Primo Brands (NYSE:PRMB) Announces Earnings Results

Key Points

• Primo Brands beat quarterly expectations, reporting EPS of $0.37 versus the $0.32 consensus and revenue of $1.80 billion versus $1.77 billion. Revenue increased 3.8% year over year, while adjusted EBITDA rose 5% to $385 million.
• Management raised its 2026 comparable net sales growth outlook to 2%-4% from 1%-3%, citing improving direct delivery and broad-based retail growth, but maintained EBITDA and free-cash-flow guidance because of transportation, freight and commodity-cost pressures.
• The company declared a quarterly dividend of $0.12 per share, equivalent to a 1.9% annualized yield. Analysts maintain a “Moderate Buy” consensus, with an average price target of $26.36.

Primo Brands (NYSE:PRMB - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.05, FiscalAI reports. The firm had revenue of $1.80 billion during the quarter, compared to analyst estimates of $1.77 billion. Primo Brands had a return on equity of 13.98% and a net margin of 0.88%.The business's revenue for the quarter was up 3.8% compared to the same quarter last year. During the same period in the prior year, the company posted $0.36 earnings per share.

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

• Second-quarter net sales rose 4.2% to $1.8 billion, ahead of expectations, while adjusted EBITDA increased 5% to $385 million and margin expanded modestly to 21.4%.
• Direct delivery returned to growth, with comparable sales up 0.4% and a 340-basis-point sequential improvement, supported by better customer service, lower quits and call volumes, and mid-90s on-time-and-full performance.
• Primo raised its 2026 comparable net sales growth outlook for the second consecutive quarter to 2%-4% from 1%-3%, while reaffirming adjusted EBITDA guidance of $1.465 billion-$1.515 billion and adjusted free cash flow guidance of $790 million-$810 million.
• Retail growth remained broad-based, including 30.5% growth in premium water, 4.1% growth in regional spring water, and gains across value and volume share; club and away-from-home channels also delivered mid- to high-single-digit growth.
• Profitability remains exposed to higher transportation costs, tighter freight markets, and commodity inflation, while management plans continued investments in customer service, technology, marketing, and supply-chain capabilities, keeping full-year EBITDA guidance unchanged despite the sales upgrade.

Primo Brands Price Performance

NYSE:PRMB traded up $1.91 during mid-day trading on Wednesday, reaching $25.20. 6,508,713 shares of the company were exchanged, compared to its average volume of 4,562,246. The company has a quick ratio of 0.79, a current ratio of 0.98 and a debt-to-equity ratio of 1.72. The stock has a market cap of $9.14 billion, a PE ratio of 180.89, a PEG ratio of 1.89 and a beta of 0.74. Primo Brands has a 12 month low of $14.36 and a 12 month high of $26.92. The company has a fifty day moving average of $23.99 and a 200 day moving average of $21.54.

Primo Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th will be issued a dividend of $0.12 per share. The ex-dividend date of this dividend is Monday, August 24th. This represents a $0.48 dividend on an annualized basis and a yield of 1.9%. Primo Brands's dividend payout ratio is currently 342.86%.

Analysts Set New Price Targets

Several research firms have recently weighed in on PRMB. Wall Street Zen raised shares of Primo Brands from a "sell" rating to a "hold" rating in a report on Saturday, May 23rd. JPMorgan Chase & Co. lifted their price target on shares of Primo Brands from $26.00 to $29.00 and gave the company an "overweight" rating in a report on Thursday, July 16th. Royal Bank Of Canada set a $28.00 price objective on shares of Primo Brands in a report on Thursday, April 9th. Barclays lifted their target price on shares of Primo Brands from $25.00 to $27.00 and gave the company an "overweight" rating in a research note on Tuesday, July 21st. Finally, Weiss Ratings raised Primo Brands from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, May 11th. Nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $26.36.

Institutional Trading of Primo Brands

Several hedge funds have recently modified their holdings of PRMB. SummitTX Capital L.P. acquired a new position in Primo Brands during the 4th quarter worth $399,000. Nebula Research & Development LLC acquired a new position in shares of Primo Brands during the second quarter valued at $364,000. Captrust Financial Advisors boosted its holdings in Primo Brands by 6.8% in the fourth quarter. Captrust Financial Advisors now owns 20,877 shares of the company's stock valued at $341,000 after acquiring an additional 1,331 shares during the last quarter. Franklin Resources Inc. increased its position in Primo Brands by 9.6% in the fourth quarter. Franklin Resources Inc. now owns 16,340 shares of the company's stock worth $267,000 after purchasing an additional 1,433 shares during the period. Finally, Xponance LLC raised its holdings in Primo Brands by 4.2% during the 4th quarter. Xponance LLC now owns 13,114 shares of the company's stock worth $214,000 after purchasing an additional 528 shares during the last quarter. 87.71% of the stock is owned by institutional investors.

Primo Brands Company Profile

Primo Brands NYSE: PRMB is a consumer packaged beverage company that was established as an independent entity following a corporate spin‐off in 2023. The company specializes in the production, marketing and distribution of a broad portfolio of bottled water products, including purified, mineral and sparkling varieties. Through its focus on quality control and innovation, Primo Brands aims to deliver clean, great-tasting water in formats tailored to both at-home consumption and on-the-go lifestyles.

Its product range spans multi-serve and single-serve bottles, aluminum cans and other eco-friendly packaging solutions.

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