Tampa, Florida, and Stamford, Connecticut, November 5th / PRNewswire / -- Primo Brands Corporation (New York Stock Exchange ticker: PRMB, hereinafter referred to as “Primo Brands” or “the Company”) today announced its third-quarter results for the period ending September 30, 2026.

Chairman and CEO Eric Foss stated: "Our third-quarter performance demonstrates a steady momentum of revenue growth, as well as a continuous improvement in business execution. This has led to direct-to-consumer business growth that exceeded our expectations, widespread growth in retail sales, and an increase in our dollar share of the category."

"We continue to make progress in a dynamic cost environment, focusing on the factors within our control to help alleviate macroeconomic cost pressures, while also continuing to invest for long-term growth. Based on our performance from the beginning of the year to date and the proactive measures we have taken, we expect net sales in 2026 to reach the midpoint of our previous guidance range, with the adjusted EBITDA falling at the lower end of that range."

"As a leader in the growing and resilient water beverage category, we benefit from a strong brand portfolio and differentiated channel-to-market capabilities. These advantages enhance our confidence in achieving long-term profit growth, generating strong cash flows, reducing net leverage, and creating shareholder value. Our new $300 million share repurchase program provides another way to continue to return capital to shareholders, while we will also remain focused on long-term growth investments and reducing net leverage."

Third Quarter Earnings

• Net sales increased by 3.1% year-on-year to $1.82 billion, compared to $1.77 billion in the same period last year, mainly driven by the growth in sales of high-end brands and regional spring waters.
• Gross profit margin was 30.4%, compared to 29.9% in the same period last year; it was mainly driven by revenue growth and a decrease in non-recurring integration-related costs recognized this quarter, but this was partially offset by an increase in transportation-related costs.
• Selling, general and administrative expenses amounted to $316.3 million, compared to $343.0 million in the same period last year; this decrease was mainly due to a reduction in marketing costs, as well as a decline in amortization related to the amortization of intangible assets with limited useful lives recognized during the same period last year, which did not occur again in this quarter.
• Net profit from continuing operations was $124.5 million, with diluted earnings per share of $0.34; in the same period last year, these figures were $40.5 million and $0.11 respectively.
• After adjustment, EBITDA increased by 1.6% year-on-year to $411 million, compared to $404.5 million in the same period last year; after adjustment, the profit margin of EBITDA decreased by 30 basis points to 22.6%, from 22.9% in the same period last year.

Third Quarter Cash Flow and Liquidity

• Operating cash flow from continuing operations amounted to $293.6 million. After deducting $83 million in capital expenditures and the increase in intangible assets, the free cash flow was $210.6 million; after adjustments according to the items listed in Schedule 6, the adjusted free cash flow was $274.2 million. In the same period last year, operating cash flow from continuing operations was $283.4 million, and the adjusted free cash flow was $311.1 million.
• As of September 30, 2026, the total debt (excluding unamortized debt costs and discounts) was $5.2 billion, while the unrestricted cash and cash equivalents were $477.2 million, resulting in a net debt of $4.8 billion and a net leverage ratio of 3.32 times.
• The quarterly cash dividend as of September 30, 2026, was $43.5 million.
• This quarter, through public market transactions and discretionary repurchases, the stock repurchases completed under the repurchase program (including brokerage commissions) amounted to $22.1 million.

2026 Full-Year Financial Outlook

Follow-up matters

Primo Brands also announced today that the board of directors has decided to distribute a dividend of $0.12 per share of the company's issued Class A common stock, to be paid in cash on December 4, 2026. The record date for registered shareholders is at the close of business on November 24, 2026.

The company also announced that the board of directors has authorized the initiation of a new stock repurchase program with a maximum amount of $300 million, targeting the company's outstanding Class A common shares ("New Repurchase Program"). The new repurchase program will replace the company's existing stock repurchase program; as of September 30, 2026, there was still an unused amount of approximately $41 million remaining under the existing program.

The company may, at its discretion, repurchase shares from time to time through public markets, block trades, accelerated or other structured repurchase programs, private negotiated transactions, the Rule 10b5-1 program, or other methods. Repurchases from the public market will be conducted in accordance with applicable federal securities laws, including the price and volume requirements of the revised Securities Exchange Act of 1934, Section 10b-18. The method, timing, price, and quantity of any transaction shall be determined at the discretion of management and may depend on market conditions, regulatory requirements, and other capital utilization or investment opportunities available to the company. The new repurchase program does not require the company to acquire a specific number of Class A common shares, and the board of directors may modify, suspend, or terminate the program at any time at its discretion.

