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Download the Complete Report Here Key Takeaways: Strong topline growth and continued education-channel rebuilding were offset by slower-than-expected manufacturing efficiency at the existing Arps facility. BRFH reported 2Q26 revenue of $4.7 million, up 190% y/y from $1.6 million but down 16% sequentially from $5.6 million in 1Q26 and approximately 9.5% below the low end of $5.2 million guidance. Arps Dairy contributed $3.2 million, including $2.9 million from raw and processed milk, while frozen beverage and food revenue, consisting primarily of legacy Barfresh products, increased 9% y/y to approximately $1.8 million. Consolidated growth remained heavily acquisition-driven, with milk representing roughly 62% of quarterly revenue and core Barfresh recovery not yet fully reflected in reported results. Arps continues to provide supply continuity, while new district wins and returning education customers are expected to contribute more meaningfully with the 2026-27 school year. The principal 2Q pressure point was therefore production, where a slower and more costly manufacturing ramp weighed on gross margin and adjusted EBITDA recovery. Profitability remained pressured by manufacturing inefficiencies, but improving throughput and a more favorable product mix support sequential recovery in 2H26. Gross margin declined to negative 3.2% in 2Q26 from 31.1% in 2Q25 and approximately 18% in 1Q26, while adjusted EBITDA fell to a $1.2 million loss from a $600,000 loss a year ago. The pressure reflected startup costs, equipment limitations and lower than planned productivity at the existing Arps facility, with the impact extending into legacy Barfresh production. Management indicated that repairs and process improvements are improving throughput and yields, while a greater mix of higher margin education products should provide additional support as the 2026-27 school year ramps. Together, these factors support management’s expectation for adjusted EBITDA to improve to a $0.5 million loss to breakeven in 2H26. Arps has restored supply continuity for BRFH, but scaling owned production has required more investment and operational work than initially anticipated. As more Barfresh volume shifted in-house, operating the facility at the required production levels highlighted additional equipment and infrastructure needs that had not been apparent before the acquisition. BRFH therefore moved ice cream production out to prioritize its core smoothie portfolio, while repairs, equipment servicing and process refinements have since improved throughput and yields. Management indicated that a significant portion of the corrective work has already been completed and that remaining requirements at the existing facility should be relatively modest, with focus increasingly shifting to Defiance. Guidance revision quantifies the impact of the slower manufacturing ramp and makes operational efficiency an important 2H26 focus. 2026 revenue guidance was reduced to $23 to $26 million from $28 to $32 million, while adjusted EBITDA guidance was reduced to a loss of $1 million to $2 million from positive $3.2 to $3.8 million. At the respective midpoints, this represents a $5.5 million reduction in expected revenue and an approximately $5.0 million reset in adjusted EBITDA. Management attributed most of the EBITDA revision to ~$1.8 million of higher Arps processing costs, $0.8 million from the loss of the ice cream mix business and $0.8 million of higher material costs, with another $1.2 million tied to delayed legacy Barfresh revenue recovery and unrealized freight and storage synergies. Street’s 2026 revenue estimate of $22.9 million (source: TIKR) sits just below management’s $23 to $26 million guide, suggesting expectations are already relatively conservative; delivery within the range could support upward estimate revisions. Management’s breakdown of the guidance revision indicates that the downgrade is primarily tied to manufacturing efficiency, integration timing and delayed cost savings, making cost per case, throughput and gross margin recovery important operating markers through 2H26. The revised outlook still supports meaningful sequential improvement in 2H26, while education growth and manufacturing progress provide the foundation for continued growth into 2027. With 1H26 revenue of $10.3 million, management’s 2026 guidance implies $12.7 to $15.7 million of revenue in 2H26, with sequential improvement expected in both 3Q26 and 4Q26 as new school districts and returning customers ramp. Management also expects 2H26 adjusted EBITDA to improve to a loss of $0.5 million to breakeven from a $1.46 million loss in 1H26, supported by higher throughput, better cost absorption and a more favorable mix of core Barfresh products. Looking into 2027, Street estimates call for revenue of $29.2 million and adjusted EBITDA of negative $2 million (source: TIKR), implying ~28% revenue growth versus 2026 estimates and a modest improvement in adjusted EBITDA from negative $2.4 million. The revenue growth and modest EBITDA improvement reflect expectations for broader education rollouts, continued customer recovery and gradual improvement in manufacturing economics, while the lower margin Arps milk business remains relatively stable. Education channel momentum continues to build, with new district wins and customer reactivations supporting a stronger 2H26 setup. Several recently won districts began serving BRFH products during the 2025-26 school year and are expected to expand across all locations in the 2026-27 school year, while additional education wins are expected as remaining bids close. BRFH is also reengaging customers that removed products from menus following prior supply disruptions. The timing of these wins helps explain why frozen beverage and food revenue increased 9% y/y in 2Q26, as much of the first half still reflected purchasing decisions made during the prior school year. Management expects incremental 2H26 growth to be driven primarily by higher margin Barfresh products, while the Arps milk business remains relatively stable, supporting a more favorable revenue mix as school-year orders ramp. BRFH’s broker-led commercial model continues to support customer recovery while keeping costs well controlled. Selling, marketing and distribution expense declined 12% y/y to $561,000 in 2Q26 from $634,000, with sales and marketing expense down 28% to $256,000 as the company increasingly relied on brokers to communicate improved supply reliability and rebuild relationships with school districts. Single-serve products are also reducing equipment maintenance requirements in the education channel, providing operating leverage as volume scales. Storage and outbound freight expense increased to $305,000 from $276,000, reflecting the delivery requirements of processed milk, but the broader commercial cost structure remains relatively lean. This should support better operating leverage as higher margin Barfresh volume becomes a larger share of the mix, provided manufacturing efficiency continues to improve. The 44,000-square-foot Defiance facility remains the central strategic catalyst for BRFH’s transition to normalized production economics. BRFH is targeting partial commissioning of core products by year-end 2026, with remaining products expected to follow shortly thereafter. The facility is designed to provide greater throughput, improved production flexibility and more efficient unit economics than the existing plant, directly addressing the equipment reliability and processing constraints that affected 2Q26 results. The company also has a $2.4 million government grant available for qualifying equipment purchases. While the existing Arps facility has already improved supply continuity and reduced reliance on third-party manufacturers, successful commissioning of Defiance should be the more important driver of margin normalization and capacity expansion heading into 2027. The transition will also require careful production sequencing, with the existing facility lease running through September 30 and partial commissioning at Defiance targeted by year-end. Operating expense discipline provided some offset to manufacturing pressure, although higher G&A and financing costs weighed on overall profitability. Selling, marketing and distribution expense declined 12% y/y to $561,000 from $634,000 and was down from approximately $697,000 in 1Q26, reflecting greater use of the broker network and lower equipment-related costs. G&A increased 18% y/y to $794,000 from $673,000, primarily due to higher personnel, recruiting and administrative costs associated with Arps Dairy, while total operating expenses remained broadly flat y/y at $1.37 million. Net loss widened to $1.86 million from $880,000 y/y, with interest expense increasing to $344,000 from $12,000 as acquisition and facility financing became a larger part of the cost structure. Working capital is being positioned for the new school year, with inventory supporting production readiness as education volumes ramp. Inventory increased approximately 30% from year-end 2025 to $2.16 million, driven by raw materials and packaging rising to $1.17 million from $684,000, while finished goods remained broadly stable at approximately $1.0 million. This mix suggests the build is primarily supporting higher production rather than reflecting an accumulation of unsold finished product. Management also indicated that inventory has continued to build through the summer and that current internal capacity, supplemented by co-manufacturers, is sufficient to support existing, returning and newly won school business. Given the supply interruptions experienced last year, maintaining this production buffer should help BRFH convert improving education demand into more consistent revenue. Liquidity remains supported by receivables financing and planned funding sources as the manufacturing build progresses. BRFH ended June with $324,000 of cash and $1.09 million of trade receivables, while operating cash use increased to $3.05 million in 1H26 from $1.58 million a year ago as the company absorbed integration costs, built inventory and reduced trade payables. Receivables facilities provide an additional liquidity buffer, with approximately $3.58 million of borrowing availability at quarter end, subject to eligible collateral. Converting the back-to-school inventory build into sales and receivables, while securing planned financing for Defiance, remains an important balance-sheet consideration through the remainder of 2026. The March convertible financing provides BRFH with funding flexibility, although interest cost and potential dilution remain considerations. BRFH raised $7.5 million through senior convertible notes and used a portion of the proceeds to repay the existing mortgage, leaving the Defiance property unencumbered and available to support planned property-backed financing. The notes carry a 10% coupon during the first 12 months and are convertible at $2.90 per share, while investors also received approximately 2.35 million warrants exercisable at $3.20. Interest expense increased to $344,000 in 2Q26 from $12,000 a year ago, reflecting the higher financing burden. Management does not currently plan an equity raise and continues to prioritize mortgage and equipment financing; successful execution of that plan would help limit incremental dilution as BRFH completes the Defiance build. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. Stock has reacted negatively to the latest earnings print, but our analysis suggests BRFH’s current valuation increasingly discounts the near-term operating pressure reflected in the guidance reset, while the medium to long-term opportunity from education growth and vertical integration remains intact. At $1.30 per share and an approximately $21 million market capitalization, BRFH trades at 0.93x 2026E P/Sales. The selloff reflects the slower manufacturing ramp and reduced 2026 outlook, while the longer-term education opportunity and strategic rationale for vertical integration remain intact. Importantly, the Street estimate sits slightly below the low end of management’s $23 to $26 million 2026 revenue guidance, suggesting current expectations are already relatively conservative. Delivery within the guidance range, particularly toward the upper end, could support upward estimate revisions and strengthen confidence in the medium to long-term growth and margin recovery trajectory. A return toward BRFH’s historical valuation range highlights meaningful rerating potential as execution improves. The stock has de-rated and currently trades well below its three-year peak of 4.5x NTM P/Sales. Applying a 3.0x P/Sales multiple, approximately one-third below the historical peak, to the $22.9 million 2026E Street revenue implies an illustrative market capitalization of approximately $68 million, or roughly $4.2 per share, while 2027E Street revenue of $29.2 million provides additional forward growth support. However, the path to rerating remains contingent on execution across key operating milestones, including education revenue growth through the 2026-27 school year, gross margin recovery, improved efficiency at the Arps facility, progress toward the 2H26 adjusted EBITDA target, and successful commissioning of the Defiance facility. Relative valuation has also become compelling, with BRFH trading at a greater than 40% discount to peers. BRFH’s 0.93x 2026E P/Sales multiple compares with a peer average of 1.58x, representing an approximately 41% discount. Applying the peer average to the $22.9 million 2026E Street revenue estimate sourced from TIKR implies an illustrative equity value of approximately $36 million, or roughly $2.2 per share. This framework assumes only convergence toward the peer average, with further rerating potential if BRFH delivers within management’s revenue guidance, demonstrates sequential margin improvement, and executes on the Defiance transition, supporting the medium to long-term growth and margin recovery thesis. Read Exec Edge’s Initiation on Barfresh Food Group Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Barfresh Reports Topline Growth & Continued Education Recovery – Quarterly Update Report appeared first on ExecEdge.