LW Lamb Weston Holdings, Inc. - 8-K

Item 2.05. Costs Associated With Exit or Disposal Activities

On June 1, 2026, the Board of Directors of Lamb Weston Holdings, Inc. committed to a plan to close our manufacturing facility in Broekhuizenvorst, the Netherlands. In accordance with Dutch regulations, we will initiate a formal consultation process with the related Works Council. The contemplated closure is intended to improve operational efficiency and better align our global manufacturing footprint with customer needs.

In connection with the planned facility closure, we expect to incur total pre-tax charges of approximately $80 million to $110 million, substantially all of which are expected to be recognized in our fiscal year ending May 30, 2027. We estimate at least 20% of these charges will result in future cash expenditures. The charges primarily relate to the write-down of long-lived assets and inventory, employee severance and other one-time termination benefits, and other related costs.

Forward Looking Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of the federal securities laws. Words such as “plan,” “will,” “intend,” "improve," “align,” “expect,” “estimate,” and variations of such words and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include statements regarding our plans and strategies and anticipated benefits therefrom, including with respect to the planned facility closure. These forward-looking statements are based on management’s current expectations and are subject to uncertainties and changes in circumstances. Readers of this report should understand that these statements are not guarantees of performance or results. Many factors could affect these forward-looking statements and actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements. These risks and uncertainties include, among other things: our ability to successfully implement the facility closure, including consultation with the Works Council, achieving the benefits of the closure and possible changes in the size and timing of related charges; operational challenges; levels of labor and people-related expenses; our ability to successfully execute our strategies, including our Focus to Win strategy; the competitive environment and related conditions in the markets in which we operate; political and economic conditions in the countries in which we conduct business and other factors related to our international operations; and other risks described in our reports filed from time to time with the Securities and Exchange Commission. We caution readers not to place undue reliance on any forward-looking statements included in this report, which speak only as of the date of this report. We undertake no responsibility for updating these statements, except as required by law.