Beer - Lists & guidesDrunk Man in Turkey Spent Hours Helping Search Party Look for HimselfWine - EditorialsWhy Serious Collectors Are Swapping Century-Old Corks for Screw CapsBeer - EditorialsYour Beer Contains More Banana, Cheese, and Cake Than Your PantrySpirits - EditorialsThe Secret to the World's Wildest Bourbon is Sitting on a RiverBeer - Industry Press AnalysisDeath Wish Coffee Debuts Power Surge—210 mg/6 oz Roast on Amazon & Major RetailersSpirits - Industry Press AnalysisMagnum Debuts Signature Line at VIP Party with Heidi Klum & Adriana LimaBeer - EditorialsPBR Hasn't Actually Won a Blue Ribbon Since 1893Beer - Industry Press AnalysisMash Gang Names Abita Brewing and Hall & Woodhouse as New U.S./U.K. BrewersBeer - Industry Press AnalysisPackaging: French's releases Goomi’s Green Mustard (spirulina) with Minions & MonstersBeer - Industry Press Analysisteapigs Launches Four Herbal Blends on Amazon, First with Reishi MushroomSpirits - Industry Press AnalysisBeyondCPG Launches National Track 7 for Scaling Food & Beverage BrandsSpirits - Industry Press AnalysisDelaware North’s Spirits Sales Drive $19K Donation for Pollinator EducationSpirits - Industry Press AnalysisGrande Absente Collaborates with Moulin Rouge Paris on Limited‑Edition SpiritSpirits - Industry Press AnalysisGrey Goose Debuts Berry Rouge with Zoe Saldaña, Dominique Ansel & DJ Andre PowerSpirits - Industry Press AnalysisIndustry: MGM Debuts 30‑Venue Cocktail & Culinary at Drink Las Vegas, Sept. 24–27Spirits - Industry Press AnalysisJetBlue Adds Misunderstood Brands’ OATRAGEOUS Espresso Oat Milk Liqueur to In‑Flight MenuSpirits - Industry Press AnalysisNapa Valley's Perfect Purée Acquires Colorado Bitters Maker StrongwaterSpirits - Industry Press AnalysisSpirits Distributor Happenstance Whiskey Debuts on Whole Foods in CaliforniaSpirits - Industry Press AnalysisSpirits honors Rico Austin as 2026 IAOTP Top Entrepreneur in Luxury SpiritsSpirits - Industry Press AnalysisThe Perfect Purée of Napa Valley Acquires Colorado Bitters Brand Strongwater
Beer - Lists & guidesDrunk Man in Turkey Spent Hours Helping Search Party Look for HimselfWine - EditorialsWhy Serious Collectors Are Swapping Century-Old Corks for Screw CapsBeer - EditorialsYour Beer Contains More Banana, Cheese, and Cake Than Your PantrySpirits - EditorialsThe Secret to the World's Wildest Bourbon is Sitting on a RiverBeer - Industry Press AnalysisDeath Wish Coffee Debuts Power Surge—210 mg/6 oz Roast on Amazon & Major RetailersSpirits - Industry Press AnalysisMagnum Debuts Signature Line at VIP Party with Heidi Klum & Adriana LimaBeer - EditorialsPBR Hasn't Actually Won a Blue Ribbon Since 1893Beer - Industry Press AnalysisMash Gang Names Abita Brewing and Hall & Woodhouse as New U.S./U.K. BrewersBeer - Industry Press AnalysisPackaging: French's releases Goomi’s Green Mustard (spirulina) with Minions & MonstersBeer - Industry Press Analysisteapigs Launches Four Herbal Blends on Amazon, First with Reishi MushroomSpirits - Industry Press AnalysisBeyondCPG Launches National Track 7 for Scaling Food & Beverage BrandsSpirits - Industry Press AnalysisDelaware North’s Spirits Sales Drive $19K Donation for Pollinator EducationSpirits - Industry Press AnalysisGrande Absente Collaborates with Moulin Rouge Paris on Limited‑Edition SpiritSpirits - Industry Press AnalysisGrey Goose Debuts Berry Rouge with Zoe Saldaña, Dominique Ansel & DJ Andre PowerSpirits - Industry Press AnalysisIndustry: MGM Debuts 30‑Venue Cocktail & Culinary at Drink Las Vegas, Sept. 24–27Spirits - Industry Press AnalysisJetBlue Adds Misunderstood Brands’ OATRAGEOUS Espresso Oat Milk Liqueur to In‑Flight MenuSpirits - Industry Press AnalysisNapa Valley's Perfect Purée Acquires Colorado Bitters Maker StrongwaterSpirits - Industry Press AnalysisSpirits Distributor Happenstance Whiskey Debuts on Whole Foods in CaliforniaSpirits - Industry Press AnalysisSpirits honors Rico Austin as 2026 IAOTP Top Entrepreneur in Luxury SpiritsSpirits - Industry Press AnalysisThe Perfect Purée of Napa Valley Acquires Colorado Bitters Brand Strongwater
Industry Press Analysis

