Lamb Weston Holdings, Inc. (LW) Q1 FY2027 earnings

Reported results

• Net Sales increased 1% to $1.67 billion, driven by 2% increase in sales volume, partially offset by 2% decrease in price/mix (GAAP and as reported)
• Net Income decreased 55% to $29 million; Adjusted Net Income (non-GAAP) remained flat at $103 million
• Adjusted EBITDA (non-GAAP) decreased 5% to $286 million
• Diluted EPS was $0.21; Adjusted Diluted EPS (non-GAAP) increased 1% to $0.75
• North America Segment net sales increased 5% to $1,141.4 million with Segment Adjusted EBITDA (non-GAAP) up 11% to $287.3 million
• International Segment net sales declined 8% to $528.9 million with Segment Adjusted EBITDA (non-GAAP) down 54% to $26.5 million

Guidance

• Full-year fiscal 2027 Adjusted EBITDA (non-GAAP) updated to $1.125 billion to $1.215 billion (prior: $1.10 to $1.20 billion)
• Full-year fiscal 2027 Adjusted Diluted EPS (non-GAAP) updated to $3.05 to $3.35 (prior: $2.95 to $3.25)
• Full-year fiscal 2027 net sales guidance updated to ‘up low single digits’ (prior: 0.0% to 1.0%)
• Full-year fiscal 2027 Adjusted Income from Operations (non-GAAP) updated to $730 million to $810 million
• Full-year fiscal 2027 Interest expense, net updated to approximately $185 million to $190 million
• Full-year fiscal 2027 adjusted effective tax rate (non-GAAP) updated to approximately 25.0% to 27.0%
• Capital expenditures (cash basis) expected $380 to $410 million; accrual basis approximately $330 to $350 million
• Diluted outstanding common shares expected in the range of 137.5 million to 139.0 million
• Net cash provided by operating activities expected $750 million to $800 million

Notes

The release includes significant non-GAAP adjustments including unrealized derivative gains/losses, foreign currency exchange gains/losses, stock-based compensation, Cost Savings Program and Restructuring expenses, and legal proceedings accruals. Prior year comparisons include pension settlement charges ($13.1 million after-tax) and shareholder activism expenses ($4.0 million). The company also reports that Segment Adjusted EBITDA includes equity method investment earnings from its 50% equity interest in Lamb Weston/RDO Frozen joint venture.

Price and volatility reaction

The stock moved +7.5% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -15.9 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-06 (8-K, Item 2.02). Read the original filing on sec.gov.