Overview
- Lamb Weston posted Q2 FY26 net sales of $1.62 billion, up 1% and slightly above estimates, with adjusted EPS of $0.69 topping the $0.65 consensus.
- Volume rose roughly 8% in North America and 7% internationally, but an approximately 8% decline in price/mix in both regions pressured profitability.
- Adjusted gross profit fell year over year and adjusted EBITDA declined 3% to $285.7 million as manufacturing costs per pound increased.
- Shares fell roughly 21%–22% during Friday trading after management reaffirmed fiscal 2026 guidance for constant‑currency sales of $6.35–$6.55 billion and adjusted EBITDA of $1.0–$1.2 billion, a range that points to tighter margins.
- The company raised its quarterly dividend 3% to $0.38, repurchased $39.6 million in stock with $308 million authorization remaining, reported $1.35 billion in available credit liquidity, and reiterated a cost‑savings plan targeting $100 million in 2026 and $250 million by 2028 while ramping new capacity including Argentina.