Key Highlights

● Second-quarter net sales rose 3.8 per cent year over year to $1,796.2 million.

● Net income from continuing operations rose to $69.2 million from $30.5 million.

● Full-year comparable net sales growth guidance was raised to 2 to 4 per cent.

● Net debt stood at $4.88 billion, a net leverage ratio of 3.42 times.

Primo Brands Corporation (NYSE:PRMB), the North American branded water group behind Poland Spring, Pure Life, Saratoga and Mountain Valley, reported second-quarter 2026 results on 5 August 2026. Its Class A common stock is listed on the New York Stock Exchange under PRMB, according to its June 2026 quarterly filing. Net sales were $1,796.2 million, up 3.8 per cent from $1,730.1 million a year earlier, with growth led by regional spring water and premium brands, partly offset by the exit from US office coffee services. Chairman and chief executive Eric Foss said the company was encouraged by its first-half progress and had seen an earlier-than-expected return to growth in direct delivery. Management raised its full-year comparable net sales growth outlook to 2 to 4 per cent, from 1 to 3 per cent, while leaving adjusted EBITDA guidance at $1,465 million to $1,515 million and adjusted free cash flow guidance at $790 million to $810 million. Guidance is a management projection.

Earnings, margins and cash generation

Gross margin was 30.5 per cent, down from 31.3 per cent, which the company attributed to higher transportation costs and depreciation and amortisation. Net income from continuing operations rose to $69.2 million, or $0.19 per diluted share, from $30.5 million, helped by lower acquisition, integration and restructuring costs of $26.3 million on an adjusted basis, against $72.8 million. Adjusted net income, a non-GAAP measure, was $134.2 million, slightly below $137.1 million, although adjusted diluted earnings per share edged up to $0.37 from $0.36. Adjusted EBITDA was $385.0 million, up 5.0 per cent, at a 21.4 per cent margin. Operating cash flow from continuing operations was $227.9 million, free cash flow was $123.3 million, and adjusted free cash flow was $200.1 million.

Debt and the balance sheet

Leverage is the central feature of the credit profile for investors. At 30 June 2026 total debt, excluding unamortised costs and discounts, was $5.25 billion, with unrestricted cash of $366.5 million, giving net debt of $4.88 billion and a net leverage ratio of 3.42 times. During the first half the company refinanced its term loans, which totalled $3,090.0 million at the half-year and now mature in March 2031, and recorded a $17.7 million loss on debt modification and extinguishment. A $750 million revolving credit facility runs to February 2030. The company also repurchased shares worth $15.5 million in the second quarter alone.

Leverage Still Shapes the Investment Case

Primo Brands returned to growth earlier than expected in its direct-delivery business, and net income more than doubled on lower acquisition and restructuring costs, giving management confidence to raise its full-year sales outlook. The credit profile remains the central feature for investors, with net debt of $4.88 billion and a 3.42 times leverage ratio even after a first-half term loan refinancing, and term loan covenants continue to limit how much of that growth can flow through to a higher dividend.