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May 25, 2025
Lamb Weston Q4 2025 Earnings Report
Lamb Weston reported Q4 2025 results with modest revenue growth but saw a decline in operating income and net income compared to the prior year.
Key Takeaways
Lamb Weston posted a 4% increase in revenue in Q4 2025, driven by higher volumes across all channels and regions. However, pricing pressure and cost inflation led to lower operating and net income. Adjusted EPS grew slightly as the company controlled SG&A costs and benefited from lower taxes.
Revenue grew 4% to $1.6758 billion in Q4 2025, driven by 8% volume growth.
Net income declined 7% YoY to $119.9 million, and EPS dropped to $0.85.
Adjusted EBITDA slightly increased to $284.9 million, despite pricing pressure.
International segment revenue rose 15%, offsetting a 1% decline in North America.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Lamb Weston expects FY 2026 revenue between $6.35B and $6.55B and Adjusted EBITDA between $1.0B and $1.2B, incorporating the benefit of a 53rd week. The outlook reflects planned pricing investments, fixed cost headwinds, and productivity savings under the Focus to Win plan.
Positive Outlook
- Revenue expected to benefit from 53rd week in FY 2026.
- $250M cost savings planned under Focus to Win initiative.
- $120M expected working capital improvements by FY 2027.
- Stronger performance expected in 2H FY 2026.
- Improved manufacturing cost efficiencies expected.
Challenges Ahead
- Price/mix expected to decline in both halves of FY 2026.
- Higher fixed factory burden forecasted.
- Low single-digit cost inflation anticipated.
- Q1 and Q2 expected to face greater profit pressure.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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