Free cash flow has exhibited extreme volatility, swinging from a $295.2 million inflow in 2025Q4 to a negative $36.3 million in 2026Q3, reflecting ongoing operational and working capital friction.
| Cash from Operations | 978.6M | 868.3M | 798.2M | 761.7M | 418.6M | 552.7M | 574M | 680.9M | 481.2M | 446.9M | 382.3M | 353.7M | 386.4M |
| Operating CF Margin % | - | 13.46% | 12.34% | 14.24% | 10.21% | 15.06% | 15.14% | 18.13% | 14.06% | 14.11% | 12.77% | 12.09% | 13.73% |
| Operating CF Growth % | 123.99% | 8.78% | 4.79% | 81.96% | -24.26% | -3.71% | -15.7% | 41.5% | 7.68% | 16.9% | 8.09% | -8.46% | - |
| Net Income | 300.3M | 357.2M | 725.5M | 1.01B | 200.9M | 317.8M | 365.9M | 487.2M | 433.7M | 340.2M | 294.6M | 277.6M | 270.3M |
| Depreciation & Amortization | 386.1M | 407.5M | 306.8M | 222.8M | 192.1M | 187.8M | 182.3M | 162.4M | 143.3M | 109.1M | 95.9M | 96.4M | 79.2M |
| Stock-Based Compensation | 39.1M | 39.5M | 46.8M | 38.5M | 21.3M | 20.6M | 22.8M | 18.8M | 13.5M | 5.7M | 3.2M | 6.9M | 4.8M |
| Deferred Taxes | 18.8M | 600K | -1.3M | 400K | 13.5M | 3.8M | 20M | 37.5M | -3.6M | 14.8M | 20.7M | 23.7M | 0 |
| Other Non-Cash Items | 26.2M | -14.6M | -8.6M | -459.3M | 76.7M | -21.8M | 16.9M | -600K | -43.1M | -17.4M | -40.3M | -36.6M | 31.9M |
| Working Capital Changes | 208.1M | 78.1M | -271M | -49.6M | -85.9M | 44.5M | -33.9M | -24.4M | -62.6M | -5.5M | 8.2M | -14.3M | 200K |
| Change in Receivables | 13.3M | -22.2M | -15.1M | -53.6M | -76.3M | -21M | 1.1M | -25.1M | -40.4M | 1.2M | -15.1M | 3.5M | -3.5M |
| Change in Inventory | 188M | 112.6M | -203.3M | -125.1M | -63M | -22M | 15.3M | -15.8M | -23.6M | -26.1M | -10.7M | -43.8M | 24.5M |
| Change in Payables | -51.5M | 2M | 36.5M | 83.1M | 16.5M | 104.7M | -34.9M | 32.9M | -8.3M | 12.1M | 7.5M | 1.3M | 10.4M |
| Cash from Investing | -327M | -648M | -984.1M | -1.34B | -310.5M | -162.5M | -346M | -423M | -306.8M | -285.3M | -144.3M | -171.2M | -173.2M |
| Capital Expenditures | -344.3M | -638.2M | -929.5M | -654M | -290.1M | -147.2M | -167.7M | -334.2M | -306.8M | -287.4M | -152.3M | -114.7M | -194.6M |
| CapEx % of Revenue | 5.28% | 9.89% | 14.37% | 12.22% | 7.08% | 4.01% | 4.42% | 8.9% | 8.96% | 9.07% | 5.09% | 3.92% | 6.91% |
| Acquisitions | 0 | 0 | -10.5M | -610.4M | 0 | 0 | -139.3M | -88.6M | 2.2M | 2.1M | 8M | -74.9M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 16.7M | -30.9M | -62.1M | -76.5M | -20.4M | -15.3M | -39M | -200K | 0 | 2.1M | 8M | 18.4M | 21.4M |
| Cash from Financing | -668.5M | -225M | -48M | 340.8M | -363.4M | -974M | 1.13B | -299.6M | -178.9M | -142M | -232.8M | -177.7M | -199.6M |
| Debt Issued (Net) | -304.2M | 291.5M | 355.8M | 538.3M | -61.6M | -804.3M | 1.28B | -67.7M | -39.2M | 771.5M | 12.3M | -15.7M | -3.6M |
| Equity Issued (Net) | -159.8M | -294.4M | -225.3M | -51.6M | -158.4M | -36.1M | -28.9M | -36.4M | -2.7M | -200K | 0 | 0 | 0 |
| Dividends Paid | -206.9M | -206.9M | -174M | -146.1M | -138.4M | -135.3M | -121.3M | -113.3M | -110.2M | -850.9M | 0 | 0 | 0 |
| Share Repurchases | -159.8M | -294.4M | -225.3M | -51.6M | -158.4M | -36.1M | -28.9M | -36.4M | -2.7M | -200K | 0 | 0 | 0 |
| Other Financing | 2.4M | -15.2M | -4.5M | 200K | -5M | 1.7M | -1.9M | -82.2M | -26.8M | -62.4M | -245.1M | -162M | -196M |
| Net Change in Cash | -10M | -700K | -233.4M | -220.2M | -258.5M | -580.5M | 1.35B | -43.4M | -1.5M | 20.7M | 5.8M | 3.6M | 13.9M |
| Free Cash Flow | 634.3M | 230.1M | -131.3M | 107.7M | 128.5M | 405.5M | 406.3M | 346.7M | 174.4M | 159.5M | 230M | 239M | 191.8M |
| FCF Margin % | 9.73% | 3.57% | -2.03% | 2.01% | 3.14% | 11.05% | 10.71% | 9.23% | 5.09% | 5.03% | 7.68% | 8.17% | 6.81% |
