Lamb Weston Earnings Beat Guidance, Sets Dividend
Lamb Weston earnings topped guidance as North America volume offset weakness; a $0.38 dividend adds yield against modest fiscal 2027 targets.
KEY TAKEAWAYS
- Full-year fiscal 2026 net sales were $6.6 billion, above the prior guidance high end.
- Adjusted EBITDA exceeded guidance at $1.1 billion amid input-cost and geopolitical headwinds.
- Board declared a $0.38 quarterly dividend while fiscal 2027 EPS was guided to $2.95 to $3.25.
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Lamb Weston Holdings Inc. (LW) reported full-year fiscal 2026 results on July 24, 2026, that exceeded its guidance, driven by North American volume growth despite international weakness. The company also declared a quarterly dividend and issued modest fiscal 2027 sales and earnings targets.
Results Exceed Prior Guidance
Lamb Weston said full-year fiscal 2026 net sales reached $6.612 billion, up 2% year over year and above the prior guidance high end of $6.550 billion. Adjusted EBITDA, a proxy for operating profit, was $1.147 billion, surpassing the guidance ceiling of $1.140 billion.
The company reported net income of $290 million and adjusted net income of $420 million, with reported diluted earnings per share (EPS) of $2.08 and adjusted diluted EPS of $3.01. Management attributed the strong performance to volume growth in North America, while disruptions in the Middle East and rising input costs weighed on results. Mike Smith, Lamb Weston president and CEO, said, “We overdelivered on our financial guidance with solid performance in sales and profitability, led by volume growth in North America.”
Dividend and Fiscal 2027 Guidance
Lamb Weston’s board declared a quarterly dividend of $0.38 per share on July 23, payable September 4 to shareholders of record August 7. The company’s fiscal 2027 guidance calls for net sales growth of 0% to 1% and adjusted diluted EPS between $2.95 and $3.25. The outlook reflects ongoing challenges from customer trading-down, weaker international demand, higher costs, and geopolitical disruption.
