Primo Brands: Beat 2Q Top-Line/EBITDA vs. Street; Raised Top-Line & Reiterated EBITDA/FCF Guidance

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Primo Brands

Beat 2Q Top-Line/EBITDA vs. Street; Raised Top-Line

& Reiterated EBITDA/FCF Guidance

Our Take: Beat vs. Consensus & Raised Top Line Should Be Well Received.

PRMB delivered a better-than-expected result on the top line, a +1% beat vs.

consensus EBITDA, and raised 2026 top-line guidance by 1 point while reiterating

profit/FCF guidance. Overall, we think the results were solid and should be well

received by investors who were, based on our conversations, looking for slight

growth in Direct Delivery (vs. management expectations of about breakeven) and

a strong Retail result, but had less conviction on EBITDA (beat vs. consensus

should be good enough, in our view). On the call, we hope to hear more on customer

count performance in the Direct Delivery business and margin trajectory as

investments normalize with improved operational performance.

2Q26 KPIs. Primo Brands (PRMB, Overweight) reported 2Q26 revenues of

$1,796M (+3.8% YOY, or +4.2% YOY comparable and +3.9% YOY organic),

which came in ahead of JPMe/consensus $1,776M (+2.7% YOY)/$1,762M

(+1.9% YOY), and adjusted EBITDA of $385M (+5.0%% YOY), which

bracketed JPMe/consensus $395M (+7.9% YOY)/$381M (+4.0% YOY).

Comparable sales growth (ex-OCS) of 4.2% was driven by volumes -0.1% and

price/mix +4.3% and within the ex-OCS comparable sales growth of +4.2%,

organic growth was +3.9% and inorganic growth added +0.3%. Within the

channels, revenue for Direct Delivery of -0.6% (+0.4% organic) vs. JPMe 1.0%, Grocery +4.8% vs. JPMe +4.0%, Club +4.2% vs. JPMe +7.0%, Mass

+8.5% vs. JPMe +2.0%, Away-from-home +9.3% vs. JPMe +5.0%, and

Emerging +12.9% vs. JPMe +10.0%. EBITDA margins of 21.4% expanded

+24 bps YOY (vs. JPMe/consensus 22.3%/21.6%).

Raised 2026 Top-Line Guidance, Reaffirmed EBITDA Guidance. PRMB

raised organic net sales guidance to +2-4% (vs. +1-3% prior and JPMe/

consensus +2.0%/+1.9% into today) and reiterated adjusted EBITDA

guidance of $1,465-1,515M (vs. JPMe/consensus $1,492M/$1,470M into

today), or +1.3-4.7% YOY (vs. JPMe/consensus +3.2%/+1.6% into today).

The company continues to expect capital expenditures 4% of net sales and

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