Lamb Weston Reports Second Quarter Fiscal 2025 Results and Updates Outlook

Eagle, ID (December 19, 2024) – Lamb Weston Holdings, Inc. (NYSE: LW) released its second-quarter fiscal 2025 results and revised its financial targets for the fiscal year. The company reported a challenging quarter with below-expectation financial results primarily due to higher manufacturing costs and softer volumes. In response to the evolving operational environment, the company has undertaken a Restructuring Plan to drive operational efficiencies and enhance cash flows.

In the second quarter of fiscal 2025, Lamb Weston’s GAAP results showed a decline in various metrics compared to the same period in the prior year. Net sales decreased by 8% to $1.6 billion, income from operations dropped by 94% to $18.5 million, and net income saw a decline of $251 million to reach a loss of $36 million. Adjusted metrics also showed a decline, with Adjusted Net Income dropping 55% to $95 million and Adjusted Diluted EPS declining 54% to $0.66.

The company retains a cautious outlook for the remainder of fiscal year 2025 and into fiscal 2026, citing challenges such as an acceleration in capacity additions and lower global frozen potato demand, especially outside North America. As a result, Lamb Weston has adjusted its fiscal 2025 targets. It now anticipates net sales of $6.35 billion to $6.45 billion, a GAAP net income target of $330 million to $350 million, and adjusted EBITDA of $1.17 billion to $1.21 billion.

Lamb Weston continues to proactively adapt to the changing environment by focusing on cost-saving initiatives and operational improvements. The company aims to align its operations with present challenges, optimize profitability, and enhance shareholder value.

The Board also approved an increase of $250 million in the existing $500 million share repurchase authorization, enhancing the total repurchase capacity to

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Lamb Weston’s 8K filing here.

Lamb Weston Company Profile

Lamb Weston Holdings, Inc produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.