LAMB WESTON HOLDINGS, INC.

Red flags

• Price/mix declined 6% company-wide and 6% in both North America and International, showing that volume growth is being purchased through lower pricing and customer support.
• International adjusted EBITDA fell 55% to $114.7 million, and the company recorded a $33.1 million charge for excess raw potato write-offs tied to lower-than-planned international sales.
• Total debt and financing obligations were $3.93 billion at May 31, 2026, against fiscal 2026 adjusted EBITDA of $1.15 billion; $249.4 million was classified as short-term borrowings.
• Fiscal 2026 included $127.1 million of benefit from the extra 53rd week, creating a difficult comparison for fiscal 2027.
• The company had $1.18 billion of purchase obligations and capital commitments, including $152.8 million of capital commitments expected within 12 months, and effectively guaranteed $40.3 million of supplier loans.
• Input and logistics exposure remains material: potato supply-agreement purchases totaled $1.31 billion in fiscal 2026, while 74% of represented hourly employees were covered by agreements in negotiation or expiring over the next 12 months.