Lamb Weston Posts FY2026 Sales Growth Despite International Headwinds

Lamb Weston Holdings, Inc. (NYSE: LW) has announced its fiscal fourth quarter and full year 2026 results and provided its fiscal 2027 outlook. 

Mike Smith, president and CEO of Lamb Weston:

"This past year marked an important inflection point for our Company. We over delivered on our financial guidance with solid performance in sales and profitability, led by volume growth in North America."

"While disruption in the Middle East and input cost inflation have impacted our EMEA business, we have been taking actions to help mitigate this volatility in a challenging competitive environment.Looking forward, I am highly encouraged by the success we have seen in year one of Focus to Win, particularly the customer momentum that we built through new wins and strengthening of existing relationships."

"The quality and depth of our relationships combined with our focus on service, consistent delivery and exceptional product quality are contributing to share gains in North America."

"We advanced our 'executing with excellence' strategic pillar through supply chain and manufacturing operating improvements. Significant productivity gains generated cost savings to offset inflation and unexpected costs, as evidenced by our increased North America segment Q4 adjusted EBITDA margin."

"I am excited about the strategic work underway, led by Jan Craps, our executive chair, to focus our resources across our geographic footprint and create sustainable value for shareholders. We look forward to sharing more details on our progress at an Investor Day in early calendar 2027."

Q4 Results of Operations

Net Sales 
 

• Net sales increased 6 percent, led by a 7 percent increase in sales volume and a 2 percent favorable currency impact, as well as the benefit of an extra week, partially offset by a 3 percent decline in price/mix. Sales volume grew for the sixth consecutive quarter.
• Net sales totaled USD 1.77 billion, up from USD 1.676 billion in the prior-year quarter.
   

Net Income, Adjusted EBITDA and Diluted EPS 

• Net income declined 9 percent to USD 110 million from USD 120 million a year earlier.
• Adjusted net income declined 8 percent to USD 120 million from USD 130 million.
• Adjusted EBITDA declined 2 percent to USD 288 million from USD 293 million.
• Diluted EPS declined 7 percent to USD 0.79 from USD 0.85, while adjusted diluted EPS declined 5 percent to USD 0.87 from USD 0.92.

Higher sales volume was more than offset by price/mix, higher cost of sales and selling, general and administrative expenses. Cost savings and operational improvements delivered lower manufacturing costs per pound.
 

North America Segment

Net Sales 
 

• North America net sales increased 9 percent to USD 1.206 billion from USD 1.103 billion.
• Sales volume grew for the sixth consecutive quarter and increased 11 percent, driven by customer contract wins, share gains, strong retention and the benefit of an extra week.
• Price/mix declined 2 percent from modest price and trade support for customers and continued mix shift toward faster-growing chain customers and private-label products.
   

Segment Adjusted EBITDA 

• North America segment adjusted EBITDA increased 17 percent to USD 305 million from USD 260 million. 

Segment adjusted EBITDA increased due to higher sales volumes and lower manufacturing costs per pound reflecting leverage from the cost savings initiatives and improved operating efficiencies, which more than offset higher inflation, unfavorable price/mix and higher operating expenses.
 

International Segment

Net Sales 
 

• International net sales declined 2 percent to USD 564 million from USD 573 million. The decrease was driven by a 2 percent decline in sales volume and a 4 percent decline in price/mix, partially offset by a favorable currency impact.

Sales growth in Asia Pacific and Latin America, together with the benefit of an extra week, was more than offset by challenging market conditions in EMEA, including the impact of the Middle East conflict, which began early in the fourth quarter of fiscal 2026.
Segment Adjusted EBITDA 

• International segment adjusted EBITDA declined 81 percent to USD 12 million from USD 63 million.

The decline was attributed to lower net sales, higher manufacturing costs per pound and higher operating expenses.
 

Fiscal Year 2026 Results

Net Sales

Net sales increased 2 percent to USD 6.612 billion from USD 6.451 billion. The increase was driven by a 7 percent increase in sales volume and a 1 percent favourable currency impact, partially offset by a 6 percent decline in price/mix. Net sales increased 1 percent excluding foreign exchange effects.
 

