Primo Brands (PRMB) Q4 2025 earnings summary

Executive summary

• FY 2025 reported net sales were $6.7B, up 29.3% year-over-year, with Q4 net sales at $1.554B, down 2.5% on a comparable basis but up 11.2% reported, reflecting merger impacts and improved Customer Direct recovery.

• Comparable FY 2025 net sales declined 1% year-over-year, but adjusted EBITDA rose 45.5% to $1.447B, with margin up 170 bps to 21.7%.

• Q4 adjusted EBITDA was $334.1M, up 31.1% year-over-year, with margin up 260 bps to 21.5%.

• Integration of Primo Water and BlueTriton largely completed, forming a leader in healthy hydration, with remaining rounds focused on branch consolidation and ERP unification in 2026.

• Strategic focus on restoring growth, expanding margins, and generating consistent free cash flow in 2026.

Financial highlights

• Premium brands and premium water net sales grew 44% in FY 2025, while other segments saw modest declines.

• FY 2025 comparable adjusted EBITDA margin increased 170 bps to 21.7%; Q4 margin rose 260 bps to 21.5%.

• Adjusted free cash flow for FY 2025 was $750.3M, up from $456.2M in 2024, with a conversion rate of 51.9%.

• Year-end net leverage ratio was 3.37x, with net debt at $4.87B and liquidity of $989M.

• Q4 net loss from continuing operations improved to $25.3M from $153.9M; adjusted net income was $94.1M, up from $39.6M.

Outlook and guidance

• FY 2026 guidance: organic net sales growth of 0%-1%, with growth weighted to the second half.

• Adjusted EBITDA expected between $1.485B and $1.515B, with midpoint margin of 22.5%, up 70 bps.

• Adjusted free cash flow projected at $790M-$810M; capital expenditures to be about 4% of net sales.

• Dividend increased 20% to $0.48 per share annualized; $107M remains under share repurchase authorization.