Company: PRMB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049952
Chunk: 67

Company: Primo Brands Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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 months ended September 30, 2025 was 39.5% compared to 25.8% in the comparable prior year period.Income tax expense was $60.4 million on pre-tax income of $166.1 million for the nine months ended September 30, 2025, as compared to income tax expense of $48.2 million on pre-tax income of $189.5 million in the comparable prior year period. The effective income tax rate for the nine months ended September 30, 2025 was 36.4% compared to 25.4% in the comparable prior year period.The effective tax rate for the three and nine months ended September 30, 2025 varied from the effective tax rate in the comparable prior year period due primarily to permanent differences for which the Company has not recognized a tax benefit. The effective tax rate for the three and nine months ended September 30, 2025 varied from the U.S. statutory rate due primarily to permanent differences for which the Company has not recognized a tax benefit and losses in tax jurisdictions with existing valuation allowances.

On July 4, 2025, the One Big Beautiful Bill Act was signed into U.S. tax law and contains a broad range of tax reform provisions affecting businesses. This legislation does not have a significant impact on our effective tax rate but decreases our cash tax liability for the current year. 

NOTE 10—STOCK-BASED COMPENSATION

During the nine months ended September 30, 2025, the Company granted 244,808 time-based restricted stock units ("RSUs") with a weighted-average grant date fair value per share of $34.01. The fair value of the RSUs is based on the quoted market price of PRMB shares on the NYSE as of the grant date, which awards vest over three years in equal annual installments on the first, second and third anniversaries of the date of grant and include a service condition. Additionally, during the nine months ended September 30, 2025, the Company granted 467,155 Performance-based RSUs with a weighted-average grant date fair value per share of $52.97, which vest at the end of a three-year performance period beginning on the first day of the Company's 2025 fiscal year and ending on the last day of our 2027 fiscal year ("2025 Performance Awards"). The number of shares ultimately awarded will be based upon the performance payout rate, which can range from 0% to 200