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:00 a.m. ET Chairman and Chief Executive Officer - Eric Foss Chief Financial Officer - David Hass Vice President, Investor Relations - Traci Mangini Operator: Good morning. Welcome to the Primo Brands 2026 Second Quarter Earnings Conference Call. [Operator Instructions] This call is being recorded on Thursday (sic) [ Wednesday ], August 5, 2026. I would now like to turn the conference call over to Traci Mangini, Vice President, Investor Relations. Please go ahead. Traci Mangini: Thank you, operator, and hello, everyone. With me on the call today are Eric Foss, Chairman and Chief Executive Officer; and David Hass, Chief Financial Officer. Our discussion today includes forward-looking statements within the meaning of U.S. federal securities laws, which are subject to risks and uncertainties that may cause actual results to differ materially. For more information, please refer to our forward-looking statements disclosure in our earnings release. In addition, the definition of and applicable reconciliations for any non-U.S. GAAP financial measures are included in our earnings release and supplemental earnings slides, which were made available earlier today on the Investor Relations section of our website. With that, I'll pass it to you, Eric. Eric Foss: Thanks, Traci. Good morning and thank you for joining us. Today, I'll review our second quarter performance and how we're positioning the company to be fit to win by continuing to improve on the direct delivery customer experience, advancing our key growth priorities and simplifying our leadership structure. David will then cover our financial results and 2026 guidance. We're encouraged with the accelerating momentum across the business in the second quarter with strengthening fundamentals, driven by ongoing improvements in the customer experience in direct delivery and strong dollar in volume share gains in the bottled water category within retail. Second quarter net sales were $1.8 billion, up 4.2% on a comparable basis versus prior year, ahead of our expectations and marking a second consecutive quarter of year-over-year growth. Growth was broad-based, reflecting continued strength across our brands in retail and a faster than expected return to growth in direct delivery. Adjusted EBITDA increased 5% to $385 million, with margin expansion driven by improving productivity, stronger operating leverage, and continued progress in direct delivery. With top-line growth again exceeding our expectations and momentum broadening across both retail and direct delivery, we're raising our 2026 comparable net sales growth guidance for a second consecutive quarter. We now expect growth of 2% to 4%, up from the previously guide of 1% to 3%. We are reaffirming our adjusted EBITDA guidance of $1.465 billion to $1.515 billion as we intend to continue to invest behind growth and as we manage the current dynamic macro cost environment. Our business fundamentals continue to improve and we remain well-positioned in an attractive growing category. Our differentiated portfolio of leading brands spanning the value spectrum and advantage route to market and disciplined execution gives us confidence we have the right foundation to drive long-term growth. Building on this, last month, we took an important step forward by simplifying our leadership structure. This included eliminating the Chief Operating Officer role, enhancing leadership capacity with the addition of a highly experienced beverage industry professional in the role of President of Customer Direct and Go-to-Market, and elevating certain critical roles like Chief Supply Chain Officer to report directly to me. These changes are designed to improve our ability to serve our customers and accelerate key growth priorities and support faster decision-making and to create a more agile and accountable operating model. We believe these actions further strengthen our position and enhance our ability to capitalize on the growth opportunities ahead. Let's review our near-term priorities, which we have discussed in the last few quarters. First was to improve the customer experience in direct delivery and second was to return the company to balanced growth. We've now delivered on both of these priorities for a second consecutive quarter. Direct delivery returned to growth, up 0.4% in the quarter. This return to growth was one quarter ahead of our expectations and marks a significant milestone reflecting meaningful progress in stabilizing the business and improving the customer experience. At a high level, direct delivery growth is driven by several key levers: adding new customers, improving revenue retention, disciplined pricing, and tuck-in M&A. In the second quarter, performance improved across several of these areas. New customer additions remained strong and with the reduction in the historical incentives, we're improving new customer quality and narrowing the average revenue gap to more tenured customers. On a sequential quarterly basis, customer quits and the contact center call volumes also declined, with call volumes below pre-integration levels. We also saw improvement in key operational metrics. On-Time In-Full or OTIF, improved month-over-month through June, reaching the mid-90s despite elevated peak season demand. We also continue to make the customer billing experience easier and more clear through simpler invoices, expanded payment options, stronger credit processes, and improving invoice timing for many residential customers. Our Solve-by-sundown initiative has also been supporting faster resolution of customer concerns. We're encouraged with our progress, but there is more work ahead as we continue to stabilize the business and lay the foundation for optimization to accelerate profitable growth. Supported by our simplified leadership structure, we're taking targeted actions to improve execution, productivity, and the customer experience, creating a flywheel that we believe will enhance operational performance and accelerate growth. Our second priority was returning the total business to growth, which we achieved for a second consecutive quarter. Our retail business delivered strong and broad-based growth. Our regional spring water net sales increased 4.1%, purified water increased 1.9%, and premium brands increased 30.5%. We also expanded our retail presence through new points of distribution. This performance drove continued value and volume share gains in the bottled water category. Going forward, we see multiple growth vectors: continuing to brand build and innovate, improving our in-store presence in a more strategic and holistic approach to revenue growth management. We also see meaningful opportunity in cold and immediate consumption, where we're under-penetrated in a high-growth, high-margin segment. Another growth vector is premium. Saratoga and Mountain Valley continue to be among the strongest growth assets in the portfolio, again, growing dollar and volume share of category in the quarter, driven by expanded distribution. With strong brand equity, growing distribution, along with new capacity, we believe they are still early in their growth journey and see meaningful opportunities for both scale and mix, driving operating leverage and margin expansion over time. Our final growth priority is developing a more strategic and holistic revenue growth management approach across price points, packages, and channels. In the first half of the year, we took strategic and disciplined actions across select areas of our portfolio using our approach that begins and ends with the consumer while factoring in competitive dynamics, our cost structure and the economics of our retail partners. We continue to believe we are well positioned to manage through the current dynamic macro and geopolitical conditions. Our portfolio serves consumers across price points, packages, channels, and occasions. We have a number of levers, including productivity and pricing, that we believe can help mitigate inflationary pressures while supporting long-term growth and margin expansion potential. In closing, we're encouraged by our first half progress, which reflects an enhanced customer experience, improving execution, and building momentum across the business. In short, we believe the business is fundamentally stronger than it was 6 months ago. As One Team Primo, our customer-first culture fuels our passion to serve our customers and consumers with excellence each and every day. Our near-term focus is to continue to execute with purpose and pace to drive sustainable, balanced growth. And as that growth scales, we expect productivity and operating leverage to support margin expansion, increased cash flow generation, and long-term value creation. With that, let me turn the call over to David. David Hass: Thank you, Eric. For 2026, reported financials include Primo Brands results for both 2026 and 2025, as we're now past the anniversary of the merged companies. To enhance comparability of continuing operations, we focus on comparable results, which exclude the Eastern Canadian operations exited in the first quarter of 2025 and the office coffee services business exited during 2025. Reconciliations are available in our earnings presentation available on our website. Second quarter comparable net sales increased 4.2% versus the prior year, driven by a 4.3% contribution from price mix, modestly offset by a negative 0.1% contribution from volume. In retail, net sales growth was driven across all channels, led by mass, grocery, and Away From Home. Across pack sizes, driven by occasion and case packs and brands, led by premium and regional spring waters. In fact, in retail sales channels, our premium sales growth exceeded the overall 30.5% premium water increase, reflecting ongoing strength in retail channels while continuing to recover within the direct delivery channel. Direct delivery net sales growth was driven by price and mix benefits, despite lower volume resulting from a smaller customer base. On a comparable basis, direct delivery net sales increased 0.4%, slightly ahead of our breakeven expectations and a 340 basis point sequential improvement from the first quarter. This progress reinforces that our recovery efforts are driving tangible improvements in service levels, which is also reflected in continued increases in our NPS scores and Trustpilot ratings. Adjusted EBITDA increased $18.3 million to $385 million, with comparable adjusted EBITDA margin up 10 basis points to 21.4% versus the prior year. On a quarterly sequential basis, comparable adjusted EBITDA margin improved 260 basis points, reflecting enhanced operating efficiency in a seasonally stronger quarter and productivity gains enabled by more stable operations. Within direct delivery, our continued investments in routes, service, and customer experience drove a more consistent net sales performance. At the enterprise level, adjusted EBITDA growth versus prior year was partially offset by higher transportation costs, primarily related to a tighter freight market and higher spot rates. We also continued to make strategic investments across the business to support long-term growth and productivity. Turning to our balance sheet and cash flows, we are encouraged by the improved health of our balance sheet and the quality of our cash flow. Net leverage was 3.42x at quarter end, an improvement from 3.52x in the first quarter, demonstrating a normal seasonal deleveraging pattern as we move closer to our near-term target of below 3 times as cash flow and EBITDA continue to strengthen. Our liquidity remains strong, with $953 million of availability between our cash balance and our unused line of credit. As expected, the level of EBITDA and free cash flow adjustments declined significantly, which is a positive step toward a cleaner cash flow profile and better alignment between reported results and the underlying performance of the business. We generated $227.9 million of cash flow from operations for the quarter. Adjusting for significant items, most notably our integration and merger activities, cash flow from operations would have been $266.4 million. Adjusted free cash flow, which excludes integration related capital expenditures, was $200.1 million, representing a $30.4 million improvement versus prior year. Our strong financial flexibility allows us to reinvest in the business while returning cash to stockholders. Second quarter total capital expenditures were $104.6 million, while $35 million was related to integration capital expenditures, the majority supported growth initiatives and maintenance. We also continued to execute our share repurchase program. During the quarter, we repurchased $15.5 million or 708,000 shares under our $300 million authorized program. Turning to guidance. As a reminder, in 2026, we cycle the exit of our office coffee services business, which accounted for $25.5 million in our reported 2025 net sales, as well as the Eastern Canadian operations, which accounted for $3.6 million in our reported 2025 net sales results, putting the comparable 2025 net sales base at $6.635 billion. We are raising our comparable 2026 net sales growth guidance for a second consecutive quarter. We now expect growth in the range of 2% to 4% from our previous 1% to 3% guidance. This reflects our second quarter outperformance versus our expectations and the broadening of momentum across retail and direct delivery. We are reaffirming adjusted EBITDA guidance in the range of $1.465 billion to $1.515 billion. At the midpoint, this implies an adjusted EBITDA margin of 21.8%, which is flat compared to the prior year, as we invest behind growth and manage a dynamic cost environment. This entails taking disciplined actions to manage higher transportation and commodity costs while continuing to invest in service, capabilities, and overall customer experience to support long-term growth. We believe we have multiple levers to help mitigate commodity impacts, including pricing actions, growth initiatives, ongoing supply chain cost initiatives, and our financial risk management program. These actions are expected to support near-term cost mitigation and long-term margin expansion potential. In direct delivery, we expect productivity to improve following peak season as we realign the cost structure under our enhanced operating model while making disciplined investments in key initiatives such as the customer contact center and a warehouse management system that strengthen the customer experience and position the business for future growth. Adjusted free cash flow guidance remains $790 million to $810 million, supported by the strength of our cash generation. We expect free cash flow quality to improve sequentially through the balance of the year, driven by lower adjusted EBITDA add backs and the typical timing lag between expense recognition and cash payment. Our strong free cash flow profile supports our capital allocation priorities. We continue to expect annual capital expenditures of approximately 4% of net sales, in addition to approximately $100 million of 2026 integration capital expenditures, of which approximately $18 million remained at the end of the second quarter. Finally, we remain committed to returning cash to stockholders. Last week, our board of directors reaffirmed the $0.12 quarterly dividend, which annualizes to $0.48 per share. And we intend to continue executing our share repurchase plan with $62.8 million remaining under the program authorization as of the end of the second quarter. With that, I'll turn the call back to Traci. Traci Mangini: Thanks, David. To ensure we can address as many of your questions as possible, please limit yourself to one question, and if we have time remaining, we will re-poll for additional ones. Operator, please open the line for questions. Operator: [Operator Instructions] Ladies and gentlemen, we'll now begin the question-and-answer session. [Operator Instructions] Your first question comes from Andrea Teixeira from JPMorgan. Andrea Teixeira: So I was wondering if you can talk about customer counts into the second half. We obviously have seen an improvement. You talked about the service levels, but also kind of net adds, and that's something that investors have been watching as you go. And I know the inflection was an important landmark for Primo. So if you look at the cadence also, when you think about the 47%, 53% that you highlighted before and how we should be thinking about it after these results? And lastly, just a clarification on the sequencing of the retail business, like what are you seeing in terms of the growth in volumes as we go through the balance of the summer? I know there was probably some pull forward, potentially for a number of different reasons. You had also an easy comparison. So if