Beer Company Reports $1.63 B Net Sales in Q1, Raises Full‑Year Outlook

|

Explore More Beer Coverage

Get deeper insights beyond the press releases.

The News

Primo Brands announced its 2026 first quarter financial results, showing net sales increased 0.8% to $1.63 billion. The company attributed the growth to stronger performance in retail channels and continued improvement in direct delivery. The company raised its full-year organic Net Sales growth outlook but widened its Adjusted EBITDA guidance range due to inflationary pressures.

Primo Brands’ Q1 2026 results give distributors a clear benchmark for how premium growth and rising logistics costs can shape the bottom line in the bottled‑water sector.

  • Net sales rose 0.8 % YoY to $1.63 billion, while adjusted EBITDA fell 10.4 percentage points to $306 million—a margin slide from 21.2 % to 18.8 %.
  • Premium brands Saratoga and Mountain Valley posted a 43 % sales jump, but logistics costs rose 9.3 % year‑over‑year, underscoring the cost pressure that offsets volume gains.
  • The company exited its Office Coffee Services (OCS) business—a nonrecurring revenue stream—so future procurement plans must shift toward higher‑margin, high‑price offerings.
  • Primo raised its 2026 organic net‑sales growth guidance to 1–3 %, compared with a U.S. bottled‑water market CAGR of 4.2 %. The cautious outlook reflects the same logistics pressures that erode margins.

For distributors and retailers, these numbers highlight two key takeaways:

  1. Margin sensitivity—the 9.3 % rise in freight and integration expenses is a tangible headwind that can erode even strong brand performance.
  1. Growth calibration—Primo’s raised guidance sits below the broader market growth rate, signaling that organic expansion will be more modest than category momentum suggests.

Distributors should benchmark their own direct‑delivery or fulfillment contracts against Primo’s cost profile: if logistics costs exceed the 9.3 % threshold, other operators may face similar margin erosion.

Retailers and on‑premise managers can capitalize on Primo’s premium mix but must negotiate freight rates or consolidate deliveries to offset the rising cost elasticity revealed by the 9.3 % logistics increase.

Ultimately, Primo’s results confirm that volume growth or brand expansion alone does not guarantee healthier economics when underlying cost structures are not optimized. Operators now face a clear choice: align their delivery models with the reality of rising logistics costs while capitalizing on premium pricing opportunities.


Original Press Release

"We delivered a strong start to 2026, with momentum building across the business," said Eric Foss, Chairman and Chief Executive Officer. "First quarter top-line results exceeded our expectations, driven by robust growth in Retail channels led by our premium brands and continued improvement in Direct Delivery.

"This performance and the trajectory across the business give us the confidence to raise our full-year organic Net Sales growth outlook. At the same time, while we have multiple levers to help mitigate inflationary pressures, given the dynamic macro environment, we are widening our Adjusted EBITDA guidance range.

"As a leader in a structurally-advantaged category, with a consumer- and customer-first culture, we're investing to capitalize on the category momentum and the power of our brands. By elevating service and execution, we're positioned for sustained growth, margin expansion, stronger free cash flow, and long-term stakeholder value. We are excited about the opportunities ahead."

