Revenue: As of FY2026 Q1, the actual value is USD 1.626 B, beating the estimate of USD 1.583 B.

EPS: As of FY2026 Q1, the actual value is USD 0.07.

EBIT: As of FY2026 Q1, the actual value is USD 216.3 M.

Primo Brands Corporation operates as a single reportable segment, focusing on sourcing, bottling, and delivering water to customers in North America, with business activities managed on a consolidated basis.

Net Sales

For the three months ended March 31, 2026, net sales were $1,626.1 million, an increase of $12.4 million or 0.8% compared to $1,613.7 million in the prior year period. This increase was primarily driven by premium brands, partially offset by a decrease related to the divested coffee business.

Net sales by water type for the three months ended March 31, 2026, included $801.2 million for regional spring water, $511.2 million for purified water, $105.5 million for premium water, and $30.5 million for other water. For the same period in 2025, these figures were $794.1 million for regional spring water, $514.4 million for purified water, $73.9 million for premium water, and $34.8 million for other water. Sales of other products and services were $177.7 million in 2026, down from $196.5 million in 2025.

Cost of Sales

Cost of sales increased by $68.5 million, or 6.3%, to $1,161.2 million for the three months ended March 31, 2026, from $1,092.7 million in the prior year. This was mainly due to increased transportation costs of $24.2 million, $20.4 million in non-recurring integration costs, and $11.4 million in increased depreciation and amortization, partially offset by a $10.8 million decrease from the divested coffee business.

Gross Profit and Gross Margin

Gross profit decreased by $56.1 million, or 10.8%, to $464.9 million for the three months ended March 31, 2026, from $521.0 million in the prior year. The gross margin declined to 28.6% of net sales in 2026 from 32.3% in 2025.

Operating Expenses

Selling, general and administrative expenses were $336.7 million for the three months ended March 31, 2026, a 2.7% increase from $327.8 million in the prior year period. Acquisition, integration and restructuring expenses decreased by $19.0 million to $20.8 million in 2026 from $39.8 million in 2025, primarily due to lower integration costs and net restructuring gains from facility sales. Other operating income, net, was $30.6 million in 2026, compared to other operating expense, net, of -$0.2 million in 2025, largely due to unrealized gains on commodity forwards.

Operating Income

Operating income for the three months ended March 31, 2026, was $138.0 million, a decrease of $15.2 million or 9.9%, from $153.2 million in the comparable prior year period.

Other Expenses

Other expense, net, increased by $1.1 million to $1.2 million in 2026. Loss on modification and extinguishment of debt was $17.7 million in 2026, down from $18.6 million in 2025. Interest and financing expense, net, decreased by $3.8 million, or 4.6%, to $78.3 million in 2026 from $82.1 million in 2025.

Net Income from Continuing Operations

Net income from continuing operations decreased by $7.4 million, or 21.3%, to $27.3 million for the three months ended March 31, 2026, from $34.7 million in the prior year.

Cash Flows from Continuing Operations

Net cash provided by operating activities of continuing operations increased by $65.0 million to $103.8 million in 2026 from $38.8 million in 2025. Net cash used in investing activities of continuing operations was -$111.0 million in 2026, compared to -$23.2 million in 2025, primarily due to increased property, plant, and equipment purchases and acquisitions. Net cash used in financing activities of continuing operations was -$81.0 million in 2026, a decrease of $99.8 million from -$180.8 million in 2025, mainly due to lower common stock repurchases.

Share Repurchase Program

As of March 31, 2026, Primo Brands Corporation had $78.3 million of authorization remaining under its Share Repurchase Program. During the three months ended March 31, 2026, the company repurchased 1,539,175 shares of Class A common stock for approximately $29.0 million.

Future Outlook and Strategy

Primo Brands Corporation anticipates funding its operations, capital expenditures, and acquisitions through cash generated from operating activities and available credit under its $750.0 million revolving credit facility. While these sources are expected to provide sufficient liquidity for the next 12 months and the foreseeable future, the company does not expect to generate enough cash from operations to fully repay its debt at maturity. Therefore, Primo Brands Corporation will rely on refinancing existing debt or accessing credit markets or additional equity investments to meet future obligations.