Volume-led momentum offsets price/mix pressure as Lamb Weston restarts curtailed North American lines and reaffirms full-year targets.
Lamb Weston Holdings, Inc. reported its second-quarter fiscal 2026 results and reaffirmed its fiscal 2026 financial outlook, while its Board of Directors authorized a 3% increase in the company’s quarterly dividend.
Q2 FY2026 snapshot (as reported)
- Net sales: $1,618.1 million (up 1% year-over-year)
- Income from operations: $139.2 million (up 652% year-over-year)
- Net income: $62.1 million (up 272% year-over-year)
- Diluted EPS: $0.44 (vs. a diluted loss per share of $0.25 in the prior-year quarter)
- Adjusted EBITDA: $285.7 million (down 3% year-over-year)
Management said Q2 performance reflected “positive momentum,” citing robust volume growth, share gains in priority markets and categories, and continued progress toward a $100 million cost savings program target for fiscal 2026.
What Lamb Weston said drove the quarter
Lamb Weston reported net sales rose by $17.2 million to $1,618.1 million, including a favorable foreign currency impact of $24.4 million. On a constant-currency basis, net sales were “essentially flat,” as an 8% increase in volume was offset by an 8% decline in price/mix.
The company attributed volume growth to customer wins, share gains, and retention – particularly in North America and Asia – while describing price/mix pressure as reflecting ongoing customer support through price and trade in a competitive global market, including carryover impacts from fiscal 2025 pricing.
Segment performance highlights
North America (U.S., Canada, Mexico):
- Net sales: $1,069.5 million (essentially flat year-over-year)
- Volume: +8%, driven by recent customer contract wins, share gains, and channel growth
- Lamb Weston said it restarted curtailed North American production lines in response to the growth.
- Segment Adjusted EBITDA: $287.8 million, up $18.6 million year-over-year
International (outside North America):
- Net sales: $548.6 million, up 4% year-over-year (including a $22.6 million favorable FX impact); constant-currency net sales down 1%
- Volume: +7%, driven by growth in Asia and with multinational chain customers
- Segment Adjusted EBITDA: $27.2 million, down $21.4 million year-over-year, primarily tied to higher manufacturing costs per pound, lower utilization, and start-up expenses for a new production facility in Argentina
Capital returns, liquidity, and the dividend increase
During Q2 FY2026, Lamb Weston reported returning $91.2 million to shareholders, including:
- $51.6 million in cash dividends
- $39.6 million in share repurchases (617,623 shares at an average price of $64.18), with about $308 million remaining under the repurchase authorization
The Board approved a 3% dividend increase (a $0.01 lift) to $0.38 per share, payable February 27, 2026 to shareholders of record as of January 30, 2026.
As of November 23, 2025, the company reported $82.7 million in cash and cash equivalents and $1.35 billion of available liquidity under its revolving credit facility.
Fiscal 2026 outlook reaffirmed
Lamb Weston reaffirmed its fiscal 2026 targets:
- Net sales: $6.35 billion to $6.55 billion
- Adjusted EBITDA: $1.00 billion to $1.20 billion
- Capital expenditures: approximately $500 million
The company noted its guidance includes its current view of the impact of enacted tariffs by the U.S. and other countries, but does not include potential effects of evolving trade policies, including future tariff changes or retaliatory measures.
Source: Lamb Weston Holdings, Inc. Original release here
Image: Credit Lamb Weston