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.
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