Lamb Weston reported a challenging QQ2 2025 with revenue of $1.6009 billion, down 7.6% year over year and 3.2% quarter over quarter, and GAAP net income of -$36.1 million (EPS -$0.25). Adjusted EBITDA was $282 million, down from the prior year, driven by a $135 million gross profit decline amid price/mix headwinds, higher input costs, unplanned downtime, and start-up costs associated with capacity expansions. Management framed the weaker quarter as part of a broader, near-term operating environment characterized by weak restaurant traffic and intensified competition, particularly outside North America, compounded by aggressive capacity additions by peers. In response, Lamb Weston is accelerating its cost-structure and capital-reduction initiatives, including a reduction in growth capex and a shift toward base/modernization/environmental capex, with the goal of improving free cash flow and enabling more flexible shareholder returns.\n\nGuidance was updated to reflect the softer year-to-date performance: net sales guidance for fiscal 2025 is reduced to $6.35B–$6.45B and adjusted EBITDA to $1.17B–$1.21B. The company maintains a leverage target of roughly 3.5x and reiterated an ongoing commitment to capital returns, including a recently increased share repurchase authorization and a raised quarterly dividend. Longer-term, management sees a normalization in EBITDA margins in the high-teens to around 20% as cost actions take effect and capacity utilization stabilizes. The earnings call emphasizes a transition in leadership (Mike Smith set to become CEO in January 2025) and a strategic pivot toward non-traditional fry opportunities and expanded total addressable market, while continuing to modernize the asset base and reinforce balance sheet fundamentals.