Lamb Weston has taken its shuttered Connell plant off the market and plans to invest millions in its Pasco plant as it starts a new fiscal year with some signs of improving fortunes.

The Eagle, Idaho-based  french fry and frozen potato products manufacturer released its first quarter results on Sept. 30. While it continued to see some declines compared to the first quarter of the 2025 fiscal year, net sales were up slightly, as was adjusted income from operations and earnings before other costs.  

Leaders at the international french fry maker also noted that capital construction expenses are down as the company has finished projects within and outside the U.S. However, the company has decided to invest more money into one of its Tri-City facilities, while leaving more questions about the future of its shuttered plant in Connell.

Lamb Weston is pursuing an upgrade of its wastewater treatment infrastructure at its processing plant north of Pasco on Glade Road. That project is estimated to cost $6.4 million and is being completed by Spokane-based Garco Construction Inc. Those improvements will not create any additional jobs at the facility, the company said in a statement.

Lamb Weston is one of the Tri-Cities’ largest employers, with about 2,600 employees working in its processing facilities and administrative offices, according to 2024 data in the Tri-Cities Area Journal of Business’ Book of Lists. 

The company cited inflation and “supply and demand imbalance” as reasons for the Connell processing facility’s closure last fall and laying off roughly 375 workers. Lamb Weston announced plans in the summer to cut roughly 400 more jobs across its global workforce.

Though the company confirmed it has taken the Connell plant off the market, it did not specify what is planned for it.

“We’ve determined that a sale of that facility is not in the best interest of our business at this time. We will continue to complete our strategic review of other options,” the company said in a recent earnings call.

When the facility closed last fall, Lamb Weston announced it planned to demolish it, even receiving the permits necessary for that work. But the company instead listed the property for sale, reportedly for $30 million. 

Lamb Weston’s first quarter results indicated net sales increased by $5.2 million for the first quarter of the 2026 fiscal year compared to the prior year’s quarter. Adjusted income from operations came in at $206.5 million, a 5% gain. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $302.2 million, up 1%. 

The improvements came despite further weakening of Lamb Weston’s North American market, which declined slightly compared to the same quarter in the prior year. That decline was countered by increased demand for its products from international customers. 

The first quarter results led the company to affirm its outlook for the rest of the fiscal year, with net sales of between $6.35 billion to $6.55 billion and EBITDA of $1 billion to $1.2 billion. 

“The Lamb Weston team delivered a strong start to the fiscal year with solid volume growth and positive customer momentum, underscoring the strength of our value proposition and our operating model,” said Mike Smith, Lamb Weston president and CEO, in a statement. “We believe our sharpened executional focus and strategic plans behind our Focus to Win strategy are beginning to deliver and position us to drive long-term growth and sustainable value for our shareholders.”