Primo Brands Beats Q3 Earnings Forecasts as Revenue Rises 3.1%

Primo Brands Corporation (NYSE:PRMB) reported third-quarter adjusted earnings of $0.43 per share, exceeding analysts’ expectations of $0.37, while revenue increased 3.1% year over year to $1.82 billion, matching market forecasts.

The water and beverage company’s shares rose 0.86% in after-hours trading following Thursday’s announcement.

Premium Brands Support Revenue Growth

Revenue increased from $1.77 billion in the corresponding quarter last year, supported by higher sales of premium water brands and regional spring water products.

Adjusted EBITDA rose 1.6% to $411.0 million from $404.5 million, although the adjusted EBITDA margin narrowed to 22.6% from 22.9%.

Adjusted free cash flow declined to $274.2 million, compared with $311.1 million a year earlier.

CEO Eric Foss said the results reflected growth in the company’s Direct Delivery and Retail operations.

“Our third quarter results demonstrate solid top-line momentum and improving execution across the business. This led to Direct Delivery growth ahead of our expectations, broad-based Retail sales growth, and category dollar share gains,” Foss said.

Primo Brands Revises 2026 Financial Guidance

The company expects full-year net sales growth near the midpoint of its previously announced 2% to 4% range, equivalent to approximately $6.83 billion in revenue.

Primo Brands also indicated that adjusted EBITDA would likely be at the lower end of its existing $1.47 billion to $1.52 billion guidance range, implying approximately $1.47 billion.

Its adjusted free cash flow forecast remained unchanged at $790 million to $810 million.

Company Announces Dividend and Share Buyback

Primo Brands declared a quarterly dividend of $0.12 per share and authorised a new $300 million share repurchase programme.

The new programme replaces an existing authorisation that had approximately $41 million remaining.

The company maintained its full-year sales and free cash flow expectations while narrowing its adjusted EBITDA outlook toward the lower end of the previously announced range.

Primo Brands Corporation stock price