Lamb Weston Holdings Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.05%.
Did LW Beat Earnings? Q1 2026 Results
Lamb Weston delivered a stronger-than-expected first quarter of fiscal 2026, with adjusted diluted EPS of $0.74 clearing the $0.53 consensus estimate by 38.71%, even as GAAP profits were weighed down by restructuring charges and a tax rate that surged to 42.7%. Revenue came in at $1.66 billion, edging 2.70% above expectations and up 0.3% year-over-year, as a 6% volume increase driven by customer wins in North America and Asia was nearly wiped out by a 7% decline in price/mix reflecting prior-year pricing concessions made to support retail and foodservice partners. GAAP net income fell sharply to $64.30 million, pressured by $31.90 million in Cost Savings Program charges, a pension settlement, and shareholder activism advisory fees, though adjusted EBITDA ticked up 1% to $302.20 million. The results sparked an 8% premarket stock jump, and management reaffirmed full-year constant-currency net sales guidance of $6.35 billion to $6.55 billion, with at least $100 million in cost savings targeted by fiscal year-end 2026.
- 6% volume growth driven by customer wins and retention, particularly in North America and Asia
- 7% decline in price/mix reflecting carryover impact of fiscal 2025 price and trade investments
- Lower manufacturing costs per pound driven by cost savings initiatives
- Lapping approximately $39 million prior year charge related to voluntary product withdrawal
- Higher effective tax rate of 42.7% versus 28.5% in the prior year quarter
- Equity method investment earnings declined from $11.3 million to a loss of $0.6 million
- Favorable working capital led by lower finished goods inventories in North America
“The Lamb Weston team delivered a strong start to the fiscal year with solid volume growth and positive customer momentum, underscoring the strength of our value proposition and our operating model.”
Lamb Weston CEO, on the earnings call
Forward Guidance & Outlook
Lamb Weston reaffirmed its fiscal 2026 financial targets: net sales at constant currency in the range of $6.35 billion to $6.55 billion, Adjusted EBITDA in the range of $1.00 billion to $1.20 billion, and capital expenditures of approximately $500 million. Guidance includes the company's current view of anticipated impacts from enacted tariffs by the U.S. and other governments but does not include potential effects of evolving trade policies, including future changes in tariffs or retaliatory measures. The company expects to deliver at least $100 million of cost savings and an additional $60 million of working capital improvements by the end of fiscal 2026, progressing toward at least $250 million in annualized run-rate savings by the end of fiscal 2028.
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Figures from SEC filings and company reports. Not investment advice.