Primo Brands Corporation reported fourth‑quarter 2025 results that surpassed consensus expectations, with net sales of $1,554.1 million, a 11.2% year‑over‑year increase, and adjusted EBITDA of $334.1 million, up 31.1% from the same quarter a year earlier. Adjusted net income rose to $94.1 million from $39.6 million in 2024, and the adjusted EBITDA margin expanded to 21.5% from 18.2% a year ago.
The headline sales growth reflects the inclusion of Primo Water’s full‑period results following the November 2024 merger. On a comparable basis, net sales actually fell 2.5% in Q4 2025, and the full‑year comparable sales declined 1%. Gross margin for the quarter was 27.7%, down from 30.8% a year earlier, a decline attributed to integration costs and the lower‑margin Primo Water portfolio. Despite the margin compression, the company’s cost‑control initiatives and scale benefits from the merger drove the adjusted EBITDA expansion.
Primo Brands’ earnings per share of $0.26 beat the consensus estimate of $0.22, a $0.04 or 18% beat. The EPS beat was largely driven by disciplined cost management that offset the impact of integration expenses, while the strong mix of premium water brands and recovery in direct‑delivery and retail channels supported revenue growth. The 3.3‑percentage‑point lift in the adjusted EBITDA margin underscores the company’s ability to capture synergies and improve operating leverage.
Management guided for 2026 organic net sales growth of flat to 1% and adjusted EBITDA of $1.485 billion to $1.515 billion, a range that represents a 45% increase from the prior year’s $1.446 billion. The guidance signals confidence that the merger integration will continue to deliver margin expansion and that the company’s brand portfolio will sustain growth in a competitive hydration market.
"2025 was a year of transition as we continued to integrate two companies to form a leader in healthy hydration and across the US Liquid Refreshment Beverage category. Our fourth quarter performance indicates early signs that our initiatives are resulting in an improved trajectory for the business. This speaks to the strength and resilience of our business model," said Eric Foss, Chairman and CEO. "We will continue to strategically reinvest in the business to take advantage of strong category momentum and our well‑positioned brand portfolio to better service and execute, setting the company up to drive sustained growth, margin expansion, free cash flow generation and long‑term value for shareholders." Foss also noted, "We are seeing early signs of recovery in our direct delivery channel." CFO David Hass added, "We are focusing on strong execution in our delivery network as we work expeditiously to realize the benefits of the merger."
Investors responded positively to the results, with analysts highlighting the EPS beat and the significant expansion of the adjusted EBITDA margin as key drivers of the favorable market reaction. The guidance for 2026, which projects modest sales growth and continued margin improvement, reinforced confidence in the company’s post‑merger trajectory.
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