Lamb Weston Holdings Inc (LW)
Pretax margin
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 485,100 | 955,500 | 955,500 | 1,233,500 | 1,233,500 |
| Revenue | US$ in thousands | 6,451,300 | 6,467,600 | 6,461,700 | 5,350,600 | 5,371,000 |
| Pretax margin | 7.52% | 14.77% | 14.79% | 23.05% | 22.97% |
May 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $485,100K ÷ $6,451,300K
= 7.52%
The pretax margin of Lamb Weston Holdings Inc. exhibits significant variability over the reported periods. As of May 28, 2023, the pretax margin stood at approximately 22.97%, increasing slightly to 23.05% by May 31, 2023, indicating stable profitability before taxes during this timeframe. However, a notable decline is observed by May 26, 2024, when the pretax margin decreased markedly to 14.79%, and further marginally declined to 14.77% on May 31, 2024. This sustained reduction suggests a decrease in pre-tax profitability relative to revenue, potentially reflecting increased costs, decreased revenues, or a combination of both. The trend continues into the subsequent period, with the pretax margin declining sharply to 7.52% by May 31, 2025, indicating a substantial erosion of profitability before taxes. This downward trajectory over the analyzed periods highlights a significant deterioration in the company's pretax profitability, warranting further investigation into underlying operational, market, or cost factors contributing to this decline.
Peer comparison
May 31, 2025