11:49 AM EDT, 08/05/2025 (MT Newswires) -- Primo Brands' ( PRMB ) Q2 results may look weak due to weather-related retail pressure in the Northeast and delivery integration issues, but these challenges are temporary, RBC Capital Markets said in a note Tuesday.

Primo Brands ( PRMB ) is schedule to report its Q2 earnings Thursday.

The company is facing a tough year-over-year comparison, as last year's Q2 net sales rose 6.9% and benefited from elevated promotions linked to BlueTriton's mergers and acquisitions activity, the investment firm said.

Poor May weather in the Northeast slowed category sales, with Primo Brands ( PRMB ) more affected because of its strong Poland Spring presence in the region, as scanner sales rose only 0.4% in Q2 versus the estimated 2.1%, RBC said.

Delivery problems after the merger have been mostly limited to California and the Northeast, and Trustpilot data shows negative reviews fell 75% from June to July, indicating improvement, according to the note.

Mountain Valley and Saratoga brands saw over 100% sales growth in Q2, and their contribution is likely understated because only 30% of sales appear in scanner data, RBC analysts noted.

Management may lower full-year revenue guidance from 3% to 5% to a range of 2% to 4%, but earnings before interest, taxes, depreciation, and amortization targets are unlikely to change because potential synergies could exceed the current $300 million goal, according to RBC.

RBC maintained an outperform rating for Primo Brands ( PRMB ) with a $40 price target.

Price: 26.77, Change: -0.13, Percent Change: -0.48