Primo Brands Cuts 2026 Adjusted EBITDA Outlook

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

Third-quarter net sales rose 3.1% to $1.82 billion as the company now expects full-year Adjusted EBITDA at the lower end of its prior range.

Primo Brands Corporation (PRMB), the North American branded beverage company, reported third-quarter net sales of $1.82 billion, up 3.1% from a year earlier, a slower sequential pace than the 3.8% increase in the second quarter.

The company said the sales increase was driven primarily by premium brands and regional spring water. Premium water sales were $122.1 million, compared with $98.2 million a year earlier. Regional spring water was $911.5 million and purified water $573.6 million.

Chairman and Chief Executive Officer Eric Foss said the quarter showed “solid top-line momentum and improving execution,” including Direct Delivery growth ahead of expectations and broad-based Retail sales growth.

Adjusted EBITDA rose 1.6% to $411.0 million from $404.5 million a year earlier. Adjusted EBITDA margin was 22.6%, down 30 basis points from 22.9%. That reversed a 20-basis-point expansion in the second quarter, when Adjusted EBITDA margin was 21.4%.

Gross margin was 30.4%, compared with 29.9% a year earlier. The company attributed the year-over-year improvement primarily to higher revenue and lower non-recurring integration-related costs, partially offset by increased transportation costs. SG&A expenses were $316.3 million, down from $343.0 million a year earlier, on lower marketing costs and definite-lived intangibles amortization that did not recur.

Net income from continuing operations was $124.5 million, or $0.34 a share, versus $40.5 million, or $0.11 a share, a year earlier. Adjusted net income was $157.1 million, or $0.43 a share.

Operating cash flow from continuing operations was $293.6 million. After $83.0 million of capital expenditures and additions to intangible assets, free cash flow was $210.6 million. Adjusted free cash flow was $274.2 million.

Total debt, excluding unamortized debt costs and discounts, was $5.2 billion. Unrestricted cash and cash equivalents were $477.2 million, for net debt of $4.8 billion and a net leverage ratio of 3.32x. Cash dividends were $43.5 million. Share repurchases were $22.1 million.

Based on year-to-date performance and proactive actions, the company said it expects 2026 net sales at the midpoint of its previous 2%–4% comparable growth range and Adjusted EBITDA at the lower end of its previous $1.465 billion–$1.515 billion range. It had raised the sales outlook in the second quarter. Base capital expenditures remain 4% of net sales, and adjusted free cash flow guidance is unchanged at $790 million–$810 million.

The board declared a $0.12 a share dividend payable December 4, 2026, and authorized a new $300 million share-repurchase program that replaces the existing plan, which had about $41 million of unused capacity at September 30, 2026. Foss said the new program provides another avenue to return capital while the company continues to invest for long-term growth and reduce net leverage.