Lamb Weston Holdings, Inc. · NYSE:LW
Lamb Weston — Q4 2025 Earnings Presentation
33 slides from Lamb Weston's earnings presentation, Jul 23, 2025
Slide 1: Lamb Weston Fiscal Q4 and Full Year 2025 Earnings
Lamb Weston Fiscal Q4 and Full Year 2025 Earnings July 23, 2025 1 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary
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,” “execute,” “support,” “drive,” “deliver,” “create,” “unlock,” “enhance,” “build,” “implement,” “remain,” “focus,” “win,” “will,
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
Slide 4: Key Messages
Key Messages FY25 Was a Year of Substantial Change For Lamb Weston Acting with Urgency to Capitalize on Opportunities Seeing Results from Efforts to Build Momentum With Customers Controlling What We Can Control Readying Customer Centric Organization to Accelerate Performance When Restaurant Traffic
Slide 5: Building Customer Momentum
5 Building Customer Momentum Ended the year with momentum in customer wins and retention Results ahead of updated expectations Lamb Weston team executing at a high level Ongoing support for customers combined with our long-standing commitment to quality, service and innovation, are driving success w
Slide 6: Fourth Quarter F25 Highlights
Q4 F25 GAAP Adjusted Fourth Quarter F25 $1,676M Highlights Net Sales +4% Continued momentum in customer Income from $186M $188M wins and retention Operations (13)% (2)% Volume up 8% $120M $123M Net Income (7)% +8% Price/mix down 4% $0.85 $0.87 Inventory down $100M – 8-day year Diluted EPS (5)% +12%
Slide 7: Full Year 2025 Highlights
FY25 GAAP Adjusted Full Year 2025 Highlights $6,451M Volume up 2% despite consumer pressure and Net Sales -% soft restaurant traffic headwinds Fully replaced combined regional, small, and retail customer volume lost in prior year ERP transition Income from $665M $817M Operations (38)% (25)% Price/mi
Slide 8: Driving Change with Urgency: January to Today
Driving Change with Urgency: January to Today ASSESS PLAN EXECUTE End-to-end review of Lamb Create strategic plan to drive Execute strategic actions to Weston’s markets and decision-making and actions unlock near- and long-term capabilities • Assess and prioritize markets, value • Process aided by 3
Slide 9: Evolving Market Dynamics
Evolving Market Dynamics Evolution of Consumer High Growth in Supply / Demand Behavior Lower Margin Markets Continued rise of the middle class Capacity announced in Europe Food delivery apps have changed in emerging markets is driving and Asia following tight market dining dynamics demand conditions
Slide 10: Our Strategic Framework: Focus to Win
Our Strategic Framework: Focus to Win WHERE TO PLAY HOW TO WIN Focusing Resources and Efforts on Lining up the capabilities to win in the Most Attractive Growth those markets through stronger Opportunities Across Markets, customer relationships, execution Channels and Product Segments excellence, an
Slide 11: Focus to Win: A Reinforcing Cycle to Drive Growth & Margin
Focus to Win: A Reinforcing Cycle to Drive Growth & Margin We will maximize profitable growth through focused investments in priority global Strengthen markets and segments. Customer Partnerships We'll invigorate what our team does better than Prioritize Achieve anyone else – serving as Markets & Ex
Slide 12: Focus to Win: Focusing Where We Can Differentiate and Lead
Focus to Win: Focusing Where We Can Differentiate and Lead Where we’ll play Geographies Channel Products In Locations with Strong Meeting Partners Innovative Solutions Profitability, Growth Who Particularly Value That Set Us Apart Strengthen Potential, and Market Our Strengths and Drive Market Custo
Slide 13: Transforming How We Operate & Deliver
Focus to Win: Transforming How We Operate & Deliver How we’ll win Strengthen Customer Our Actions: • Extend top-tier partnerships Partnerships • Enhance sales go-to-market and incentives • Expand consumer insights and analytics outside North America • Strengthen functional connectivity with customer
Slide 14: Focus to Win: Lowering the Cost Base for Competitive Advantage
Focus to Win: Lowering the Cost Base for Competitive Advantage Focus to Win 2025 Restructuring Cost Savings Program Working Capital Plan $85M At least $250M $120M in targeted annualized run rate By fiscal year end 2027 compared expected cost savings by year end savings by fiscal year end 2028 fiscal
Slide 15: Focus to Win: Controlling the Controllables
Focus to Win: Controlling the Controllables Streamline organization – aligning resources and assets with the right markets, customers and products Strengthen Customer Implement Zero Based Partnerships Budgeting discipline to reset our cost base Prioritize Achieve Executional Achieve Excellence throu
Slide 16: Measuring Success: Financials & Outlook
