Daniel Kutz's questions to PRTR leadership • Q1 2025
Question
Daniel Kutz from Morgan Stanley asked for a breakdown of the economic sensitivity across Perimeter's business lines. He also questioned if macroeconomic uncertainty was slowing customer conversions to fluorine-free suppressants and sought clarification on whether any of the company's long-term financial assumptions for 2025 required adjustment.
Answer
Chief Executive Officer Haitham Khouri explained that the retardant and emergency suppressant businesses have virtually no economic sensitivity, while the new-install suppressant and P2S5 businesses have only modest exposure to new construction and miles driven, respectively. He confirmed there has been no slowdown in fluorine-free conversions. Chief Financial Officer Kyle Sable added that the company's full-year financial assumptions remain unchanged, with strong Q1 working capital performance considered timing-related noise.