Lamb Weston Holdings, Inc.

Fourth quarter net sales increased 6%, with 7% sales volume growth and a 2% favorable currency impact, partially offset by a 3% decline in price/mix. North America net sales increased 9% and sales volume rose 11%, while international net sales declined 2%. Adjusted EBITDA declined $6 million in the quarter, though North America adjusted EBITDA dollars grew 17% or $45 million. For the full year, net sales increased 2%, sales volume grew 7%, and adjusted EBITDA fell 9%; North America net sales rose 3% and international net sales rose 1%. Cash from operations was $943 million, capex was $410 million, free cash flow was $537 million, net debt was $3.8 billion, and net debt to adjusted EBITDA leverage was 3.4x. The company returned $321 million to shareholders, including $208 million of dividends and $113 million of buybacks. For fiscal 2027, management expects net sales to be flat to up 1%, adjusted operating income of $720 million to $800 million, adjusted EPS of $2.95 to $3.25, adjusted EBITDA of $1.1 billion to $1.2 billion, operating cash flow of $750 million to $800 million, and capex of $380 million to $410 million. Q1 fiscal 2027 is expected to see net sales flat and EBITDA down in the low teens.

Mike Smith framed fiscal 2026 as a credibility-building year, saying the company made meaningful progress with customers and delivered on prior financial targets. His emphasis stayed on Focus to Win: stronger customer partnerships, executional excellence, cost savings, and disruptive innovation, with North America described as stabilized and growing while international remains under pressure. His tone was constructive but realistic, repeatedly stressing control of controllables, especially in EMEA and in price/cost decisions.

Jim Gray highlighted the quarter’s mix of strong North America performance and weaker international results. He pointed to full-year cash from operations of $943 million, free cash flow of $537 million, capex of $410 million, and liquidity of about $1.3 billion available under the revolver; he also noted net debt of $3.8 billion and leverage of 3.4x. On outlook, he said fiscal 2027 EBITDA would benefit from lower raw potato costs, supply chain savings, better utilization, and lapping potato write-offs and Argentina start-up costs, but would be partly offset by inflation in other inputs and Middle East-related volatility.

Analysts focused on international profitability, North America pricing, contract renewals, and how far the company can go on restructuring its footprint. Management said “everything is on the table” in the country-cluster strategy work, including M&A, partnerships, and divestitures, but emphasized that the process is still underway and details will come at Investor Day. On North America, they said contracting is just starting, there is no anomaly in the current renewal cycle, and pricing will depend on input-cost inflation and margin requirements; they also said price/mix in North America may stay modestly pressured by prior decisions but can be influenced by channel and product mix.