Lamb Weston Holdings (NYSE:LW) announced its financial results for the third quarter of fiscal 2026 on Wednesday, April 1, 2026.
Net sales for the quarter rose by $44.3 million to $1,564.8 million, a performance bolstered by a favorable foreign currency impact of $47.4 million.
On a constant currency basis, sales remained essentially flat.
A healthy 7% increase in volume, driven by significant customer wins and strong retention in North America, was neutralized by a 7% decline in price/mix.
This pricing shift reflects increased trade support and a consumer transition toward value-oriented channels, particularly within large chain accounts that typically command lower price points.
Profitability encountered headwinds during the period, with gross profit declining to $331.6 million.
Adjusted Gross Profit stood at $327.5 million, impacted significantly by a $32.5 million pre-tax charge for the write-off of excess raw potatoes in the International segment.
This write-off was necessitated by lower-than-anticipated sales volumes in the EMEA region.
Manufacturing costs also trended higher due to inflationary pressures and fixed factory burdens at underutilized international facilities, though these were partially mitigated by cost-saving initiatives and improved efficiencies in North America.
On the bottom line, net income declined to $54 million, with diluted EPS at $0.39.
Adjusted net income was reported at $100 million, or $0.72 per adjusted diluted share, down from $1.15 in the prior-year quarter.
Adjusted EBITDA followed a similar trajectory, declining to $271.7 million, reflecting the compressed margins and higher adjusted SG&A expenses, which included $12.7 million in write-offs from discontinued development projects.