Lamb Weston Reports 2% Increase in Net Sales to $6.61 Billion for Fiscal Year 2026

Lamb Weston Holdings, Inc. reported a modest increase in financial performance for the fiscal year ending May 31, 2026, with net sales rising by 2% to $6.61 billion compared to $6.45 billion in the previous fiscal year. The North America segment, which includes sales in the U.S., Canada, and Mexico, contributed significantly to this growth, with net sales increasing by 3% to $4.40 billion. In contrast, the International segment saw a slight increase of 1% to $2.22 billion, although it faced challenges, particularly in the EMEA region, due to increased competition and softer demand.

The company's profitability, however, faced pressures, as net income decreased by 19% to $290 million from $357 million in the prior year. This decline was attributed to a drop in gross profit, which fell to $1.36 billion, down from $1.40 billion, primarily due to unfavorable pricing and a $33 million charge related to excess raw potato write-offs in the International segment. Adjusted EBITDA also decreased by 9% to $1.15 billion, reflecting the impact of these challenges.

Strategically, Lamb Weston has been active in implementing its Cost Savings Program, which exceeded its initial target of $100 million in savings during its first year. The company has also focused on operational improvements, which contributed to a reduction in manufacturing costs per pound. Additionally, Lamb Weston has made significant investments in expanding its production capabilities, including the opening of a new facility in Argentina aimed at serving the growing Latin American market.

Operationally, Lamb Weston reported a total employee headcount of approximately 10,000, with about 30% of employees covered by collective bargaining agreements. The company continues to maintain strong relationships with its customers, with its largest customer, McDonald's Corporation, accounting for approximately 15% of net sales. Looking ahead, Lamb Weston anticipates flat global restaurant traffic and expects low single-digit sales volume growth for fiscal 2027, with earnings growth projected to outpace sales growth due to ongoing cost-saving initiatives and improved efficiencies.