Lamb Weston Tops Q4 Guidance, Sets FY27 Outlook as North American Strength Counters International Weakness

summarizeSummary

Lamb Weston beat Q4 and full-year guidance on strong North American volumes, but International profits collapsed. FY27 guidance calls for modest growth.

check_boxKey Events · Earnings and Guidance · LW

• Q4 Results Beat Guidance

  Net sales of $1.77B and adjusted EBITDA of $288M exceeded the high end of guidance, driven by 11% volume growth in North America.

• International Segment Profit Collapse

  International adjusted EBITDA fell 81% to $11.8M, hit by Middle East conflict, competitive pressure in EMEA, and higher costs.

• Full-Year FY26 Performance

  Full-year net sales rose 2% to $6.612B; adjusted EBITDA of $1.147B and adjusted diluted EPS of $3.01 both exceeded guidance.

• Fiscal 2027 Guidance Issued

  Company targets net sales growth of 0%-1%, adjusted EBITDA of $1.1B-$1.2B, and adjusted diluted EPS of $2.95-$3.25.

auto_awesomeAnalysis · LW · Manufacturing

Driven by an 11% volume surge in North America, Lamb Weston posted Q4 net sales of $1.77B and adjusted EBITDA of $288M—both above the high end of its guidance. The International segment told a different story, with adjusted EBITDA plunging 81% as Middle East disruption and competitive pressure in EMEA took their toll. For the full year, adjusted EBITDA of $1.147B also exceeded expectations. Looking ahead, fiscal 2027 targets call for flat to 1% net sales growth and adjusted EBITDA of $1.1B–$1.2B, signaling cautious optimism. The results underscore a sharp divergence: a North American business that is gaining share versus an international operation under severe strain. Despite those headwinds, the company returned $116M to shareholders in Q4 through buybacks and dividends, reflecting confidence in its cash generation.