Performance Conference Call

Primo Brands will hold a teleconference on November 5, 2026, at 8:00 a.m. Eastern Time to discuss the aforementioned financial results. The company's supplementary performance presentation materials are now available on the Primo Brands investor relations website, in the “Events & Presentation” section of ir.primobrands.com. The information for accessing the teleconference and webcast is as follows:

• North American dial-in: (888) 510-2154
• International Inbound: (437) 900-0527
• Meeting ID: 92586
• Live streaming link: https :// app.webinar.net / lqa5ra5rjkD

Slide presentations and real-time audio webcasts can be obtained through the Primo Brands website ir.primobrands.com.

Replay Information: The performance call will be recorded and archived on the Investor Relations page of the Primo Brands website after the event is over for replay.

About Primo Brands Corporation

Primo Brands is a leading brand beverage company in North America, focusing on healthy hydration. It offers a diversified product portfolio with responsible sourcing in terms of products, packaging formats, channels, price ranges, and consumption scenarios, and its distribution covers all states in the United States and Canada. The company has a wide range of easily recognizable brand water and beverage products that are conveniently packaged. Consumers can access these products anytime, anywhere, in non-home settings such as retail stores, hotels, and hospitals, as well as through hotel catering services, and through direct delivery services to homes and businesses. Its brands include the established “billion-dollar brands” Poland Spring and Pure Life, high-end brands Saratoga and The Mountain Valley, leading regional spring water brands Arrowhead, Deer Park, Ice Mountain, Ozarka, and Zephyrhills, purified water brands Primo Water and Sparkletts, as well as flavored and fortified beverages Splash Refresher and AC + ION. Primo Brands also boasts a leading line of innovative water dispensers in the industry, establishing connections with consumers through recurring water purchases.

Primo Brands operates a vertically integrated network that covers the entire United States, distributing its brand to over 200,000 retail outlets, and directly reaching customers and consumers through direct delivery, trade-in, and refill services. Through the direct delivery service, Primo Brands provides responsibly sourced water replenishment solutions to household and business customers. With the trade-in service, consumers can purchase pre-filled reusable water buckets at approximately 26,500 retail locations, which can be traded in for a discount at their next purchase. The refill service allows consumers to top up their reusable water buckets at over 23,500 self-service water replenishment stations. Primo Brands also provides water purification equipment for North American households and businesses.

Primo Brands is a leader in the field of reusable beverage packaging, helping to reduce waste through multi-purpose bottles and innovative brand packaging combinations that include recycled plastic, aluminum, and glass. The company has over 80 water sources and actively manages its water resources to ensure a continuous supply of high-quality, safe drinking water for the present and future. Primo Brands also contributes to protecting more than 28,000 acres of land in the United States and Canada. We are proud to collaborate with the North American International Bottled Water Association ( IBWA ), which supports strict adherence to safety, quality, hygiene, and regulatory standards to protect consumers. Primo Brands is committed to supporting the communities it serves by investing in local and national projects and providing water replenishment solutions after natural disasters and other community challenges. With over 12,000 employees, the company is headquartered in Tampa, Florida, and Stamford, Connecticut. For more information, please visit www.primobrands.com.

Non-GAAP indicators

To complement the financial indicators presented in accordance with Generally Accepted Accounting Principles (GAAP) in the United States, Primo Brands uses several non-GAAP financial indicators. The company employs a comparable net sales figure, which excludes the impact of the discontinued business in Eastern Canada and the coffee service business in the United States. The company also uses adjusted net profit (loss), adjusted diluted earnings per share (loss), adjusted EBITDA, and adjusted EBITDA profit margins to account for the effect of certain items on its core business. Since management utilizes these adjusted financial results in business operations, it believes that this supplementary information helps investors independently assess and understand the company's core business performance as well as management's performance. The company also uses net debt and net leverage ratio. Management considers net debt as an indicator of overall liquidity, financial flexibility, and leverage level, and the net leverage ratio as a measure of the company's ability to fulfill future financial obligations. In addition, when disclosing the net cash flow provided (used) from continuing operations in accordance with GAAP, the company deducts increases in property, plant, and equipment and intangible assets to present free cash flow; it also deducts additional items listed in the schedules attached to this press release to present adjusted free cash flow. Management believes that these indicators help to demonstrate the company's ability to generate cash flow from operating activities in the future. The definitions of these non-GAAP indicators and the adjustments to GAAP indicators are provided in Schedules 5 to 9.

