Perimeter Solutions Inc.: 2Q First Take: Mixed Print as M&A Continues and Fire Safety Margins Slip

Research evidence excerpt

Perimeter Solutions Inc.: 2Q First Take: Mixed Print as M&A Continues and Fire Safety Margins Slip

Tomohiko Sano AC North America Equity Research

(1-212) 622-1099 31 July 2026 J P M O R G A N

tomohiko.sano@jpmorgan.com

Investment Thesis, Valuation and Risks

Perimeter Solutions Inc. (Overweight; Price Target: $50.00)

Investment Thesis

Perimeter Solutions (PRM) offers a uniquely compelling combination of niche market

leadership in fire retardants; expanding suppressant capabilities; and a disciplined,

repeatable M&A playbook that we view as differentiated. Backed by a decentralized

operating structure that empowers owner-incentivized managers and a protected

competitive moat, anchored by the only approved QPL for aerial retardants and FDA-

embedded consumables, we see Perimeter delivering high-single-digit organic revenue

growth through FY28. As management demonstrates the durability of Fire Safety and the

repeatability of its acquisition model beyond fire, we expect disciplined capital allocation

to fund incremental M&A-driven growth.

Valuation

Our $50 PT is based on 17.5x 2027E adj. EBITDA, a premium to the five-year average and

modestly above current trading levels, reflecting our confidence in Fire Safety's organic

growth, disciplined capital allocation, and the MMT integration.

Risks to Rating and Price Target

Fire Season and Customer Concentration: Perimeter could face a weaker-than-expected

Fire Safety season, as demand is inherently tied to fire occurrence, severity, and geography.

Heavy exposure to the USDA Forest Service (~32% of 2025 revenue) and Bureau of Land

Management (~11%) offers concentration risk, as lighter seasons, delayed orders, or

funding disruptions could create meaningful downside to our estimates.