FIRST QUARTER PERFORMANCE

For the Three Months Ended

(USD $M except %, per share amounts or unless as otherwise noted)

March 31, 2026

March 31, 2025

Net income from continuing operations

Net income per diluted share from continuing operations

Adjusted net income

Adjusted net income per diluted share

Adjusted EBITDA

Adjusted EBITDA margin %

Net sales increased 0.8% to $1.63 billion compared to $1.61 billion primarily driven by an increase in sales attributable to our premium brands, partially offset by a decrease in sales attributable to the exited US Office Coffee Services ("OCS") business not recurring in the current year.
Gross margin was 28.6% compared to 32.3%, primarily driven by increased transportation related costs, non-recurring integration related costs incurred in the current year, and increased depreciation and amortization.
SG&A expenses were $336.7 million compared to $327.8 million and remained relatively consistent as a percentage of Net sales.
Net income from continuing operations and net income per diluted share were $27.3 million and $0.07 per diluted share, respectively, compared to net income from continuing operations and net income per diluted share of $34.7 million and $0.09, respectively.
Adjusted EBITDA decreased 10.4% to $306.0 million compared to $341.5 million and Adjusted EBITDA margin decreased 240 bps to 18.8%, compared to 21.2%.

FIRST QUARTER CASH FLOW & LIQUIDITY

Net cash provided by operating activities from continuing operations of $103.8 million, less $118.1 million of capital expenditures and additions to intangible assets, resulted in $(14.3) million of free cash flow, or $128.6 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 $38.8 million and Adjusted Free Cash Flow of $54.7 million in the prior year period.
Total debt, excluding unamortized debt costs and discounts, was $5.3 billion and unrestricted cash and cash equivalents totaled $287.9 million, each as of March 31, 2026, resulting in net debt of $5.0 billion and a net leverage ratio of 3.52x.
Cash dividends of $44.2 million for the quarter ended March 31, 2026.
Approximately $29.0 million, including brokerage commissions, for share repurchases under our share repurchase plan during the quarter ended March 31, 2026.

2026 FULL YEAR FINANCIAL OUTLOOK

Comparable Results1

($ in millions)

Organic Net Sales Growth

Adj. EBITDA

4% of Net Sales

4% of Net Sales

Adj. Free Cash Flow

1Comparison period includes 2025 Net Sales and excludes the impact of the exited Eastern Canadian operations and exited US Office Coffee Services business. See exhibit 8 for a reconciliation.

EARNINGS CONFERENCE CALL

Primo Brands will host a conference call to discuss these results on Thursday, May 7, 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: 73994Webcast Link: https://app.webinar.net/JZ9lw3ZB5Yr

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 CORPORATIONPrimo 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 to help assure 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. The Company has revised its presentation of Comparable Net sales in order to exclude both the impact of the exited Eastern Canadian operations and exited US Office Coffee Services business. As a result of this change, the Company's 2025 Comparable Net sales as disclosed in this Press Release differs from the comparable metric disclosed in previous presentations. 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

PRIMO BRANDS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions of U.S. dollars, except share and per share amounts)

Three Months Ended March 31,

Cost of sales

Gross profit

Selling, general and administrative expenses

Acquisition, integration and restructuring expenses

Other operating (income) expense, net

Operating income

Other expense, net

Loss on modification and extinguishment of debt

Interest and financing expense, net

Income from continuing operations before income taxes

Provision for income taxes

Net income from continuing operations

Net loss from discontinued operations, net of tax

Net income (loss) per common share

Continuing operations

Discontinued operations

Net income per common share

Continuing operations

Discontinued operations

Net income per common share

Weighted-average shares of common stock outstanding (in thousands)

PRIMO BRANDS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions of U.S. dollars, except share amounts)

March 31, 2026

December 31, 2025

Current Assets:

Cash, cash equivalents and restricted cash

Trade receivables, net of allowance for expected credit losses of $21.7 and $20.5 as of March 31, 2026 and December 31, 2025, respectively

Inventories

Prepaid expenses and other current assets

Current assets held for sale

Total current assets

Property, plant and equipment, net

Operating lease right-of-use-assets, net

Intangible assets, net

Other non-current assets

Total assets

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Current portion of long-term debt

Trade payables

Accruals and other current liabilities

Current portion of operating lease obligations

Total current liabilities

Long-term debt, less current portion

Operating lease obligations, less current portion

Deferred income taxes

Other non-current liabilities

Total liabilities

Stockholders' Equity:

Common stock, $0.01 par value, 900,000,000 shares authorized, 362,928,927 shares and 363,940,940 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total stockholders' equity

Total liabilities and stockholders' equity

PRIMO BRANDS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions of U.S. dollars)

