Frozen food supplier Lamb Weston beats Q1 sales estimates, reaffirms outlook

Lamb Weston Holdings

30/09/2025 13:40

Overview

Lamb Weston fiscal Q1 2026 sales rise slightly, beating analyst expectations, per LSEG data

Adjusted EPS for fiscal Q1 2026 beats consensus despite decline in net income

Co reaffirms fiscal 2026 outlook, maintaining financial targets

Outlook

Company reaffirms fiscal 2026 net sales target of $6.35 bln to $6.55 bln

Lamb Weston targets fiscal 2026 adjusted EBITDA of $1.00 bln to $1.20 bln

Company plans $500 mln in capital expenditures for fiscal 2026

Lamb Weston acknowledges tariffs but excludes future trade policy changes in guidance

Result Drivers

VOLUME GROWTH - Driven by customer wins and retention in North America and Asia, per CEO Mike Smith

PRICE/MIX DECLINE - Reflects carryover impact of fiscal 2025 price investments and unfavorable channel mix

COST SAVINGS - Lower manufacturing costs per pound due to cost savings initiatives

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$1.66 bln
$1.62 bln (8 Analysts)
Q1 Adjusted EPS
Beat
$0.74
$0.55 (9 Analysts)
Q1 EPS
$0.46
Q1 Adjusted Net Income
Beat
$103 mln
$81.20 mln (6 Analysts)
Q1 Net Income
$64.30 mln
Q1 Adjusted EBITDA
Beat
$302.20 mln
$250.30 mln (8 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "buy."

Wall Street's median 12-month price target for Lamb Weston Holdings Inc is $63.50, about 12.3% above its September 29 closing price of $55.67

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw3pmJdGa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)