you can just kind of take us through the balances and for both businesses, that would be appreciated. Eric Foss: Thanks, Andrea. It's Eric. So let me start with the first one. I think number one, we're very pleased with our progress. Obviously, we've seen improved momentum really across the business. We continue to see both the retail business perform well broad-based across channels and brands. And the pace of our recovery and corrective actions that we took on the customer direct business are adding to the overall customer experience, and we're seeing that across leading and lagging indicators. So just on the customer direct business, we're obviously pleased with that progress. To your question on cadence, yes. The cadence of our top line in customer direct, we did see stronger monthly performance in the months of May and June than we did earlier in the quarter. I think as you think about that business, obviously we talked a little bit about some of the supply chain disruption that is now, I think, fully behind us. And on the service side, I think this was probably the biggest step forward we made in the quarter, which is, if you think about call volume, it's back to pre-merger levels. If you look at quits, they continue to improve. We talked about, on the prepared comments, kind of the mid-90s performance that we're seeing on OTIF. And then if you look at nets, we did see a positive month within Q2. So I think the really encouraging thing is this business has now returned to growth. We're seeing, again, NPS kind of customer satisfaction metrics improve dramatically versus where we've been. We have more to do. We talked about the warehouse management system, work on the customer journey, future call center, investments in tech and AI. So lots more to do, but really, really pleased with the overall recovery of that business. On your second question, I think it was related to volume. Again, encouraged by the top-line recovery. We obviously saw sequential acceleration in that top line from Q1 into Q2. Again, very happy with how broad-based that growth is. When you're growing strong growth, double-digit growth on premium, but you're also seeing all of our regional spring waters and Pure Life grow at the same time. You're seeing that growth broad-based across almost every single channel we do business in. And I think one of the most important metrics is the fact that we grew both our value and our volume share is very encouraging to us. Anyway, overall, very, very encouraged by how the business has performed. Andrea Teixeira: Eric, just a clarification. This is super helpful. On the HOD, the net adds, you said within the quarter you had -- it's returned to growth, inflect to growth. When was that? Was the exit month or that was an easy comp from last year or within the month in terms of cadence? Eric Foss: The growth cadence on the overall business, as I was trying to articulate was in the months of May and June. Andrea Teixeira: And what happened, like now in July, how we should be thinking July and August in terms of that sustainability of that cadence or that improvement in the HOD? Eric Foss: Again, we feel, as I've said, very pleased with our progress. It's broad-based. We continue to feel like the actions we took, both the pace and the actual actions themselves are creating a much better customer experience. All of the leading and lagging indicators that we called out are in a better spot, and we continue to be encouraged by the continued recovery and certainly would anticipate that continuing to be in a good spot as we walk forward. Operator: And our next question comes from Nik Modi from RBC Capital Markets. Nik Modi: Eric, I was hoping maybe you could just give us a little bit more color on kind of the volume versus price mix. It looks like the majority of the revenue growth was driven by price mix. So if you could just kind of help give us some kind of underneath the cover kind of perspective on that, that would be super helpful. And then, David, just -- there was a lot of talk when the integration happened around working capital and working capital improvements. And I know that, obviously, a lot of that has been disrupted with some of the integration challenges. But now that we're kind of moving forward, I would love your kind of updated thoughts on the progress that you could make there and kind of time line. Eric Foss: Sure, Nik. Well, I think, let me try to deconstruct a little bit of the volume price dynamic. I think number one, while we saw a return to growth on the customer-direct business, it wasn't volume growth, so that recovery is still ahead of us. And what happens is if you really deconstruct this thing at a unitized level, we did see volume positive in the quarter. Again, if I break it down and actually move over to retail on a year-to-date basis, we're seeing a split of about 40/60. So pretty balanced between volume and price, which is obviously what we're trying to do. So overall, again, I can't be more enthusiastic about our progress and how top-line growth actually exceeded our expectations. And again, we continue to look at this through a category lens. We've got a good category, pretty stable consumer environment, feel very good about our own position and are continuing to be encouraged by what lies ahead. David Hass: Yeah, Nik, on the working capital, I think when you go through last year and you run into some integration-related disruptions, you then kind of get caught up a little bit in your collections process, and that would not be as efficient as we would have liked. As you move into this year, that's improving pretty rapidly, as well as the quality of the customer that we are retaining, which is the most important measure. So I think when you look at that, that should continue to be a tailwind for us with regard to at least the cash cycle. Again, I think we are getting our arms around vendor relations and continuing to take advantage of the benefits of the merger with those vendor relations. So that should also allow us to sort of action activities against payable days. And then inventory will be, what I'll call, sort of a variable in that equation where last year we probably could have advantaged ourselves with a little bit higher inventory levels going through some of the branch and integration transitions. This year, that's not a problem at all in customer direct. And I think also where you'll see us sort of lean in on inventory is as we continue to develop our small format immediate consumption business, making sure we sort of have product availability ready for what is a much higher velocity business than our traditional shelf space program. Again, I feel very comfortable overall that working capital will continue to be a benefit for us as the business continues to perform more smoothly this year. Operator: And your next question comes from Kaumil from Jefferies. Kaumil Gajrawala: I guess I want to connect 2 things. One is the reorganization. One of the outcomes is that you're a lot more nimble than perhaps you would have been before. Now that you also have a business that's performing better than expected, that frees up a lot of investment dollars. So as you're thinking about the back half, what are some of the things that you might be doing differently now, maybe playing a lot more offense than you otherwise would have been, than what could have been the plan 6 months ago when we first started putting together some thoughts on how the year was going to play itself out? Eric Foss: Thanks, Kaumil, it's Eric. I appreciate your question. On the -- some of the things we did structurally, I mean, you've heard me talk before. We're in the people business, and the team with the best players win. So the strategic rationale around some of the changes we made was really focused on, first and foremost, the customer, improving that overall experience, making sure we're prepared each and every day to provide great service and great execution at the moment of truth. Continue to reinforce some of the cultural dimensions around creating a performance and recognition culture, and then also making sure in a fast-moving category like this, we have the speed and agility on the decision-making front. So I think taking the customer-direct business direct to me, along with supply chain direct to me is kind of eliminates a layer and allows us to do that in a more seamless way and a quicker way. The folks that we've added from an experience and skill standpoint, broad-based leadership background, strong go-to-market in the beverage business and bring a lot of the relevant skills and experiences we were looking for. I think relative to the second part of your question, obviously, it's -- you're much better positioned when you're in the virtuous cycle and kind of that growth flywheel than kind of where we saw ourselves several months ago -- 6 months ago. So again, we want to continue to play offense. I think what we have to do is continue to be very good on investments that are going to help the overall model succeed. So whether that's call center resources, whether it's investments in tech and AI, whether it's investments in capability, obviously marketing and brand building, we're still in -- I've described in the past, I think, kind of moving from stabilize to optimize to ultimately strategize. And I think from where we are right now, our focus near term continues to be on growing the core. And as we get further into this journey, that should allow us to think differently about other growth options. Kaumil Gajrawala: Okay, got it. David, I think you alluded to this a little bit, but as it relates to new customer adds, who are they? Are they different from customers you've had before? Are they returning customers that you would've lost when you had some of the issues, or are they entirely new? Maybe just a little more detail on the sort of the composition of the net adds. David Hass: Yes. So I think I'll start with the simple statement that we don't have as great of tracking of, you used to be one and now you are one again. Those are analytical capabilities we can continue to enhance as well as consumer intercepts and insights that sort of educate us a little bit more on that. What I feel fortunate about our position, especially in those direct-to-consumer bulk water categories, are more people are leaving tap each and every day than would be considering that their primary source of sort of home use or office-based water. So when you look at a departure or a donation from that sort of share of consumer, again, they obviously can go to pitcher filtration, singles, and things that we also thrive at in retail. But when you come over to the bulk spectrum, we feel very advantaged and fortunate with our position from the lowest entry price water at refill to a mid-stage water price within our exchange business, where both of those you do your own work, to obviously the more premium end of the business where for delivery fees and sort of access to heigh and great brands and convenience that can be brought to your home or office. So I feel like, again, we're in an advantaged position where the tailwinds would say that more consumers are making these decisions for their health and wellness benefits as well as sort of departing what was a former source of their primary water. Operator: And your next question comes from Lauren Lieberman from Barclays. Lauren Lieberman: Wanted to ask a little bit about the premium side of the portfolio, still up 30%, which obviously is a great number, but it was a deceleration versus what the business had been trending at previously. So just curious if there's anything to kind of call out there, and how you think about what's a sustainable growth rate on the premium side of the business? Eric Foss: We, again, saw continued double-digit growth, around 30%, as you mentioned, in premium. Stronger on Saratoga than Mountain Valley. As you'll recall, we were in the midst of starting up a new Mountain Valley line. That did create a little bit of product supply disruption at one point. We're still early in the journey on the premium. We have to continue to invest in brand building. The good news is very strong brand health across both of those brands. We got to continue to drive penetration, frequency, pack rate. Overall, we continue to see it -- we're early in that journey, and we would continue to see these brands continue to perform very well. They both, in the quarter, grew value and volume share. So pleased with it, and we'll continue to walk down that journey and see those brands perform, I think, fairly well. Operator: And your next question comes from Bonnie Herzog from Goldman Sachs. Bonnie Herzog: I had a question on the pricing you took on your media consumption portfolio during the quarter. Eric, I guess I was just hoping to hear some more color on what you're seeing and hearing from retailers, consumers, and your competitors. Also, curious if you've been able to maintain shelf space. And will you consider future pricing on other maybe packages and/or channels? I guess I'm ultimately trying to understand if the strength in retail this quarter is sustainable going forward. Eric Foss: Sure, Bonnie. Well, let me start. Our growth goal is to be balanced across volume and price. And I think we mentioned on past calls that we had a lot of work to do in the area of RGM and pricing from an insights, process, tool standpoint. Again, our framework and principles and the way we think about this is we start and end all of our decisions on pricing with the consumer. We really want to make sure that we define value and how she looks at it, and we incorporate that into the decision-making matrix. Maintaining competitiveness is another key principle of ours. And then obviously, we have to look at the company P&L and what's happening in terms of inflation and cost and margin implications. So then it's about how do you take that and package it into a comprehensive development approach around where are there opportunities, whether they're rate opportunities or mix opportunities or trade spend opportunities. So that's just a mental model for how we think about it. Earlier this year, we did take pricing on immediate consumption. Historically, we've had a large gap to competition. Obviously, we've talked about the closer you link purchase to consumption, the consumer's orientation tends to be more convenience. So as we've done that, the good news is that we're still priced competitively, in most instances, still lower than competition. And again, I think as we think about this going forward, it'll be about looking at more -- if we do something, it'll be more on a precision basis, really looking at packages and brands where we need to improve profitability or returns. In some instances, looking at trade spend, where it may have been ineffective historically. We did have some trade spend a year ago in Q3 that was put into the market on the retail side to try to offset some of the softness we were experiencing on direct delivery business. And so as we look at those and lap those, making sure those were effective and where we had no or low return on investment, we will look to tweak our trade spending in some instances. But again, overall, again, I want to come back to the fact that year-to-date, we are continuing in our retail business to be very balanced. And again, I think, as David kind of pointed out earlier, the beauty of this portfolio is it is so well-positioned across the value spectrum through the eyes of the consumer. So from an entry point on refill through exchange into our packaged water business, obviously Pure Life is one of the most attractively priced branded products out there. You go into our regional spring waters and all the way through premium. So we feel very good about the position of the portfolio. And again, we will continue to approach things in a very balanced way. Operator: Your next question comes from Peter Galbo from Bank of America. Peter Galbo: David, just a question on the guidance. Obviously, a nice improvement in the top line, and you are raising the outlook there, kind of leaving the EBITDA unchanged, which I think is probably prudent. But maybe you can just help us think through a few items on that line. One, just the level of reinvestment, and you may have mentioned a number earlier, I think I might have missed it, but just the level of reinvestment that you are putting back into the EBITDA line this year. Then maybe as a secondary, just how the cost environment is kind of shaping up as you begin to kind of do planning on 2027. Oil is obviously a lot lower than it was when we spoke 3 months ago. You're relatively well hedged for this year, I think just those 2 items would maybe help frame how we might start to begin thinking about the profitability potential for the next year. Thanks very much. David Hass: Thanks, Peter. So within the route side of the business, so we're in kind of the direct delivery channel at this point. We continue to ensure and look at kind of 2 indicators. Where are we on daily OTIF, which obviously compounds into monthly and quarterly performance, and then monitoring sort of call volume, which obviously is a indication that something didn't go right at the moment of truth with the consumer or in the billing process. And both of those continue to give us a signal that we can sort ofmanage the route count that typically follows the volume trajectory whereas, in Q1, that would've been a little heavier. So as we came into Q2, we had the right route sizing. And what is typical is as you exit Q3, you would go into route alignment that sort of matches the shoulder quarters of Q4 and then Q1 of 2027. So again, without a specific number there, that remains sort of an area that we feel much more comfortable about as we performed during Q2 and as Q3 begins, but it's something that we'll continue to monitor. In terms of the general inflation environment, areas around diesel, which is a primary input of that route system, we remain obviously well hedged this year, an sort of we average into those hedges for next year, where we have a decent percentage already taken down for 2027. And then the rest I think is really what's been well notable in the sort of market domain around the tightening freight market. And that continues to be some of the aggravation we see where we are in the spot or third-party market. So what Primo has done over the course of the year is continue to invest in what we call our private fleet, which is transitioning drivers or hiring drivers specifically to run vehicles either owned or leased on our own network, which again takes out some of that friction cost. But those tend to be, as you've called out, some of the higher inflationary items within the business. When you look kind of year-over-year, obviously the business is benefiting from the pricing, obviously more an optimized OpEx structure, the volume return in retail and more of a stable market in direct, and then sort of navigating those inflationary items like freight and unhedged areas of the business. Operator: And your next question comes from David Shakno from William Blair. David Shakno: David Shakno on for John Anderson. Wanted to ask about the Club and Away From Home channels. Club, I think, was a little bit soft in 2025. It's been up mid-single digits the first half here. Away From Home, up high single digits the past couple of quarters here. Just wanted to understand what trends you're seeing in those channels, especially on the Away From Home, is it new partnerships and additional TDPs there? In Club, is it consumer value-seeking behavior? Just wanted to understand those 2 channels in particular. Eric Foss: Yes, I think to your point, we continue both in the quarter, we saw mid-single digit growth on Club, same thing year-to-date. I think on the Away From Home, high single digit. I think on the Away From Home, it's a lot about build-out of distribution and continuing to see that business continue to grow. Premium plays a key role in there. On the Club business, it's about making sure we're positioned right, pallet positions, new distribution opportunities. But as we mentioned, it's not just Club and Away From Home, I mean, we're seeing really good balanced growth across now that both the direct business and retail business are growing, but within retail, grocery, club, mass, C&G, dollar, all performing really, really well. So the balance and broad-based nature of the growth is really encouraging. Operator: And your next question comes from Daniel Moore from CJS Securities. Dan Moore: Just wondering if you could elaborate on some of the other levers that you have beyond commercial or price to pull, should we continue to see inflationary pressures continue to build throughout the year. And then in the direct delivery business, can you just give us an update in terms of how much redundant or excess costs you're carrying and when we expect those to wind down. David Hass: Yes. So I think with regard to levers, obviously, we'll continue to look through our hedging programs, as well as sort of traditional sort of RFP measures around sort of supply chain elements. And so that's ongoing, especially as we navigate budget planning sessions for 2027. Within the direct delivery side as, I guess, without specifics, we're at a route count coming into Q2 that allowed us to sustain that performance and deliver it about 40 basis points ahead of expectations with that growth expected to continue in the second half. So I think what we'll do is we exit the quarter and start to look at what will be the optimal route count that matches the consumer demand for those volumes. And that's typically been the muscle we have every year, certainly premerger. But just obviously, through last year, we've kind of had that elevated. So again, we'll look at what those need to be, how that matches demand and sort of report a little bit clearer on that coming in and out of third quarter results. Operator: And your next question comes from Andrew Strelzik from BMO Capital Markets. Andrew Strelzik: I wanted to go back to the reinvestment topic. And obviously, you've made number of investments to restore the momentum in the direct delivery business this year. It doesn't sound like you really want to quantify that. But I'm trying to think through what reinvestment levels look like in '26 versus kind of the long-range reinvestment needs for the business. So is there any way you can kind of help frame that up, maybe talk about the long-term margin potential of the business? Any help around that would be great. David Hass: Yes. Unfortunately, we'll will navigate this year. Obviously, it's a pretty dynamic environment. I think commenting on anything longer term, we would say for our traditional sort of guidance reveal on '27 in the spring of next year. But obviously, again, it remains dynamic. I think we have levers at our disposal. I think we have a fortunate position of consumer demand that's generating volume. So that helps balance and to not be just price mix related. And again, I think, regardless of being through sort of what we call our major integration milestones, the productivity journey doesn't end and we'll continue to look through the P&L and continue to optimize the business for future success. Eric Foss: Yes. And the only thing I would add is I do think that as you think about what's now behind us, David mentioned the routes. We had an investment in win-back initiatives. We had an investment in additional call center resources, those are largely behind us. I mentioned earlier, going forward, we'll continue to invest in marketing and brand-building capability and tech and AI. But I think we will continue to be very disciplined around managing productivity across SG&A and efficient supply chain across manufacturing, warehousing and S&D and again, are looking to grow this business in a very balanced way and sustainable way. Operator: And your next question comes from Derek Lessard from TD Cowen. Derek Lessard: Great to see some good momentum coming back to you. One question for me is, can you just maybe provide some early signals or commentary on how the new warehouse management system is impacting your supply chain execution and I think customer satisfaction as well? Eric Foss: Yes. Thanks, Derek. Appreciate the comments and question. I think it's just too early to tell. We obviously have it in pilot and are continuing to learn. Again, it's going to add value. But at this point -- at this moment in time, it's really just about reading the pilot, making whatever necessary changes we do before we begin to roll it out. But it's just way too early to talk about any significant contribution from the warehouse management system. Operator: And your last question comes from Eric Serotta from Morgan Stanley. Eric Serotta: Great. Eric, earlier in the year, you talked about some low-hanging fruit from some kind of basic retail execution and blocking and tackling in the stores that just wasn't really done by the predecessor companies. Can you talk a bit about progress on some of those areas that you had in mind to date and sort of what you're seeing or what you're planning in terms of cadence of getting at some of these opportunities in second half or 2027? Eric Foss: Sure. And I think my focus is really all about what lies ahead versus what has happened historically. I think as you think about the growth vectors of this business, first and foremost, the improvement on the customer experience and customer direct hopefully creates a growth flywheel in that business for us as we walk forward to unlock. Second, we've talked a lot about improving our presence. And as you can see, we continue to drive new points of distribution across our retail business. So whether it's driving distribution, making sure we get more feature activity and promotional activity, certainly display inventory, expanding our presence on shelf, whether it be warm or cold and then cold drink and immediate consumption, all of those are opportunities for us. I would say, as we walk forward, those are ones that we continue to focus on and will be kind of the centerpiece of how we approach the 2027 customer sell-in. But multiple growth vectors on this business, exciting to see where those opportunities are and more to come on how those plans will unfold as we get into the later half of this year and specifically into 2027. Operator: Thank you. That does conclude our question-and-answer session for today. I will turn the call back to Eric Foss for closing remarks. Eric Foss: Thank you. Well, in closing, we're certainly pleased with both the Q2 and first half results. I want to thank all of the Primo associates for their passion and pride and all that they do every day. And thanks for all of you on the line for your time today and your continued interest and investment in Primo. Have a great day. Operator: Ladies and gentlemen, this does conclude your conference call for today. We thank you very much for your participation, and you may now disconnect. Have a great day. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Primo Brands. The Motley Fool has a disclosure policy. Primo (PRMB) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Primo Brands Corporation? Here are five stocks we like better. Primo Brands reported solid second-quarter momentum: Comparable net sales rose 4.2% to $1.8 billion, while adjusted EBITDA increased 5% to $385 million. Growth was broad-based across retail, premium brands and away-from-home channels. Direct delivery returned to growth ahead of schedule, with comparable sales up 0.4% as service levels, customer satisfaction and delivery performance improved following integration-related disruptions. The company raised its 2026 sales outlook to 2%–4% comparable growth from 1%–3%, while maintaining adjusted EBITDA guidance of $1.465 billion–$1.515 billion and free cash flow guidance of $790 million–$810 million. Primo Brands (NYSE:PRMB) reported second-quarter comparable net sales growth of 4.2% to $1.8 billion, supported by broad-based retail gains and a faster-than-expected return to growth in its direct-delivery business. Adjusted EBITDA rose 5% from the prior year to $385 million, while comparable adjusted EBITDA margin increased 10 basis points to 21.4%. Chief Executive Officer Eric Foss said the company’s improving customer experience, stronger retail execution and operational productivity helped drive a second consecutive quarter of year-over-year growth. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “We’re encouraged with the accelerating momentum across the business in the second quarter,” Foss said, pointing to strengthening direct-delivery fundamentals and gains in bottled-water dollar and volume share within retail. Comparable sales growth reflected a 4.3% contribution from price and mix, partially offset by a 0.1% volume decline, Chief Financial Officer David Hass said. On a year-to-date basis in retail, Foss said the company has seen an approximately 40/60 split between volume and price, respectively. