Lamb Weston (LW) Q4 2026 earnings summary

Executive summary

• Achieved meaningful progress in fiscal 2026, rebuilding credibility with customers and investors, and delivering on financial targets and key milestones, with strong North America performance offsetting international headwinds.

• Significant cost savings, improved capital discipline, and increased returns to shareholders, supported by leadership changes and a focus on operational excellence.

• Advanced strategic initiatives including supply chain optimization, innovation, and strengthening customer partnerships.

Financial highlights

• Fiscal 2026 net sales rose 2% year-over-year to $6,612 million, with North America up 3% and International up 1%, both benefiting from an extra week.

• Adjusted EBITDA for fiscal 2026 was $1,147 million, down 9% year-over-year, with North America gains offset by international declines.

• Free cash flow increased to $537 million; capital expenditures reduced by over $240 million to $410 million.

• Returned $321 million to shareholders via dividends and buybacks in fiscal 2026.

Outlook and guidance

• Fiscal 2027 net sales expected to be flat to up 1% ($6.5–$6.6 billion), with adjusted EBITDA of $1.1–$1.2 billion and adjusted diluted EPS of $2.95–$3.25.

• Adjusted operating income targeted at $720–$800 million; capital expenditures projected at $380–$410 million.

• Operating cash flow expected at $750–$800 million; SG&A to decline due to ongoing cost savings.

• North America expected to see low single-digit sales and volume growth; international EBITDA to improve 40–50% as one-time charges lapse.