Perimeter Solutions, SA

gentlemen greetings and welcome to the perimeter solutions q3 2025 earnings call at this time all participant lines are in the listen-only mode a brief question and answer session will follow the formal presentation if anyone requires operator assistance during the conference please signal the operator by pressing star and zero on your telephone keypad as a reminder This conference is being recorded. It is now my pleasure to introduce your host for today, Seth Barker, Vice President. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining Perimeter Solutions' third quarter 2025 earnings call. Speaking on today's call are Haytham Corey, Chief Executive Officer, and Kyle Sable, Chief Financial Officer. We want to remind anyone who may be listening to a replay of this call that all statements made are as of today, October 30th, 2025, and these statements have not been nor will they be updated subsequent to today's call. Today's call may contain forward-looking statements. These statements made today are based on management's current expectations, assumptions, and beliefs about our business and the environment in which we operate, and our actual results may materially differ from those expressed or implied on today's call. Please review our SEC filings, particularly any risk factors included in our filings, for a more complete discussion of factors that could impact our results, expectations, or assumptions. The company would also like to advise you that during the call, we will be referring to non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, LTM adjusted EBITDA, adjusted EPS, and free cash flow. The reconciliation of and other information regarding these items can be found in our earnings press release and presentation, both of which will be available on our website. With that, I will turn the call over to Hatham Corey, Chief Executive Officer.

Thank you, Seth. Good morning, everyone. Thank you for joining us. We're pleased to report Perimeter's third quarter and year-to-date results. Third quarter adjusted EBDA was 186.3 million, and year-to-date adjusted EBDA was 295.7 million. The three primary drivers of these results were, number one, execution on our operational value drivers, with particularly strong results in our international retardant business, our suppressants market and IMS. Two, the impact of our efforts to drive more consistency and predictability in our retardant business with reduced dependence on the North America fire season. And number three, a more proactive initial attack strategy by our customers which drove greater retardant use. We continue to deploy capital during the third quarter, investing nearly 17 million across capital expenditures in the purchase or product lines at IMS. I will provide a summary of our strategy, followed by an operational update, then discuss our new Forest Service contract. Kyle will then walk through our financial results and recap our capital allocation in the quarter. Starting on slide three with a summary of our strategy. Our goal is to fulfill our critical mission by providing our customers with high-quality products and exceptional service while delivering our investors private equity-like returns with the liquidity of the public market. Our strategy is built on three key operational pillars. First, we own exceptional businesses. These are niche market leaders that play critical roles in solving complex customer problems. qualities that support high returns on invested capital and durable earnings growth. Second, we rigorously apply our three operational value drivers to the businesses we own. We drive profitable new business, achieve continual productivity improvements, and provide increasing value to our customers, which we share in through value-based pricing. And third, we operate our businesses in a highly decentralized manner, granting our business unit managers full operating autonomy paired with accountability to deliver results with a tightly aligned incentive structure for our managers to think and act like owners. We believe that our operational pillars will optimize our durable long-term free cash flow. We then seek to maximize long-term per share equity value through a clear focus on the allocation of our capital as well as the management of our capital structure. Turning now to our financial results on slide four and starting with fire safety. Fire safety's strong third quarter and year-to-date results were driven by three key factors. First is continued progress on our operational value drivers. We grow our sustainable earnings power through the rigorous implementation of our three value drivers. This improvement is evident in our Q3 and year-to-date 2025 results. Sales increased as we drove profitable new business and earned the right to share in the customer value creation across both retardants and suppressants. Margins expanded as we improved the efficiency of our operations via productivity initiatives, and revenue and margins benefited from our increased operating investments and capital expenditures. We expect the impact of our value drivers to compound over time and drive sustainable growth in our earnings power. Looking across our products, our international retardant business and our suppressants business continued their momentum in the third quarter with particularly strong volume performance from our profitable new business initiatives and meaningful top and bottom line impacts from our productivity and value pricing efforts. Our U.S. retardant business also saw contributions across all three operational value drivers, driving top and bottom line growth despite a relatively mild North America fire season. The second driver of our financial results are the structural changes we've made towards greater consistency and predictability in our retardants business. with reduced dependence on the severity of the North America fire season. We renewed substantially all of our key retardant contracts over the past two years. And in doing so, prioritize contractual adjustments to drive greater consistency and predictability in our business and financial results. These adjustments were well received by our customers who, like us, benefit from greater consistency and predictability. While the correlation of our fire safety results with the North America fire season is not eliminated, we believe it is notably reduced relative to history, as is evident in our 2025 financial results. The third driver of our 2025 results is a shift in our customers' approach to wildfire response. Our key U.S. customers adopted a more proactive