Lamb Weston Q3 Earnings Call Highlights

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MarketBeat

Wed, April 1, 2026 astatine 10:20 AM CDT 10 min read

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Mixed 4th — measurement up but margins pressured: Overall measurement roseate 7% (North America +12%) portion constant‑currency price/mix fell 7%, and adjusted EBITDA declined $101 cardinal to $272 cardinal owed to unfavorable mix, a $33 cardinal planetary raw‑potato write‑off and underutilized European/Latin American capacity.
Guidance raised and structural actions underway: Management nudged up fiscal 2026 guidance (net income $6.45–6.55B; adjusted EBITDA $1.08–1.14B), is tracking up connected a $250 cardinal cost‑savings program, and is reshaping the accumulation footprint (plant closures/curtailments) positive targeted murphy contracting to code European oversupply.
Stronger currency procreation and shareholder returns: Year‑to‑date currency from operations was $596 cardinal with escaped currency travel of $339 million, liquidity of astir $1.3 billion, $205 cardinal returned to shareholders YTD, and a $0.38 quarterly dividend approved.
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Lamb Weston (NYSE:LW) executives told investors the institution delivered its “fifth 4th successful a enactment of successful enactment oregon amended results” successful fiscal third-quarter 2026, driven by beardown momentum successful North America portion planetary markets faced unit from oversupply successful Europe and softer edifice traffic.

President and CEO Mike Smith said the quarter’s show supported an updated full-year outlook with “a tighter guidance scope and a higher midpoint of nett income and EBITDA,” and credited lawsuit wins, stock gains, and improved execution for North America’s maturation contempt “soft” user sentiment.

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Chief Financial Officer Bernadette Madarieta said third-quarter nett income accrued 3%, including a $47 cardinal payment from overseas currency translation. On a constant-currency basis, she said nett income were “essentially flat” twelvemonth implicit year. Volume roseate 7%, portion constant-currency terms premix declined 7% arsenic the institution made “targeted investments” successful pricing and commercialized enactment and saw an unfavorable transmission and merchandise premix displacement toward “value-oriented channels,” backstage label, and concatenation restaurants.

Madarieta highlighted postulation trends discussed connected the call, noting U.S. QSR postulation was up 1% successful the 4th and turned affirmative “for the archetypal clip since precocious fiscal 2024,” portion astir planetary markets saw debased single-digit edifice postulation declines. In the U.K., the company’s largest planetary market, she said QSR postulation declined astir 1%, improving versus caller quarters.

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