Primo Banks Direct Delivery Business Faces Greater Difficulty in 2026 Due to Exit Rate, Revenue Mix

Core Insights - Primo Brands Corporation (NYSE:PRMB) is identified as a promising stock with potential upside, despite a recent price target reduction by Barclays analyst Lauren Lieberman from $25 to $24 while maintaining an Overweight rating [1] Financial Performance - In Q3 2025, Primo Brands reported net sales of $1.766 billion, reflecting a 1.6% year-over-year decline, but achieved a Comparable Adjusted EBITDA of $404.5 million, which is a 6.8% year-over-year increase, resulting in a solid margin of 22.9% [2] - The decline in overall net sales was primarily due to the Direct Delivery business, which experienced a 6.5% comparable net sales decline, approximately $47 million, attributed to integration challenges and increased costs [3] Business Operations - Primo Brands operates as a branded beverage company in North America, providing solutions through water dispensers, direct delivery of refillable/reusable bottles, a pre-filled water exchange program, and water filtration appliances, along with self-service water refill stations [4]