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# Lamb Weston's Cash Flow Got A $59.2 Million Lift From Suppliers While Net Income Fell To $29.1 Million
- URL: https://www.bullished.co/lamb-westons-cash-flow-got-a-59-2-million-lift-from-suppliers-while-net-income-fell-to-29-8770144a/
- Published: 2026-10-06T15:10:51.000Z
- Updated: 2026-10-06T15:10:51.000Z
- Description: The 10-Q shows higher accounts payable propped up operating cash, as a $33.0 million legal accrual and pending lawsuits sit alongside the results.
- Author: Matteo Parrino
- Tags: Earnings, LW, Industry: Consumer Staples

[Lamb Weston](https://www.bullished.co/tag/lw/)'s first-quarter operating cash flow of $234.8 million got [$59.2 million from higher accounts payable](https://www.sec.gov/Archives/edgar/data/0001679273/000167927326000052/lw-20260830.htm?ref=bullished.co), according to the company's 10-Q filed Tuesday. Net income fell to $29.1 million from $64.3 million a year earlier.

## What the 10-Q says about cash

Management said it is working with suppliers "to improve terms," which is the change that pushed payables up and lifted operating cash. That is a different source of cash than a year ago.

The year-earlier quarter produced operating cash flow of $352.0 million. It included a $136.3 million release of inventory and a $47.7 million outflow from payables. This quarter, inventories contributed $1.5 million, per the filing.

Adjusted EBITDA, a measure of earnings before interest, taxes and certain charges, was $285.6 million. It excludes a $33.0 million accrual for legal proceedings, a line the [prior quarter's filing](https://www.sec.gov/Archives/edgar/data/0001679273/000167927326000013/lw-20260222.htm?ref=bullished.co) did not show.

## The legal docket

Securities, antitrust and Oregon groundwater lawsuits are all pending. In the antitrust case, the federal claims survived a September 17 ruling and head to discovery. The company says it cannot estimate a range of loss.

In the securities class action, the plaintiffs' response to the dismissal motion landed October 2, with the defendants' reply due October 23\. The 10-Q says the company continues to believe the plaintiffs' claims lack merit and will defend vigorously.

In the Oregon lawsuit, a June ruling rejected a dismissal motion, and trial is set for September 2027, the company reports.

## Weak spots and the balance sheet

The International segment, especially Europe, is the weak spot. Its adjusted EBITDA fell to $26.5 million from $57.2 million, and the company is closing its Broekhuizenvorst plant in the Netherlands, which is expected to produce through mid-second quarter of fiscal 2027.

The company bought no shares in the quarter, leaving $245 million of repurchase authorization. Of its roughly $3.9 billion debt, $2,925.0 million is fixed-rate.

Shares rose about 11% to $49.36 in Tuesday trading, as of 11:05 a.m. ET (market data).

Defendants' reply in the securities class action is due October 23, and the company plans [an Investor Day](https://seekingalpha.com/news/4650468-lamb-weston-rallies-after-cost-saving-measures-help-the-bottom-line?ref=bullished.co) in early calendar 2027, per Seeking Alpha.

### Sources

- [10-Q Filing — Lamb Weston (LW)](https://www.sec.gov/Archives/edgar/data/0001679273/000167927326000052/lw-20260830.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Lamb Weston (LW), Q1 2026 filed 2026-04-01 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001679273/000167927326000013/lw-20260222.htm?ref=bullished.co) — SEC EDGAR
- [10-K Filing — Lamb Weston (LW), filed 2026-07-24 (earlier disclosure)](https://www.sec.gov/Archives/edgar/data/0001679273/000167927326000026/lw-20260531.htm?ref=bullished.co) — SEC EDGAR
- [Lamb Weston Hldgs Reports Q1 2027 Results: Full Earnings Call Transcript](https://www.benzinga.com/news/26/10/62191918/lamb-weston-hldgs-reports-q1-2027-results-full-earnings-call-transcript?ref=bullished.co) — benzinga.com
- [Lamb Weston Lifts Fiscal 2027 Outlook - WSJ](https://www.wsj.com/business/earnings/lamb-weston-lifts-fiscal-2027-outlook-6dcf3dcc?ref=bullished.co) — The Wall Street Journal
- [Lamb Weston Beats Q1 Expectations, Raises 2027 Outlook As Cost-Saving Efforts Gain Traction](https://www.benzinga.com/markets/earnings/26/10/62192772/lamb-weston-beats-q1-expectations-raises-2027-outlook-as-cost-saving-efforts-gain-traction?ref=bullished.co) — benzinga.com
- [https://seekingalpha.com/news/4650468-lamb-weston-rallies-after-cost-saving-measures-help-the-bottom-line](https://seekingalpha.com/news/4650468-lamb-weston-rallies-after-cost-saving-measures-help-the-bottom-line?ref=bullished.co) — seekingalpha.com
- [Compared to Estimates, Lamb Weston (LW) Q1 Earnings: A Look at Key Metrics](https://finance.yahoo.com/markets/stocks/articles/compared-estimates-lamb-weston-lw-123002182.html?ref=bullished.co) — Yahoo Finance

### More on Lamb Weston

- [Lamb Weston Raises Full-Year EPS Forecast To $3.05-$3.35 As European Weakness Cuts Quarterly Profit](https://www.bullished.co/lamb-weston-raises-full-year-eps-forecast-to-3-05-3-35-as-european-weakness-cuts-quarterly-563a82f5/)

[All Lamb Weston (LW) coverage →](https://www.bullished.co/tag/lw/)