The quarter cleared the profit bar, while revenue was roughly in the expected range. Published estimates ahead of the release put adjusted EPS around $0.32-$0.35 and revenue around $1.77-$1.80 billion. Adjusted EPS of $0.37 beat even the high end of that EPS range; $1.80 billion of sales was above some published estimates but essentially in line with the higher revenue view. That makes this a real, though not dramatic, earnings beat rather than merely a company-framed "strong" quarter. (Financial Highlights; Adjusted net income and EPS reconciliation)
| Metric | Q2 2026 | Q2 2025 | Versus expectation / prior period |
|---|---|---|---|
| Net sales | $1.796B | $1.730B | +3.8%; around published $1.77B-$1.80B estimates (Financial Highlights) |
| Adjusted diluted EPS | $0.37 | $0.36 | Above published ~$0.32-$0.35 consensus range (Adjusted net income and EPS reconciliation) |
| Adjusted EBITDA | $385.0M | $366.7M | +5.0%; margin up 20 bps to 21.4% (Adjusted EBITDA reconciliation) |
| Adjusted free cash flow | $200.1M | $169.7M | +17.9%, though it includes add-backs for integration and restructuring spending (Free cash flow reconciliation) |
| Full-year comparable sales growth outlook | 2%-4% | Prior: 1%-3% | Midpoint raised by 1 percentage point (2026 Outlook) |
| Full-year adjusted EBITDA outlook | $1.465B-$1.515B | Unchanged | No increase despite the higher sales outlook (2026 Outlook) |
The consequential change is the second sales-guide increase, not a higher profit target. Management lifted comparable sales growth to 2%-4% from 1%-3%, implying better demand than it had assumed. Regional spring-water sales rose 4.1% and premium-water sales jumped 30.5%, supporting that stronger top-line view. But adjusted EBITDA guidance remains $1.465-$1.515 billion, so the additional expected revenue is being offset by growth investment, costs, or both—not translating into a higher full-year earnings outlook. (Net Sales by Product Category; 2026 Outlook)
Underlying first-half profitability still trails last year, limiting the upside. First-half adjusted EBITDA fell to $691.0 million from $708.2 million and margin declined to 20.2% from 21.2%, even as second-quarter margin improved modestly. The Q2 recovery is encouraging, but the unchanged full-year EBITDA range says the filing does not yet establish a broad earnings acceleration. (Adjusted EBITDA reconciliation)
Cash generation improved, but leverage remains material. First-half operating cash flow increased to $331.7 million from $193.8 million, and adjusted free cash flow rose to $328.7 million from $224.4 million. Still, unadjusted free cash flow was only $109.0 million after $222.7 million of capital and intangible spending, while net debt stood at $4.88 billion and net leverage at 3.42x. The filing therefore improves the operating narrative without materially changing the balance-sheet constraint. (Cash Flow statement; Free cash flow reconciliation; Net leverage calculation)
Read the original 8-K on SEC EDGAR ↗