Joshua Spector's questions to PRTR leadership • Q1 2025
Question
Joshua Spector from UBS inquired about the potential impact of tariffs, asking if the 2-3% EBITDA risk is cost-related and how much can be offset. He also questioned the secondary sales exposure from customers selling to China, the outlook for the suppressants business given tough year-over-year comparisons, and the competitive dynamics in fire retardants following a competitor's market exit.
Answer
Chief Financial Officer Kyle Sable clarified that the tariff exposure is almost entirely cost-based, and the company expects to mitigate a reasonable portion. He noted minimal indirect sales impact and confirmed Q1 was a tough comparison for suppressants, which should improve. Chief Executive Officer Haitham Khouri addressed the competitive landscape, stating that while a non-ammonium phosphate alternative is now less likely, Perimeter remains focused on being the "gold standard" through heavy investment in R&D, equipment, and customer service to deter new entrants.