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Retail growth was broad-based across channels, including mass, grocery and away-from-home, according to Hass. Regional spring-water sales rose 4.1%, purified-water sales increased 1.9%, and premium brands grew 30.5%. Primo’s premium portfolio, including Saratoga and Mountain Valley, continued to gain category dollar and volume share. Foss said Saratoga grew faster than Mountain Valley during the quarter, as Mountain Valley experienced some product-supply disruption during the startup of a new production line. → No Hangover: Revisiting Microsoft One Week After Earnings The company also cited growth in club and away-from-home channels. Foss said club sales increased by the mid-single digits during both the quarter and first half, while away-from-home sales grew at a high-single-digit rate, aided by expanded distribution and premium-brand performance. Direct-delivery comparable net sales increased 0.4%, a 340-basis-point sequential improvement from the first quarter and slightly above the company’s breakeven expectation. The segment’s sales growth was driven by pricing and mix despite lower volume tied to a smaller customer base. Foss said direct delivery returned to growth one quarter earlier than expected as the company improved service levels and addressed customer-experience issues following integration-related disruptions. New customer additions remained strong, while reduced historical incentives have improved new-customer quality and narrowed the revenue gap between newer and more tenured customers, he said. Customer quits and contact-center call volumes declined sequentially, with call volumes falling below pre-integration levels. On-time-and-full delivery performance improved month by month through June and reached the mid-90% range despite peak-season demand. Primo has also worked to simplify invoices, broaden payment choices, strengthen credit processes and improve invoice timing for many residential customers. Its “Solve by Sundown” initiative has focused on faster resolution of customer concerns. Foss said the company saw stronger direct-delivery monthly performance in May and June. He added that supply-chain disruption in the segment is now “fully behind us,” though he said the recovery in direct-delivery volume remains ahead. The company is piloting a warehouse-management system, although Foss said it is too early to identify a meaningful contribution from the initiative. Management also plans continued investment in contact-center capabilities, technology, artificial intelligence, marketing and brand building. Primo recently eliminated its chief operating officer role and added a president of customer direct and go-to-market. The company also elevated certain roles, including chief supply chain officer, to report directly to Foss. He said the changes are intended to remove organizational layers, improve decision-making speed and strengthen accountability. Higher transportation costs, including tighter freight-market conditions and elevated spot rates, partially offset EBITDA growth. Hass said Primo is investing in its private fleet by transitioning or hiring drivers for company-owned or leased vehicles, reducing reliance on third-party transportation. Management said it has several levers to address inflationary pressures, including pricing, productivity initiatives, supply-chain cost measures and financial risk management. Foss said pricing decisions will be assessed selectively by brand, package and channel, with attention to consumer value, competitiveness, costs and retailer economics. Earlier this year, the company raised prices on its immediate-consumption portfolio, where it historically had a large pricing gap relative to competitors. Foss said Primo remains competitively priced and is still below competitors in most cases. Primo raised its 2026 comparable net sales growth forecast to 2% to 4%, up from its prior outlook of 1% to 3%. The company maintained its adjusted EBITDA guidance of $1.465 billion to $1.515 billion. At the midpoint, the forecast implies an adjusted EBITDA margin of 21.8%, flat from the prior year, as the company continues to invest in growth and customer service while managing costs. Adjusted free cash flow guidance also remained unchanged at $790 million to $810 million. The company generated $227.9 million of operating cash flow in the second quarter, or $266.4 million after adjusting for significant items including merger and integration activity. Adjusted free cash flow was $200.1 million, up $30.4 million from the prior year. Net leverage improved to 3.42 times at quarter-end from 3.52 times in the first quarter, while liquidity totaled $953 million. Primo repurchased $15.5 million, or 708,000 shares, during the quarter and said $62.8 million remained under its authorized repurchase program at the end of the period. The board also reaffirmed a quarterly dividend of $0.12 per share. Primo Brands (NYSE: PRMB) is a consumer packaged beverage company that was established as an independent entity following a corporate spin‐off in 2023. The company specializes in the production, marketing and distribution of a broad portfolio of bottled water products, including purified, mineral and sparkling varieties. Through its focus on quality control and innovation, Primo Brands aims to deliver clean, great-tasting water in formats tailored to both at-home consumption and on-the-go lifestyles. Its product range spans multi-serve and single-serve bottles, aluminum cans and other eco-friendly packaging solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Primo Brands Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Diageo plc DEO reported preliminary fiscal 2026 results, ending June 30, 2026, wherein pre-exceptional earnings per share rose 0.7% year over year to 165.3 cents.On a reported basis, net sales declined 3% year over year to $19.6 billion. Organic net sales fell 2%, pressured by weakness in North America and the Asia Pacific, partly offset by growth in Europe, Latin America and Africa. Volume declined 0.4%, while unfavorable price/mix reduced performance by 1.6%. Diageo plc price-consensus-chart | Diageo plc Quote The negative price/mix was primarily driven by adverse mix, reflecting weaker performance in US Spirits and softer results elsewhere.The company delivered a free cash flow of $3.2 billion, up $463 million year over year, supported by disciplined investment and lower capital expenditure. Organic operating profit increased 2%, helped by cost savings from the Accelerate program.Shares of the Zacks Rank #4 (Sell) company have lost 15.2% in the past year against the industry’s 12.6% growth. Image Source: Zacks Investment Research North America remained the biggest challenge for Diageo, with organic net sales declining 8.4% year over year. The decline was driven primarily by US Spirits weakness, particularly in tequila, wherein net sales fell 21.1% due to category softness, increased competition and tougher comparisons.Within US Spirits, Don Julio net sales declined 19.2% year over year, while Casamigos net sales dropped 27.7%. The company noted that Casamigos price repositioning and a refreshed marketing campaign are being rolled out to improve competitiveness. Meanwhile, Diageo Beer Company USA posted growth, supported by Guinness and Smirnoff RTD performance. DEO recorded stronger momentum outside North America, with Europe, Latin America and Africa contributing growth. Europe organic net sales increased 3.4%, supported by Guinness momentum in Great Britain and Ireland, along with strong performance in Türkiye.Latin America and Caribbean organic net sales grew 7.7%, driven by Brazil and Colombia, while Africa delivered 13.3% organic net sales growth. In the Asia Pacific, organic net sales declined 6.3% due to weakness in Chinese white spirits, which offset strong growth in India. Diageo’s organic operating profit increased 2% year over year despite lower sales, as cost savings helped offset pressure from adverse mix, inflation and tariffs. The organic operating margin expanded 116 basis points, reflecting benefits from the Accelerate program.The Accelerate initiative delivered $540 million in savings in fiscal 2026. These savings came from more efficient advertising and promotion spending, supply-chain improvements and lower overhead costs. Advertising and trade investment savings contributed $230 million, supply-chain initiatives added $180 million and overhead actions delivered $130 million. DEO generated $4.4 billion in net cash from operating activities and $3.2 billion in free cash flow during fiscal 2026. Capital expenditure was $1.2 billion, reflecting a disciplined approach to investment compared with the prior year.The company ended the year with net debt of $20.5 billion, down $1.4 billion from the prior year. Its leverage ratio improved to 3.1X from 3.4X, supported by strong cash generation. Diageo also recommended a full-year dividend of 50 cents per share under its revised dividend payout policy. Diageo recorded significant exceptional charges in fiscal 2026, including $1.5 billion in impairment charges and $0.9 billion in restructuring costs. The impairment charges were largely related to Türkiye, the Don Papa brand and other smaller brands.The company is implementing a two-year restructuring program focused on a new operating framework. Diageo expects the revised framework to generate $850 million in savings over two years, beginning in fiscal 2027, allowing investment in competitiveness while supporting operating profit.Looking ahead, Diageo highlighted the need to improve competitiveness in North America while continuing to build on momentum in Europe, Latin America and Africa. Management expects the operating framework changes and cost savings to support future investment priorities. DEO expects fiscal 2027 organic net sales growth to be broadly flat, with North America organic net sales projected to decline in the mid-single-digit range. The company assumes the North American market will decline 3% while improving its share performance from that in fiscal 2026.The company expects fiscal 2027 organic operating profit growth in the low- to mid-single-digit range, supported by savings from its operating framework changes and supply-chain initiatives. Diageo expects to realize 40% of the $850-million operating framework savings in fiscal 2027, along with approximately 25% of the $150-million supply-chain savings.For fiscal 2027, DEO forecasts a free cash flow of $2 billion after around $800 million of exceptional cash costs related to operating framework changes and $50 million of exceptional cash costs tied to the supply-chain savings program. The company expects to end fiscal 2027 near the midpoint of its target leverage of 2.5X-3X net debt to EBITDA, assuming completion of the East African Breweries PLC and Royal Challengers Bengaluru transactions.Over the medium term, Diageo expects low-single-digit organic net sales growth from fiscal 2027 through fiscal 2029, with growth accelerating as North America stabilizes and gains share. The company projects mid-single-digit organic operating profit growth over the period, supported by savings and a more favorable mix, while expecting a free cash flow of $8 billion after around $850 million of exceptional cash costs. The Vita Coco Company Inc. COCO is the leading coconut water brand in the United States, leveraging its strong brand equity, expanding global presence and asset-light business model to capitalize on the growing demand for healthier hydration beverages. COCO currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Vita Coco’s current fiscal-year sales and earnings implies growth of 31.6% and 64.7%, respectively, from the year-ago reported figures. COCO has delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Coca-Cola Company KO is a leading beverage company with a portfolio of 32 billion-dollar brands spanning sparkling beverages, water, sports drinks, dairy and value-added beverages. KO currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and earnings implies growth of 3.6% and 9.7%, respectively, from the year-ago reported figures. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.6%, on average.Primo Brands Corporation PRMB is a leading North American branded beverage company focused on healthy hydration. It currently has a Zacks Rank #2. The Zacks Consensus Estimate for Primo Brands’ current fiscal-year sales indicates growth of 1.6% from the prior year’s reported level. PRMB delivered a trailing four-quarter earnings surprise of 7.7%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Diageo plc (DEO) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Primo Brands Corporation (PRMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Molson Coors Beverage Company TAP posted second-quarter 2026 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. Meanwhile, earnings and revenues declined year over year.The company’s adjusted earnings of $1.58 per share were down 22.9% year over year but beat the Zacks Consensus Estimate of $1.51. The bottom line surpassed the consensus mark by 4.6%. Molson Coors Beverage Company price-consensus-eps-surprise-chart | Molson Coors Beverage Company Quote Net sales declined 3.3% year over year to $3097 million but topped the consensus estimate of $3089 million by 0.3%. Lower financial volumes pressured results, while favorable pricing and sales mix offered some support. Net sales declined 3.6% on a constant currency basis. Financial volume fell 5.4% year over year, reflecting lower shipments in both the Americas and EMEA & APAC. Brand volume decreased 4.8%, including declines of 5.3% in the Americas and 3.4% in EMEA & APAC.Price and sales mix contributed 1.8% to net sales, mainly on increased net pricing in the Americas and favorable premiumization-led mix across both business units. Net sales per hectoliter (hl) increased 2.3% on a reported basis and 2.0% in constant currency.Gross profit declined 17.1% year over year to $1.06 billion, and the gross margin contracted 570 basis points (bps) to 34.3% in the quarter.Marketing, general and administrative expenses (MG&A) rose 3.7% to $718.5 million. The increase reflected the comparison with lower prior-year incentive compensation and costs related to the company's global modernization ERP project. On an underlying basis, MG&A increased 3.2% in constant currency.Underlying earnings before taxes (EBT) decreased 27.8% year over year in constant currency to $383.2 million, primarily due to lower financial volume, cost inflation related to materials, logistics and manufacturing expenses, including an approximately $40 million unfavorable impact from Midwest Premium pricing, and higher MG&A expenses. These headwinds were partly offset by increased net pricing in the Americas segment and cost-savings initiatives. Americas: Net sales in the segment declined 4.1% year over year to $2402 million on a reported basis and on a constant-currency basis. The decline was due to lower financial volume, partially offset by favorable price and sales mix. The Zacks Consensus Estimate for the segment’s sales was pegged at $2407 million.Americas financial volume declined 6.4%, mainly reflecting lower U.S. volumes in core and value brands and unfavorable shipment timing.Price and sales mix benefited sales by 2.3%, supported by higher net pricing and favorable brand mix. Net sales per hectoliter rose 2.5% on a reported and constant currency basis.EMEA & APAC: The segment’s net sales slipped 0.4% year over year to $700.2 million, as lower financial volumes more than offset favorable currency movements and improved price and sales mix. On a constant-currency basis, net sales declined 2%. The Zacks Consensus Estimate for the segment’s sales was pegged at $708 million.Financial volume decreased 2.8%, and brand volume fell 3.4%, mainly reflecting weaker U.K. demand and an intensified competitive environment. Price and sales mix provided a 0.8% benefit, driven by premiumization but partly offset by increased promotional activity. Underlying pretax income dropped 44.3% in constant currency to $41 million, hurt by unfavorable channel mix, lower volumes and cost inflation. Management highlighted continued strength in Coors Banquet and Peroni, while Fever-Tree maintained momentum. Monaco Cocktails also performed strongly in its first quarter under Molson Coors, with its top- and bottom-line contributions tracking slightly ahead of acquisition expectations.The company also saw improved value-brand share trends following the launch of Keystone Light Apple and better performance from Miller High Life. Management plans to bring Keystone Light Apple back in the fall and is also relaunching Keystone Ice as it targets consumers seeking value and higher-alcohol offerings. Molson Coors ended the second quarter with $2.13 billion in cash and $7.71 billion in total debt, resulting in net debt of $5.58 billion. Its net debt-to-underlying EBITDA ratio was 2.53 times. The company paid $211 million for share repurchases during the first half.Net cash provided by operating activities totaled $820.4 million for the first six months of 2026, up from $627.6 million a year earlier. Underlying free cash flow improved $220.3 million to $513.8 million, helped by stronger operating cash flow and lower capital expenditures. TAP reaffirmed its 2026 guidance despite continued commodity, logistics and macroeconomic pressures. Molson Coors expects net sales to be broadly flat on a constant-currency basis, within a range of plus or minus 1% compared with 2025. Underlying EBT is anticipated to decline in the range of 15-18%, while underlying EPS is anticipated to decrease 11-15%.It expects underlying depreciation and amortization to be $720 million, plus or minus 5%. The company forecasts an underlying effective tax rate of 22-24% for 2026. Underlying net interest expenses are anticipated to be $260 million (plus or minus 5%).TAP estimates a capital expenditure of $650 million (plus or minus 5%) for 2026. The underlying free cash flow is expected to be $1.1 billion, plus or minus 10%. Management expects Midwest Premium inflation to exceed $130 million for the full year and anticipates lower MG&A expenses in the second half as it continues cost-management initiatives.Shares of this Zacks Rank #4 (Sell) company have lost 16.7% in the past six months against the industry’s 2.7% growth. Image Source: Zacks Investment Research The Vita Coco Company Inc. COCO is the leading coconut water brand in the United States, leveraging its strong brand equity, expanding global presence and asset-light business model to capitalize on the growing demand for healthier hydration beverages. COCO currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Vita Coco’s current fiscal-year sales and earnings implies growth of 31.6% and 64.7%, respectively, from the year-ago reported figures. COCO has delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Coca-Cola Company KO is a leading beverage company with a portfolio of 32 billion-dollar brands spanning sparkling beverages, water, sports drinks, dairy and value-added beverages. KO currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and earnings implies growth of 3.6% and 9.7%, respectively, from the year-ago reported figures. