Overview
- Lamb Weston reported Q2 FY26 net sales of $1.62 billion, up 1% year over year, with adjusted EPS of $0.69 topping estimates.
- Price/mix fell about 8% and offset volume gains, including volume up 8% in North America and 7% internationally.
- Adjusted EBITDA declined 3% to $285.7 million as gross profit slipped and competitive pricing and customer support actions pressured margins.
- Management reaffirmed FY26 guidance for constant-currency sales of $6.35 billion to $6.55 billion and adjusted EBITDA of $1.0 billion to $1.2 billion, with capex near $500 million.
- Shares dropped roughly 20%–22% intraday; the company returned $51.6 million to shareholders in the quarter, raised its dividend 3% to $0.38, and has about $308 million left under its buyback program.