Primo Brands Raises 2026 Sales Outlook Again

The Tip Desk · August 5, 2026 · 3 min read

Second-quarter net sales rose 3.8% to $1.80 billion, faster than the 0.8% gain in the first quarter, and the company lifted its full-year comparable sales outlook to 2%–4%.

Primo Brands Corporation (PRMB) raised its 2026 comparable net sales growth outlook for a second consecutive quarter after second-quarter sales accelerated and Adjusted EBITDA reversed a first-quarter decline.

The North American branded beverage company reported net sales of $1,796.2 million for the three months ended June 30, 2026, up 3.8% from $1,730.1 million a year earlier. That pace was faster than the 0.8% increase recorded in the first quarter. Chairman and Chief Executive Officer Eric Foss said top-line results exceeded expectations, citing robust growth in Retail channels led by regional spring water and premium brands and an earlier-than-anticipated return to growth in Direct Delivery.

Adjusted EBITDA increased 5.0% to $385.0 million from $366.7 million a year earlier, reversing a 10.4% sequential decline in the first quarter. Adjusted EBITDA margin expanded 20 basis points to 21.4%, after a 240-basis-point compression to 18.8% in the prior quarter. Gross margin was 30.5%, up from 28.6% in the first quarter. The gross-margin move reflected higher transportation-related costs and depreciation and amortization, partially offset by revenue growth and lower non-recurring integration costs.

Premium water net sales were $114.2 million, compared with $87.5 million a year earlier. Regional spring water contributed $911.0 million, purified water $556.1 million, other water $31.8 million, and other products $183.1 million. The 3.8% top-line increase was driven primarily by premium brands and regional spring water, partially offset by the absence of sales from the exited U.S. Office Coffee Services business.

Net income from continuing operations was $69.2 million, or $0.19 a share, versus $30.5 million, or $0.08 a share, a year earlier. Adjusted net income was $134.2 million, or $0.37 a share. Selling, general and administrative expenses were $345.5 million, compared with $378.6 million a year earlier, reflecting lower marketing costs and a decrease in amortization of definite-lived intangibles that did not recur. Acquisition, integration and restructuring expenses were $10.0 million.

Net cash provided by operating activities from continuing operations was $227.9 million. After $104.6 million of capital expenditures and additions to intangible assets, free cash flow was $123.3 million and Adjusted Free Cash Flow was $200.1 million. Cash dividends were $43.5 million and share repurchases, including brokerage commissions, were $15.5 million. Total debt excluding unamortized costs and discounts was $5.3 billion and unrestricted cash was $366.5 million as of June 30, 2026, producing net debt of $4.9 billion and a net leverage ratio of 3.42x, down from 3.52x and $5.0 billion of net debt at March 31.

The company raised its 2026 comparable net sales growth outlook to 2%–4% from 1%–3%. Foss said the strength across the business gave the company confidence to raise the outlook for the second consecutive quarter. Adjusted EBITDA guidance of $1.465 billion to $1.515 billion was reaffirmed, as were Adjusted Free Cash Flow of $790 million to $810 million and base capital expenditures of 4% of net sales. The company continues to prioritize growth investments while managing inflationary pressures. Comparable results exclude the exited Eastern Canadian operations and the exited U.S. Office Coffee Services business.