LW Filings — Lamb Weston Holdings, Inc. - FilingSpy
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Lamb Weston Holdings, Inc.
A producer of frozen potato products, from French fries served in restaurants and fast-food chains to appetizers and ingredients sold in dozens of countries under brands like Lamb Weston and Grown in Idaho. Despite the name, it has nothing to do with the animal — it honors founder Gib Lamb and the town of Weston, Oregon, where his father launched a fruit-packing business in 1932. Fun fact: the founder invented the water gun knife in 1960, blasting whole potatoes through blades with a high-pressure water stream to cut fries in a flash.
10-K · Fiscal year ended May 31, 2026 · SEC filing ↗
Lamb Weston's FY2026 net income fell 19% to $290M as a 6% price/mix decline and International segment losses offset a 7% volume recovery.
Volume returned, but price gave way. rose 2% to $6.6B on 7% volume growth, yet narrowed to 20.6% and fell 19% to $290M as a 6% decline and an International potato compressed earnings. The company enters fiscal 2027 with a new cost-savings program and a plan to close a Netherlands plant, betting that efficiency gains can outrun the pricing pressure that defined the year.
Key takeaways
Volume rose 7% for the full year, the first annual volume increase since fiscal 2021, driven by a 9% increase in North America on customer wins and share gains.
fell 6%, fully offsetting much of the volume gain, as competitive pricing actions, trade support investments, and a shift toward lower-priced channels compressed the .
International fell 55% to $114.7M, weighed down by a $33.1M excess raw potato , higher manufacturing costs from underutilized plants, and start-up expenses for a new Argentina facility.
Section summaries
Business
Lamb Weston is a leading global producer of value-added frozen potato products, operating in North America and International segments and serving diverse channels in over 100 countries.
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The company operates two reportable segments: North America (U.S., Canada, Mexico) and International (outside North America), selling frozen potatoes, commercial ingredients, and appetizers.
French fries represent most of the product portfolio, sold under owned brands like Lamb Weston and Grown in Idaho, licensed brands, and customer labels.
declined $38.9M to $1,359.7M, with contracting 1.1 points to 20.6%, as unfavorable and the potato more than offset lower manufacturing costs per pound in North America.
The company recorded $111.6M in pre-tax charges for its Cost Savings Program and Restructuring Plan, including $53.1M for asset retirements and plant charges, and announced a subsequent plan to close a Netherlands facility with expected charges of $80–$110M.
rose 9% to $942.9M, and turned positive at $532.8M, as fell 37% to $410.1M with the completion of major growth projects.
What changed
The volume recovery flagged as a key watch item in FY2025 materialized: total volume rose 7% after a 2% increase in FY2025, with North America up 9% on customer wins. However, the decline deepened from 2% in FY2025 to 6% in FY2026, exceeding the erosion that earlier filings had warned could accompany volume growth.
did not recover toward the 24–27% range seen before the ERP disruption, as FY2025 had flagged as a possibility. Instead, it fell further to 20.6%, pressured by the decline and a $33.1M International potato , despite lapping the prior year's ERP costs and restructuring charges.
The restructuring plan flagged in FY2025 delivered its targeted savings, but total charges expanded. The company recorded $111.6M in FY2026 charges and announced a new Netherlands facility closure post-year-end with $80–$110M in expected charges, extending the restructuring timeline and cost beyond the original $190–$210M estimate.
generation improved markedly, turning positive at $532.8M after a negative $131.3M in FY2024 and a positive $230.1M in FY2025, as fell to $410.1M from $929.5M in FY2024. This addresses the cash-flow concerns raised in prior filings, though the $3.9B debt load remains.
What to watch
Whether the 6% decline stabilizes in FY2027, as management guides to a low single-digit decline, and whether the 7% volume growth can be sustained without further margin erosion.
The trajectory of International profitability following the Argentina plant closure, the announced Netherlands facility shutdown, and the $33.1M potato , and whether these actions lift facility utilization rates from current low levels.
The magnitude and timing of the $80–$110M in expected charges from the newly announced Netherlands facility closure, and whether the Cost Savings Program can exceed its $250M target by FY2028 as management expects.
generation against the $3.9B debt load, with likely to remain subdued after the completion of major growth projects, but interest costs rising on $989.3M in variable-rate debt.
A limited number of customers drive sales, with the top ten accounting for ~50% of and McDonald's representing ~15% in fiscal 2026.
The company holds a 50% interest in the Lamb Weston RDO joint venture and a consolidated 75% interest in an Austrian joint venture, supplementing its 25 owned production facilities.
