Primo Brands (NYSE:PRMB) Announces Earnings Results, Beats Estimates By $0.05 EPS

Primo Brands (NYSE:PRMB) issued its quarterly earnings data on Wednesday. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.32 by $0.05, FiscalAI reports. The business had revenue of $1.80 billion during the quarter, compared to analyst estimates of $1.77 billion. Primo Brands had a net margin of 0.88% and a return on equity of 13.98%. Primo Brands’s quarterly revenue was up 3.8% compared to the same quarter last year. During the same period last year, the business posted $0.36 earnings per share.

Here are the key takeaways from Primo Brands’ conference call:

• Second-quarter net sales rose 4.2% to $1.8 billion, ahead of expectations, while adjusted EBITDA increased 5% to $385 million and margin expanded modestly to 21.4%.
• Direct delivery returned to growth, with comparable sales up 0.4% and a 340-basis-point sequential improvement, supported by better customer service, lower quits and call volumes, and mid-90s on-time-and-full performance.
• Primo raised its 2026 comparable net sales growth outlook for the second consecutive quarter to 2%-4% from 1%-3%, while reaffirming adjusted EBITDA guidance of $1.465 billion-$1.515 billion and adjusted free cash flow guidance of $790 million-$810 million.
• Retail growth remained broad-based, including 30.5% growth in premium water, 4.1% growth in regional spring water, and gains across value and volume share; club and away-from-home channels also delivered mid- to high-single-digit growth.
• Profitability remains exposed to higher transportation costs, tighter freight markets, and commodity inflation, while management plans continued investments in customer service, technology, marketing, and supply-chain capabilities, keeping full-year EBITDA guidance unchanged despite the sales upgrade.

Primo Brands Stock Performance

PRMB stock traded down $1.31 on Thursday, hitting $24.01. The company had a trading volume of 11,048,415 shares, compared to its average volume of 4,631,268. The company has a current ratio of 0.98, a quick ratio of 0.79 and a debt-to-equity ratio of 1.72. Primo Brands has a 12-month low of $14.36 and a 12-month high of $26.21. The stock has a market cap of $8.71 billion, a price-to-earnings ratio of 171.66, a P/E/G ratio of 1.97 and a beta of 0.74. The stock’s 50-day simple moving average is $24.01 and its 200 day simple moving average is $21.59.

Primo Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Monday, August 24th will be given a dividend of $0.12 per share. The ex-dividend date is Monday, August 24th. This represents a $0.48 dividend on an annualized basis and a yield of 2.0%. Primo Brands’s dividend payout ratio is 342.86%.

More Primo Brands News

Here are the key news stories impacting Primo Brands this week:

• Positive Sentiment: Second-quarter earnings beat expectations. Primo Brands reported adjusted earnings of $0.37 per share, above the $0.32 consensus estimate, while revenue reached $1.80 billion versus expectations of $1.77 billion. Revenue increased 3.8% year over year. Primo Brands Reports 2026 Second Quarter Results
• Positive Sentiment: Management raised its 2026 sales-growth outlook. Comparable net sales growth is now expected at 2% to 4%, up from the previous 1% to 3% range. Adjusted EBITDA rose 5% to $385 million, with the margin improving to 21.4%, while strength in premium brands and regional spring water supported confidence in continued growth. Primo Brands Beats Q2 Earnings Estimates, Raises 2026 Sales Outlook
• Neutral Sentiment: Industry trends remain broadly supportive. A sector-focused report identified soft-drink companies, including Primo Brands, as potential beneficiaries of health-focused innovation and changing consumer preferences. However, the article provided limited company-specific information. 5 Soft Drink Stocks Poised for Growth Amid Health-Focused Innovation
• Negative Sentiment: A large secondary offering may pressure shares. An affiliate of One Rock Capital Partners plans to sell 20 million Class A shares. Because the transaction involves existing shares rather than newly issued stock, it should not directly dilute Primo Brands’ ownership base, but the additional supply and potential investor concerns about insider monetization can weigh on the stock in the near term. Primo Brands Announces Secondary Offering

Hedge Funds Weigh In On Primo Brands

Institutional investors and hedge funds have recently modified their holdings of the company. Jump Financial LLC bought a new stake in Primo Brands during the fourth quarter valued at about $173,000. Militia Capital Partners LP bought a new stake in Primo Brands during the 4th quarter worth approximately $199,000. Quantum Portfolio Management LLC bought a new stake in Primo Brands during the 4th quarter worth approximately $226,000. Cruiser Capital Advisors LLC purchased a new position in Primo Brands during the fourth quarter valued at approximately $164,000. Finally, Xponance LLC lifted its holdings in Primo Brands by 4.2% during the fourth quarter. Xponance LLC now owns 13,114 shares of the company’s stock valued at $214,000 after purchasing an additional 528 shares in the last quarter. 87.71% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts have issued reports on PRMB shares. Weiss Ratings upgraded Primo Brands from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, May 11th. JPMorgan Chase & Co. raised their price objective on Primo Brands from $26.00 to $29.00 and gave the company an “overweight” rating in a research report on Thursday, July 16th. TD Cowen reiterated a “buy” rating on shares of Primo Brands in a research note on Thursday. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $25.00 target price on shares of Primo Brands in a research note on Thursday. Finally, Royal Bank Of Canada set a $28.00 price target on Primo Brands in a report on Thursday, April 9th. Eleven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $27.58.

Primo Brands Company Profile

Primo Brands (NYSE: PRMB) is a consumer packaged beverage company that was established as an independent entity following a corporate spin?off in 2023. The company specializes in the production, marketing and distribution of a broad portfolio of bottled water products, including purified, mineral and sparkling varieties. Through its focus on quality control and innovation, Primo Brands aims to deliver clean, great-tasting water in formats tailored to both at-home consumption and on-the-go lifestyles.

Its product range spans multi-serve and single-serve bottles, aluminum cans and other eco-friendly packaging solutions.