Lamb Weston Q1 FY2027: North America Strength Offsets International Collapse; $33M Legal Accrual
LW sits 30% above its 52-week low of $37.62.
Summary
Lamb Weston's Q1 FY2027 10-Q confirms the earnings beat but reveals a 54% collapse in International segment profits, $34.2M in restructuring charges, and a $33M legal accrual including a new groundwater nitrate class action accrual.
Key Events · Earnings and Guidance · LW
-
International Segment EBITDA Collapses 54%
International Segment Adjusted EBITDA fell to $26.5M from $57.2M a year ago, driven by lower sales volume, higher manufacturing costs, and factory underutilization. North America grew 11% to $287.3M.
-
Net Income Falls 55% to $29.1M
Q1 FY2027 net income was $29.1M ($0.21/share) versus $64.3M ($0.46/share) a year ago. Gross profit declined $75.9M to $266.5M on unfavorable price/mix and higher manufacturing costs.
-
$33M Legal Accrual Including New Groundwater Case
The company recorded a $33.0M accrual for legal proceedings, including a new accrual for the Oregon groundwater nitrate class action. The antitrust class action survived a motion to dismiss on September 17, 2026, allowing federal claims to proceed.
-
Restructuring Charges of $34.2M in Q1
The company recorded $34.2M in pre-tax restructuring charges, including $21.3M in accelerated depreciation for the Broekhuizenvorst, Netherlands plant closure. It expects $30M-$50M more in charges for the remainder of fiscal 2027.
Analysis · LW · Manufacturing
Lamb Weston's Q1 FY2027 10-Q confirms the earnings beat announced earlier today, but adds material detail: International Segment Adjusted EBITDA fell 54% to $26.5M while North America grew 11% to $287.3M. The company recorded $34.2M in restructuring charges and a $33.0M legal accrual, including a new accrual for the Oregon groundwater nitrate class action. The antitrust class action survived a motion to dismiss on September 17, 2026, allowing federal claims to proceed to discovery. Net income fell 55% to $29.1M ($0.21/share) from $64.3M ($0.46/share) a year ago, driven by higher manufacturing costs and price/mix headwinds in International.
How filings like this one have moved
In the 30 days to Oct 6, 2026, 28.9% of the 1573 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, LW was trading at $49.01 on NYSE in the Manufacturing sector, with a market capitalization of approximately $6.7B. The 52-week trading range was $37.62 to $67.07. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.