Lamb Weston Holdings, Inc. reported results for the third quarter of fiscal 2026 and updated its full-year outlook.
"Driven by continued solid performance in our North America segment, we delivered another quarter in line with our expectations," said CEO Mike Smith. He added that the company is aligning supply and demand, managing competitive international conditions, and expects to exceed its cost reduction target of at least US$250 million by fiscal year-end 2028.
© LambWeston
Net sales increased by US$44.3 million to US$1,564.8 million, including a US$47.4 million positive currency impact. At constant currency, sales were flat, as a 7 per cent volume increase was offset by a 7 per cent decline in price and mix. Volume growth was driven by North America, while price and mix were affected by customer support measures and a shift toward lower-priced channels. International demand remained softer, with competitive pressure affecting the EMEA segment.
Gross profit declined by US$90.9 million to US$331.6 million. Adjusted gross profit fell by US$92.9 million to US$327.5 million, reflecting price and mix pressure and a US$32.5 million pre-tax write-off of excess raw potatoes in the International segment. Manufacturing costs per pound increased due to this write-off, underutilized international capacity, and input cost inflation. Cost savings and improved efficiencies in North America partly offset these factors.
Selling, general, and administrative expenses declined by US$7.4 million to US$156.8 million. Adjusted SG&A increased by US$9.4 million to US$157.4 million, as cost savings were offset by higher compensation-related costs and US$12.7 million in project write-offs.
Net income declined by US$92.0 million to US$54.0 million, with diluted EPS at US$0.39, down US$0.64. Adjusted net income declined by US$64.4 million to US$100.0 million, with adjusted diluted EPS at US$0.72, down US$0.43. Adjusted EBITDA declined by US$101.3 million to US$271.7 million.
The effective tax rate was 35.9 per cent, compared to 28.3 per cent in the prior year. Excluding comparability items, the rate was 21.8 per cent, down from 28.1 per cent, mainly due to a lower share of losses without tax benefits in certain jurisdictions.
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For more information:
Debbie Hancock 
Lamb Weston Holdings
Tel: +1 208 202 7259
Email: [email protected]
www.investors.lambweston.com
Erin Gardiner
Tel: +1 208 202 7257
Email: [email protected]
