Core Insights - Lamb Weston reported $1.62 billion in revenue for the quarter ended November 2025, marking a year-over-year increase of 1.1% and exceeding the Zacks Consensus Estimate of $1.59 billion by 1.6% [1] - The company achieved an EPS of $0.69, up from $0.66 a year ago, with a surprise of 2.99% compared to the consensus estimate of $0.67 [1] Financial Performance Metrics - The stock of Lamb Weston has returned +6.7% over the past month, outperforming the Zacks S&P 500 composite's +2.5% change [3] - The company holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3] Pricing and Volume Analysis - Consolidated pricing/mix decreased by 8%, worse than the two-analyst average estimate of -5.7% [4] - North American pricing/mix also fell by 8%, compared to the -6.1% average estimate [4] - International volume increased by 7%, slightly below the 8% estimated by analysts [4] - North American volume rose by 8%, exceeding the 4% estimate [4] - Consolidated volume increased by 8%, surpassing the two-analyst average estimate of 5.3% [4] - International pricing/mix declined by 8%, compared to the -5.1% estimate [4] - Geographic sales in the international market reached $548.6 million, slightly above the three-analyst average estimate of $546.84 million, reflecting a year-over-year change of +3.7% [4] - North American geographic sales totaled $1.07 billion, exceeding the $1.05 billion estimate, but showed a -0.2% change compared to the year-ago quarter [4]

Financial Data and Key Metrics Changes - In the second quarter, net sales increased by 1%, with a $24 million benefit from foreign currency translation, while on a constant currency basis, net sales were essentially flat compared to last year [14] - Volume rose by 8%, driven by customer wins and share gains, despite softer restaurant traffic [14] - Adjusted EBITDA declined by $9 million year-over-year to $286 million, while adjusted gross profit decreased by $16 million primarily due to unfavorable price mix [17][18] - Free Cash Flow was strong at $375 million, with capital expenditures down to $156 million in the first half, reflecting disciplined investment [22][23] Business Line Data and Key Metrics Changes - North America net sales were essentially flat year-over-year, with an 8% increase in volume supported by recent customer contract wins [15] - International segment net sales increased by 4%, but declined by 1% on a constant currency basis, with volume growth of 7% [15][16] - Adjusted EBITDA in North America increased by 7% to $288 million, while the international segment's adjusted EBITDA declined to $27 million due to pricing pressures and higher manufacturing costs [19][20] Market Data and Key Metrics Changes - In North America, QSR traffic was flat, with QSR chicken growing while QSR burger traffic declined by 3% [14] - Internationally, restaurant traffic in most markets declined, including a 3% drop in the U.K., the largest international market [14] - Asia, including China, led volume growth in the quarter, with multinational chain customers also contributing to growth [16] Company Strategy and Development Direction - The company is executing its "Focus to Win" strategy, focusing on strengthening customer partnerships and driving cost savings [4][6] - The company is reopening previously curtailed capacity in North America to meet customer demand and maintain high fill rates [4][9] - The company is building a culture of continuous improvement and reducing volatility through customer contracting and raw procurement strategies [5] Management's Comments on Operating Environment and Future Outlook - Management noted a dynamic macroeconomic and competitive environment, particularly in international markets, but expressed confidence in their plans to control controllables for long-term growth [5][6] - The company expects continued volume growth and strong sales momentum for the second half of the fiscal year, with North America volumes expected to grow at or above first-half rates [24] - Price mix is anticipated to remain unfavorable in the second half, but to a lesser extent than the first half [25] Other Important Information - The company repurchased $40 million of shares during the second quarter and announced a 3% increase in the quarterly dividend [6][23] - The company is actively working to rebalance supply and demand within its network, ensuring the right assets are in place to serve priority markets [11] Q&A Session Summary Question: Regarding rebalancing supply and demand in Europe - Management confirmed that they are curtailing a single line in Europe and are looking across the global supply chain to balance supply and demand [28][29] Question: Volume drivers in North America for the back half of the year - Management indicated that a significant component of volume growth is driven by a higher proportion of business with multinational chain customers and a shift from branded to private label [30][31] Question: Update on international markets, particularly Asia - Management acknowledged increased competition in Asia but expressed confidence in future growth, particularly in Latin America [32][33] Question: Gross margin expectations for the second half - Management clarified that gross margins are expected to be flat to down in the second half, primarily due to mixed shifts and pricing headwinds [34][35] Question: Capacity decisions in North America - Management explained that high utilization rates necessitated reopening additional capacity to meet customer expectations, with no expected negative impact on profitability [39][40] Question: Execution improvements and metrics - Management highlighted the implementation of clear accountabilities and KPIs across the supply chain to enhance execution and predictability [42][43] Question: Capital allocation and share repurchases - Management reiterated their commitment to disciplined capital allocation, including opportunistic share repurchases while investing in business capabilities [61]