approach to wildfire management this year. which we believe contributed meaningfully to lower acres burned and to significant associated cost savings. With support from Secretary Brooke Rollins of the Department of Agriculture and Secretary Doug Burgum of the Department of Interior, Tom Schultz, Chief of the U.S. Forest Service, issued a wildfire letter of intent in May, which directed the Forest Service to suppress fires as swiftly as possible and to focus on safe, aggressive initial attack. This directive from Chief Schultz drove greater mobilization of resources, including aerial resources deploying retardant to quickly attack nascent fires. By quickly getting retardant on fires, agencies were able to limit their spread and mitigate the devastation they cause in our communities. This more aggressive initial attack posture helped limit acres burned despite the increase in fire starts while driving meaningful use of retardant. The actions taken this year by Secretary Rollins, Secretary Burgum, and Chief Schultz, and the men and women of our agency partners undoubtedly saved lives, property, and our environment. As always, Perimeter is proud to play a part in our customer success. Moving on from this year's operational developments and looking to the future, we were pleased to have signed a new contract with the U.S. Forest Service during the third quarter. This contract, amongst the most significant in our company's history, builds on Perimeter's 60-year legacy of working with the Forest Service to protect lives, property, and the environment. By combining our customers' unwavering commitment to the mission With the best of private sector efficiency, this contract delivers a win-win outcome by first, delivering substantial savings to the U.S. taxpayer, second, driving Perimeter's continued financial momentum, and third, enhancing our national wildfire preparedness and response capability. A key element of the contract is the savings it provides to the Department of Agriculture the Department of Interior, the U.S. Forest Service, and ultimately the American taxpayer. The contract lowers the price of retardant in its first year and delivers additional savings by expanding the services Perimeter can efficiently deliver over the contract's five-year term. One example of the contract's mutually beneficial outcome is the transition to our full-service model. Substantially, all federal bulk bases, which we serve with product, will transition to our full service model, which we serve with our comprehensive solution spanning product, service, staffing, equipment, and maintenance. We capture meaningful operating efficiencies by incorporating these bulk bases into our full service network and simultaneously drive savings to the customer, as well as profitable new revenue streams and incremental productivity opportunities to perimeter. In a similar win-win, federal bases are transitioning from a mix of liquid and powder product to an all powder footprint. Our powder product is lower priced and more efficient to handle than our liquid product, which drives direct customer savings. Simultaneously, Powder conversion enhances our profitability through a lower cost and complexity in manufacturing, distribution, and logistics footprint. Finally, this new contract enhances national wildfire preparedness and response. The contract unprecedented five-year term allows Perimeter and the Forest Service to jointly plan and invest behind meaningful multi-year initiatives such as the oil powder product conversion. To safeguard future air tanker fleet uptime and reliability, Perimeter has also committed to aiding the Forest Service on the development of retardant testing standards that ensure all retardant products match Perimeter safety standards developed over the past 60 years. And building off of the supply chain resiliency advanced by our new Sacramento facility Perimeter is working to build that same continuity further up the supply chain by enabling more domestic supply of raw materials. Together, these features deliver the safest, most resilient, and best performing retardant solution our nation has ever had. We'd like to acknowledge and thank our agency customers for the collaborative engagement on this landmark contract. We look forward to continuing our successful 60-plus year collaboration over the next five years and beyond. Switching now to our specialty product segment. During the third quarter, the significant operational and safety events that have plagued our Saget, Illinois plant since One Rock Partners purchased the Flexus assets in 2021 not only continued but escalated. there was once again a substantial amount of unplanned downtime, which significantly impacted specialty products' financial results in the third quarter. While that was disappointing, significant safety events during the third quarter are of greater concern. These events demonstrate the urgent need to get these assets out of Plexus' control as soon as possible for the safety of workers at the plant. Unfortunately, Flexis and their parent, One Rock, continue to fight our efforts to take operational control of the plant, despite their clear contractual obligation to do so. Recently, Flexis made a bad faith proposal that we lease the land under the plant for more than 10 to 20 times the cost to purchase identically zoned and similarly configured and resourced land in the same general vicinity. We will not capitulate to these tactics. We will continue to doggedly pursue our rights under the contract in court as our previously disclosed litigation progresses. We know that it may take an extended period before there is a resolution, and we caution our investors to expect a continued financial impact until this issue is resolved. Regardless, we remain fully committed to taking over the plans no matter how long it takes or how difficult the path is. We are doing this not only for the benefit of our shareholders, customers, and the community where we operate, but also for the safety of the employees at the plant. We are confident that we will eventually operate the plant and consistently and safely produce the highest quality product. Lastly, IMS. The business continues to perform well and we again acquired new product lines during the third quarter. Our IMS acquisition team remains active and we expect to continue to drive IMS's profitability through enhancing our operating value drivers on both existing and newly acquired product lines. With that, I'll turn the call over to Kyle for a more detailed review of our financials, earnings power, and capital allocation in the quarter.