Lamb Weston Earnings Lift Fiscal 2027 Outlook

Lamb Weston Holdings (LW) reported fiscal first-quarter 2027 results and raised its fiscal 2027 outlook on Oct. 6, 2026. The company cited strong North American demand and cost-saving measures, and its board declared a quarterly dividend.

Fiscal First-Quarter Results and Raised Outlook

Lamb Weston reported net sales of approximately $1.67 billion, up about 1% year over year. Adjusted net income was $103 million, adjusted diluted earnings per share (EPS) was $0.75, and adjusted EBITDA, a proxy for operating profit, was $286 million, down about 5% from the prior year. Reported net income was roughly $29 million, or $0.21 per diluted share, compared with about $64 million, or $0.46 per share, a year earlier. “We are off to a solid start to the year, delivering first quarter net sales and profit above our expectations,” Chief Executive Mike Smith said in the company release.

Quarterly sales volume rose about 2%, while price and mix declined roughly 2%. North American sales increased about 5%, offset by an 8% decline in international sales. Management attributed the adjusted EBITDA decline primarily to higher potato costs in Europe, which pressured margins despite volume gains.

Capital expenditures totaled $91 million, up $12 million from the prior year. The company returned $52 million through cash dividends, did not repurchase shares during the quarter, and had about $245 million available under its share-repurchase authorization.

The board declared a quarterly dividend of $0.38 per common share on Oct. 5, 2026, payable Dec. 4, 2026, to shareholders of record at the close of business Nov. 6, 2026.

On the outlook, Lamb Weston raised its fiscal 2027 guidance. It now expects net sales to grow in the low single digits compared with a fiscal 2026 base of about $6.485 billion on a 52-week adjusted basis. Adjusted EBITDA guidance increased to a range of $1.125 billion to $1.215 billion, and adjusted diluted EPS guidance rose to $3.05 to $3.35. The company maintained a cash-capital-expenditure target of $380 million to $410 million and provided an adjusted operating-income target of $730 million to $810 million. Adjusted interest expense is expected between $185 million and $190 million, with a tax rate of 25.0% to 27.0%.

Management linked the revised outlook to strong customer relationships, improved operating efficiencies, the lapping of one-time items, and pricing actions addressing higher input costs.

The combination of the raised guidance and the declared dividend signals management’s expectation of earnings growth in fiscal 2027 driven by North American momentum and operational improvements.