Lamb Weston Holdings Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.75%.
Did LW Beat Earnings? Q4 2025 Results
Lamb Weston delivered a stronger-than-expected fiscal fourth quarter, with adjusted earnings per share of $0.85 clearing the $0.64 consensus by 32.42% and revenue of $1.68 billion beating estimates by 5.56% on 4.0% year-over-year growth. The top-line performance was fueled by an 8% volume surge tied to contract wins across channels and geographies, though price/mix declined 4% as the company leaned into competitive pricing in a tougher frozen potato market. The International segment was a particular bright spot, with net sales climbing 15% to $572.70 million on 16% volume growth across all regions. Alongside the results, Lamb Weston unveiled its "Focus to Win" strategic plan, targeting at least $250 million in savings, including $200 million in annualized run-rate cost reductions and $120 million in working capital improvements by fiscal year-end 2027, with an accompanying 4% global headcount reduction. For fiscal 2026, management guided net sales of $6.35 billion to $6.55 billion and adjusted EBITDA of $1.00 billion to $1.20 billion, assuming restaurant traffic remains roughly flat against a backdrop of continued consumer pressure.
- 8% volume growth in Q4 driven by contract wins across channels and geographies
- International segment volume up 16% with growth in all regions
- Price/mix declined 4% in Q4 due to competitive pricing investments
- Lower manufacturing costs per pound benefiting from lapping prior year voluntary product withdrawal charges
- Lower SG&A including $10.5 million reduction in advertising and promotion expenses
- North America regional, small, and retail customer wins offset soft restaurant traffic
“Lamb Weston returned to growth in the second half of the year with momentum in customer wins and retention, delivering financial results above our updated expectations. Today, as part of our Focus to Win strategic plan, we are also announcing further steps to deliver at least $250 million of savings, including $200 million in annualized run rate savings and $120 million of favorable working capital improvements by year-end fiscal 2027. We expect that these cost savings and working capital improvements together with lower levels of capital expenditures will help drive improved profitability and cash flow.”
Lamb Weston CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, Lamb Weston expects net sales of $6.35 billion to $6.55 billion, reflecting a 2% decline to 2% growth on a constant currency basis, with sales expected to be stronger in the second half benefiting from a 53rd week. Adjusted EBITDA is expected to be $1,000 million to $1,200 million. Capital expenditures are targeted at approximately $500 million, including $100 million for wastewater treatment. The outlook assumes continued macroeconomic pressure on consumers, global restaurant traffic approximately even with fiscal 2025, and does not include additional impacts from evolving trade policies or tariff changes. Price/mix is expected to decline low to mid-single-digits in the first half and low single-digits in the second half. The Focus to Win plan targets at least $250 million in total savings, with $200 million in annualized run-rate cost savings and $120 million in working capital improvements by fiscal year-end 2027.
LW YoY Financials
LW Revenue by Segment
LW Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.