Primo Brands Corporation (NYSE:PRMB) shares rose 2.9% on Thursday after the North American beverage group delivered third-quarter results ahead of expectations, fueled by strong growth in its premium water portfolio.
The company reported adjusted earnings of $0.41 per share, topping the analyst consensus of $0.35. Revenue came in at $1.76 billion, well above expectations of $614.3 million.
Net sales climbed 35.3% year-over-year, while Primo expanded its adjusted EBITDA margin by 270 basis points to 22.9%, reflecting improved profitability following its recent merger.
“In the third quarter, we grew Retail net sales and volume and expanded both dollar and volume share, with double-digit net sales growth in our premium water brands, Saratoga and The Mountain Valley,” said David Hass, Chief Financial Officer.
“We continue to focus on strong execution in our delivery network as we work expeditiously to realize the benefits of the merger.”
Primo, which positions itself around healthy hydration products, also declared a quarterly dividend of $0.10 per share, payable December 5, 2025, to shareholders of record as of November 25, 2025.
The company updated its full-year 2025 guidance for net sales and adjusted EBITDA, while maintaining its outlook for adjusted free cash flow. It also reiterated its cost synergy targets of $200 million in 2025 and $300 million in 2026.
In a separate move, Primo announced that Eric Foss, currently a member of the Board of Directors, has been appointed Chairman and Chief Executive Officer, marking a leadership transition as the company continues to integrate operations following last year’s merger.