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Feb 23
Lamb Weston Q3 2025 Earnings Report
Lamb Weston reported stable net income and modest revenue growth in Q3 2025, supported by volume recovery and cost management efforts.
Key Takeaways
Lamb Weston delivered solid results in Q3 2025 with revenue rising 4% and net income flat year-over-year. Operational efficiencies and volume growth offset pricing pressure and ongoing restaurant traffic softness.
Revenue grew 4% year-over-year to $1.52 billion due to volume recovery and new customer wins.
Net income was stable at $146 million despite pricing challenges.
Adjusted EBITDA rose to $363.8 million, aided by higher volumes and lower SG&A.
Company retained AlixPartners to explore long-term value creation and cost savings.
Lamb Weston
Lamb Weston
Lamb Weston Revenue by Segment
Lamb Weston Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Lamb Weston reaffirmed its FY25 guidance, projecting steady performance with strategic capital reductions and ongoing cost efficiencies.
Positive Outlook
- Reaffirmed FY25 revenue guidance of $6.35B to $6.45B.
- Expects adjusted EBITDA of $1.17B to $1.21B.
- Capital spending to decrease by $250M vs prior year.
- Continued cost discipline through restructuring efforts.
- Adjusted EPS outlook maintained at $3.05 to $3.20.
Challenges Ahead
- Soft global restaurant traffic remains a headwind.
- Pricing pressures in competitive markets.
- Higher depreciation due to capacity expansions.
- Elevated interest expense from higher total debt.
- Tax rate increased to 28.3% due to international mix.
Revenue & Expenses
Visualization of income flow from segment revenue to net income