loss per share was $0.04; Adjusted EPS was $1.11.

• Generated $172.9M in free cash flow and $188.4M in operating cash flow for 2024.

• Year-end cash and cash equivalents were $198.5M, with an undrawn $100M revolver.

Outlook and guidance

• CapEx assumption raised to $15–$20M annually, mainly for Fire Safety; expect 10% annual working capital increase tied to revenue growth.

• Anticipate cash taxes to be 20–25% of Adjusted EBITDA after D&A and interest expense, benefiting from improved tax profile post-redomiciliation.

• Expects mid- to high-single digit volume growth in Fire Retardants and expansion of fluorine-free installed base.

• Normalized U.S. wildfire season framework projects 6-7M acres burned ex-Alaska, supporting stable demand.

• M&A remains a high priority for capital deployment, with active search for targets.