Primo Brands Q1 sales beat estimates on retail performance

Primo Water

07/05/2026 11:13

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$1.63 bln
$1.58 bln (10 Analysts)
Q1 Adjusted EPS
Miss
$0.23
$0.25 (11 Analysts)
Q1 EPS
$0.08
Q1 Adjusted Net Income
Slight Miss*
$85.90 mln
$86.005 mln (6 Analysts)
Q1 EPS from Cont Ops
$0.07


*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.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)