Primo Brands Corporation ( PRMB ) declined on Thursday after a surprise CEO shake-up and a decline in purified water demand, accompanied by a weaker sales and profit outlook.

PRMB is testing critical support. See what is driving the movement here

The stock struggled as investors digested falling volume trends and a trimmed forecast despite a third-quarter earnings beat.

The company reported third-quarter adjusted earnings per share of 41 cents, beating the analyst consensus estimate of 36 cents.

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Quarterly sales of $1.766 billion (+35.3% year over year) missed the Street view of $1.768 billion.

Regional spring water sales fell 0.8% to $885.6 million, while purified water sales fell 5.2% to $557.5 million. Quarterly sales in the premium water segment jumped 44.4% to $98.2 million.

This was partially offset by lower sales associated with the Ontario, Canada, production facility, which was sold in the first quarter of 2025.

Net income from continuing operations fell 24% to $40.5 million.

Adjusted EBITDA gained 53.2% to $404.5 million. Adjusted EBITDA margin expanded by 270 bps to 22.9%.

Gross margin was 29.9% compared to 31.9%, primarily driven by gross profit attributable to Primo Water as a result of the merger transaction.

Management Change

Primo Brands ( PRMB ) announced the appointment of Eric Foss as the company's Chairman of the Board of Directors and chief executive officer, effective immediately, succeeding the company's CEO, Robbert Rietbroek.

Dividend

Primo Brands ( PRMB ) announced that it has declared a dividend of 10 cents per share, payable on December 5, 2025.

Outlook

Primo Brands ( PRMB ) expects a low-single-digit net sales decline in fiscal 2025.

The company expects adjusted EBITDA in fiscal year 2025 to be between $1.440 billion and $1.460 billion (prior view: $1.485 billion to $1.515 billion).

PRMB Price Action: Primo Brands ( PRMB ) shares were down 20.19% at $18.08 at the time of publication on Thursday. The stock is trading near its 52-week low of $21.37, according to Benzinga Pro data.

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