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Primo Brands (PRMB) Down 8.4% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Primo Brands (PRMB - Free Report) . Shares have lost about 8.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Primo Brands due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Primo Brands Corporation before we dive into how investors and analysts have reacted as of late.
Primo Brands Beats Q2 Earnings Estimates, Raises 2026 Sales Outlook
Primo Brands 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 $1.8 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.
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%.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Primo Brands has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Primo Brands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Primo Brands belongs to the Zacks Beverages - Soft drinks industry. Another stock from the same industry, Coca-Cola (KO - Free Report) , has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Coca-Cola reported revenues of $13.37 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $0.97 for the same period compares with $0.87 a year ago.
For the current quarter, Coca-Cola is expected to post earnings of $0.86 per share, indicating a change of +4.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
Coca-Cola has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
View the Zacks #1 Rank List
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Primo Brands (PRMB) Down 8.4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Primo Brands (PRMB - Free Report) . Shares have lost about 8.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Primo Brands due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Primo Brands Corporation before we dive into how investors and analysts have reacted as of late.
Primo Brands Beats Q2 Earnings Estimates, Raises 2026 Sales Outlook
Primo Brands 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 $1.8 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.
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%.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Primo Brands has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Primo Brands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Primo Brands belongs to the Zacks Beverages - Soft drinks industry. Another stock from the same industry, Coca-Cola (KO - Free Report) , has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Coca-Cola reported revenues of $13.37 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $0.97 for the same period compares with $0.87 a year ago.
For the current quarter, Coca-Cola is expected to post earnings of $0.86 per share, indicating a change of +4.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
Coca-Cola has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.