Primo Brands sales surge as Water merger integration takes hold

Primo Brands (NYSE:PRMB) reported a significant increase in fiscal 2025 revenue and profitability, marking its first full-year performance following the transformative merger with Primo Water.

The company's fourth-quarter net sales climbed 11.2% to $1.55 billion, while full-year revenue reached $6.66 billion, a 29.3% increase compared to the prior year.

The beverage giant's earnings performance was bolstered by the successful integration of newly acquired assets.

For the fourth quarter, adjusted EBITDA rose 31.1% to $334.1 million, yielding a margin of 21.5%.

On a full-year basis, adjusted EBITDA hit $1.45 billion, representing a 45.5% jump year-over-year.

Management credited the robust figures to the inclusion of Primo Water’s operations and the realization of early merger-related synergies.

Despite the top-line growth, the company navigates a complex balance sheet following the deal.

Net income from continuing operations for the full year stood at $80.4 million.

While the company reported a GAAP free cash flow of $245.9 million, its adjusted free cash flow—which accounts for one-time integration items—was significantly higher at $750.3 million.

Primo Brands ended the year with $4.9 billion in net debt, resulting in a net debt to underlying EBITDA ratio of 3.37x.