Competition is intense globally from large multinationals and vertically integrated local players, with the company competing on innovation, quality, brand, and customer service.
Raw material costs for potatoes, edible oils, and energy inputs continued to increase in fiscal 2026, mitigated through long-term contracts, hedging, and pricing initiatives.
Key risks include commodity cost inflation, supply chain disruptions, competitive pressures, and execution of a new cost savings program.
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Volatile commodity and supply chain costs, especially for potatoes, edible oils, and energy, are pressuring margins, with recent Middle East conflicts since late February 2026 adding further volatility.
A new Cost Savings Program was initiated in fiscal 2026 to drive efficiencies, but its anticipated benefits may not be realized on time or at all, potentially diverting management resources.
Intense competition and soft restaurant traffic, notably in Europe, are forcing price and trade support investments, while an oversupply of potatoes in Europe led to a of excess raw potatoes in fiscal 2026.
Labor shortages and upcoming union contract expirations (74% of represented hourly workers have agreements expiring or in negotiation within 12 months) could increase costs or cause stoppages.
The company carries $3.9 billion in debt, and its credit agreements impose restrictive covenants that could limit operational flexibility and increase vulnerability to adverse conditions.
A prior ERP system implementation in fiscal 2024 caused order fulfillment disruptions, and future system transitions could again interfere with operations and financial reporting.
Lamb Weston operates 22 principal production/cold storage facilities globally, with recent closures in Argentina, Australia, and the Netherlands.
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The company is headquartered in Eagle, Idaho, and lists 22 principal production and processing facilities as of May 31, 2026.
Domestic facilities are concentrated in the Pacific Northwest (Idaho, Oregon, Washington) plus one in Louisiana and one in Minnesota.
International facilities span the Netherlands (5), China (2), and one each in Argentina, Australia, Austria, Canada, and the UK.
The Park Rapids, MN facility is 50%-owned via the Lamb Weston RDO joint venture and accounted for under the equity method.
The Hollabrunn, Austria facility is 75%-owned via a consolidated joint venture.
Recent restructuring includes closing the Munro, Argentina plant, curtailing Hallam South in Australia, and announcing the June 2026 closure of Broekhuizenvorst, Netherlands.
Manufacturing assets are shared across all and are not allocated by .
For information regarding our legal proceedings, see Note 14, Commitments, Contingencies, Guarantees, and Legal Proceedings, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of this Form 10-K.
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For information regarding our legal proceedings, see Note 14, Commitments, Contingencies, Guarantees, and Legal Proceedings, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of this Form 10-K.
Fiscal 2026 net sales rose 2% to $6.6B on 7% volume growth, but net income fell 19% to $290M as price/mix declines and International segment challenges pressured margins.
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Consolidated increased 2% to $6,612.3 million, driven by a 7% volume increase that was partially offset by a 6% decline in .
North America grew 3% on 9% volume growth from strong customer retention and contract wins, while International segment net sales rose 1% as FX gains and APAC/Latin America volume offset EMEA weakness.
declined 8% to $1,147.2 million, with North America Adjusted EBITDA up 3% to $1,142.3 million, while International Segment Adjusted EBITDA fell 55% to $114.7 million due to lower sales ex-FX, unfavorable , and higher manufacturing costs.
declined $38.9 million to $1,359.7 million, and fell $123.3 million, reflecting unfavorable and a $33.1 million charge for excess raw potato write-offs in the International .
Cash provided by operating activities increased $74.6 million to $942.9 million, driven by favorable changes, while fell $240.6 million to $410.1 million as major growth projects were completed.
For fiscal 2027, the company expects low single-digit sales volume growth, a low single-digit decline in , and flat to up slightly on a comparable weeks basis, with earnings growth outpacing sales growth.
KPMG issued an unqualified opinion on Lamb Weston's FY2026 financials and internal controls, noting a critical audit matter over third-party finished goods inventory.
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fell to $290.0 million in fiscal 2026 from $357.2 million in fiscal 2025, with declining to $2.08 from $2.50.
The company recorded $111.6 million in pre-tax charges for its Cost Savings Program and Restructuring Plan, including $53.1 million for asset retirements and plant charges.
Finished goods of $704.2 million, mostly held at third-party warehouses, was identified as a due to reliance on manual and automated tracking processes.
increased to $1,130.1 million, driven by $39.9 million in foreign currency translation adjustments, and no was recognized after annual testing.
The company terminated its U.S. , resulting in a $14.2 million pre-tax non-cash settlement charge and full liquidation of plan assets.
Subsequent to year-end, the Board approved closing a Netherlands facility, expecting $80–$110 million in pre-tax charges primarily in fiscal 2027.