Lamb Weston Reaffirms Outlook As CEO Says Strategy Starting To Pay Off

Core Insights - Lamb Weston Holdings, Inc. reported first-quarter fiscal 2026 net sales of $1.66 billion, slightly up from $1.65 billion year-over-year and exceeding the $1.62 billion estimate [1] - Adjusted net income was $103 million, with adjusted earnings per share of 74 cents, surpassing the 55-cent estimate [1] - Adjusted EBITDA increased to $302.2 million from $299.4 million [1] Financial Performance - Overall volume rose by 6%, while price/mix declined by 7% due to prior-year pricing investments and channel mix [3] - Gross profit decreased to $342.4 million from $356.0 million, with adjusted gross profit down to $338.9 million from $353.1 million [3] - SG&A expenses increased to $153.6 million from $143.9 million, while adjusted SG&A fell to $132.4 million from $156.4 million [4] Segment Performance - North America sales declined by 2% to $1.08 billion, with 5% volume growth offset by a 7% price/mix drop [5] - International sales rose by 4% to $574.7 million, including a $24.5 million currency benefit, while constant-currency sales were flat [5] - International adjusted EBITDA improved to $57.2 million from $51.4 million, aided by higher volumes and lower potato costs [5] Cash Flow and Capital Management - Operating cash flow rose to $352.0 million from $330.2 million, driven by lower inventories [6] - Capital spending dropped to $79.2 million from $335.6 million after major projects were completed [6] - The company returned $62.1 million to shareholders, including $51.7 million in dividends and $10.4 million in repurchases [6] Outlook - The company reaffirmed its fiscal 2026 guidance for constant-currency sales of $6.35 billion to $6.55 billion, compared to a $6.49 billion estimate, and adjusted EBITDA of $1.0 billion to $1.2 billion [7]