Perimeter Solutions Q2 Beats, Wildfire Demand Drives Guidance Higher

Perimeter Solutions beat second-quarter estimates and raised its full-year outlook as an active wildfire season drove demand for its fire retardant products.

Revenue hit $96.3 million, up 12% from a year earlier. Adjusted EBITDA rose 57% to $50.1 million, pushing the margin to 52% – a gain of 1,500 basis points. Free cash flow came in at $32 million.

CEO Haitham Khouri said the company is in the midst of a very active wildfire season. Demand for long-term retardant has been strong, and the company has enough capacity to meet it. “We delivered another quarter of strong financial performance,” he said on the earnings call.

Perimeter raised its 2026 adjusted EBITDA guidance to a range of $140 million to $150 million, up from the prior range of $120 million to $135 million.

Analysts from JPMorgan and Morgan Stanley were on the call. Tomohiko Sano of JPMorgan asked about pricing and volume trends. Daniel Kutz of Morgan Stanley focused on gross margin drivers. CFO Kyle Sable said the margin improvement came from higher utilization and better product mix.

Joshua Spector of UBS asked about international expansion. Khouri said the company is seeing interest from foreign governments but did not give a timeline.

The wildfire season typically peaks in the third quarter. Khouri said the company is well positioned for the remainder of the year. “Our team is executing well,” he said.

Weather patterns remain the biggest variable. A wetter-than-expected season could slow demand. Supply chain constraints are a secondary risk, though the company has stockpiled key raw materials.

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