Lamb Weston reported first quarter 2027 results that exceeded analyst estimates, driven by resilient demand in North America. While total net sales grew only 1%, adjusted EPS and EBITDA outperformed expectations due to effective cost-saving initiatives and capacity optimization. Management subsequently raised its full-year 2027 targets for sales, earnings, and EBITDA, signaling confidence in volume recovery despite ongoing price/mix headwinds.
Key Highlights
- North America sales volume grew 7%, marking the seventh consecutive quarter of growth, which offset a 6% volume decline in the International segment.
- Full-year 2027 Adjusted EBITDA guidance was raised to a range of $1.125 billion to $1.215 billion, up from the previous midpoint of $1.15 billion.
- Price/mix declined 2% across the company, reflecting increased trade support and a shift toward private-label products and chain customers.
- International operations faced higher manufacturing costs per pound due to the carryover of expensive prior-year potato crops and factory underutilization in EMEA.