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.6%, on average.Primo Brands Corporation PRMB is a leading North American branded beverage company focused on healthy hydration. It currently has a Zacks Rank #2.The Zacks Consensus Estimate for Primo Brands’ current fiscal-year sales indicates growth of 1.6% from the prior year’s reported levels. PRMB delivered a trailing four-quarter earnings surprise of 7.7%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Primo Brands Corporation (PRMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Monster Beverage Corporation MNST posted strong second-quarter 2026 results, with earnings and sales topping expectations. Adjusted earnings were 60 cents per share, up 15.2% year over year and surpassing the Zacks Consensus Estimate of 59 cents.Revenues jumped 20.2% year over year to $2.54 billion, beating the consensus mark of $2.42 billion by 5%. Results benefited from robust international growth and strength in the core energy-drink business. Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote Net sales in the Monster Energy Drinks segment increased 21.6% year over year to $2.36 billion. On a foreign currency-adjusted basis, segment sales advanced 19.3%. The segment includes Monster Energy, Reign, Bang, Storm and FLRT products.The Strategic Brands segment generated net sales of $143.7 million, up 10.6% from the prior-year quarter. Currency-adjusted sales increased 8.1%. Meanwhile, Alcohol Brands sales declined 15.2% to $32.2 million, while Other segment sales fell 15.3% to $5.4 million. Net sales to customers outside the United States surged 34.6% to $1.16 billion, accounting for about 46% of total sales compared with 41% a year earlier. On a currency-adjusted basis, international sales climbed 29%.Regional momentum was broad based. EMEA sales rose 27.2%, while Asia-Pacific sales increased 35.7%. Latin America, including Mexico and the Caribbean, advanced 56.1%. Brazil stood out with an 82% sales increase in dollars, while China and India posted growth of 62.5% and 84%, respectively. Adjusted gross profit, as a percentage of net sales, was 56.3% in the second quarter of 2026, up 10 basis points (bps) from a year ago. Pricing actions and favorable product sales mix supported profitability, partly offset by higher aluminum can costs, geographic sales mix and increased freight-in expenses.Adjusted operating expenses were $662.7 million, or 26.5% of adjusted net sales excluding Alcohol Brands, compared with $505.6 million, or 24.4%, in the year-ago quarter. Distribution expenses rose 44.9% to $118.8 million, while selling expenses increased 36.7% to $269.2 million and general and administrative expenses advanced 9.5% to $291.2 million. Monster Beverage exited second-quarter 2025 with cash and cash equivalents of $2.19 billion and total stockholders' equity of $9.3 billion. Accounts receivable stood at $1.90 billion, while inventories totaled $867.7 million.The company did not repurchase shares during the quarter. As of Aug. 5, roughly $900 million remained under its existing repurchase authorization. Monster Beverage also declared a two-for-one stock split, with split-adjusted trading expected to begin Aug. 11, 2026. Management has initiated discussions with U.S. partners and customers regarding selective pricing actions expected to take effect in the fourth quarter. In EMEA, Monster Beverage has already implemented aggregate low-single-digit pricing in certain markets and is considering additional increases elsewhere.Innovation remains central to growth. Management said staggered 2026 launches improved execution, while limited-time offerings performed well. The company also continues to expand zero-sugar products, food-service distribution and affordable energy brands in international markets. July sales, excluding Alcohol Brands, were estimated to be 14.3% above the prior-year period, providing an early read on continued sales momentum.This Zacks Rank #3 (Hold) company shares have gained 16.3% in the past six months compared with the industry’s 2.3% growth. Image Source: Zacks Investment Research The Vita Coco Company Inc. COCO is the leading coconut water brand in the United States, leveraging its strong brand equity, expanding global presence and asset-light business model to capitalize on the growing demand for healthier hydration beverages. COCO currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Vita Coco’s current fiscal-year sales and earnings implies growth of 31.6% and 64.7%, respectively, from the year-ago reported figures. COCO has delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Coca-Cola Company KO is a leading beverage company with a portfolio of 32 billion-dollar brands spanning sparkling beverages, water, sports drinks, dairy and value-added beverages. KO currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and earnings implies growth of 3.6% and 9.7%, respectively, from the year-ago reported figures. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.6%, on average.Primo Brands Corporation PRMB is a leading North American branded beverage company focused on healthy hydration. It currently has a Zacks Rank #2.The Zacks Consensus Estimate for Primo Brands’ current fiscal-year sales indicates growth of 1.6% from the prior year’s reported levels. PRMB delivered a trailing four-quarter earnings surprise of 7.7%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Monster Beverage Corporation (MNST) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Primo Brands Corporation (PRMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Keurig Dr Pepper Inc. KDP has reported second-quarter 2026 results, with adjusted earnings and net sales topping the Zacks Consensus Estimate. Moreover, the top and bottom lines improved year over year.KDP reported adjusted earnings per share (EPS) of 57 cents in the quarter, beating the Zacks Consensus Estimate of 55 cents by 3.6% and improving 16.3% year over year. Bottom-line growth was supported by stronger operating income, although higher adjusted interest expenses, non-controlling interest and earnings allocated to preferred investors moderated the benefit.Net sales of $7.31 billion advanced 75.6% year over year on a reported basis and surpassed the Zacks Consensus Estimate of $7.17 billion by 2%. On a constant-currency basis, net sales increased 74.6%. Keurig Dr Pepper, Inc price-consensus-eps-surprise-chart | Keurig Dr Pepper, Inc Quote The quarterly performance was driven by U.S. Refreshment Beverages growth, the contribution from the JDE Peet’s acquisition and operating efficiency initiatives. KDP’s energy portfolio achieved 9% market share in the quarter, while the company continued advancing integration and separation efforts.KDP’s adjusted operating income increased 42.9% year over year to $1.48 billion, with the operating margin reaching 20.2%. Growth was supported by higher net sales, productivity savings and the JDE Peet’s acquisition, partially offset by inflationary pressures and higher SG&A expenses, including increased marketing investments.Shares of the Zacks Rank #3 (Hold) company have gained 7.9% in the past month compared with the industry’s 4.5% rise. Image Source: Zacks Investment Research U.S. Refreshment Beverages delivered net sales of $2.93 billion, up 10% year over year, driven by volume/mix growth of 6.5% and favorable net price realization of 3.5%. Adjusted operating income increased 11.9% to $874 million, helped by sales growth and productivity savings.The segment benefited from strength across energy, carbonated soft drinks, water and sports hydration categories. KDP highlighted healthy trends in core carbonated soft drinks led by Dr Pepper, Canada Dry and Bloom Pop.KDP’s U.S. Coffee segment reported net sales of $918 million, down 3.2% year over year. The decline reflected an 8.2% volume/mix decline, including the impacts of moving Peet’s K-Cup pod reporting into the JDE Peet’s segment, which more than offset 5% favorable net price realization.Adjusted operating income for U.S. Coffee declined 24.7% to $225 million, impacted by higher input costs, lower volume/mix and increased marketing expenses. Management noted visibility into improving segment trends in the second half of the year as cost pressures ease and commercial plans build.The JDE Peet’s segment generated net sales of $2.8 billion in the quarter following the acquisition’s completion on April 1. Adjusted operating income was $414 million, representing a 14.8% margin, with profitability supported by pricing discipline, productivity and timing.KDP noted that L’OR and Peet’s were standout performers, supported by innovation and marketing. The company also continued integration efforts with legacy Keurig, with additional synergies expected in the second half of the year.KDP International posted net sales of $664 million, up 19.6% year over year, with constant-currency sales growth of 12.4%, driven by volume/mix growth of 6.5% and favorable net price realization of 5.9%. Adjusted operating income was flat year over year at $155 million, supported by sales growth and productivity savings. As of June 30, 2026, Keurig’s cash and cash equivalents were $1.52 billion. The company had long-term obligations of $21.6 billion and total stockholders’ equity of $25 billion.The company generated $895 million in operating cash flow and $714 million in free cash flow in the second quarter. KDP also continued targeting a pro-forma management leverage ratio of 4.1X by the end of 2026 following the JDE Peet’s transaction. KDP has reaffirmed its 2026 outlook, expecting constant-currency net sales of $25.9-$26.4 billion and constant-currency adjusted diluted EPS growth in the low-double-digit range. The outlook includes 4-6% constant-currency net sales growth for KDP’s core business. The forecast also includes 4-6% adjusted EPS growth for the legacy business, along with incremental contributions from JDE Peet’s.Based on current exchange rates, foreign currency movements are expected to add one percentage point to sales and earnings growth in 2026. The Vita Coco Company Inc. COCO is the leading coconut water brand in the United States, leveraging its strong brand equity, expanding global presence and asset-light business model to capitalize on the growing demand for healthier hydration beverages. COCO currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Vita Coco’s current fiscal-year sales and earnings implies growth of 31.6% and 64.7%, respectively, from the year-ago reported figures. COCO has delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Coca-Cola Company KO is a leading beverage company with a portfolio of 32 billion-dollar brands spanning sparkling beverages, water, sports drinks, dairy and value-added beverages. KO currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and earnings implies growth of 3.6% and 9.7%, respectively, from the year-ago reported figures. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.6%, on average.Primo Brands Corporation PRMB is a leading North American branded beverage company focused on healthy hydration. It currently has a Zacks Rank #2. The Zacks Consensus Estimate for Primo Brands’ current fiscal-year sales indicates growth of 1.6% from the prior year’s reported levels. PRMB delivered a trailing four-quarter earnings surprise of 1.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Primo Brands Corporation (PRMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TAMPA, Fla. and STAMFORD, Conn., Aug. 5, 2026 /CNW/ -- Primo Brands Corporation (NYSE: PRMB) ("Primo Brands" or the "Company") today announced its results for the second quarter ended June 30, 2026. "We are encouraged by our first-half progress, which reflects stronger fundamentals, improved execution, and increased momentum across the business," said Eric Foss, Chairman and Chief Executive Officer. "Second-quarter top-line results exceeded our expectations, driven by robust growth in Retail channels led by our regional spring water and premium brands and an earlier-than-anticipated return to growth in Direct Delivery. "The strength we are seeing across the business gives us the confidence to raise our full-year Net Sales growth outlook for the second consecutive quarter. We are reaffirming our Adjusted EBITDA guidance range as we continue to prioritize growth investments, while actively managing inflationary pressures through multiple levers across the business. "Our business fundamentals continue to improve, and we remain well positioned in an attractive, growing category. With a customer-first culture, a differentiated portfolio of leading brands across the value spectrum, an advantaged route to market, and disciplined execution, we believe we have the right foundation to drive sustainable, balanced growth, support margin expansion as growth scales, and create long-term stockholder value." SECOND QUARTER PERFORMANCE Net sales increased 3.8% to $1.8 billion compared to $1.7 billion primarily driven by an increase in sales attributable to our premium brands and regional spring water, partially offset by a decrease in sales attributable to the exited US Office Coffee Services ("OCS") business not recurring in the current quarter. Gross margin was 30.5% compared to 31.3%, primarily driven by increased transportation related costs and depreciation and amortization, partially offset by the growth in revenue and lower non-recurring integration related costs incurred in the current quarter. SG&A expenses were $345.5 million compared to $378.6 million primarily driven by a decrease in marketing costs and a decrease in amortization primarily related to definite-lived intangibles amortization incurred in the prior year quarter not recurring in the current quarter. Net income from continuing operations and net income per diluted share were $69.2 million and $0.19 per diluted share, respectively, compared to net income from continuing operations and net income per diluted share of $30.5 million and $0.08, respectively. Adjusted EBITDA increased 5.0% to $385.0 million compared to $366.7 million and Adjusted EBITDA margin increased 20 bps to 21.4%, compared to 21.2%. SECOND QUARTER CASH FLOW & LIQUIDITY Net cash provided by operating activities from continuing operations of $227.9 million, less $104.6 million of capital expenditures and additions to intangible assets, resulted in $123.3 million of free cash flow, or $200.1 million of Adjusted Free Cash Flow (adjusting for the items set forth on Exhibit 6), compared to net cash provided by operating activities from continuing operations of $155.0 million and Adjusted Free Cash Flow of $169.7 million in the prior year quarter. Total debt, excluding unamortized debt costs and discounts, was $5.3 billion and unrestricted cash and cash equivalents totaled $366.5 million, each as of June 30, 2026, resulting in net debt of $4.9 billion and a net leverage ratio of 3.42x. Cash dividends were $43.5 million for the quarter ended June 30, 2026. Share repurchases under our repurchase plan, including brokerage commissions, were $15.5 million during the quarter ended June 30, 2026. 