Lamb Weston Holdings (0L5) AI Stock Analysis

Company Guidance

For fiscal 2027, Lamb Weston raised its net sales outlook to low single-digit growth versus its prior expectation of flat to 1% growth, based on a fiscal 2026 adjusted 52-week net sales base of $6.485 billion; adjusted operating income is targeted at $730 million to $810 million, interest expense is expected at $185 million to $190 million, the tax rate is expected in the range of 25% to 27%, adjusted EPS is expected at $3.05 to $3.35 versus $2.90 in fiscal '26, and adjusted EBITDA is expected at $1.125 billion to $1.215 billion versus $1.118 billion in the 52-week period for fiscal '26. Cash used for capital expenditures is expected at approximately $380 million to $410 million, accrual-basis investments at $330 million to $350 million, and cash provided by operations at $750 million to $800 million, with investment in working capital expected to remain relatively flat year-over-year. For the second quarter, net sales are expected to be up low single digits and adjusted EBITDA up high single digits to low double digits; full-year North America is expected to deliver modest top line growth, while international net sales are expected to be closer to flat, and EMEA capacity utilization is expected to reach more than 90%, or the low 90s once complete.