Primo Brands (NYSE:PRMB) shares rose more than 6% in pre-market trading on Wednesday after the beverage company reported second-quarter results that exceeded Wall Street forecasts and improved its revenue outlook for the full year.
For the quarter ended 30 June 2026, the company posted adjusted earnings of $0.37 per share, beating the analyst consensus estimate of $0.30 by $0.07.
Revenue increased 3.8% year over year to $1.79 billion, up from $1.73 billion in the same period last year.
Retail and direct delivery fuel growth
Primo Brands said the increase in revenue was driven by strong demand across its retail business, particularly for its regional spring water and premium product portfolio.
The company also reported an earlier-than-expected return to growth in its Direct Delivery segment, providing an additional boost to quarterly performance.
Commenting on the results, Chairman and Chief Executive Officer Eric Foss said the business delivered a stronger quarter than anticipated.
“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,” Foss said.
Profitability continues to improve
Adjusted EBITDA rose 5.0% year over year to $385.0 million, compared with $366.7 million in the second quarter of 2025.
The adjusted EBITDA margin improved to 21.4%, an increase of 20 basis points from 21.2% a year earlier.
Net income from continuing operations more than doubled to $69.2 million, or $0.19 per diluted share, compared with $30.5 million, or $0.08 per diluted share, in the prior-year period.
Company raises sales outlook
Following the stronger-than-expected quarter, Primo Brands increased its full-year net sales growth forecast for the second consecutive quarter.
The company now expects annual net sales growth of between 2% and 4%, compared with its previous guidance of 1% to 3%.
Primo Brands maintained its adjusted EBITDA guidance at between $1.47 billion and $1.52 billion and reaffirmed its adjusted free cash flow outlook of $790 million to $810 million.
The combination of an earnings beat, stronger revenue growth and an improved sales outlook helped lift investor confidence, sending the shares sharply higher ahead of the opening bell.