Lamb Weston Holdings, Inc. · NYSE:LW

Lamb Weston — Q3 2025 Earnings Presentation

24 slides from Lamb Weston's earnings presentation, Apr 3, 2025

  1. Slide 1: Lamb Weston Fiscal Q3 2025 Earnings

    Lamb Weston Fiscal Q3 2025 Earnings April 3, 2025 1 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary

  2. Slide 2: Forward-looking Statements

    Forward-looking Statements Important Notice This presentation contains forward-looking statements within the meaning of the federal securities laws. Words such as “expect,” “will,” “continue,” “win,” “reduce,” “drive,” “focus,” “increase,” “estimate,” “outlook,” “target,” “deliver,” “invest,” “suppo

  3. Slide 3: Today's Presenters

    Today’s Presenters Mike Smith Bernadette Madarieta President and Chief Executive Officer Chief Financial Officer 3 © 2025 Lamb Weston, Inc. All Rights Reserved

  4. Slide 4: Driving Change from a Strong Foundation

    Driving Change from a Strong Foundation NYSE: LW 75 years For 75 years, Lamb Weston has produced some of the world’s favorite foods—fries and other frozen potato products—for restaurants and consumers the world over. Leader in innovation, product quality, customer relationships and operations. 4 © 2

  5. Slide 5: Significant opportunities to win with customers, reduce complexity and cost

    Significant opportunities To Win with Customers, Reduce Complexity, and Cost Amplifying Efforts With Customers Cost Reduction CEO personally meeting with and hearing directly from customers Engaged AlixPartners A global advisory firm, specializing in business optimization and value creation Focus on

  6. Slide 6: Third Quarter FY25 Highlights

    Q3 F25 Third Quarter FY25 $1,521M Highlights Net Sales +4% Increased volume Fully replaced combined regional, small, and Income from $249M $263M retail customer volume lost in prior year ERP Operations 11% -% transition New customer contract wins, net of losses $146M $157M Driving operational and co

  7. Slide 7: Strategically Supporting Customers

    Strategically Supporting Customers • 7 7 ©| 2025 Lamb © 2025 Weston, Lamb Inc.All Weston. AllRights RightsReserved. Reserved. Lamb Weston, Inc. Proprietary

  8. Slide 8: Leader in Innovation

    Leader in Innovation North America – Away from Home Operator White Space International – Away from Home North America – Retail 8 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary

  9. Slide 9: Potato Crop Update

    Potato Crop Update North America Q3 F25: First quarter benefiting from previously negotiated lower raw prices 2025 crop negotiations nearly complete Expect mid-single digit decline in price Partially offset by input cost increases Largely secured targeted number of acres International Europe Negotia

  10. Slide 10: Q3'25 vs. Q3'24 Net Sales

    Total LW +4% Q3’25 vs. Q3’24 Net Sales Volume +9% Price/Mix (5)% North America +4% Volume +8%: Fully replaced the combined regional, small, and retail $1,521 customer volume lost in the prior year as we transitioned to a new ERP system; $1,458M recent customer contract wins across channels, net of v

  11. Slide 11: Q3'25 vs. Q3'24 Adjusted EBITDA

    Adjusted EBITDA +$20M Q3’25 vs. Q3’24 Adjusted EBITDA Higher sales volume and lower manufacturing costs per pound Recent customer and contract wins, net of volume losses Lower Adjusted SG&A $364M1 $344M1 Lapping $7M of ERP costs in prior year Execution of expense reduction initiatives Partially offs

  12. Slide 12: Liquidity, Leverage and Cash Flow

    Liquidity, Leverage and Cash Flow YTD F25 Adequate/Sufficient liquidity to Liquidity1 Leverage1 Cash Flow support the business YTD returned $337M to shareholders: $155M in dividends and $182M of share repurchases ~$68M cash and ~$485M net cash Net Debt to Adjusted EBITDA equivalents provided by rema

  13. Slide 13: Capital Expenditures: Shifting From Growth Investments

    Capital Expenditures: Shifting From Growth Investments Capital Expenditures Capital Expenditures as % Net Sales 11.8-11.6% of FY25 revenue guidance 992 13.8% 15.3% range 736 750 550 9.1% 9.0% 8.9% ~$450M reduction 5.5% 7.5% forecasted by YE F26 334 287 307 306 4.4% vs. YE F24 $ millions 208 161 2017

  14. Slide 14: Returning Cash to Shareholders

    Returning Cash to Shareholders Share Repurchases Cumulative Cash Returned to Shareholders ($ in millions) Repurchased $100M during Q3 FY25 1 $1.8B Repurchased $182M YTD in FY251 $458M remains available under the plan $668 Opportunistic repurchases based on available cash using a disciplined approach

  15. Slide 15: Reaffirmed FY 2025 Outlook

    Reaffirmed FY 2025 Outlook Net Sales FY 2025 On track to achieve full-year guidance % Growth Outlook Q4 underlying Assumptions: Net Sales • Volume growth in international $6.35B – $6.45B % Growth • Price and trade investments continue and carry forward • Seasonal cost of sales with Q4 costs per Adj.

  16. Slide 16: Focused on Unlocking Value

    Focused on Unlocking Value Lamb Weston is taking the necessary steps to unlock near- and long-term value and cost savings opportunities Despite challenging consumer environment, including soft restaurant traffic, replaced customer volume in third quarter and reaffirmed full-year financial outlook De

  17. Slide 17: Q&A

    Q&A 17 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary

  18. Slide 18: Appendix

    Appendix (1) Numbers may vary due to rounding. Lamb Weston, Inc. Proprietary

  19. Slide 19: GAAP to Non-GAAP reconciliation, thirteen weeks ended February 23, 2025

    GAAP to Non-GAAP reconciliation for the thirteen weeks ended February 23, 2025 and February 25, 2024 19 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary

  20. Slide 20: GAAP to Non-GAAP reconciliation, continued

    GAAP to Non-GAAP reconciliation for the thirteen weeks ended February 23, 2025 and February 25, 2024, continued 20 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary

  21. Slide 21: GAAP to Non-GAAP reconciliation, footnotes

    GAAP to Non-GAAP reconciliation for the thirteen weeks ended February 23, 2025 and February 25, 2024, footnotes 21 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary

  22. Slide 22: GAAP to Non-GAAP reconciliation for the last twelve months Adjusted EBITDA

    GAAP to Non-GAAP reconciliation for the last twelve months Adjusted EBITDA 22 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary

  23. Slide 23: Last twelve months Adjusted EBITDA, footnotes

    GAAP to Non-GAAP reconciliation for the last twelve months Adjusted EBITDA, footnotes 23 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary

  24. Slide 24: GAAP to Non-GAAP reconciliation leverage ratio

    GAAP to Non-GAAP reconciliation leverage ratio 24 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary

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