PRMB

Primo Brands is the combined Primo Water/BlueTriton beverage-water business, and FY2025 reflects the first full year of scale: revenue jumped 29.3% to $6.66B and operating income rose 19.5% to $430M, while operating cash flow surged 46.7% to $680M. The real story is below the operating line — GAAP net income was just $60.1M (0.9% net margin, $0.16 EPS) because depreciation and amortization ballooned 83.1% to $610M, much of it non-cash purchase-accounting amortization from the merger. That makes the 151.7x P/E misleading; the 1.3x P/S and strong cash conversion are the more relevant gauges.

The balance sheet is the constraint. The 10-K devotes a full risk category to indebtedness, stating the company does not expect to generate sufficient cash flow to service all of its debt — and it carries $5.08B of long-term debt against $2.99B of equity (2.54x liabilities/equity) with a -$2.01B accumulated deficit. Capex more than doubled (+151.3% to $377M) for integration, and cash fell 38.6% to $377M. Yet management is already returning capital aggressively — $422M of buybacks and a $151M dividend — which is bold given the leverage.