Three Months Ended March 31,

Cash flows from operating activities of continuing operations:

Less: Net loss from discontinued operations, net of income taxes

Net income from continuing operations

Adjustments to reconcile net income from continuing operations to cash flows from operating activities of continuing operations:

Depreciation and amortization

Amortization of debt discount and issuance costs

Stock-based compensation costs

Restructuring (gains) charges, net

Inventory obsolescence expense

Charge for expected credit losses

Deferred income taxes

Unrealized gain on commodity forwards, net

Other non-cash items

Changes in operating assets and liabilities, net of effects of businesses acquired:

Trade receivables

Inventories

Prepaid expenses and other current and non-current assets

Trade payables and accruals and other current and non-current liabilities

Net cash provided by operating activities of continuing operations

Cash flows from investing activities of continuing operations:

Purchases of property, plant and equipment

Purchases of intangible assets

Acquisitions, net of cash received

Proceeds from sale of other assets

Other investing activities

Net cash used in investing activities of continuing operations

Cash flows from financing activities of continuing operations:

Proceeds from Term Loans, net of discount

Repayment of Term Loans

Principal payment of finance leases

Financing fees

Issuance of common stock

Common stock repurchased and cancelled

Dividends paid to common stockholders

Other financing activities

Net cash used in financing activities of continuing operations

Cash flows from discontinued operations:

Net cash provided by operating activities from discontinued operations

Net cash used in investing activities from discontinued operations

Net cash provided by financing activities from discontinued operations

Net cash used in discontinued operations

Effect of exchange rates on cash, cash equivalents and restricted cash

Net decrease in cash, cash equivalents and restricted cash

Cash and cash equivalents and restricted cash, beginning of period

Cash and cash equivalents and restricted cash, end of period

Cash and cash equivalents and restricted cash of discontinued operations, end of period

Cash and cash equivalents and restricted cash of continuing operations, end of period

PRIMO BRANDS CORPORATION

NET SALES BY WATER TYPE

(in millions of U.S. dollars)

For the Three Months Ended

March 31, 2026

March 31, 2025

Regional spring water

Purified water

Premium water

Other water

Total net sales

PRIMO BRANDS CORPORATION

SUPPLEMENTARY INFORMATION - NON-GAAP - EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION

(in millions of U.S. dollars, except percentage amounts)

Three Months Ended March 31,

Net income from continuing operations

Interest and financing expense, net

Provision for income taxes

Depreciation and amortization

Acquisition, integration and restructuring expenses (a) 1

Stock-based compensation costs (b)

Unrealized (gain) loss on foreign exchange and commodity forwards, net (c)

Loss on disposal of property plant and equipment, net (d)

Loss on modification and extinguishment of debt (e)

Purchase accounting adjustments (f)

Other adjustments, net (g)

Adjusted EBITDA

Adjusted EBITDA margin %

Three Months Ended March 31,

Location in Consolidated Statements of Operations

(Unaudited)

(a) Acquisition, integration and restructuring expenses 1

Acquisition, integration and restructuring expenses

Cost of sales

(b) Stock-based compensation costs

Selling, general and administrative expenses

(c) Unrealized (gain) loss on foreign exchange and commodity forwards, net

Other expense, net

Other operating (income) expense, net

(d) Loss on disposal of property plant and equipment, net

Cost of sales

(e) Loss on modification and extinguishment of debt

Loss on modification and extinguishment of debt

(f) Purchase accounting adjustments

Cost of sales

(g) Other adjustments, net

Other expense, net

Selling, general and administrative expenses

1 Amounts include labor related costs.

PRIMO BRANDS CORPORATION

SUPPLEMENTARY INFORMATION - NON-GAAP - FREE CASH FLOW AND ADJUSTED FREE CASH FLOW

(in millions of U.S. dollars)

Three Months Ended March 31,

Net cash provided by operating activities of continuing operations

Less: Additions to property, plant and equipment

Less: Additions to intangible assets

Free cash flow

Acquisition, integration and restructuring cash costs

Integration capital expenditures

Natural disaster related capital expenditures

Debt restructuring costs

Tariffs refunds related to property, plant and equipment

Adjusted free cash flow

PRIMO BRANDS CORPORATION

SUPPLEMENTARY INFORMATION-NON-GAAP-ADJUSTED NET INCOME AND ADJUSTED EPS

(in millions of U.S. dollars, except share amounts)

