Lamb Weston Shines in Q3: Rebuilding Momentum, Unlocking Value
Despite a challenging macroeconomic environment, Lamb Weston has demonstrated resilience in its third quarter 2025 performance. In a conference call with investors and analysts on April 3, 2025, the company's President and CEO, Mike Smith, presented an upbeat outlook for the business.
"I know this industry and this business," said Mr. Smith. "I recognize our recent challenges and understand our future risks and opportunities." He emphasized that Lamb Weston is committed to driving growth and shareholder value by amplifying efforts with customers, engaging in a value creation plan, and defining the right go-forward strategy.
Under his leadership since taking over three months ago, the company has been working on an end-to-end value creation plan. This includes over 30 projects underway this fiscal year to deliver quick wins as part of a savings pipeline across multiple years. For example, in logistics, they are rightsizing transportation modes and optimizing railcar loading.
Mr. Smith highlighted that these efforts will be on top of the previously announced restructuring plan where Lamb Weston remains on track to deliver at least $55 million of pretax savings in fiscal 2025 and $85 million of pretax savings in fiscal 2026. The company's focus is on unlocking value both in the near term and long term.
On Slide 6, the conference call presentation showed that Lamb Weston grew volume by 9% in the third quarter, rebuilt after the transition to a new ERP in the prior year, increased net sales by 4%, and grew adjusted EBITDA by 6%. Despite these positive results, all indications are that consumers remain stretched, concerned about the economy, and looking for value.
Turning to Slide 7, Mr. Smith emphasized that Lamb Weston's improved engagement with customers has enabled them to expand and retain existing customers while pursuing new business. They have seen success across channels, including a recent partnership with a large growing QSR that will complete a national rollout of their product during the remainder of calendar 2025 and into early calendar 2026.
The company's progress in rebuilding momentum and unlocking value has been notable. As Mike Smith said, "Everything is on the table, and we are moving with urgency." This commitment to change and innovation is expected to drive growth and shareholder value for Lamb Weston in the coming quarters.