| FCF Growth % | 641.87% | 275.25% | -221.91% | -16.19% | -68.31% | -0.2% | 17.19% | 98.8% | 9.34% | -30.65% | -3.77% | 24.61% | - |
| FCF per Share | 4.55 | 1.61 | -0.90 | 0.74 | 0.88 | 2.76 | 2.76 | 2.35 | 1.19 | 1.09 | 1.57 | 1.63 | 1.31 |
| FCF Conversion (FCF/Net Income) | 2.11x | 2.43x | 1.10x | 0.75x | 2.08x | 1.74x | 1.57x | 1.42x | 1.15x | 1.37x | 1.34x | 1.32x | 1.48x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operational ERP implementation failure
According to recent quarterly filings, Lamb Weston's OCF/NI ratio has exhibited extreme volatility, ranging from a low of 0.18 in 2024Q3 to a high of 5.47 in 2026Q1, highlighting a significant disconnect between reported accounting profits and the actual cash generated by core operations.
The wide variance in the conversion ratio suggests that net income is currently a poor proxy for the company's underlying cash-generating capability. Investors should monitor whether this instability is a temporary byproduct of the ERP transition or a more permanent shift in the company's ability to convert accrual-based earnings into realized cash flow.
As reported in financial statements, Lamb Weston's free cash flow trajectory has been highly inconsistent, swinging from a peak of $295.2 million in 2025Q4 to a negative $36.3 million in 2026Q3, reflecting the company's struggle to maintain positive cash generation amidst operational disruptions.
The frequent shifts into negative free cash flow territory indicate that the business is currently consuming more capital than it produces, which may limit management's flexibility. This trend warrants further investigation into whether the current cash burn is driven by necessary strategic investments or an inability to control costs during a period of stagnant growth.
Based on Lamb Weston's reported figures, capital expenditures have remained elevated, with the CapEx/Revenue ratio peaking at 19.7% in 2025Q1, suggesting that the company is currently in a heavy investment phase that continues to weigh on overall free cash flow generation.
The high level of capital intensity appears to be a structural requirement for maintaining the company's specialized processing infrastructure. However, the persistence of these high spending levels during a period of margin compression suggests that the company may be struggling to achieve an adequate return on these capital outlays.
Data from recent quarterly reports indicates that working capital changes have been a major source of cash flow volatility, with swings as large as a $211.6 million outflow in 2024Q3, likely reflecting the inventory visibility issues stemming from the recent ERP system implementation.
These erratic working capital movements suggest that the company's internal supply chain controls are currently compromised, leading to inefficient cash cycles. Investors should monitor whether the company can stabilize these fluctuations as the ERP system matures, as continued volatility in working capital will likely keep cash flow profiles unpredictable.
Quick answers to the most common questions about buying LW stock.
Lamb Weston Holdings, Inc. (LW) generated $868.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lamb Weston Holdings, Inc. (LW) generated $230.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Lamb Weston Holdings, Inc. (LW) spent $638.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Lamb Weston Holdings, Inc. (LW) returned $206.9M to shareholders via cash dividends and spent $294.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.