Lakeland Industries, Inc.

What they do

Lakeland manufactures and sells protective clothing and accessories for industrial, healthcare and first-responder markets, plus decontamination, repair and rental services that complement its fire services portfolio. It sells globally through in-house sales teams, customer service and a network of authorized distributors.

Revenue drivers

• Fire — Firefighter protective apparel and, increasingly, services; management calls Fire the center of its growth strategy and said Fire increased 12% sequentially in fiscal Q2 2027.
• Industrial — Chemical, limited-use and disposable protective clothing sold to integrated oil, chemical, construction, cleanroom, pharmaceutical and electronics end users; management cited improving performance across several parts of Industrial.
• Fire Services — Decontamination, inspection, repair and rental services, expanded by the September 2025 acquisitions of Arizona PPE Recon (about $4.1 million cash) and California PPE Recon (about $2.4 million cash plus 227,728 shares valued at about $3.3 million).
• International sales — Sales into more than 50 countries; net sales to customers outside the U.S. were $28.7 million in the quarter ended July 31, 2026 and $56.0 million for the six months then ended.

Recent performance

Fiscal Q2 2027 net sales were $50.1 million, down 4.5% from $52.5 million a year earlier, while gross margin rose to 37.0% from 35.9%. Net loss was $4.9 million versus net income of $0.8 million in the prior-year quarter, and Adjusted EBITDA fell to $1.4 million from $5.0 million. Adjusted EBITDA excluding FX was $2.7 million, more than doubling sequentially from the prior quarter. Sequential revenue improved from $47.4 million in the quarter ended April 30, 2026, and year-to-date operating cash flow was $5.4 million, an improvement of $15.1 million year over year, with inventory down $15.3 million.

Strategy

Management said Fire remains at the center of its growth strategy, combining a head-to-toe product portfolio with services to build recurring revenue. The company is accelerating investment in Fire Services with discipline, prioritizing density in attractive markets and returns on deployed capital. It continues to evaluate greenfield opportunities and small strategic acquisitions but says improving and growing existing businesses is the first priority. Lakeland also cites owning and operating its own manufacturing facilities, ten locations in eight countries, as the cornerstone of supply-chain resilience.

Risks

• Persistent losses — Net loss was $25.3 million in fiscal 2026 and $4.9 million in fiscal Q2 2027, with Adjusted EBITDA down 72.8% year over year in the quarter.
• Currency exposure — Adjusted EBITDA excluding FX was $2.7 million versus reported Adjusted EBITDA of $1.4 million in fiscal Q2 2027, showing results are materially affected by foreign exchange.
• Portfolio divestitures — The company sold its high performance FR/AR apparel line and high visibility clothing line on March 27, 2026, removing revenue and requiring the business to grow from remaining categories.
• Trade policy — The 10-Q notes that since early 2025 the U.S. executive branch has pursued a policy affecting trade, and the company sells into more than 50 countries.

Outlook

Management said Q2 results show the underlying business is improving, citing Fire momentum, Fire Services expansion and better performance in parts of Industrial. It plans to keep investing in Fire Services selectively, building density in attractive markets and evaluating greenfield and small acquisition opportunities. No numeric guidance was provided in the excerpts.