• FY 2026 net sales: USD 6.612 billion (FY 2025: USD 6.451 billion)
• Sales volume: +USD 437 million
• Price/mix: -USD 399 million
• Foreign exchange: +USD 123 million
• Net sales change: +2 percent (+1 percent excluding foreign exchange effects)

Sales volume increased in North America, Asia Pacific and Latin America. Fiscal 2026 benefited by USD 127.1 million from the 53rd week in the fiscal year.

Net Income, Adjusted EBITDA and Diluted EPS 
 

• Net income: USD 290 million (FY 2025: USD 357 million; -19 percent)
• Adjusted net income: USD 420 million (FY 2025: USD 512 million; -18 percent)
• Adjusted EBITDA: USD 1.147 billion (FY 2025: USD 1.260 billion; -9 percent)
• Diluted EPS: USD 2.08 (FY 2025: USD 2.50; -17 percent)
• Adjusted diluted EPS: USD 3.01 (FY 2025: USD 3.58; -16 percent)

Higher sales volumes, cost savings and lower manufacturing costs per pound were more than offset by investments in customers and input cost inflation. Fiscal 2026 benefited by USD 28.9 million from the 53rd week in the fiscal year. 
 

North America Segment

Net Sales 
North America net sales increased 3 percent to USD 4.395 billion from USD 4.265 billion. The increase was driven by a 9 percent increase in sales volume, partially offset by a 6 percent decline in price/mix. Net sales increased 3 percent excluding foreign exchange effects.
 

• FY 2026 net sales: USD 4.395 billion (FY 2025: USD 4.265 billion)
• Sales volume: +USD 386 million
• Price/mix: -USD 264 million
• Foreign exchange: +USD 8 million
• Net sales change: +3 percent (+3 percent excluding foreign exchange effects)

Fiscal 2026 benefited by USD 86.4 million from the 53rd week in the fiscal year.

Segment Adjusted EBITDA 
North America segment adjusted EBITDA increased 3 percent to USD 1.142 billion from USD 1.109 billion.
 

• FY 2026 adjusted EBITDA: USD 1.142 billion (FY 2025: USD 1.109 billion)
• Adjusted EBITDA change: +3 percent

Sales volume growth, lower manufacturing costs per pound and the benefit of cost savings more than offset inflation and customer investments. Fiscal 2026 benefited by USD 25.5 million from the 53rd week in the fiscal year.

International Segment

Net Sales 
International net sales increased 1 percent to USD 2.217 billion from USD 2.186 billion. The increase was driven by a 5 percent favourable currency impact and 2 percent sales volume growth, partially offset by a 6 percent decline in price/mix. Net sales declined 4 percent excluding foreign exchange effects.
 

• FY 2026 net sales: USD 2.217 billion (FY 2025: USD 2.186 billion)
• Sales volume: +USD 51 million
• Price/mix: -USD 135 million
• Foreign exchange: +USD 115 million
• Net sales change: +1 percent (-4 percent excluding foreign exchange effects)

Fiscal 2026 benefited by USD 40.7 million from the 53rd week in the fiscal year.

Segment Adjusted EBITDA 
International segment adjusted EBITDA declined 55 percent to USD 115 million from USD 258 million.
 

• FY 2026 adjusted EBITDA: USD 115 million (FY 2025: USD 258 million)
• Adjusted EBITDA change: -55 percent

The decline reflects lower sales excluding foreign exchange effects, lower price/mix reflecting competitive challenges in EMEA, and higher manufacturing costs per pound, including a USD 33.1 million incremental pre-tax charge for potato write-offs. These factors were partially offset by cost savings initiatives. Fiscal 2026 benefited by USD 4.0 million from the 53rd week in the fiscal year. 
 

Fiscal 2027 Outlook

Lamb Weston expects fiscal 2027 net sales to increase by 0.0 percent to 1.0 percent compared with fiscal 2026 on a 52-week adjusted basis. The company forecasts adjusted EBITDA of USD 1.1 billion to USD 1.2 billion, adjusted diluted EPS of USD 2.95 to USD 3.25, and capital expenditures of USD 380 million to USD 410 million.
 

• Net sales growth: 0.0 percent to 1.0 percent (vs. FY2026 52-week adjusted)
• Adjusted EBITDA: USD 1.1 billion to USD 1.2 billion
• Adjusted diluted EPS: USD 2.95 to USD 3.25
• Capital expenditures: USD 380 million to USD 410 million