Primo Brands (NYSE:PRMB) Posts Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Primo Brands beat quarterly estimates: EPS was $0.43 versus $0.42 expected, while revenue of $1.82 billion topped forecasts and rose 3.1% year over year.
• Comparable net sales grew 3.3%, marking a third consecutive quarter of growth, with premium water revenue up 24.3%. However, higher transportation costs and strategic investment pressured margins, and 2026 EBITDA is expected near the lower end of prior guidance.
• The company authorized a new $300 million share repurchase program and declared a quarterly dividend of $0.12 per share.

Primo Brands (NYSE:PRMB - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.43 EPS for the quarter, topping analysts' consensus estimates of $0.42 by $0.01, FiscalAI reports. Primo Brands had a return on equity of 14.64% and a net margin of 3.06%. The business had revenue of $1.82 billion during the quarter, compared to the consensus estimate of $1.81 billion. During the same period in the previous year, the company posted $0.41 earnings per share. The business's revenue for the quarter was up 3.1% on a year-over-year basis.

Here are the key takeaways from Primo Brands' conference call:

• Primo reported 3.3% comparable net sales growth in Q3, its third consecutive quarter of growth, with strength across direct delivery, retail, and premium brands. Retail also gained bottled-water dollar share.
• Direct delivery grew 2.2%, marking its fourth consecutive quarter of sequential improvement. On-time-in-full service rose from just over 50% a year ago to more than 90%, alongside better customer satisfaction metrics.
• Adjusted EBITDA increased 1.6% to $411 million, but comparable margin fell 40 basis points as higher transportation costs and strategic investments offset operating gains. The company expects 2026 EBITDA near the lower end of its prior $1.465 billion–$1.515 billion range, while maintaining its approximately 3% net sales growth outlook.
• Management said it sees a path to adjusted EBITDA and free cash flow growth in 2027, supported by pricing carryover, productivity initiatives, premium growth, and immediate-consumption expansion; it will provide formal guidance in February. Net leverage declined for a third consecutive quarter to 3.32x, and the company expects to reach below 3x during 2027.
• The board authorized a new $300 million share repurchase program, replacing the prior authorization, and declared a quarterly dividend of $0.12 per share. Management said cash generation and improved financial flexibility support investment in the business and shareholder returns.

Primo Brands Stock Up 0.9%

PRMB traded up $0.20 on Friday, reaching $22.36. The company's stock had a trading volume of 4,999,084 shares, compared to its average volume of 5,222,769. The stock has a 50 day moving average of $20.31 and a two-hundred day moving average of $21.46. The company has a quick ratio of 0.86, a current ratio of 1.05 and a debt-to-equity ratio of 1.71. The company has a market capitalization of $8.10 billion, a price-to-earnings ratio of 18.82, a P/E/G ratio of 2.26 and a beta of 0.73. Primo Brands has a fifty-two week low of $14.36 and a fifty-two week high of $26.21.

Primo Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Tuesday, November 24th will be paid a dividend of $0.12 per share. The ex-dividend date is Tuesday, November 24th. This represents a $0.48 annualized dividend and a yield of 2.1%. Primo Brands's payout ratio is presently 184.62%.

Insider Buying and Selling

In related news, CEO Eric Foss acquired 84,000 shares of the business's stock in a transaction on Monday, August 10th. The shares were bought at an average price of $23.80 per share, with a total value of $1,999,200.00. Following the completion of the acquisition, the chief executive officer owned 573,806 shares in the company, valued at $13,656,582.80. This trade represents a 17.15% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 32.90% of the stock is owned by corporate insiders.

Key Headlines Impacting Primo Brands

Here are the key news stories impacting Primo Brands this week:

• Positive Sentiment: Primo Brands earned $0.43 per share, topping the $0.42 consensus estimate, while revenue of $1.82 billion exceeded expectations of $1.81 billion and rose 3.1% year over year. Article
• Positive Sentiment: Premium water revenue surged 24.3%, free cash flow improved, and the 2026 sales-growth outlook is approaching 3%—signs of resilience in a key growth category. Article
• Positive Sentiment: The company declared a quarterly dividend of $0.12 per share, equivalent to $0.48 annually and a reported yield of 2.2%. Article
• Neutral Sentiment: An earnings-call recap characterized the quarter as signaling recovery and growth, though the available report provides limited additional detail. Article
• Negative Sentiment: A previously announced equity buyback plan has expired, potentially removing a source of share-repurchase support; the report does not indicate whether Primo Brands plans a replacement program. Article

Analysts Set New Price Targets

A number of research analysts recently issued reports on PRMB shares. Deutsche Bank Aktiengesellschaft set a $21.00 price target on shares of Primo Brands in a research note on Monday, October 19th. Weiss Ratings reissued a "hold (c)" rating on shares of Primo Brands in a research report on Wednesday. Zacks Research downgraded shares of Primo Brands from a "hold" rating to a "strong sell" rating in a research report on Friday, October 30th. Barclays reduced their price objective on shares of Primo Brands from $29.00 to $26.00 and set an "overweight" rating on the stock in a report on Friday, October 16th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Primo Brands from $30.00 to $26.00 and set an "overweight" rating for the company in a research report on Friday, October 30th. Ten research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Primo Brands currently has a consensus rating of "Moderate Buy" and an average target price of $27.55.

Primo Brands Company Profile

Primo Brands Corporation is a beverage company focused on providing water and hydration products across North America. The company offers bottled water, water dispensers, refill services, filtration products and other beverage options for households, businesses and retail customers.

Its portfolio includes well-known regional and national water brands such as Poland Spring, Deer Park, Ice Mountain, Arrowhead, Ozarka, Zephyrhills, Pure Life and Primo. Products are distributed through retail stores, direct delivery, e-commerce and workplace and residential water services.

Primo Brands was created through the combination of Primo Water Corporation and BlueTriton Brands, a transaction completed in 2024.

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