Perimeter Group Q3 Revenue Rises 24%, Adjusted EBITDA Gains 20%

Perimeter Group Inc. reported double-digit growth in third-quarter 2026 revenue and adjusted EBITDA, supported by gains in both operating segments, though its consolidated adjusted EBITDA margin narrowed from a year earlier. The quarter also included results from Monaco Enterprises following its July acquisition.

Revenue for the quarter ended September 30 rose 24% year over year to $389.9 million. Adjusted EBITDA increased 20% to $223.5 million, while adjusted EBITDA margin declined to 57% from 59% in the prior-year quarter.

GAAP net income was $304.5 million, compared with a $90.7 million loss a year earlier. Diluted GAAP earnings per share were $1.74, versus a loss of $0.62 per share. Adjusted net income increased to $144.3 million from $125.5 million, and adjusted diluted EPS edged up to $0.85 from $0.82.

For the first nine months of 2026, revenue climbed 32% to $728.7 million and adjusted EBITDA rose 25% to $370.3 million. The year-to-date adjusted EBITDA margin was 51%, down from 54%. Adjusted diluted EPS was $1.27, compared with $1.24 in the same period of 2025.

Both segments post growth

Fire Safety, Perimeter’s larger segment, generated third-quarter revenue of $312.5 million, up 14% year over year. Adjusted EBITDA also rose 14% to $201.6 million, leaving the segment’s adjusted EBITDA margin unchanged at 65%.

Monaco Enterprises joined Perimeter on July 30, and its results have been included in Fire Safety since that date. Monaco provides mission-critical systems used at more than 200 U.S. military installations, with nearly all of its sales supporting the installed base through spare parts, repairs, expansions, upgrades and service.

Specialty Products recorded revenue of $77.3 million, an 84% increase from the prior-year quarter. Adjusted EBITDA advanced 140% to $21.9 million, while adjusted EBITDA margin expanded to 28% from 22%.

Cash flow and capital allocation

Perimeter generated $163.1 million of operating cash flow during the quarter. After $12.7 million of property and equipment purchases, free cash flow was $150.4 million.

The company reported $117.1 million of merger-and-acquisition spending in the quarter and no share repurchases. Its stated capital-allocation priorities are capital expenditures, acquisitions, opportunistic buybacks and special dividends intended to maintain necessary leverage.

At September 30, Perimeter had $115.9 million of cash and cash equivalents and net debt of $1.11 billion. Net debt was 2.7 times last-12-month adjusted EBITDA of $406.2 million. The company also had an undrawn $200 million revolving credit facility and no debt maturities before 2029.

Management’s long-term assumptions include annual interest expense of about $75 million, tax-deductible depreciation and amortization and other items of roughly $60 million to $65 million, and annual capital expenditures of approximately $30 million to $40 million. The framework also assumes annual working-capital investment equal to 10% to 15% of revenue growth and a cash tax rate of 20% or less.

Perimeter Solutions changed its name to Perimeter Group Inc. on November 4 and relocated its headquarters to Charlotte, North Carolina. Its shares continue to trade on the New York Stock Exchange under the ticker PRM.

The company cautioned that its expectations remain subject to risks including acquisition integration, supply-chain conditions, government contracts, fire-season activity, capital allocation and operational matters. It also noted that adjusted EBITDA, adjusted EPS and free cash flow are non-GAAP measures and should be considered alongside, rather than as substitutes for, GAAP results.