PRMB

LONG

Primo Brands Corporation

Funds

Score

5.75

vs SPY

+15.4%

Stock return (since Q-end)

+31.7%

SPY return (since Q-end)

+16.3%

Current price

$24.80

News Summary

Negative

Primo Brands delivered a revenue beat in Q1 2026 with raised full-year organic sales guidance (1–3% vs. prior 0–1%), but profitability deteriorated materially with net income down 21% and Adjusted EBITDA margin compressing 240bps to 18.8%, driven by elevated logistics costs, winter storm impacts, and service investments. Premium brands (Saratoga/Mountain Valley +43%) are performing well and direct delivery improved, but margin headwinds and a shareholder lawsuit investigation warrant caution despite management's hedging strategy for diesel costs.

Red flags

•Adjusted EBITDA margin compression of 240bps (21.2% to 18.8%) despite revenue growth
•Net income from continuing operations declined 21% ($34.7M to $27.3M) year-over-year
•Shareholder lawsuit investigation initiated by Bronstein, Gewirtz & Grossman regarding potential corporate wrongdoing and officer/director conduct
•Net leverage ratio elevated at 3.52x LTM Adjusted EBITDA, limiting financial flexibility
•Adjusted EBITDA full-year guidance lowered at lower end ($1,465–$1,515M vs. implied prior range), citing geopolitical events and commodity volatility

Funds Buying (4)

Fund	Manager	Shares Held	∆ Shares	Position Value	QoQ	Status
Sachem Head Capital	Scott Ferguson	17.1M	+17.1M	$321.9B	—	NEW
Point72	Steve Cohen	8.4M	+8.4M	$157.6B	—	NEW
Glenview Capital	Larry Robbins	531K	+531K	$10.0B	—	NEW
Maverick Capital	Lee Ainslie	225K	+180K	$4.2B	+409%	Existing

Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.