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NEW YORK - Lamb Weston Holdings Inc . (NYSE:LW) shares jumped 6% after the potato products supplier beat fourth-quarter expectations and announced a comprehensive plan to deliver at least $250 million in savings.
The company reported adjusted earnings of $0.87 per share for its fiscal fourth quarter, significantly exceeding analyst estimates of $0.64. Revenue rose 4% YoY to $1.68 billion, surpassing the consensus forecast of $1.59 billion. The revenue growth was driven by an 8% increase in volume, partially offset by a 4% decline in price/mix.
Lamb Weston unveiled its "Focus to Win" strategic plan, which aims to deliver at least $250 million in savings by the end of fiscal 2028, including $200 million in annualized run rate savings and $120 million in working capital improvements by fiscal 2027. The plan includes reducing its global workforce by approximately 4%.
"We are announcing further steps to deliver at least $250 million of savings," said Mike Smith, Lamb Weston president and CEO. "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 forecasts revenue between $6.35 billion and $6.55 billion, in line with analyst expectations of $6.36 billion. The company expects adjusted EBITDA of $1.0 billion to $1.2 billion.
The company returned $488.9 million to shareholders in fiscal 2025, including $206.9 million in dividends and $282 million in share repurchases. Lamb Weston’s board declared a quarterly dividend of $0.37 per share, payable on August 29.
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