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Primo Brands Beats Q2 Earnings Estimates, Raises 2026 Sales Outlook
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Key Takeaways
Primo Brands' adjusted earnings rose 2.8% to 37 cents as sales increased 3.8% to $1.80 billion.
Premium water sales surged 30.5%, while regional spring water remained the largest category.
PRMB raised its 2026 sales growth forecast to 2-4% and reaffirmed adjusted EBITDA guidance.
Primo Brands Corporation (PRMB - Free Report) reported second-quarter 2026 adjusted earnings of 37 cents per share, up 2.8% compared with a year ago and surpassed the Zacks Consensus Estimate of 32 cents.
Net sales rose 3.8% year over year to $1.80 billion and topped the consensus estimate of $1.76 billion. Management said top-line results exceeded expectations. Robust Retail channel growth led by regional spring water and premium brands, along with an earlier-than-expected return to growth in Direct Delivery, supported growth. This was partly offset by lower sales from the exited U.S. Office Coffee Services business.
Following the earnings release, Primo Brands’ shares jumped more than 8% during the trading session. Shares of this Zacks Rank #2 (Buy) stock have risen 19.3% in the past six months, outperforming the industry’s 2.4% growth.
Image Source: Zacks Investment Research
Primo Brands Posts Mixed Margin Trends
Gross profit increased 1.4% year over year to $548.7 million, but the gross margin contracted 80 basis points to 30.5%. Higher transportation costs and depreciation and amortization weighed on profitability, while revenue growth and lower non-recurring integration costs provided a partial offset.
Selling, general and administrative expenses dipped 8.7% year over year to $345.5 million. Lower marketing costs and reduced amortization tied mainly to definite-lived intangible assets helped operating income climb 59.8% year over year to $180.3 million.
Adjusted EBITDA increased 5% to $385 million, with the margin rising 20 basis points year over year to 21.4%.
Primo Brands Corporation Price, Consensus and EPS Surprise
Regional spring water sales rose 4.1% year over year to $911 million, making it the largest water category. Purified water sales increased 1.9% to $556.1 million, while premium water advanced 30.5% to $114.2 million.
Other water sales fell 9.7% to $31.8 million, and the broader Other category slipped 1.9% to $183.1 million. The category mix shows that regional spring and premium offerings were the primary engines of quarterly revenue growth.
PRMB Generates Stronger Cash Flow
As of June 30, 2026, the company generated net cash from continuing operations of $331.7 million, up from $193.8 million seen a year ago. After $190 million in capital expenditures and $32.7 million of additions to intangible assets, free cash flow reached $109 million, up from $52.7 million registered a year ago. Adjusted free cash flow was $328.7 million as of June 30.
As of June 30, 2026, total debt excluding unamortized debt costs and discounts was $5.3 billion. Unrestricted cash and cash equivalents totaled $366.5 million, resulting in net debt of $4.9 billion.
During the quarter, PRMB paid $43.5 million in cash dividends and spent $15.5 million on share repurchases, including brokerage commissions.
PRMB Raises 2026 Sales Growth Outlook
Primo Brands raised its 2026 net sales growth forecast to 2-4% from the prior range of 1-3%. The company reaffirmed adjusted EBITDA guidance of $1.465-$1.515 billion.
Management also maintained base capital expenditures at 4% of net sales and adjusted free cash flow guidance of $790-$810 million.
Other Stocks to Consider in the Consumer Staples Space
The Zacks Consensus Estimate for Darling Ingredients' current financial-year sales indicates growth of 12.4% from the prior-year level. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
United Natural Foods (UNFI - Free Report) , which is the leading distributor of natural, organic and specialty food and non-food products, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED missed the average earnings surprise by a sharp margin in the trailing four quarters.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 25.9% from the year-ago number.
View the Zacks #1 Rank List
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Primo Brands Beats Q2 Earnings Estimates, Raises 2026 Sales Outlook
Key Takeaways
Primo Brands Corporation (PRMB - Free Report) reported second-quarter 2026 adjusted earnings of 37 cents per share, up 2.8% compared with a year ago and surpassed the Zacks Consensus Estimate of 32 cents.
Net sales rose 3.8% year over year to $1.80 billion and topped the consensus estimate of $1.76 billion. Management said top-line results exceeded expectations. Robust Retail channel growth led by regional spring water and premium brands, along with an earlier-than-expected return to growth in Direct Delivery, supported growth. This was partly offset by lower sales from the exited U.S. Office Coffee Services business.
Following the earnings release, Primo Brands’ shares jumped more than 8% during the trading session. Shares of this Zacks Rank #2 (Buy) stock have risen 19.3% in the past six months, outperforming the industry’s 2.4% growth.
Image Source: Zacks Investment Research
Primo Brands Posts Mixed Margin Trends
Gross profit increased 1.4% year over year to $548.7 million, but the gross margin contracted 80 basis points to 30.5%. Higher transportation costs and depreciation and amortization weighed on profitability, while revenue growth and lower non-recurring integration costs provided a partial offset.
Selling, general and administrative expenses dipped 8.7% year over year to $345.5 million. Lower marketing costs and reduced amortization tied mainly to definite-lived intangible assets helped operating income climb 59.8% year over year to $180.3 million.
Adjusted EBITDA increased 5% to $385 million, with the margin rising 20 basis points year over year to 21.4%.
Primo Brands Corporation Price, Consensus and EPS Surprise
Primo Brands Corporation price-consensus-eps-surprise-chart | Primo Brands Corporation Quote
PRMB Water Mix Highlights Premium Strength
Regional spring water sales rose 4.1% year over year to $911 million, making it the largest water category. Purified water sales increased 1.9% to $556.1 million, while premium water advanced 30.5% to $114.2 million.
Other water sales fell 9.7% to $31.8 million, and the broader Other category slipped 1.9% to $183.1 million. The category mix shows that regional spring and premium offerings were the primary engines of quarterly revenue growth.
PRMB Generates Stronger Cash Flow
As of June 30, 2026, the company generated net cash from continuing operations of $331.7 million, up from $193.8 million seen a year ago. After $190 million in capital expenditures and $32.7 million of additions to intangible assets, free cash flow reached $109 million, up from $52.7 million registered a year ago. Adjusted free cash flow was $328.7 million as of June 30.
As of June 30, 2026, total debt excluding unamortized debt costs and discounts was $5.3 billion. Unrestricted cash and cash equivalents totaled $366.5 million, resulting in net debt of $4.9 billion.
During the quarter, PRMB paid $43.5 million in cash dividends and spent $15.5 million on share repurchases, including brokerage commissions.
PRMB Raises 2026 Sales Growth Outlook
Primo Brands raised its 2026 net sales growth forecast to 2-4% from the prior range of 1-3%. The company reaffirmed adjusted EBITDA guidance of $1.465-$1.515 billion.
Management also maintained base capital expenditures at 4% of net sales and adjusted free cash flow guidance of $790-$810 million.
Other Stocks to Consider in the Consumer Staples Space
Darling Ingredients Inc. (DAR - Free Report) , which is a global developer and producer of sustainable natural ingredients, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Darling Ingredients' current financial-year sales indicates growth of 12.4% from the prior-year level. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
United Natural Foods (UNFI - Free Report) , which is the leading distributor of natural, organic and specialty food and non-food products, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED missed the average earnings surprise by a sharp margin in the trailing four quarters.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 25.9% from the year-ago number.