Perimeter Solutions Secures Five-Year USDA Contract as Q4 Revenue Jumps 19%
iMGP Fund notes Perimeter Solutions grew Q4 revenue 19% to $102.8M and adjusted EBITDA rose 9% to $36M despite a 60% drop in U.S. acres burned. The firm cited PRM’s sole aerial fire-retardant supply monopoly secured by a five-year USDA agreement and competitor exit boosting confidence.
1. Q4 Performance and Financials
Perimeter Solutions reported Q4 2025 revenue of $102.8 million, up 19% year-over-year, and adjusted EBITDA of $36 million, a 9% increase. This growth occurred despite a 60% decline in U.S. acres burned, highlighting operational resilience.
2. Monopolistic Position Reinforced
PRM remains the sole aerial fire-retardant chemical supplier after its only rival shuttered operations. The company locked in its market position with a new five-year contract with the U.S. Department of Agriculture through 2031.
3. Reduced Volatility and Improved Revenue Mix
Third-quarter results demonstrated reduced business volatility as government agencies adopted more aggressive fire suppression tactics. PRM also increased the share of recurring services in its contracts, stabilizing revenue streams.
4. Strategic Capital Deployment and Investor Confidence
Management deployed capital to acquire a substantial new business platform expected to generate strong shareholder returns. Hedge fund ownership rose to 33 portfolios at year-end from 28, reflecting increased market confidence.