Primo Brands Q1 sales beat estimates on retail performance

Overview

• US beverage company's Q1 net sales rose 0.8%, beating analyst expectations

• Adjusted EPS for Q1 missed analyst expectations

• Company repurchased $29 mln in shares during the quarter

Outlook

• Primo Brands raises 2026 organic net sales growth outlook to 1%-3% from 0%-1%

• Company widens 2026 adjusted EBITDA guidance to $1,465-$1,515 mln from $1,485-$1,515 mln

• Primo Brands maintains 2026 base CAPEX at 4% of net sales and adjusted free cash flow at $790-$810 mln

Result Drivers

• PREMIUM BRANDS & RETAIL - Net sales growth was primarily driven by increased sales of premium brands and robust performance in retail channels

• DIRECT DELIVERY IMPROVEMENT - Company reported continued improvement in its Direct Delivery segment

• COST PRESSURES - Gross margin declined due to increased transportation costs, non-recurring integration costs, and higher depreciation and amortization

Company press release: ID:nPn9fCxqma

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Primo Brands Corp is $26.00, about 31.3% above its May 6 closing price of $19.80

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.