Primo Brands posted net sales of $1.626 billion for Q1 2026, up 0.8% year-over-year. Net income from continuing operations declined to $27.3 million, or $0.07 per diluted share, and adjusted EBITDA fell 10.4% to $306.0 million with margins narrowing by 240 basis points to 18.8%.

The company’s gross margin contracted to 28.6% from 32.3%, driven by higher transportation costs, integration expenses and increased depreciation and amortization. SG&A expenses remained relatively stable at $336.7 million, reflecting disciplined cost management as a percentage of net sales.

Operating cash flow was $103.8 million, offset by $118.1 million in capital expenditures, resulting in a negative free cash flow of $14.3 million. Total debt stood at $5.3 billion with net debt of $5.0 billion and a 3.52× leverage ratio, while the company paid $44.2 million in dividends and repurchased $29.0 million in shares.

Primo Brands raised its full-year organic net sales growth guidance to a 1–3% range, up from 0–1%, while retaining adjusted free cash flow targets of $790–$810 million. The adjusted EBITDA guidance range was widened at the low end to $1.465–$1.515 billion to account for macroeconomic uncertainties.