Overview

* Primo Brands ( PRMB ) Q2 net sales rise 31.6% but miss analyst expectations

* Adjusted EPS for Q2 misses consensus, coming in at $0.36

* Company revises full-year 2025 guidance due to integration disruptions

* Primo Brands ( PRMB ) announces $250 mln share repurchase program

Outlook

* Primo Brands ( PRMB ) revises 2025 Net Sales, Adjusted EBITDA, Free Cash Flow guidance

* Company expects cost synergies of $200 mln in 2025, $300 mln in 2026

* Primo Brands ( PRMB ) anticipates service normalization by end of September

* Company announces $250 mln share repurchase program

Result Drivers

* MERGER IMPACT - Sales growth driven by merger with Primo Water, partially offset by facility sale in Ontario

* TORNADO DAMAGE - Hawkins facility tornado damage and integration service issues impacted Q2 results

* RETAIL EXPANSION - Continued expansion in retail distribution and strong demand for premium water products

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $1.73 $1.81

bln bln (10

Analysts

)

Q2 Miss $0.36 $0.42

Adjusted (11

EPS Analysts

)

Q2 EPS $0.07

Q2 Miss $137.10 $158.90

Adjusted mln mln (8

Net Analysts

Income )

Q2 Miss $366.70 $421.50

Adjusted mln mln (10

EBITDA Analysts

)

Q2 EPS $0.08

from

Cont Ops

Q2 Net $30.50

Income mln

from

Cont Ops

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

* Wall Street's median 12-month price target for Primo Brands Corp ( PRMB ) is $41.00, about 35.6% above its August 6 closing price of $26.41

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

(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.)