Three Months Ended March 31,

Net income from continuing operations

Adjustments:

Amortization expense of customer lists and definite-lived trade names

Acquisition, integration and restructuring expenses

Stock-based compensation costs

Unrealized (gain) loss on foreign exchange and commodity forwards, net

Loss on modification and extinguishment of debt

Purchase accounting adjustments

Other adjustments, net

Tax impact of adjustments1

Adjusted net income

Earnings Per Share (as reported)

Net income from continuing operations

Diluted EPS

Weighted average shares of common stock outstanding (in thousands)

Adjusted Earnings Per Share (Non-GAAP)

Adjusted net income from continuing operations (Non-GAAP)

Adjusted diluted EPS (Non-GAAP)

Weighted average shares of common stock outstanding (in thousands)

Diluted weighted average common shares outstanding (in thousands) (Non-GAAP)2

1 The tax effect for adjusted net income is based upon an analysis of the statutory tax treatment and the applicable tax rate for the jurisdiction in which the pre-tax adjusting items incurred and for which realization of the resulting tax benefit (if any) is expected. A reduced or 0% tax rate is applied to jurisdictions where we do not expect to realize a tax benefit due to a history of operating losses or other factors resulting in a valuation allowance related to deferred tax assets.

2 For the periods presented, the non-GAAP diluted weighted average shares of common stock outstanding equaled the reported diluted weighted average shares of common stock outstanding.

PRIMO BRANDS CORPORATION

SUPPLEMENTARY INFORMATION - NON-GAAP - COMPARABLE ORGANIC NET SALES GROWTH

(in millions of U.S. dollars, except percentage amounts)

2025 Net sales

Impact of Eastern Canadian operations1

Impact of US Office Coffee Services Business (OCS)2

2025 Comparable Net sales3

2026 Estimated Comparable Net sales increase from 2025

2026 Estimated Comparable Net sales

2026 Estimated Comparable Net sales growth

1 Represents Net sales impact of the exited Eastern Canadian operations for the fiscal year ended December 31, 2025.

2 Represents Net sales impact of the exited US Office Coffee Services Business for the fiscal year ended December 31, 2025.

3 The Company has revised its presentation of 2025 Comparable Net Sales in order to exclude the impact of the exited Eastern Canadian operations and exited US Office Coffee Services business. As a result of this change, the Company's 2025 Comparable Net Sales as disclosed in this press release differs from the comparable metric disclosed in previous presentations.

PRIMO BRANDS CORPORATION

SUPPLEMENTARY INFORMATION- NET LEVERAGE RATIO

(in millions of U.S. dollars, except financial ratios)

For the Fiscal Year Ended

December 31, 20251

Net income from continuing operations

Interest and financing expense, net

Provision for income taxes

Depreciation and amortization

Acquisition, integration and restructuring expenses

Stock-based compensation costs

Intangible asset impairment

Unrealized loss on foreign exchange and commodity forwards, net

Loss on disposal of property, plant and equipment, net

Loss on modification and extinguishment of debt

Purchase accounting adjustments

Proceeds from insurance settlements

Other adjustments, net

2025 Adjusted EBITDA

Less: Q1 2025 Adjusted EBITDA 2

Plus: Q1 2026 Adjusted EBITDA 2

Adjusted EBITDA Q1 2026 LTM 3

March 31, 2026

Unamortized debt costs and discounts

Total debt, excluding unamortized debt costs and discounts

Unrestricted cash 4

Net leverage ratio 5

1 Represents the Adjusted EBITDA of Primo Brands Corporation obtained from the 2025 Press Release filed February 26, 2026.

2 Refer to Exhibit 5 for reconciliation.

3 Represents YTD 2025 less QTD Q1 2025 plus QTD Q1 2026 resulting in twelve months of data.

4 Unrestricted cash defined as cash and cash equivalents as of March 31, 2026 of $288.2 million less restricted cash of $0.3 millions.

5 Net leverage ratio defined as total principal indebtedness, excluding unamortized debt costs and unamortized discount, less unrestricted cash ("net debt") divided by LTM Adjusted EBITDA.


Sources consulted (web research):

Source: PR Newswire

Back to Home Published on 2026-05-07