Perimeter Solutions, Inc. (PRM) · Nov 5, 2026 · Earnings
Miss — Adjusted EPS $0.85 vs ~$0.96 consensus
Perimeter Group’s Q3 earnings delivered a revenue beat, but adjusted EPS missed consensus. Strong segment EBITDA came with heavier debt, dilution and weaker cash conversion.
Perimeter is in the middle of an acquisition-led shift from a fire-safety-heavy business into a broader industrial platform, with Monaco added to Fire Safety and earlier acquisitions expanding Specialty Products. The market was looking for roughly $381.5 million of Q3 revenue and $0.96 of adjusted EPS; revenue cleared that bar, but earnings did not.
Top-line execution was better than expected. Q3 net sales rose 23.6% year over year to $389.9 million, about $8.4 million above published consensus, while total Segment Adjusted EBITDA increased 20.0% to $223.5 million. Fire Safety remained the earnings engine, and Specialty Products improved materially from last year, but the filing does not provide a company-issued Q3 outlook to show whether this pace was above internal targets. (Income Statement; Segment results) 〔0〕
| Figure | Q3 2026 | Q3 2025 | Consensus |
|---|---|---|---|
| Net sales (Income Statement) | $389.9M (+23.6%) | $315.4M | ~$381.5M |
| Adjusted EPS (Adjusted EPS reconciliation) | $0.85 (+3.7%) | $0.82 | ~$0.96 |
| Segment Adjusted EBITDA (Segment results) | $223.5M (+20.0%) | $186.3M | |
| Operating cash flow (Cash Flow statement) | $73.5M (-66.5%) | $219.5M |
The core operating result was solid, but it did not flow through to per-share earnings. Adjusted EPS rose only modestly despite the revenue and EBITDA gains, as interest expense more than doubled to $20.4 million and the diluted share count increased to 175.0 million from 146.8 million a year earlier. The acquisition program is producing scale, but financing costs and dilution are absorbing much of the benefit for shareholders. (Income Statement; Adjusted EPS reconciliation)
Cash conversion is the clearest complication. Operating cash flow fell to $73.5 million as accounts receivable and inventory consumed cash, while the company spent $799.4 million on businesses during the first nine months and issued $550.0 million of long-term debt. Cash ended the period at $115.9 million versus $325.9 million at year-end, leaving a more leveraged integration story even as reported profitability improved. (Cash Flow statement; Balance Sheet)
The name change is housekeeping, not a new business catalyst. The move to Perimeter Group Inc. was effective November 4, 2026, with the ticker and CUSIP unchanged, so it reinforces the diversified-platform branding but does not alter shareholder rights or the operating business. (Item 5.03; Certificate of Ownership and Merger) 〔1〕
Bottom line: The quarter validates strong operating growth and acquisition contribution, but it missed the more important per-share earnings bar and showed sharply weaker cash generation. That makes this a mixed quarter leaning negative rather than a clean execution win.
Q4 earnings report, expected February 2027
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