Lamb Weston (LW) Fiscal Q1 2027 Earnings Call: Guidance Raised on North America Growth
Source Tradingkey
Key takeaways
- Lamb Weston (NYSE: LW) reported fiscal Q1 2027 net sales of $1.67 billion, up 1% year over year. Sales volume increased 2%, partly offset by a 1.8% decline in price/mix.
- Adjusted diluted EPS rose 1% to $0.75. Adjusted EBITDA declined 5% to $286 million, mainly due to carry-in costs from the prior European potato crop, but finished above the company’s expectations.
- North America net sales increased 5% as volume grew 7%, marking the segment’s seventh consecutive quarter of volume growth. North America adjusted EBITDA increased 11%.
- International net sales declined 8%, reflecting a 6% volume decline and a 2% price/mix decline. Segment adjusted EBITDA fell to $27 million amid lower European volume and higher potato costs.
- Management raised its fiscal 2027 outlook to low-single-digit net sales growth, adjusted EPS of $3.05-$3.35 and adjusted EBITDA of $1.125-$1.215 billion.
- European potato supply is expected to tighten after heat and dry conditions reduced crop quality and yields. Management estimates regional tonnage is down about 15%-20% and has implemented a European price increase.
Key financial data
| Metric | Fiscal Q1 2027 | Year-over-year change / context |
|---|---|---|
| Net sales | $1.67 billion | Up 1% |
| Sales volume | — | Up 2% |
| Price/mix | — | Down 1.8% |
| Adjusted diluted EPS | $0.75 | Up 1% |
| Adjusted EBITDA | $286 million | Down 5% |
| North America net sales | — | Up 5% |
| North America volume | — | Up 7% |
| North America adjusted EBITDA | — | Up 11% |
| International net sales | — | Down 8% |
| International adjusted EBITDA | $27 million | Declined year over year |
| Cash provided by operations | $235 million | Down year over year |
| Capital expenditures | $91 million | In line with management’s expectations |
| Free cash flow | $144 million | — |
| Net debt | $3.8 billion | 3.3x trailing adjusted EBITDA |
Business and operating performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
USD/JPY remains under pressure as the Japanese yen strengthens ahead of another potentially important Bank of Japan policy decision. The pair has fallen toward the mid-155 region after breaking below
Temasek’s investment chief called an artificial intelligence (AI) trade unwind the biggest risk facing global markets. Yet, the firm still plans to more than double its AI allocation by 2031.Rohit Sip
Bitcoin (BTC) price trades near $82,300, still up about 28% over three months after this week’s drop.A hidden momentum signal on the daily chart suggests the uptrend can survive. The catch is that buy
The S&P 500 bull market turns 4 on Monday, up 119% to a record from its October 2022 low. Six past runs kept going after turning 4, though four bear markets later pushed the index below its birthday l
More than 1 in 5 US tax dollars now goes to interest on the national debt, while the 10-year Treasury yield sits near a 24-year high. That surge has yet to fully reach the federal budget.The Congressi