2026 FULL YEAR FINANCIAL OUTLOOK EARNINGS CONFERENCE CALL Primo Brands will host a conference call to discuss these results on Wednesday, August 5, 2026 at 8:00 a.m. Eastern Time. The Company's supplemental earnings presentation is now available on the Events & Presentation section of Primo Brands investor relations website at ir.primobrands.com. Details to access the earnings call and webcast are below. North America: (888) 510-2154International: (437) 900-0527Conference ID: 31152Webcast Link: https://app.webinar.net/XeEogPZK8rJ A slide presentation and live audio webcast will be available through Primo Brands' website at ir.primobrands.com. Replay Information:The earnings conference call will be recorded and archived for playback on the investor relations section of Primo Brands' website following the event. ABOUT PRIMO BRANDS CORPORATION Primo Brands is a leading North American branded beverage company focused on healthy hydration, delivering responsibly sourced diversified offerings across products, formats, channels, price points, and consumer occasions, distributed in every U.S. state and Canada. Primo Brands has a comprehensive portfolio of highly recognizable and conveniently packaged branded water and beverages that reach consumers whenever, wherever, and however they hydrate through distribution across retail outlets, away from home such as hotels and hospitals, and hospitality and food service accounts, as well as direct delivery to homes and businesses. These brands include established "billion-dollar brands" Poland Spring® and Pure Life®, premium brands like Saratoga® and The Mountain Valley®, leading regional spring water offerings such as Arrowhead®, Deer Park®, Ice Mountain®, Ozarka®, and Zephyrhills®, purified water brands including Primo Water® and Sparkletts®, and flavored and enhanced beverages like Splash Refresher™ and AC+ION®. Primo Brands also has an industry-leading line-up of innovative water dispensers, which create consumer connectivity through recurring water purchases. Primo Brands operates a vertically integrated coast-to-coast network that distributes its brands to more than 200,000 retail outlets, as well as directly reaching customers and consumers through its Direct Delivery, Exchange and Refill offerings. Through Direct Delivery, Primo Brands delivers responsibly sourced hydration solutions direct to home and business customers. Through its Exchange business, consumers can visit approximately 26,500 retail locations and purchase a pre-filled, multi-use bottle of water that can be exchanged after use for a discount on the next purchase. Through its Refill business, consumers have the option to refill empty multi-use bottles at over 23,500 self-service refill stations. Primo Brands also offers water filtration units for home and business customers across North America. Primo Brands is a leader in reusable beverage packaging, helping to reduce waste through its multi-serve bottles and innovative brand packaging portfolio, which includes recycled plastic, aluminum, and glass. Primo Brands has a portfolio of over 80 springs and actively manages water resources for a steady supply of quality, safe drinking water today and in the future. Primo Brands also helps conserve over 28,000 acres of land across the U.S. and Canada. Primo Brands is proud to partner with the International Bottled Water Association ("IBWA") in North America, which supports strict adherence to safety, quality, sanitation, and regulatory standards for the benefit of consumer protection. Primo Brands is committed to supporting the communities it serves, investing in local and national programs and delivering hydration solutions following natural disasters and other local community challenges. Primo Brands employs more than 12,000 associates with dual headquarters in Tampa, Florida, and Stamford, Connecticut. For more information, please visit www.primobrands.com. Non-GAAP MeasuresTo supplement its reporting of financial measures determined in accordance with generally accepted accounting principles in the United States ("GAAP"), Primo Brands utilizes certain non-GAAP financial measures. Primo Brands utilizes comparable net sales, which excludes the impact of the exited Eastern Canadian operations and exited US Office Coffee Services business. Primo Brands also utilizes Adjusted net income (loss), Adjusted net income (loss) per diluted share, Adjusted EBITDA and Adjusted EBITDA margin to separate the impact of certain items from the underlying business. Because Primo Brands uses these adjusted financial results in the management of its business, management believes this supplemental information is useful to investors for their independent evaluation and understanding of Primo Brands' underlying business performance and the performance of its management. Primo Brands utilizes net debt and net leverage ratio. Management uses net debt as an assessment of overall liquidity, financial flexibility, and leverage, and net leverage ratio as an indicator of the Company's ability to meet its future financial obligations. Additionally, Primo Brands supplements its reporting of net cash provided by (used in) operating activities from continuing operations determined in accordance with GAAP by excluding additions to property, plant and equipment and additions to intangible assets to present free cash flow, and by excluding the additional items identified on the exhibits hereto to present adjusted free cash flow. Management believes these measures are useful to demonstrate the Company's ability to generate future cash flows from operations. See Appendix for definitions of non-GAAP metrics. The non-GAAP financial measures described above are in addition to, and not meant to be considered superior to, or a substitute for, Primo Brands' financial statements prepared in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. In addition, other companies may calculate these measures differently. Investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures included in this press release and the accompanying tables. In addition, the non-GAAP financial measures included in this earnings announcement reflect management's judgment of particular items, and may be different from, and therefore may not be comparable to, similarly titled measures reported by other companies. We have not reconciled our Adjusted EBITDA and Adjusted Free Cash Flow guidance to GAAP net income or loss and cash flows from operations, respectively, because we do not provide guidance for such GAAP measures due to the uncertainty and potential variability of certain adjusting items, including stock-based compensation expense, acquired intangible assets and related amortization, income taxes, acquisition, integration and restructuring expenses, and unrealized (gain) loss on foreign exchange and commodity forwards. Because such items cannot be provided without unreasonable efforts, we are unable to provide a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure. However, such items could have a significant impact on our future GAAP results. Safe Harbor StatementsThis press release contains forward-looking statements and forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 conveying management's expectations as to the future based on plans, estimates and projections at the time Primo Brands makes the statements. Forward-looking statements involve inherent risks and uncertainties and Primo Brands cautions you that several important factors could cause actual results to differ materially from those contained in any such forward-looking statement. You can identify forward-looking statements by words such as "may," "will," "would," "should," "could," "expect," "aim," "anticipate," "believe," "estimate," "intend," "plan," "predict," "project," "seek," "potential," "opportunities," and other similar expressions and the negatives of such expressions. However, not all forward-looking statements contain these words. The forward-looking statements contained in this press release include, but are not limited to, statements regarding future financial and operating trends and results (including Primo Brands' 2026 outlook and resiliency in 2026 and beyond), execution of the Company's strategy and Primo Brands' competitive position. The forward-looking statements are based on assumptions regarding management's current plans and estimates. Management believes these assumptions to be reasonable, but there is no assurance that they will prove to be accurate. Factors that could cause actual results to differ materially from those described in this press release include, among others: our ability to manage our expanded operations following the business combination; we face significant competition in the segment in which we operate; our success depends, in part, on our intellectual property; we may not be able to consummate acquisitions, or acquisitions may be difficult to integrate, and we may not realize the expected benefits; our business is dependent on our ability to maintain access to our water sources; our ability to respond successfully to consumer trends related to our products; the loss or reduction in sales to any significant customer; our packaging supplies and other costs are subject to price increases; risks related to our common stock; the affiliates of One Rock Capital Partners, LLC own a significant amount of the voting power of the Company, and their interests may conflict with or differ from the interests of other stockholders; legislative and executive action risks; risks related to sustainability matters; costs to comply with developing laws and regulations, including those surrounding the production and use of plastics, as well as related litigation relating to plastics pollution; our products may not meet health and safety standards or could become contaminated, and we could be liable for injury, illness, or death caused by consumption of our products; risks related to litigation or legal proceedings; risks related to loss of controlled company status; risks related to uncertainties regarding the interpretation of tax laws and regulations; and risks associated with our substantial indebtedness. The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in Primo Brands' Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other filings with the Securities and Exchange Commission. Primo Brands does not undertake to update or revise any of these statements considering new information or future events, except as expressly required by applicable law. Website: ir.primobrands.com View original content to download multimedia:https://www.prnewswire.com/news-releases/primo-brands-reports-2026-second-quarter-results-302842889.html View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2026/05/c3480.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved broad-based growth across both retail and direct delivery channels, marking the second consecutive quarter of year-over-year top-line expansion. Returned the direct delivery business to growth one quarter ahead of internal expectations, driven by improved customer retention and reduced call center volumes. Simplified the leadership structure by eliminating the COO role and elevating the Chief Supply Chain Officer to accelerate decision-making and operational agility. Captured significant market share in the bottled water category through strong performance in regional spring waters and a 30.5% surge in premium brands. Improved direct delivery service quality, with On-Time In-Full (OTIF) metrics reaching the mid-90s despite peak seasonal demand pressures. Shifted customer acquisition strategy to focus on higher-quality accounts by reducing historical incentives, effectively narrowing the revenue gap between new and tenured customers. Advanced a holistic revenue growth management framework to optimize pricing and trade spend across diverse price points, packages, and channels. Raised 2026 comparable net sales growth guidance to 2% to 4% based on strengthening momentum in retail and the early inflection of direct delivery. Reaffirmed adjusted EBITDA guidance to prioritize reinvestment in brand building, customer experience technology, and AI-driven contact center capabilities. Anticipates continued margin expansion over the long term as premium brands like Saratoga and Mountain Valley scale and drive favorable product mix. Expects to realign the direct delivery cost structure and route counts following the peak season to better match volume trajectories and improve productivity. Maintains a disciplined capital allocation strategy with a near-term target to bring net leverage below 3 times as cash flow strengthens. Identified higher transportation costs and a tightening freight market as primary headwinds to EBITDA growth, partially mitigated by expanding the private fleet. Noted a temporary product supply disruption for Mountain Valley during the startup of a new production line, though brand health remains strong. Reported a significant decline in EBITDA and free cash flow adjustments, signaling a transition toward a cleaner, more transparent financial profile post-merger. Acknowledged ongoing dynamic macro and geopolitical conditions, utilizing hedging programs and pricing actions to manage commodity and diesel price volatility. Management confirmed that the direct delivery business saw a positive month for net customer adds within Q2, while the overall business experienced a growth cadence in May and June. The recovery is attributed to service levels returning to pre-merger standards, with customer 'quits' continuing to decline sequentially. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Retail growth is currently balanced at approximately 40% volume and 60% price-mix on a year-to-date basis. Direct delivery growth is currently driven by price and mix, as volume recovery lags behind the stabilization of the customer base. The removal of the COO layer was designed to eliminate organizational friction and put the CEO closer to the customer-direct and supply chain functions. Management is shifting from a 'stabilize' phase to an 'optimize' phase, focusing on tech, AI, and brand building to fuel a growth flywheel. Pricing actions were taken on small-format products where Primo historically had a large price gap compared to competitors. Future pricing will be 'precision-based,' focusing on specific packages or underperforming trade spend areas rather than broad-based increases. Management stated it is too early to quantify the contribution of the new WMS as it is currently in the pilot and learning phase. The system is intended to eventually support the 'optimize' stage of the company's strategic roadmap.

