Perimeter Solutions, SA

Greetings, and welcome to the Perimeter Solutions Q4 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Seth Barker, Head of Investor Relations. You may begin.

Thank you, Operator. Good morning, everyone, and thank you for joining Perimeter Solutions' fourth 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, February 26th, 2026, 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. I'll start on slide three with key observations from 2025. First, structural earnings power expansion. Our 2025 results demonstrate the sustainability of our higher earnings power. This higher baseline profitability first exhibited in 2024 is the direct result of the rigorous application of our operational value drivers. Second, financial consistency. In addition to increasing our structural earnings power, we've transitioned perimeter towards greater financial consistency. The primary driver is the change in our retardant contract structures, which have shifted from purely volume-based models towards more fixed and recurring structures, significantly reducing our sensitivity to fire season volatility. This greater consistency is further reinforced by the growth and diversification of our international retardant business, growth in our non-retardant businesses, including our suppressants business, and the impact of our operational value drivers on our results, regardless of external conditions. And the third observation, M&A. 2025 established our M&A strategy with the acquisitions of IMS and NMT, both of which we feel excellent about and both of which we'll discuss later in our remarks. Turning to a summary of our strategy on slide four. 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 a liquidity of a 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 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 with the 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 to our fire safety operations on slide five. Fire safety delivered a strong year, primarily driven by execution on our value drivers. We continue to win profitable new business, including entry into preventative rail-applied retardant in Europe, expansion of our air-based services in multiple geographies, and ongoing penetration of our fluorine-free products globally. We continue to realize productivity benefits, including from our new retardant manufacturing facility outside of Sacramento. And we continually increase our customer value proposition across products, for example, in suppressants with our new multipurpose AD foams and in our Canadian retardant operations with enhanced air-based service and manufacturing capabilities and share in this value creation through value-based pricing. Combined, these actions increase structural earnings power from pound each year while strengthening our customer relationships. Fire Safety's 2025 results also showcased our transition towards greater financial consistency with higher year-over-year revenue and adjusted EBITDA despite a notably less severe North American fire season. We renewed substantially all of our key retardant contracts over the past two years, culminating in our cornerstone five-year U.S. Forest Service contract. Our contracts have shifted away from purely volume-based models towards more fixed and recurring structures, notably reducing our sensitivity to fire season variability and increasing our businesses consistency. As I mentioned prior, This increased consistency is further reinforced by the growth and diversification of our international retardant business, growth in our non-retardant businesses, including our suppressants business, and the impact of our operational value drivers on our results, regardless of external conditions. Looking forward, we will continue to rigorously apply our value drivers and paired with the secular growth drivers aiding our fire safety business, including higher acres burned, an expanding air tanker fleet, continued growth in the wildland-urban interface, new retardant application methods, and the global transition to fluorine-free foams, our fire safety segment is well-positioned for possible growth. Switching to specialty products. and starting with our P2S5 business, DDI. The operational and safety challenges at the Saget Illinois facility operated by Flexis continued in the fourth quarter and into 2026. As we have previously discussed, since the Flexis assets were acquired by One Rock Capital in 2021, the plant has experienced a sustained deterioration in operating reliability and safety performance relative to its historical levels and relative to our own and operated P2S5 facility. During the fourth quarter, unplanned downtime once again materially reduced production volumes and negatively impacted PDI's financial results. More troubling are the recurring safety incidents at and around the plant. These are not isolated events. They reflect a pattern of declining operational performance and safety standards under One Rock's ownership. We believe these incidents are likely to continue and may worsen so long as the current ownership and operating structure remain in place. In our view, One Rock, as the controlling owner of Flexis, is directly responsible for the strategic, financial, and operational decisions that have led to the plant's instability and troubling safety incidents. We believe that decisions made under One Rock's ownership have prioritized short-term financial considerations over sustained investment in operational integrity, reliability, and safety. The result is a facility that is underperforming operationally, financially, and most importantly, from a safety standpoint. This is unacceptable. We believe that the fastest and most responsible path to stabilization is a change in operational control. As previously disclosed, in 2025, we exercise our contractual right to assume operation of Passage Plant. Plexus and its owner, One Rock, have refused to permit that transition. Instead, they have engaged in bad faith negotiations and obstructive conduct designed to delay and frustrate the transfer of control. We believe these actions have unnecessarily prolonged operational instability and increased risk exposure for employees, customers, and the surrounding SAGE community. Every month of delay has consequences. We are pursuing every available legal remedy in our ongoing litigation and will continue to press our claims aggressively. We intend to hold Flexus and One Rock fully accountable for their actions and for the operational and financial damage that has resulted from their refusal to honor the contractual framework governing this facility. In parallel, we are evaluating strategic and legal alternatives available to ensure continuity of supply for our customers, safeguard the employees and communities affected by the plant's performance, and return to prior levels of financial performance with respect to the operations ex-sage. We will not agree to economically unreasonable proposals or coercive tactics. Our commitment to regaining operational control of this facility is absolute. Until this matter is resolved, investors should expect continued variability in our P2S5 business. However, our track record of owning and operating P2S5 facilities safely and reliably ourselves is well established. If we assume control of Sarge or a separate P2S5 plant, if that's where this path ends, we are confident we can restore operational discipline, materially improve safety standards, and return the facility to stable, efficient production. Our priority here is clear. serve our customers, protect workers, support the passage community, and preserve the long-term value of this asset. Ownership carries responsibility. We intend to ensure that responsibility is met. Moving to IMS. IMS focuses on acquiring proprietary product lines and driving profitable growth through operational value driver implementations. In 2025, we executed on this strategy successfully, closing several product line acquisitions, including one in the fourth quarter. We expect IMS to deploy tens of millions of dollars annually into high IRR product line acquisitions and for IMS to represent an increasingly material portion of our company over time. Finally, I'll turn to MMT, which closed in January. MMT manufactures engineered machinery and proprietary aftermarket components used in the production of complex, minimally invasive medical devices, specifically catheters and guide wires. MMT aligns with our operational value driver strategy based on four specific attributes. First, MMT is a leader in a highly specialized industry where quality and reliability are paramount to customer success. Second, MMT has a track record of high single-digit to low double-digit organic growth, driven by increasing adoption of minimally invasive procedures, increasing device complexity, and a trend towards engineered machinery outsourcing. Third, MMT has a large and growing install base, which must be serviced with aftermarket consumables spare parts, and services, which are almost always proprietary. And fourth, NMT has a successful track record of tuck and M&A, which we expect to continue. NMT recorded approximately $140 million in revenue and $50 million in adjusted EBDA in 2025. One month into our ownership, initial value driver implementation validates our investment fees. And we expect MMT's 2026 results to reflect meaningful year-over-year growth as these operational changes take effect. 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.