Key Highlights

● First-quarter fiscal 2027 net sales rose 0.7 per cent to $1,670.3 million.

● North America segment adjusted EBITDA increased 11 per cent to $287.3 million.

● International segment adjusted EBITDA dropped 54 per cent to $26.5 million.

● Full-year adjusted EBITDA guidance was raised to $1.125 billion to $1.215 billion.

Lamb Weston Holdings (NYSE:LW) reported fiscal 2027 first-quarter results on 6 October 2026, covering the thirteen weeks ended 30 August. Net sales were $1,670.3 million, up 0.7 per cent from $1,659.3 million, as volume rose 2.2 per cent, price and mix fell 1.8 per cent and currency added 0.3 per cent. Net income fell to $29.1 million, or $0.21 per diluted share, from $64.3 million, while adjusted diluted earnings per share edged up to $0.75 from $0.74. Adjusted EBITDA was $285.6 million, compared with $302.2 million a year earlier. The reported and adjusted figures diverge because the company excludes items such as restructuring and cost savings programme expenses, which were $104.0 million for the whole of fiscal 2026, so readers should compare both sets of numbers.

North America steadies while International struggles

The segment split is the central story. North America net sales rose 5.2 per cent to $1,141.4 million on volume growth of 6.7 per cent, and segment adjusted EBITDA increased 11 per cent to $287.3 million. International net sales fell 8.0 per cent to $528.9 million, with volume down 6.4 per cent, and segment adjusted EBITDA dropped 54 per cent to $26.5 million. In its July full-year release, the company had linked weaker International earnings to the Middle East conflict and competitive pressure in Europe, the Middle East and Africa, and it recorded a $33.1 million pre-tax charge for potato write-offs in that segment. Price and mix declined in both segments, which in our reading points to a competitive pricing environment. Management's cost savings programme is targeting at least $250 million of annualised run-rate savings by the end of fiscal 2028, having exceeded a $100 million milestone in fiscal 2026.

Outlook, cash flow and balance sheet

Lamb Weston raised its fiscal 2027 guidance. Adjusted EBITDA is now expected at $1.125 billion to $1.215 billion, from $1.10 billion to $1.20 billion, and adjusted diluted earnings per share at $3.05 to $3.35, from $2.95 to $3.25. Net sales are now expected to grow by a low single-digit percentage, against an earlier range of zero to one per cent. Cash capital expenditure guidance is unchanged at $380 million to $410 million, and net cash from operating activities is guided at $750 million to $800 million. These are management projections rather than certainties. In the quarter, operating cash flow was $234.8 million, down from $352.0 million, and capital expenditure was about $91 million. Cash stood at $166.3 million, with $1.24 billion of revolver availability. Debt comprised $279.3 million of short-term borrowings, $70.8 million current portion of long-term debt and financing obligations, and $3,578.5 million of long-term debt and financing obligations. The release does not state a leverage ratio.

A Two-Speed Business Heading Into Fiscal 2027

Lamb Weston's North America business is steadying, with volume and segment earnings both moving higher, but International remains the drag, hurt by Middle East-linked disruption, European competitive pressure and a potato write-off charge. The raised guidance assumes that trend holds while the company's cost savings programme, which has already topped $100 million of annualised run-rate savings, continues toward its $250 million target by the end of fiscal 2028.