Primo Brands Corporation reported third‑quarter 2025 results that reflected a 35.3% year‑over‑year increase in net sales to $1.766 billion, driven largely by the integration of its recent merger with Blue Triton Brands and a 2.8% rise in volume across its retail, direct‑delivery, exchange and refill channels. The modest 0.2% lift in price or mix helped to offset the impact of the merger’s cost structure, resulting in a net sales figure that met the consensus estimate of $1.768 billion but fell slightly short of the $1.80 billion range cited by some analysts.
Adjusted earnings before interest, taxes, depreciation and amortization climbed to $404.5 million, a 53.2% jump from the prior year, and the adjusted EBITDA margin expanded to 22.9%, up 270 basis points from 20.2% in Q3 2024. The margin growth is attributable to the merger’s cost‑synergy capture, which has reduced operating expenses relative to sales growth, and to disciplined pricing in the premium water brands Saratoga® and The Mountain Valley®. The company’s CFO, David Hass, noted that “we grew retail net sales and volume and expanded both dollar and volume share, with double‑digit net sales growth in our premium water brands.”
Net income from continuing operations fell 12.8% to $40.5 million, largely because of a $12.8 million one‑time charge that is excluded from adjusted EBITDA. Other non‑operating items—including $44.2 million in acquisition, integration and restructuring expenses and a $23.7 million loss from discontinued operations—also weighed on the headline figure. The GAAP earnings per share of $0.11 reflected these one‑time costs, while the adjusted EPS of $0.41 beat the consensus estimate of $0.38 by $0.03, a 7.9% lift that underscores the company’s ability to generate operating cash flow even as it navigates post‑merger integration costs.
Primo Brands declared a quarterly dividend of $0.10 per share, payable on December 5. Management reiterated its full‑year 2025 guidance for net sales and adjusted EBITDA, raising both metrics to reflect the stronger top‑line momentum and the early realization of merger synergies. The company maintained its adjusted free‑cash‑flow guidance, signaling confidence that cash‑generating capacity will remain robust despite the one‑time charges.
Market reaction to the earnings was mixed. While the company’s adjusted EPS beat expectations, the net sales figure fell slightly below the consensus range, prompting a brief pre‑market dip. The subsequent release of the earnings data lifted investor sentiment, as reflected in a 2.9% rise in the stock price, indicating that the market weighed the earnings beat more heavily than the modest revenue miss.
Management emphasized that the merger has positioned Primo Brands to capture a larger share of the premium water market and to streamline its delivery network. The company’s focus on operational excellence and customer service is expected to sustain the margin expansion and support the revised guidance for the remainder of the year.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.