分组1 - Lamb Weston reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, and showing an increase from $0.66 per share a year ago, representing an earnings surprise of +2.99% [1] - The company achieved revenues of $1.62 billion for the quarter ended November 2025, surpassing the Zacks Consensus Estimate by 1.60%, and compared to year-ago revenues of $1.6 billion [2] - Over the last four quarters, Lamb Weston has consistently surpassed consensus EPS and revenue estimates [2] 分组2 - Despite the positive earnings report, Lamb Weston shares have declined approximately 11.2% since the beginning of the year, while the S&P 500 has gained 15.2% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of $0.87 on $1.5 billion in revenues for the coming quarter and $3.11 on $6.53 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank indicates that the Food - Miscellaneous sector is currently in the bottom 20% of over 250 Zacks industries, which may negatively impact Lamb Weston’s stock performance [8]

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Financial Performance & Outlook - Lamb Weston's Q2 2026 net sales increased by 1% compared to Q2 2025, which includes a favorable foreign currency impact of $24 million[28, 30] - North America net sales were flat, with volume up by 8% but price/mix down by 8%[30, 31] - International net sales increased by 4%, but decreased by 1% on a constant currency basis, with volume up by 7% and price/mix down by 8%[31] - Adjusted EBITDA decreased by $9 million, while adjusted gross profit decreased by $16 million[32] - The company reaffirms its fiscal year 2026 outlook, projecting net sales between $635 billion and $655 billion, and adjusted EBITDA between $1 billion and $12 billion[47] Cash Flow & Capital Allocation - The company has approximately $83 million in cash and cash equivalents, and $135 billion available under its revolving credit facility[39] - Net cash provided by operating activities for the first half of fiscal year 2026 was approximately $530 million, with capital expenditures of $156 million[39] - Free cash flow was $375 million, and the company returned $92 million to shareholders through dividends ($52 million) and share repurchases ($40 million)[39] - The board authorized a 3% increase in the quarterly dividend[9, 46] Strategic Initiatives - The company is executing its "Focus to Win" strategy, which includes a cost savings program expected to yield $100 million in savings in fiscal year 2026 and $250 million by the end of fiscal year 2028[9, 19] - Lamb Weston is optimizing its global supply chain, including restarting curtailed production in North America to meet higher demand[9, 15]

Core Insights - Lamb Weston reported a profit in its latest quarter, indicating a positive shift in financial performance as revenue increased [1] Financial Performance - The company experienced a rise in revenue, contributing to its profitability in the recent quarter [1]

Core Viewpoint - Lamb Weston Holdings, Inc. reported a significant turnaround in its financial performance for the second quarter of fiscal 2026, achieving a net income compared to a net loss in the previous year [1]. Financial Performance - The company reported a net income of $62.1 million, or $0.44 per share, compared to a net loss of $36.1 million, or $0.25 per share, from the same quarter last year [1]. - On an adjusted basis, net income was $96.7 million, or $0.69 per share, down from $104.9 million, or $0.73 per share, in the prior year [1][2]. - Net sales increased to $1.618 billion from $1.600 billion in the previous year [3]. Future Outlook - The company expects net sales for fiscal year 2026 to be between $6.35 billion and $6.55 billion [3]. - Analysts anticipate average net sales of $6.52 billion for the full year [3].

