Q3 2026 Lamb Weston Holdings Inc Earnings Call Transcript
Key Points
- Lamb Weston Holdings Inc (LW) reported a fifth consecutive quarter of in-line or better results, demonstrating consistent performance.
- The North America segment showed strong sales performance with 12% volume growth and 5% net sales growth, driven by customer wins, share gains, and strong retention.
- The company achieved $100 million in cost savings for fiscal 2026, ahead of its program target, and is on track to exceed its $250 million target by fiscal year-end 2028.
- Lamb Weston Holdings Inc (LW) has improved its customer partnerships, resulting in higher retention rates and new customer acquisitions.
- The company has a strong cash flow generation, with $596 million generated from operations in the first three quarters of fiscal 2026, up $110 million from the previous year.
- The international segment faced challenges due to a significant surplus in the European potato market, leading to softer demand and increased competitive export dynamics.
- Adjusted EBITDA declined by $101 million compared to the previous year, primarily due to unfavorable price/mix and higher fixed factory absorption costs.
- The company announced the closure of its Monro Argentina plant and the temporary curtailment of a production line in the Netherlands, indicating operational challenges.
- Price/mix declined 7% at constant currency, reflecting targeted investments in customers for price and trade support and adverse product mix.
- The international segment's net sales declined 1%, with a 9% decline at constant currency, due to softer demand in key markets and a more challenging comparison.
Good day, and welcome to the Lamb Weston third quarter 2026 earnings call. Today's conference is being recorded.
At this time, I'd like to turn the conference over to Debbie Hancock, Vice President of Investor Relations. Please go ahead.
Good morning, and thank you for joining us for Lamb Weston's third quarter fiscal 2026 earnings call. I'm Debbie Hancock, Lamb Weston's Vice President of Investor Relations. Earlier today, we issued our press release and posted slides that we will use for our discussion today. You can find both on our website, lambweston.com.
Please note that during our remarks, we will make forward-looking statements about the company's expected performance that are based on our current expectations. Actual results may differ materially due to risks and uncertainties.
Please refer to the cautionary statements and risk factors contained in our SEC filings for more details on our forward-looking statements. Some of today's remarks include
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
