Lamb Weston Holdings Inc (NYSE:LW) stock plunges 24.76% (As on December 19, 11:47:44 AM UTC-4, Source: Google Finance) after the company posted a modest earnings beat for its fiscal second quarter, but reaffirmed full-year guidance in a way that left investors bracing for a tougher back half of the year. On a constant-currency basis, sales were flat, as solid 8% volume growth was outweighed by an 8% drop in price/mix. Volume growth was driven by customer wins, share gains and retention, particularly in North America and Asia. The decrease in price/mix reflects continued customer support through pricing and trade actions, including the carryover impact of fiscal 2025 pricing, within a highly competitive global market environment. Adjusted gross profit fell $15.6 million from the prior year, landing at $327.9 million, with weaker price/mix serving as the main drag. The company ended the quarter with cash and cash equivalents of $82.7 million, long-term debt and financing obligations (excluding the current portion) of $3,648.9 million and total shareholders’ equity of $1,754.4 million. The company generated $530.4 million as net cash from operating activities for the 26 weeks ending Nov. 23, 2025, wherein capital expenditures amounted to $155.7 million.

Moreover, net sales for the North America segment, which covers customers in the United States, Canada and Mexico, were flat, reaching $1,069.5 million compared with the prior-year quarter. Volume rose 8%, driven by recent customer contract wins, share gains and broad-based growth across channels. Net sales for the International segment, which includes all customers outside North America, grew 4% to $548.6 million, including a favorable $22.6 million from foreign currency translation. International segment adjusted EBITDA decreased by $21.4 million to $27.2 million. The decrease was primarily caused by elevated manufacturing costs per pound, including increased fixed factory burden due to lower utilization of international production facilities and start-up costs associated with the new production facility in Argentina.

LW in the second quarter of FY26 has reported the adjusted earnings per share of 69 cents, beating the analysts’ estimates for the adjusted earnings per share of 67 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $1.62 billion in the second quarter of FY26, beating the analysts’ estimates for revenue of $1.59 billion. Adjusted EBITDA decreased $8.5 million year over year, reaching $285.7 million.

The company still expects net sales at constant currency in the range of $6.35 billion to $6.55 billion and adjusted EBITDA of $1.00 billion to $1.20 billion. Capital expenditures are expected to total approximately $500 million.