Perimeter Solutions' Q2 2025: Unpacking Contradictions in Fire Management, Tariffs, and Customer Trends

Acres burned and retardant usage, tariff mitigation efforts, customer enthusiasm for fluorine-free foams, impact of acres burned on financial performance are the key contradictions discussed in Perimeter Solutions' latest 2025Q2 earnings call.



Fire Safety Performance:
- Perimeter Solutions reported adjusted EBITDA of $91.3 million for Q2 2025, reflecting a 41% increase year-on-year.
- This growth was driven by execution on operational value drivers, normalized first half fire activity in the U.S., and strong performance in international retardant markets.

Specialty Products Segment:
- The Specialty Products segment reported Q2 net sales of $42.4 million, a 47% increase from the prior year.
- Growth was attributed to the $9.3 million contribution from the IMS acquisition and improvements in base business performance, partly offset by unplanned downtime at the Sauget plant.

Capital Expenditures and Acquisition Strategy:
- The company invested nearly $62 million in capital expenditures during the quarter, primarily for increased capital expenditures and share repurchases.
- This investment strategy aims to enhance service offerings, increase customer value, and sustainably boost operating and financial performance.

Resolution of Litigation with Compass Minerals:
- Perimeter Solutions settled its trade secret litigation with Compass Minerals, acquiring surplus assets for its retardant business and securing its intellectual property.
- The $20 million settlement allowed for the resolution of the dispute and the acquisition of assets that would otherwise have required a separate capital expenditure.