Perimeter Group Turns Third-Quarter Loss Into Profit

The Tip Desk · November 11, 2026 · 3 min read

Net income was $304.5 million, or $1.74 a share, after a $90.7 million loss a year earlier, as sales reached $389.9 million.

Perimeter Group Inc. (PRM), a provider of industrial products and services for niche applications, reported third-quarter net income of $304.5 million, or $1.74 a share, after a net loss of $90.7 million, or $0.62 a share, in the year-earlier quarter.

The swing was driven by a related-party founders advisory fee recorded as income. Founders advisory fees were a $239.5 million credit in the three months ended September 30, 2026, versus a $247.7 million expense a year earlier. Operating income was $416.5 million.

On a non-GAAP basis the company’s earnings were far more modest. Adjusted net income was $144.3 million, and adjusted earnings were $0.85 a share, compared with $0.82 a share a year earlier. Adjusted EBITDA rose 20% to $223.5 million from $186.3 million.

Net sales increased 24% to $389.9 million from $315.4 million. Fire Safety net sales rose 14% to $312.6 million from $273.4 million. Specialty Products net sales increased 84% to $77.3 million from $42.0 million.

Fire Safety segment adjusted EBITDA rose 14% to $201.6 million from $177.2 million. Specialty Products segment adjusted EBITDA increased 140% to $21.9 million from $9.1 million. The company said continued value-driver execution and recent acquisitions drove third-quarter adjusted EBITDA.

The company completed its name change from Perimeter Solutions, Inc. It comprises six businesses across two reporting segments: Fire Safety (Perimeter Solutions, Solberg Fire, and Monaco Enterprises) and Specialty Products (Phosphorus Derivatives Inc., Medical Manufacturing Technologies, and Intelligent Manufacturing Solutions).

On July 30, 2026, Perimeter completed the acquisition of Monaco Enterprises, Inc. for a total cash purchase price, net of cash acquired, of $117.1 million, funded with cash on hand and proceeds from existing credit facilities. The company invested $12.7 million in capital expenditures during the quarter ended September 30, 2026.

Cash and cash equivalents were $115.9 million at September 30, 2026, compared with $325.9 million at December 31, 2025. Long-term debt, net, was $1.21 billion at September 30, 2026, compared with $669.1 million at year-end 2025. Goodwill was $1.43 billion and intangible assets, net, were $1.25 billion.

For the nine months ended September 30, 2026, net sales increased 32% to $728.7 million from $550.1 million. Fire Safety net sales rose 13% to $487.0 million from $430.8 million, and Specialty Products net sales increased 103% to $241.7 million from $119.3 million. Net income for the nine-month period was $195.8 million, or $1.14 a share, compared with a net loss of $66.1 million, or $0.45 a share, a year earlier. Adjusted earnings were $1.27 a share versus $1.24 a share. Adjusted EBITDA increased 25% to $370.3 million from $295.7 million.

Fire Safety segment adjusted EBITDA for the nine months rose 13% to $299.1 million from $265.0 million. Specialty Products segment adjusted EBITDA increased 131% to $71.2 million from $30.7 million.

In the third quarter, non-recurring expenses included $1.8 million related to restructuring and other non-recurring costs and $1.0 million related to litigation costs arising from a contractual dispute. Purchase accounting on inventory step-up added $3.7 million, primarily in Specialty Products. Interest expense, net, was $20.4 million in the quarter, compared with $9.9 million a year earlier.

The company said it reinvests in its businesses and expects to continue growing organically and through value-creating acquisitions.