Financial Performance - Net sales for Q2 2026 were $1,618.1 million, a 1% increase year-over-year, with an 8% volume growth offset by an 8% decline in price/mix [2]. - Income from operations surged to $139.2 million, reflecting a 652% increase compared to the prior year quarter [2]. - Net income reached $62.1 million, a significant increase from a net loss of $36.1 million in the prior year quarter [2]. - Diluted EPS for Q2 2026 was $0.44, compared to a diluted loss per share of $0.25 in the prior year quarter [2]. - Net income for the thirteen weeks ended November 23, 2025, was $62.1 million, compared to a net loss of $36.1 million in the same period last year, marking a significant turnaround [26]. - Earnings per share (EPS) for the thirteen weeks ended November 23, 2025, were $0.45, compared to a loss of $0.25 per share in the prior year [26]. - Net income for the twenty-six weeks ended November 23, 2025, was $126.4 million, an increase of 38.5% compared to $91.3 million for the same period in 2024 [35]. - The total adjustments for the thirteen weeks ended November 23, 2025, amounted to $43.6 million, leading to an adjusted net income of $96.7 million and an adjusted EPS of $0.69 [43]. Sales and Revenue Segments - The North America segment reported net sales of $1,069.5 million, with an 8% increase in volume but an 8% decline in price/mix [7]. - International segment net sales increased by 4% to $548.6 million, with a 7% volume growth driven by Asia [8]. - Segment net sales for North America for the thirteen weeks ended November 23, 2025, were $1,069.5 million, a decrease of 0.1% compared to $1,072.1 million in 2024 [37]. - International segment net sales increased by 4% to $548.6 million for the same period, compared to $528.8 million in 2024 [37]. Guidance and Projections - The company reaffirmed its fiscal 2026 guidance, projecting net sales between $6.35 billion and $6.55 billion [14]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by $101.1 million to $530.4 million compared to the prior year [10]. - Capital expenditures for the first half of fiscal 2026 were $155.7 million, down $330.7 million from the prior year period [11]. - Cash flows from operating activities for the twenty-six weeks ended November 23, 2025, were $530.4 million, up from $429.3 million in 2024 [35]. - The company reported a net cash increase of $12.0 million in cash and cash equivalents, ending the period with $82.7 million [35]. Dividends and Shareholder Returns - The board authorized a 3% increase in the quarterly dividend to $0.38 per share, payable on February 27, 2026 [13]. - The company declared dividends of $0.37 per common share for the thirteen weeks ended November 23, 2025, slightly up from $0.36 in the same period last year [26]. - The company repurchased common stock totaling $59.1 million during the period, compared to $92.8 million in the previous year [35]. Expenses and Charges - The restructuring expense for the thirteen weeks ended November 23, 2025, was $14.1 million, significantly lower than $74.6 million in the same period of 2024 [26]. - The company incurred total pre-tax cash charges of $46.0 million related to the Cost Savings Program and Restructuring Plan for the twenty-six weeks ended November 23, 2025 [27]. - The company incurred $46.4 million in restructuring expenses during the twenty-six weeks ended November 23, 2025, impacting overall profitability [44]. - Stock-based compensation expenses for the thirteen weeks ended November 23, 2025, were $9.5 million, compared to $12.3 million in the same period of 2024 [49]. Assets and Liabilities - Total current assets decreased slightly to $2,011.0 million from $2,032.7 million, with cash and cash equivalents increasing to $82.7 million from $70.7 million [33]. - Total liabilities decreased to $5,577.6 million from $5,654.9 million, with long-term debt remaining relatively stable at $3,648.9 million [33]. - The total stockholders' equity increased to $1,754.4 million from $1,737.7 million, reflecting a positive trend in retained earnings [33]. Other Financial Metrics - Gross profit for the thirteen weeks ended November 23, 2025, was $324.3 million, up from $277.8 million in the prior year, reflecting a 16.7% increase [26]. - Adjusted EBITDA for North America increased by 7% to $287.8 million, while the international segment saw a significant decline of 44% to $27.2 million [37]. - Adjusted EBITDA for the twenty-six weeks ended November 23, 2025, was $587.8 million, slightly down from $593.6 million in the same period of 2024 [48]. - The company achieved a gross profit of $666.7 million for the twenty-six weeks ended November 23, 2025, representing an increase from $633.8 million in the prior year [44]. Foreign Currency and Derivative Losses - The company experienced foreign currency exchange losses of $6.8 million for the thirteen weeks ended November 23, 2025, compared to $9.6 million in the same period last year [31]. - Foreign currency exchange losses for the twenty-six weeks ended November 23, 2025, were $2.1 million, a decrease from $10.2 million in the same period of 2024 [49]. - The company experienced unrealized derivative losses of $12.1 million for the thirteen weeks ended November 23, 2025, compared to gains of $3.0 million in the same period of 2024 [49]. Corporate Structure and Investments - Lamb Weston holds a 50 percent equity interest in the U.S. potato processing joint venture, Lamb Weston RDO [50]. - Depreciation and amortization related to equity method investments was $2.2 million for the thirteen weeks ended November 23, 2025, compared to $2.0 million for the same period in 2024 [51]. - For the twenty-six weeks ended November 23, 2025, depreciation and amortization related to equity method investments was $4.4 million, up from $4.1 million in 2024 [51]. - Unallocated corporate costs include expenses related to administrative, IT, HR, finance, and accounting functions not specifically allocated to operating segments [52]. - The reconciliation of net income to Adjusted EBITDA includes adjustments for unrealized derivative gains and losses, foreign currency exchange gains and losses, and stock-based compensation [52].

EAGLE, Idaho--(BUSINESS WIRE)--Lamb Weston Holdings, Inc. (NYSE: LW) announced today its results for the second quarter of fiscal 2026 and updated its full year financial targets for fiscal 2026. Summary of Second Quarter FY 2026 Results ($ in millions, except per share) Â Â Q2 2026 Â Year-Over-Year Growth Rates YTD 2026 Year-Over-Year Growth Rates Net sales $ 1.618.1 1 % $ 3.277.3 1 % Income from operations $ 139.2 Â 652 % Â $ 295.7 Â 28 % Net income $ 62.1 Â 272 % Â $ 126.4 Â 38 % D. ...

Lamb Weston Holdings, Inc. (NYSE:LW) will release earnings results for its second quarter before the opening bell on Friday, Dec. 19.Analysts expect the Eagle, Idaho-based company to report quarterly earnings at 65 cents per share, down from 66 cents per share in the year-ago period. The consensus estimate for Lamb Weston's quarterly revenue is $1.59 billion. Last year, it reported $1.6 billion in revenue, according to Benzinga Pro.On Sept. 30, Lamb Weston posted first-quarter fiscal 2026 net sales of $1.66 ...