Primo Brands Q3 Sales Rise 3.3% as 2026 EBITDA Tracks Lower End

Primo Brands Corp. (NYSE: PRMB) reported higher third-quarter sales, supported by pricing and mix and strong premium-water growth, while lower volume contributed to a narrower adjusted margin. The company now expects full-year adjusted EBITDA at the lower end of its previous range, even as comparable net sales growth is projected near the midpoint of its prior outlook.

For the quarter ended September 30, 2026, net sales rose 3.1% year over year to $1.82 billion. Comparable net sales, which exclude the exited Eastern Canadian operations and U.S. Office Coffee Services business, increased 3.3% from $1.76 billion.

Price and mix added 5.9% to comparable sales, more than offsetting a 2.6% decline in volume. Organic growth accounted for 2.9 percentage points of the quarterly increase, while acquisitions contributed 0.4 percentage points.

Adjusted EBITDA increased 1.6% to $411 million. However, the comparable adjusted EBITDA margin declined 40 basis points to 22.6%, as earnings grew more slowly than sales. Net income from continuing operations rose to $124.5 million from $40.5 million a year earlier.

Premium Water and Large Retail Channels Lead Growth

Premium-water sales increased 24.3% to $122.1 million, making the category the fastest-growing part of Primo Brands’ water portfolio. Regional spring water and purified water, the company’s two largest categories, each recorded 2.9% growth, reaching $911.5 million and $573.6 million, respectively.

Other-water sales fell 3.6% to $31.8 million, while revenue from fees, rents, coffee and other non-beverage activities declined 3.2% to $182 million. Primo Brands said investments in new capacity are intended to support scale and productivity for its premium offerings.

By trade channel, mass-market sales rose 9.6% to $237.1 million and club-channel revenue increased 7.5% to $310.1 million. Grocery sales grew 3.1% to $355.3 million, while direct delivery—the company’s largest channel—advanced 2.2% to $689.3 million. Away-from-home sales increased 3.9% to $139.9 million.

Those gains were partly offset by a 13.7% decline in the emerging, specialty and other channel, where sales fell to $89.3 million.

Full-Year EBITDA Expected at Lower End of Prior Range

For 2026, Primo Brands expects comparable net sales growth near the midpoint of its previous 2% to 4% range, implying growth of about 3%. The presentation estimated full-year comparable net sales of approximately $6.83 billion, compared with a revised 2025 comparable base of $6.63 billion.

Management expects adjusted EBITDA at the lower end of its prior $1.465 billion to $1.515 billion range. The company maintained its adjusted free cash flow forecast of $790 million to $810 million and continues to expect base capital expenditures equal to 4% of net sales.

Primo Brands generated $210.6 million of free cash flow during the quarter, up from $150.7 million a year earlier. Adjusted free cash flow, which adds back specified acquisition, integration, restructuring and other costs, declined to $274.2 million from $311.1 million.

Capital Returns and Deleveraging Remain Priorities

The company authorized a new $300 million share-repurchase program, replacing its previous authorization, which had about $41 million of unused capacity as of September 30. Primo Brands also declared a quarterly dividend of $0.12 per share.

Management identified investment in growth and productivity, balance-sheet strengthening, shareholder returns and strategic bolt-on acquisitions as its principal capital-allocation priorities. Planned business investments include digital capabilities, customer contact centers, premium-channel capacity, production facilities, and cooler and fleet standardization.

Primo Brands reported a net leverage ratio of 3.32 times trailing adjusted EBITDA and said it is focused on reducing that measure below 3.0 times. At quarter-end, available liquidity totaled $1.06 billion, while the weighted-average cost of debt was 5.84%.

The company said fuel, resin, labor and freight remain key cost exposures. Its mitigation measures include diesel hedging, long-term resin contracts, productivity programs, revenue-management initiatives and pass-through mechanisms such as delivery and energy surcharges.

The outlook remains subject to risks including the management of expanded operations following the business combination, competitive pressure, input and transportation costs, execution of productivity initiatives, access to water sources, changing consumer preferences, regulation of plastics, acquisition integration and the company’s substantial indebtedness. Primo Brands also cautioned that its non-GAAP guidance is not reconciled to corresponding GAAP measures because of uncertainty around items including stock-based compensation, amortization, taxes, restructuring expenses and unrealized foreign-exchange and commodity-forward gains or losses.