Lamb Weston Holdings Inc. (NYSE:LW) saw its stock rise 6% after surpassing expectations for the fourth quarter and unveiling an ambitious strategy to achieve at least $250 million in savings.
The company posted adjusted earnings of $0.87 per share for its fiscal Q4, well above analyst estimates of $0.64. Revenue grew 4% year-over-year to $1.68 billion, beating the consensus estimate of $1.59 billion. This top-line growth was fueled by an 8% volume increase, partially offset by a 4% decline in price and mix.
Lamb Weston introduced its “Focus to Win” strategic initiative, targeting a minimum of $250 million in savings by the close of fiscal 2028. This includes $200 million in annualized run-rate savings and $120 million in working capital improvements by fiscal 2027. The plan also involves cutting about 4% of the company’s global workforce.
“We are announcing further steps to deliver at least $250 million of savings,” said Mike Smith, president and CEO of Lamb Weston. “We expect that these cost savings and working capital improvements together with lower levels of capital expenditures will help drive improved profitability and cash flow.”
For fiscal 2026, Lamb Weston projects revenue between $6.35 billion and $6.55 billion, aligning with analyst expectations of $6.36 billion. The company forecasts adjusted EBITDA in the range of $1.0 billion to $1.2 billion.
During fiscal 2025, Lamb Weston returned $488.9 million to shareholders, including $206.9 million in dividends and $282 million in stock buybacks. The board also declared a quarterly dividend of $0.37 per share, payable August 29.
Lamb Weston Holdings stock price
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