Measuring Success Financials & Outlook 16 ©2025 Lamb Weston, Inc. All Rights Reserved
Slide 17: Q4'25 vs. Q4'24 Net Sales
Q4’25 vs. Q4’24 Net Sales Total LW +4% Volume +8% Price/Mix (4)% North America (1)% Volume +4%: Customer wins, partially offset by low single-digit YOY declines in $1,676M restaurant traffic in the fiscal quarter $1,612M Price/Mix (5)%: Supporting customers and trade in an increasingly competitive m
Slide 18: Q4'25 vs. Q4'24 Adjusted EBITDA
Adjusted EBITDA +$1.5M Q4’25 vs. Q4’24 Adjusted EBITDA Adjusted Gross Profit declined $19M Unfavorable price/mix due primarily to supporting customers and trade investments $283M1 ($19M) $12M $285M1 $16M Higher sales volume ($7M) Favorable manufacturing costs Lapped ~$40M voluntary product withdrawa
Slide 19: Q4'25 vs. Q4'24 Adjusted EBITDA By Segment
Q4’25 vs. Q4’24 Adjusted EBITDA By Segment Adjusted EBITDA +$1.5M North America segment $285M1 Adjusted EBITDA -7% or $19M $283M1 $22M ($2M) ($19M) Supporting customers and trade $17M incremental fixed factory burden Partially offset by lapping $19M voluntary product withdrawal charge and lower SG&A
Slide 20: Liquidity, Leverage and Cash Flow
Liquidity, Leverage and Cash Flow FY25 Liquidity1 Leverage1 Returned $489M to Cash Flow shareholders: • $207M in dividends • $282M of share repurchases Reduced Capital Intensity with ~$868M net cash expansion projects near ~$71M cash and ~$4.1B net debt2 provided by completion equivalents 3.3X Net D
Slide 21: Capital Expenditures: Shifting From Growth Investments
Capital Expenditures: Shifting From Growth Investments Capital Expenditures1 Capital Expenditures as % Net Sales 15.1% ~$500M reduction 13.8% 974 forecasted by FY26 vs. 10.1% FY24 736 9.1% 9.0% 8.9% 651 7.5% 7.7% 500 5.5% Maintenance CapEx 287 307 334 306 4.4% level ~3% revenue $ millions 208 161 20
Slide 22: Returning Cash to Shareholders
Returning Cash to Shareholders Fiscal 2025 Returned $489M to Shareholders Share Repurchases Cumulative Cash Returned to Shareholders ($ in millions) Repurchased $100M during Q4 FY251 $1.9B Repurchased $282M in FY251 $768 $358M remains available under the plan Opportunistic repurchases based on avail
Slide 23: Potato Crop Update
Potato Crop Update Balance of the 2024 raw storage crop is holding well North America Contract negotiations for the 2025 crop are complete Mid-single digit raw potato percent price decline, beginning during Q2 Started harvesting and processing early potato varieties Early varieties slightly above hi
Slide 24: Fiscal 2026 Outlook
Fiscal 2026 Outlook FY 2026 OUTLOOK Additional Guidance Items: Net Sales $6.35B - $6.55B • Interest Expense ~$190M • Depreciation & Amortization ~$390M Adjusted $1.0B- $1.2B • FY Tax Rate ~26% EBITDA* • 1H High 20s • 2H Low 20s driven by expected Q4 discrete item timing • Guidance does not include a
Slide 25: FY'26 Adjusted EBITDA Outlook Bridge
FY’26 Adjusted EBITDA In FY26, we are implementing changes in our reporting of Adjusted SG&A and Adjusted Outlook Bridge EBITDA to exclude share-based compensation expense • In FY25, stock compensation expense was $40M FY26 Adjusted EBITDA Outlook • $1B to $1.2B, including the reporting $1.2B $40M $
Slide 26: Focus to Win
6 Focus to Win We will maximize profitable growth through focused investments in priority global markets and segments. We’ll focus on the value-added, high-margin areas where we can stand apart. We'll invigorate what our team does better than anyone else – serving as customers' #1 partner, a world-c
Slide 27: Q&A
Q&A 27 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary
Slide 28: Appendix
APPENDIX 28
Slide 29: GAAP to Non-GAAP reconciliation for the thirteen weeks ended May 25, 2025
GAAP to Non-GAAP reconciliation for the thirteen weeks ended May 25, 2025 and May 26, 2024 29 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary
Slide 30: GAAP to Non-GAAP reconciliation for the fifty-two weeks ended May 25, 2025
GAAP to Non-GAAP reconciliation for the fifty-two weeks ended May 25, 2025 and May 26, 2024 30 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary
Slide 31: GAAP to Non-GAAP Adjusted EBITDA reconciliation, thirteen and fifty-two weeks
GAAP to Non-GAAP Adjusted EBITDA reconciliation for the thirteen and fifty-two weeks ended May 25, 2025 and May 26, 2024 31 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary
Slide 32: Adjusted EBITDA reconciliation footnotes
GAAP to Non-GAAP Adjusted EBITDA reconciliation for the thirteen and fifty-two weeks ended May 25, 2025 and May 26, 2024, footnotes 32 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary
Slide 33: GAAP to Non-GAAP reconciliation leverage ratio
GAAP to Non-GAAP reconciliation leverage ratio 33 | © 2025 Lamb Weston. All Rights Reserved. Lamb Weston, Inc. Proprietary