Lamb Weston Q2 adjusted EPS beats estimates

Lamb Weston Holdings

19/12/2025 13:42

Overview

Frozen potato supplier's Q2 revenue grew 1%, beating analyst expectations

Adjusted EPS for Q2 beat analyst expectations

Company announced 3% increase in quarterly dividend

Outlook

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

Company expects fiscal 2026 adjusted EBITDA between $1.00 bln and $1.20 bln

Company anticipates fiscal 2026 capital expenditures of approximately $500 mln

Result Drivers

VOLUME GROWTH - Co reported 8% volume increase driven by customer wins and share gains, particularly in North America and Asia

COST SAVINGS - Lower manufacturing costs per pound in North America due to cost savings initiatives and improved efficiencies

PRICE/MIX DECLINE - 8% decline in price/mix due to competitive pricing strategies and carryover impact from fiscal 2025 pricing

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$1.62 bln
$1.59 bln (10 Analysts)
Q2 Adjusted EPS
Beat
$0.69
$0.65 (9 Analysts)
Q2 EPS
$0.44
Q2 Adjusted Net Income
Beat
$96.70 mln
$89.84 mln (7 Analysts)
Q2 Net Income
$62.10 mln
Q2 Adjusted EBITDA
Beat
$285.70 mln
$269.29 mln (9 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and no "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 $66.00, about 11.2% above its December 18 closing price of $59.33

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw2Pd68Ga

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)