EarningsQ1 2027 Earnings Report
MX:LW Q1 2027 EPS Results
Actual EPS$13.50
Consensus EPS$10.57
Beat/MissBeat by +$2.93
One Year Ago EPS$13.32
MX:LW Q1 2027 Revenue Results
Actual Revenue$30.07B
Expected Revenue$29.79B
Beat/MissBeat by +$287.91M
YoY Revenue Growth+0.66%
Earnings Announcement Details
QuarterQ1 2027
Date10/06/2026
TimeBefore Open
Conference CallTuesday, October 6, 2026
MX:LW Upcoming Earnings
Lamb Weston Holdings's next earnings date is estimated for January 1, 2027, based on past reporting schedules.
Q1 2027 Earnings Call Audio
MX:LW Q1 2027 Earnings Call
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Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. The company reported first-quarter results above expectations, raised its fiscal 2027 sales and earnings outlook, delivered strong North America volume and EBITDA growth, and cited progress in customer relationships, cost savings, organizational simplification, and innovation. These positives were partially offset by International underperformance, European crop and input-cost pressures, soft restaurant traffic in several markets, and lower year-over-year adjusted EBITDA and operating cash flow.Company Guidance
First-Quarter Results Exceeded Expectations
Fiscal Q1 net sales were $1.670 billion, up 1% from the prior year; adjusted diluted EPS was $0.75, also up 1%; and adjusted EBITDA was $286 million, above guidance.
Full-Year Fiscal 2027 Outlook Raised
The company increased its fiscal 2027 outlook to low single-digit net sales growth, adjusted operating income of $730 million to $810 million, adjusted EPS of $3.05 to $3.35, and adjusted EBITDA of $1.125 billion to $1.215 billion. The company continues to expect $750 million to $800 million of cash from operations.
Strong North America Momentum
North America sales volume grew for the seventh consecutive quarter. Segment net sales increased 5%, driven by 7% sales volume growth, while gross margin and segment adjusted EBITDA dollars also improved year over year. North America adjusted EBITDA increased 11%.
North America Growth Supported by Customer Mix and Execution
North America benefited from over-indexing to chicken-focused QSRs, new customer wins, expanded business with existing customers, stronger customer partnerships, improved fill rates, joint business planning, and limited-time offerings and other innovation projects.
Improving North America Price/Mix
North America price/mix declined 1.7% in Q1, an improvement of 70 basis points from the 2.4% decline in the fourth quarter. Management expects price/mix to continue improving through the remainder of the year.
Strong Contract Renewal Progress
Approximately 70% of North American contracts up for renewal this year had been completed, with a high retention rate and pricing that reflects the current inflationary environment. Most outstanding discussions are expected to be completed over the next two quarters.
Cost Savings and Efficiency Programs Delivering Results
The cost savings program remains robust and on track, with initiatives described as permanently lowering operating costs. Adjusting for one-time items, SG&A was flat to the prior year. North America results also benefited from cost savings initiatives, $5 million of tariff refunds, and improved earnings from the RDO joint venture.
Zero-Based Budgeting and Resource Optimization Underway
The company launched an enterprise-wide zero-based budgeting process and said it was already realizing real savings in the first phase. Payment terms improved, and more than 70 employees participated in a supply-chain savings championship. Savings are intended to support margin expansion and selective reinvestment in revenue growth, innovation, and commercial capabilities.
Organizational Simplification Progress
The company changed half of its executive leadership team, implemented target-setting and compensation changes tied to accountability, reduced the Board from 13 members to 11, and redesigned the organization to improve speed, simplicity, and accountability. The redesign includes reducing management layers, broadening spans of control, and consolidating certain regions and leadership roles.
Strategic Focus to Win Advancing
The company completed its where-to-play work and moved into the how-to-win phase, identifying country clusters, execution playbooks, best-practice sharing opportunities, and new joint business-planning capabilities. Further details are expected at an Investor Day in early calendar 2027.
Improved EMEA Capacity Utilization Expected
After stopping production at the Broekhuizenvorst facility and transitioning customer fulfillment to other Lamb Weston locations, the company expects EMEA capacity utilization to rise to more than 90%, or the low 90s once the transition is complete, while consolidating production into more cost-efficient plants.
Favorable Potato Supply Position
Despite expectations for tighter European potato supply, the company said its long-standing grower relationships and disciplined contracting cycle leave it in a good supply position to meet expected customer demand, with a smaller remaining open-market procurement requirement than in typical years.
China and Latin America Progress
China net sales and adjusted EBITDA grew, driven by multinational chain demand, limited-time offerings, favorable mix, productivity improvements, and better fixed-factory absorption. Latin America continued to win business and ramp production at the Mar del Plata, Argentina plant, including shipments to a new strategic global QSR customer.
Innovation Pipeline Supporting Customers
The company continued launching products and limited-time offerings, including black pepper flavored stars in China, reduced-sodium Tater Puffs and star-shaped puffs for the U.S. education market, battered fries, and crispier fries designed to support restaurant traffic, menu differentiation, and favorable mix.
Cash Generation and Shareholder Returns
The company generated $144 million of free cash flow in Q1, incurred $91 million of capital expenditures, and returned $52 million to shareholders through its quarterly dividend. It announced a next quarterly dividend of $0.38 per share payable December 4.
Pricing Actions Showing Realization
Management said customers are recognizing inflationary pressures, spring 2026 pricing actions were showing good realization, and formula-based clauses in several large QSR agreements were enabling some pass-through. The company also implemented a price increase in Europe.
Positive Category Demand Indicators
Management said fries remain the most ordered item on restaurant menus and one of the most profitable items for operators. Fry attachment rates remain elevated versus pre-pandemic levels.
AI Opportunities Identified
The company identified opportunities to further deploy artificial intelligence to enhance operating performance.
MX:LW Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed