Shares of Lamb Weston Holdings, Inc. (NYSE: LW) jumped 9% on Thursday after the corporate delivered better-than-expected outcomes for the third quarter of 2025 and reaffirmed its outlook for the total yr. It additionally continues to generate price financial savings from the restructuring plan it launched final yr. Listed here are a few of the primary takeaways from the earnings report:
Income and earnings beat expectations
In Q3 2025, Lamb Weston’s web gross sales grew 4% year-over-year to $1.52 billion, beating estimates of $1.50 billion. Quantity grew 9%, helped by the alternative of misplaced buyer quantity and up to date buyer contract wins. GAAP earnings per share rose 2% to $1.03 within the quarter. Adjusted EPS decreased 8% YoY to $1.10 however managed to surpass projections of $0.87.
Progress throughout segments
In Q3, Lamb Weston achieved gross sales and quantity development in each its enterprise segments. The North America phase noticed gross sales improve 4% YoY to $986.3 million. Quantity on this phase elevated 8% as the corporate changed misplaced buyer quantity and received buyer contracts throughout every of its channels.
Gross sales for the Worldwide phase rose 5% YoY to $534.2 million. Volumes rose 12%, led primarily by chain buyer contract wins in key worldwide markets. The amount positive factors have been partly offset by impacts from the corporate’s exit from sure low-price, low-margin enterprise in Europe final yr.
Throughout the quarter, LW’s quantity positive factors have been partly offset by softness in restaurant visitors, which the frozen potato merchandise maker expects will proceed to be a headwind.
Reaffirms outlook
Lamb Weston reaffirmed its outlook for fiscal yr 2025. The corporate expects web gross sales to vary between $6.35-6.45 billion and adjusted EPS to vary between $3.05-3.20 for the yr.
