LW · Lamb Weston Holdings, Inc.

Lamb Weston Holdings delivered Q3 FY2026 results with net sales rising 3% YoY to $1,564.8 million, fueled by a 7% volume increase from North America customer wins and share gains, though offset by a matching 7% price/mix decline due to customer support and shifts to value channels. Favorable FX added $47.4 million, but constant currency sales were flat. Gross profit fell sharply to $331.6 million (adjusted $327.5 million), pressured by unfavorable price/mix, a $32.5 million potato write-off in International from soft demand, higher manufacturing costs per pound from underutilized facilities and inflation, partially mitigated by cost savings and North America efficiencies. SG&A adjusted up slightly to $157.4 million due to project write-offs and normalized compensation, despite savings. This drove adjusted EBITDA down 27% to $271.7 million and adjusted EPS to $0.72 (-37%). Segmentally, North America sales grew 5% to $1,035 million with 12% volume but -7% price/mix; adjusted EBITDA dipped to $289.8 million. International sales fell 1% to $529.8 million (9% constant currency decline), with adjusted EBITDA plunging to $18.5 million amid lower volumes, price concessions, and costs; actions include closing Munro, Argentina plant and curtailing Netherlands production. CEO Mike Smith highlighted Focus to Win strategy execution, solid North America performance, and expectation to exceed $250 million cost reduction target by FY2028. Updated FY2026 guidance raises net sales midpoint to $6.45-$6.55 billion (includes 1.8% FX benefit, 53rd week), adjusted EBITDA to $1.08-$1.14 billion, and cuts capex to $400 million, reflecting lower structural intensity. YTD operating cash flow rose to $595.6 million on working capital improvements; $204.7 million returned to shareholders, with $0.38 dividend declared.