The aforementioned non-GAAP financial indicators are supplementary to the company's GAAP financial statements and should not be considered superior to the GAAP financial statements, nor can they replace the GAAP financial statements. Non-GAAP financial indicators have their limitations, as they do not reflect all amounts involved in the company's operating results determined according to GAAP. In addition, other companies may calculate these indicators in different ways. Investors are advised to refer to this press release and the accompanying tables that show the adjustment tables for the non-GAAP financial indicators versus the most directly comparable GAAP indicators. Furthermore, the non-GAAP financial indicators in this performance announcement reflect management's judgment on specific items and may differ from the same-named indicators reported by other companies, hence they may not be directly comparable. The company has not adjusted the adjusted EBITDA and adjusted free cash flow guidance separately from the GAAP net profit or loss and cash flow from operating activities, as there is uncertainty and potential volatility associated with several adjustment items. The company does not provide guidance for these GAAP indicators, including stock-based incentive expenses, acquisition of intangible assets and related amortization, income tax, acquisition, integration, and restructuring costs, as well as unrealized gains (losses) from foreign exchange and commodity forward contracts. Since it is not possible to provide information for these items without unreasonable effort, the company is unable to adjust the non-GAAP guidance with the corresponding GAAP indicators. However, these items may have a significant impact on the company's future GAAP results.

Safe Harbor Statement

This press release contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect management's expectations for the future based on plans, estimates, and projections at the time of making such statements. Forward-looking statements involve inherent risks and uncertainties. Primo Brands reminds readers that various important factors could lead to significant differences between actual results and the content of such forward-looking statements. Forward-looking statements can be identified by the use of words such as “may”, “will”, “would”, “should”, “could”, “expect”, “aim”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “predict”, “project”, “seek”, “potential”, “opportunities”, and their negative forms, although not all forward-looking statements contain these words. The forward-looking statements in this press release include, but are not limited to: future financial and operating trends and results (including the Primo Brands outlook for 2026 and the expected adjustments to EBITDA for 2027, free cash flow, and net leverage trends), the number of shares that may be repurchased under the new repurchase plan, capital allocation priorities, productivity and cost reduction actions and their expected timing, costs and benefits, the implementation of the company's strategy, and the Primo Brands competitive position. Forward-looking statements are based on assumptions made by management's current plans and estimates, which management believes to be reasonable, but cannot guarantee their accuracy.

Factors that may lead to significant differences between the actual results and those described in this press release include, but are not limited to: the company's ability to manage and expand operations after business mergers; intense competition in the market segments in which the company operates; the company's success being partly dependent on its intellectual property; the possibility that the company may not be able to complete the acquisition, or that integration after the acquisition may be difficult, and that expected benefits may not be achieved; the company's business relying on the maintenance of water sources; the company's ability to respond to consumer trends related to its products; any loss of important customers or decline in sales; potential increases in packaging supplies and other costs; rising transportation, freight, and fuel costs; the company's ability to implement productivity and employee adjustments to achieve expected benefits; risks associated with the company's common stock; One Rock Capital Partners, LLC related parties holding a considerable proportion of the voting rights in the company, whose interests may differ from or conflict with those of other shareholders; risks associated with legislative and administrative actions; risks related to sustainable development issues; costs required to comply with evolving laws and regulations, including those related to plastic production and use, as well as litigation related to plastic pollution; the possibility that the company's products do not meet health and safety standards or may be contaminated, which could result in harm, illness, or death to consumers, and the company may be held liable for such incidents; risks related to litigation or legal proceedings; risks associated with losing the status of a controlled company; risks related to uncertainties in tax law and regulatory interpretations; and risks associated with the company's high debt levels.

The list of factors mentioned above is not exhaustive. Readers are reminded not to rely excessively on any forward-looking statements, which are only valid as of the date of this document. It is recommended that readers carefully review and consider the disclosures made by Primo Brands in their 10-K annual reports, 10-Q quarterly reports, and other documents submitted to the U.S. Securities and Exchange Commission, including but not limited to risk factors. Unless explicitly required by applicable law, Primo Brands assumes no obligation to update or revise any such statements due to new information or future events.

Website: ir.primobrands.com