Lamb Weston Holdings (NYSE:LW) today reported its second-quarter fiscal 2026 results, highlighting a net sales increase of $17.2 million, reaching $1,618.1 million, compared to the prior-year quarter.
The increase was partially offset by an 8% decline in price/mix, with volume growth of 8% driven by customer wins, share gains, and retention, particularly in North America and Asia.
The sales performance was further supported by a favorable foreign currency impact of $24.4 million.
At constant currency, net sales were essentially flat.
The company’s gross profit increased by $46.5 million, totaling $324.3 million, but adjusted gross profit decreased by $15.6 million to $327.9 million, primarily due to the negative price/mix.
Elsewhere, Lamb Weston saw a reduction in total manufacturing cost per pound, thanks to cost-saving initiatives and improved operational efficiencies in the North America segment.
These savings helped offset inflationary pressures in key input categories and higher manufacturing costs in the International segment.
Additionally, selling, general, and administrative expenses (SG&A) fell by $13.7 million to $171 million, while adjusted SG&A dropped by $7.8 million to $145.1 million, reflecting ongoing cost-saving measures, despite higher compensation and benefits accruals.
During the period under review, Lamb Weston posted a net income of $62.1 million, reversing a net loss of $36.1 million from the prior year.
The company also reported diluted EPS of $0.44, compared to a diluted loss per share of $0.25 in the prior year quarter.
The company’s adjusted EBITDA for the quarter decreased by $8.5 million to $285.7 million, as lower adjusted gross profit and adjusted equity method investment earnings were only partially offset by reduced SG&A costs.