Lamb Weston (LW) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net sales rose 0.7% to $1,670.3M; North America growth offset weaker International results, while adjusted EBITDA declined 5%.

• Results exceeded expectations, and FY27 net sales, adjusted diluted EPS and adjusted EBITDA guidance increased.

Financial highlights

• Sales volume increased 2.2%, while price/mix declined 1.8%; favorable FX contributed 0.3%.

• Adjusted diluted EPS rose 1% to $0.75; adjusted EBITDA fell 5% to $285.6M from $302.2M.

• Reported net income was $29.1M versus $64.3M, and diluted EPS was $0.21 versus $0.46; adjusted net income was flat at $102.9M.

• Adjusted gross profit declined to $316.8M from $338.9M, reflecting price/mix and manufacturing-cost pressure.

Outlook and guidance

• FY27 net sales outlook increased to low-single-digit growth from 0.0%–1.0%; adjusted EBITDA guidance rose to $1.125B–$1.215B from $1.10B–$1.20B.

• Adjusted diluted EPS guidance increased to $3.05–$3.35 from $2.95–$3.25; adjusted income from operations outlook is $730M–$810M.

• FY27 cash from operating activities is expected at $750M–$800M; cash capex at $380M–$410M and accrual-basis capex at $330M–$350M.

• FY27 interest expense is forecast at $185M–$190M and adjusted tax rate at 25.0%–27.0%; Q2 sales are expected up low single digits and adjusted EBITDA up high single digits to low double digits.