Lamb Weston Holdings, Inc. (LW) reported stable second-quarter fiscal 2026 outcomes, whereby each prime and backside traces beat the Zacks Consensus Estimate. Whereas internet gross sales elevated, earnings decreased from the year-ago interval’s actuals.
LW’s adjusted earnings have been 69 cents per share, beating the Zacks Consensus Estimate of 67 cents. The lower of 5% was resulting from diminished adjusted gross revenue, partially offset by decreased adjusted promoting, normal and administrative (SG&A).
Lamb Weston Value, Consensus and EPS Shock
Lamb Weston price-consensus-eps-surprise-chart | Lamb Weston Quote
Internet gross sales amounted to $1,618.1 million, beating the Zacks Consensus Estimate of $1,593 million. The highest line elevated $17.2 million 12 months over 12 months.
LW’s Quarterly Outcomes: Key Metrics & Insights
On a constant-currency foundation, gross sales have been flat, as stable 8% quantity development was outweighed by an 8% drop in worth/combine. Quantity development was pushed by buyer wins, share positive aspects and retention, significantly in North America and Asia. The lower in worth/combine displays continued buyer assist by way of pricing and commerce actions, together with the carryover impression of fiscal 2025 pricing, inside a extremely competitiveglobal marketenvironment. Our mannequin steered a quantity enhance of 5.3% within the quarter.
Adjusted gross revenue fell $15.6 million from the prior 12 months, touchdown at $327.9 million, with weaker worth/combine serving as the primary drag. We anticipated adjusted gross margin contraction of 100 bps.
Adjusted SG&A bills fell $7.8 million 12 months over 12 months, totaling $145.1 million, supported by cost-savings measures, partially offset by increased compensation and advantages accruals.
Adjusted EBITDA decreased $8.5 million 12 months over 12 months, reaching $285.7 million. This decline was resulting from diminished adjusted gross revenue and fairness technique funding earnings, partially offset by decrease adjusted SG&A.
LW Supplies Q2 Insights by Phase
Internet gross sales for the North America phase, which covers prospects in the USA, Canada and Mexico, have been flat, reaching $1,069.5 million in contrast with the prior-year quarter. Quantity rose 8%, pushed by latest buyer contract wins, share positive aspects and broad-based development throughout channels.
The worth/mixture of the phase fell 8%, reflecting the carryover impression of fiscal 2025 worth investments, ongoing buyer assist by way of worth and commerce, and destructive channel combine.
The North America phase’s adjusted EBITDA elevated by $18.6 million to $287.8 million. The rise was pushed by elevated volumes, diminished manufacturing prices per pound and adjusted SG&A, reflecting advantages from price financial savings measures and improved working efficiencies. These advantages have been partially offset by continued worth and commerce assist for patrons.
Internet gross sales for the Worldwide phase, which incorporates all prospects exterior North America, grew 4% to $548.6 million, together with a good $22.6 million from overseas forex translation. At fixed forex, internet gross sales decreased 1%. Quantity grew 7%, pushed by energy in Asia and with multinational chain prospects.
The worth/mixture of the phase declined 8% resulting from continued pricing and commerce actions to assist prospects in a aggressive market atmosphere, in addition to an unfavorable combine.
Worldwide phase adjusted EBITDA decreased by $21.4 million to $27.2 million. The lower was primarily attributable to elevated manufacturing prices per pound, together with elevated fastened manufacturing unit burden resulting from decrease utilization of worldwide manufacturing amenities and start-up prices related to the brand new manufacturing facility in Argentina. These increased prices have been partially offset by advantages from price financial savings measures and elevated gross sales volumes.
Lamb Weston’s Monetary Well being Snapshot
The corporate ended the quarter with money and money equivalents of $82.7 million, long-term debt and financing obligations (excluding the present portion) of $3,648.9 million and whole shareholders’ fairness of $1,754.4 million.
The corporate generated $530.4 million as internet money from working actions for the 26 weeks ending Nov. 23, 2025, whereby capital expenditures amounted to $155.7 million.
Within the second quarter of fiscal 2026, Lamb Weston returned $51.6 million to its shareholders by way of money dividends and repurchased $39.6 million of frequent inventory below the share repurchase program, representing 617,623 shares. Roughly $308 million stays licensed and obtainable for repurchases below this system.
On Dec. 17, 2025, administration authorised a 3% enhance within the quarterly dividend, elevating the dividend to 38 cents per share. The dividend is payable on Feb. 27, 2026, to its shareholders of file as of the shut of enterprise on Jan. 30.
What to Anticipate From LW in FY26?
The corporate nonetheless expects internet gross sales at fixed forex within the vary of $6.35 billion to $6.55 billion and adjusted EBITDA of $1.00 billion to $1.20 billion. Capital expenditures are anticipated to whole roughly $500 million.
LW’s Share Value Efficiency
Shares of this Zacks Rank #4 (Promote) firm have gained 7.2% prior to now three months in opposition to the business’s 6.9% decline.
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Shares to Take into account
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The consensus estimate for United Pure’s present fiscal-year gross sales and earnings implies development of 1% and 187.3%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings shock of 52.1%, on common.
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The Zacks Consensus Estimate for Village Farms’ present fiscal-year earnings signifies development of 165.6% from the prior-year ranges.
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The Zacks Consensus Estimate for Vita Coco’s present fiscal-year gross sales and earnings implies development of 18% and 15%, respectively, from the year-ago figures.
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Vita Coco Firm, Inc. (COCO) : Free Inventory Evaluation Report
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Lamb Weston (LW) : Free Inventory Evaluation Report
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