This article first appeared on GuruFocus. Net Sales: $1.8 billion in Q2 2026, up 4.2% on a comparable basis versus prior year. Adjusted EBITDA: Increased 5% to $385 million, with comparable adjusted EBITDA margin up 10 basis points to 21.4%. Direct Delivery Net Sales: Returned to growth, up 0.4% in the quarter, a 340 basis point sequential improvement from Q1. Retail Net Sales by Brand: Regional spring water increased 4.1%, purified water increased 1.9%, and premium brands increased 30.5%. Cash Flow from Operations: $227.9 million for the quarter; $266.4 million when adjusted for significant items like integration and merger activities. Adjusted Free Cash Flow: $200.1 million, a $30.4 million improvement versus prior year. Capital Expenditures: Totaled $104.6 million in Q2, with $35 million related to integration capital expenditures. Share Repurchases: Repurchased $15.5 million or 708,000 shares during the quarter. Net Leverage: Improved to 3.43 times at quarter end, down from 3.52 times in Q1. 2026 Guidance: Raised comparable net sales growth guidance to 2% to 4%, reaffirmed adjusted EBITDA guidance of $1.465 billion to $1.515 billion. Warning! GuruFocus has detected 3 Warning Signs with PRMB. Is PRMB fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Primo Brands Corp (NYSE:PRMB) delivered a second consecutive quarter of comparable net sales growth, with Q2 2026 net sales up 4.2% year-over-year, exceeding expectations. Direct Delivery returned to growth (up 0.4%) one quarter ahead of expectations, driven by improved customer experience metrics such as lower call volumes, reduced quits, and OTIF reaching mid-90s. Retail business showed strong, broad-based growth, with regional spring water up 4.1%, purified water up 1.9%, and premium brands up 30.5%, leading to both value and volume share gains. The company raised its 2026 comparable net sales growth guidance to 2%-4% (from 1%-3%), reflecting accelerating momentum across both retail and Direct Delivery. Adjusted EBITDA increased 5% to $385 million, with margin expansion of 10 basis points year-over-year and a 260 basis point sequential improvement, driven by productivity gains and operating leverage. Net leverage improved to 3.43x from 3.52x in Q1, with strong liquidity of $953 million and adjusted free cash flow of $200.1 million, up $30.4 million year-over-year. The company simplified its leadership structure, eliminating the COO role and elevating key positions to report directly to the CEO, aiming to enhance decision-making speed and agility. Premium brands (Saratoga and Mountain Valley) continue to grow strongly, with double-digit growth and both value and volume share gains, indicating early-stage growth potential. The company is making progress on working capital improvements, with better collections and vendor relations, which should continue to benefit cash flow. Primo Brands Corp (NYSE:PRMB) is investing in growth initiatives, including a new warehouse management system and customer contact center, to further improve customer experience and operational efficiency. Direct Delivery volume declined due to a smaller customer base, with growth driven primarily by price/mix rather than volume, indicating the recovery is still in early stages. Adjusted EBITDA guidance for 2026 was reaffirmed at $1.465-$1.515 billion, implying flat margins year-over-year, as the company invests behind growth and manages a dynamic cost environment. Higher transportation costs, particularly from a tighter freight market and higher spot rates, partially offset adjusted EBITDA growth. The company faces ongoing inflationary pressures on commodities and freight, which may require further pricing actions or cost mitigation efforts. Integration-related capital expenditures remain significant, with approximately $18 million still expected to be spent in 2026, adding to total capex of about 4% of net sales. The premium brands growth rate decelerated from prior quarters (still up 30.5% but slower), partly due to supply disruption from a new Mountain Valley line startup. The company is still in the 'stabilize to optimize' phase, with more work needed to fully stabilize Direct Delivery and lay the foundation for accelerated profitable growth. The warehouse management system is still in pilot, with no significant contribution yet, and the company is cautious about its near-term impact. The company is navigating a dynamic macro environment, including geopolitical conditions, which could impact consumer demand and cost structures. Share repurchase activity was modest in Q2 ($15.5 million), with $62.8 million remaining under the authorization, suggesting limited near-term capital return upside. Q: Can you discuss the customer count trends and net adds in the Direct Delivery business, the cadence of growth, and the sustainability of the retail volume strength into the second half?A: Eric Foss (CEO): We are very pleased with the progress, with improved momentum across the business. In Direct Delivery, we saw stronger monthly performance in May and June, with call volumes back to pre-merger levels and improving customer quits. We saw a positive month for net adds within Q2. The recovery is broad-based, and we grew both value and volume share in retail. We anticipate this positive trajectory to continue. Q: Can you provide more color on the volume versus price/mix drivers of revenue growth and the progress on working capital improvements?A: Eric Foss (CEO) & David Hass (CFO): While Direct Delivery returned to growth, it was not volume-driven yet. However, at a unitized level, the total business saw positive volume in the quarter, with retail growth split roughly 40% volume and 60% price year-to-date. On working capital, collections are improving rapidly as integration disruptions subside, and we are taking advantage of better vendor relations to optimize payable days. Inventory will be managed to support growth in high-velocity segments like immediate consumption. Q: With the business performing better than expected, how are you thinking about playing more offense and allocating freed-up investment dollars in the back half of the year?A: Eric Foss (CEO): The leadership structure simplification is designed to improve speed and agility. We are now better positioned to play offense, focusing investments on areas that drive the model's success, such as call center resources, tech and AI, and marketing/brand building. Our near-term focus remains on growing the core business, which will allow us to consider other growth options as we progress from stabilization to optimization. Q: Can you elaborate on the composition of new customer adds in Direct Delivery? Are they new, returning, or different from past customers?A: David Hass (CFO): We don't have perfect tracking on whether customers are returning or entirely new, but we feel advantaged in the bulk water category as more consumers are leaving tap water. Our portfolio is well-positioned across the value spectrum, from refill to exchange to premium delivery, allowing us to capture consumers at various price points and occasions. Q: Premium brand growth was up 30.5%, but that's a deceleration from prior trends. What is a sustainable growth rate for this segment?A: Eric Foss (CEO): We saw continued double-digit growth of around 30%, with Saratoga outperforming Mountain Valley, which had some product supply disruption from a new line start-up. We are still early in the premium journey and will continue to invest in brand building to drive penetration and frequency. Both brands grew value and volume share in the quarter, and we expect them to continue performing well. Q: Can you provide more color on the pricing actions taken on the immediate consumption portfolio, retailer/consumer reactions, and the sustainability of retail strength?A: Eric Foss (CEO): Our pricing framework starts and ends with the consumer, maintaining competitiveness while managing the P&L. We took pricing on immediate consumption earlier this year to close a large gap with competition, and we remain price-competitive. Future actions will be more precise, targeting packages and brands where profitability needs improvement, and we will review trade spend effectiveness. The portfolio is well-positioned across the value spectrum, supporting balanced growth. Q: Can you help frame the level of reinvestment impacting the EBITDA guidance and how the cost environment is shaping up for 2027 planning?A: David Hass (CFO): We are managing route counts in Direct Delivery to match volume trajectories, with route alignment expected after Q3. On inflation, we are well-hedged for diesel this year and have a decent percentage taken down for 2027. The tightening freight market remains an aggravation, and we are investing in our private fleet to reduce friction costs. We are navigating these inflationary items while benefiting from pricing and an optimized OpEx structure. Q: What are the trends in the Club and Away-From-Home channels, and what is driving the growth there?A: David Hass (CFO): We saw mid-single-digit growth in Club and high-single-digit growth in Away-From-Home. Away-From-Home growth is driven by distribution build-out, with premium playing a key role. Club growth is about positioning, pallet placements, and new distribution. Growth is broad-based across Grocery, Club, Mass, and Dollar channels, which is very encouraging. Q: Beyond pricing, what other levers do you have to mitigate inflationary pressures, and how much redundant cost is still in the Direct Delivery business?A: Eric Foss (CEO) & David Hass (CFO): We will continue to use hedging programs and traditional RFP measures for supply chain elements. In Direct Delivery, the route count coming into Q2 allowed us to sustain performance and deliver ahead of expectations. We will look at optimizing route counts to match consumer demand as we exit Q3, which has been a typical annual muscle for us. Q: Can you frame the reinvestment levels in 2026 versus long-term needs and the long-term margin potential of the business?A: David Hass (CFO) & Eric Foss (CEO): We will provide long-term commentary with our 2027 guidance in the spring. The environment remains dynamic, but we have levers at our disposal and a fortunate position of consumer demand generating volume. Investments in win-back initiatives and call center resources are largely behind us. Going forward, we will be disciplined in managing productivity across SG&A and supply chain while investing in marketing, brand building, and tech/AI. Q: Are there any early signals on how the new warehouse management system is impacting supply chain execution and customer satisfaction?A: Eric Foss (CEO): It is too early to tell. The system is in pilot, and we are learning from it. We will make necessary changes before rolling it out, so there is no significant contribution to discuss at this time. Q: Can you discuss progress on the "low-hanging fruit" in basic retail execution and blocking and tackling that you mentioned earlier this year?A: Eric Foss (CEO): Our focus is on what lies ahead. Key growth vectors include improving the customer experience in For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Primo Brands Corporation PRMB reported second-quarter 2026 adjusted earnings of 37 cents per share, up 2.8% compared with a year ago and surpassed the Zacks Consensus Estimate of 32 cents.Net sales rose 3.8% year over year to $1.80 billion and topped the consensus estimate of $1.76 billion. Management said top-line results exceeded expectations. Robust Retail channel growth led by regional spring water and premium brands, along with an earlier-than-expected return to growth in Direct Delivery, supported growth. This was partly offset by lower sales from the exited U.S. Office Coffee Services business.Following the earnings release, Primo Brands’ shares jumped more than 8% during the trading session. Shares of this Zacks Rank #2 (Buy) stock have risen 19.3% in the past six months, outperforming the industry’s 2.4% growth. Image Source: Zacks Investment Research Gross profit increased 1.4% year over year to $548.7 million, but the gross margin contracted 80 basis points to 30.5%. Higher transportation costs and depreciation and amortization weighed on profitability, while revenue growth and lower non-recurring integration costs provided a partial offset.Selling, general and administrative expenses dipped 8.7% year over year to $345.5 million. Lower marketing costs and reduced amortization tied mainly to definite-lived intangible assets helped operating income climb 59.8% year over year to $180.3 million.Adjusted EBITDA increased 5% to $385 million, with the margin rising 20 basis points year over year to 21.4%. Primo Brands Corporation price-consensus-eps-surprise-chart | Primo Brands Corporation Quote Regional spring water sales rose 4.1% year over year to $911 million, making it the largest water category. Purified water sales increased 1.9% to $556.1 million, while premium water advanced 30.5% to $114.2 million.Other water sales fell 9.7% to $31.8 million, and the broader Other category slipped 1.9% to $183.1 million. The category mix shows that regional spring and premium offerings were the primary engines of quarterly revenue growth. As of June 30, 2026, the company generated net cash from continuing operations of $331.7 million, up from $193.8 million seen a year ago. After $190 million in capital expenditures and $32.7 million of additions to intangible assets, free cash flow reached $109 million, up from $52.7 million registered a year ago. Adjusted free cash flow was $328.7 million as of June 30.As of June 30, 2026, total debt excluding unamortized debt costs and discounts was $5.3 billion. Unrestricted cash and cash equivalents totaled $366.5 million, resulting in net debt of $4.9 billion.During the quarter, PRMB paid $43.5 million in cash dividends and spent $15.5 million on share repurchases, including brokerage commissions. Primo Brands raised its 2026 net sales growth forecast to 2-4% from the prior range of 1-3%. The company reaffirmed adjusted EBITDA guidance of $1.465-$1.515 billion.Management also maintained base capital expenditures at 4% of net sales and adjusted free cash flow guidance of $790-$810 million. Darling Ingredients Inc. DAR, which is a global developer and producer of sustainable natural ingredients, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Darling Ingredients' current financial-year sales indicates growth of 12.4% from the prior-year level. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.United Natural Foods UNFI, which is the leading distributor of natural, organic and specialty food and non-food products, currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.Medifast, Inc. MED, which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED missed the average earnings surprise by a sharp margin in the trailing four quarters. The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 25.9% from the year-ago number. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Primo Brands Corporation (PRMB) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report MEDIFAST INC (MED) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research