Lamb Weston Holdings, Inc. released its financial results for the first quarter of fiscal year 2026 and reaffirmed its outlook for the full year.
First quarter results
For Q1 2026, net sales were US$1.66 billion, essentially flat compared to the prior year. Income from operations decreased 26 per cent to US$156.5 million. Net income declined 50 per cent to US$64.3 million, with diluted earnings per share (EPS) down 48 per cent to US$0.46.
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Adjusted figures showed income from operations at US$206.5 million, up 5 per cent. Adjusted net income was US$103 million, down 9 per cent, and adjusted diluted EPS was US$0.74, down 5 per cent. Adjusted EBITDA was US$302.2 million, a 1 per cent increase.
Gross profit declined by US$13.6 million year-over-year to US$342.4 million, with adjusted gross profit down US$14.2 million to US$338.9 million, primarily due to unfavorable price/mix.
Selling, general, and administrative expenses (SG&A) rose to US$153.6 million, while adjusted SG&A fell by US$24 million to US$132.4 million due to cost savings and other income items.
Segment performance
In North America, net sales declined 2 per cent to US$1.08 billion. Volumes increased 5 percent due to customer contract wins and growth across channels, but price/mix declined 7 per cent due to prior-year pricing investments and an unfavorable channel mix. Adjusted EBITDA for the segment decreased US$18 million to US$260 million.
In the International segment, net sales rose 4 per cent to US$574.7 million, supported by foreign currency gains. At constant currency, sales were flat, with volumes up 6 per cent, particularly in Asia, offset by a 6 per cent decline in price/mix. Adjusted EBITDA increased US$5.8 million to US$57.2 million, partly due to lower potato prices and cost savings, but was offset by US$3.5 million in start-up costs for a new facility in Argentina.
Cash flow and capital allocation
Operating cash flow increased to US$352 million, supported by lower inventories. Capital expenditures were US$79.2 million, down from the prior year due to the completion of investments in Argentina, the Netherlands, and the U.S.
The company returned US$62.1 million to shareholders, including US$51.7 million in dividends and US$10.4 million in share repurchases. A quarterly dividend of US$0.37 per share was declared, payable on November 28, 2025.
Fiscal 2026 outlook
Lamb Weston reaffirmed its targets for fiscal 2026:
- Net sales at constant currency of US$6.35–6.55 billion.
- Adjusted EBITDA of US$1.0–1.2 billion.
- Capital expenditures of about US$500 million.
The company noted its Focus to Win cost savings program, which aims to deliver US$250 million in annualized savings by 2028, with at least US$100 million in savings and US$60 million in working capital improvements expected by the end of fiscal 2026.
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© LambWestonFor more information:
Debbie Hancock
LambWeston
Tel: +1 208 202 7259
Email: [email protected]
www.investors.lambweston.com