PRMB earnings analysis
What we found in PRMB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Primo Brands reported Q1 2026 results with net sales of $1.63 billion, a modest growth of 0.8% year-over-year. However, earnings per share (EPS) of $0.07 fell short of the expected $0.24, prompting adjustments in the company's growth outlook for organic sales. In addition, while operational cash flow improved significantly, adjustments in gross margins and increased operational costs raise concerns about future performance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 0.8% YoY
- Net sales increased to $1,626.1 million from $1,613.7 million.
- Web of Increasing Costs
- Cost of sales rose by 6.3% to $1,161.2 million, impacting gross profit margin.
- Increase in Operating Cash Flow
- Net cash provided by operating activities rose to $103.8 million from $38.8 million.
- Significant Debt Refinancing
- Refinanced term loans totaling $3,090 million with a new facility maturing in March 2031.
- Segment Performance in Premium Water
- Premium water sales surged 42.8%, increasing to $105.5 million.
- Decrease in Acquisition Costs
- Acquisition-related costs decreased by 47.7% to $20.8 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Missed EPS Estimates
- Reported EPS of $0.07 significantly below the expected $0.24.
- Decreased Gross Margin
- Gross profit margin fell to 28.6% from 32.3% year-over-year.
- Pressure from Debt Refinancing
- Recent refinancing incurred a loss of $17.7 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.07
- Gross margin
- 28.6%
- Operating margin
- 8.5%
- Segment
- Regional spring water: $801.2 million
- Segment
- Purified water: $511.2 million
- Segment
- Premium water: $105.5 million
- Segment
- Other water: $30.5 million
- Segment
- Other: $177.7 million
What they said about what is next.
Raised organic net sales growth outlook from 1% to 3% for the full year.
The filing reads worse than the one before it.
What came before.
- 10-K · February 27, 2026
- The 2025 Form 10-K frames Primo Brands as the leading North American bottled water company after the 2024 Transaction, highlighting scale (more than 50 production facilities, >200 depots, ~4,800 delivery vehicles) and a…
- 10-Q · November 6, 2025
- Primo Brands reported strong top-line growth in Q3 2025 with net sales of $1,766.1 million versus $1,305.1 million in Q3 2024, and gross profit rising to $528.2 million. However, margin and EPS compression are evident:…
- 10-Q · August 7, 2025
- In its Q2 2025 report, Primo Brands Corporation reported a notable decrease in revenue and earnings per share compared to prior estimates, with actual revenue of $1,730.1 million and EPS of $0.07, both missing consensus…
- 10-Q · December 17, 2024
- Primo Brands Corporation reported insignificant operational activity for the third quarter ending September 30, 2024, due to its recent formation and merger with Primo Water Corporation. The preliminary unaudited…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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