LAKE

This article first appeared on GuruFocus. Net Sales: $50.1 million, down 4.5% year-over-year, up 5.7% sequentially; up 2.8% excluding $3.7 million prior-year revenue from divested product lines. Gross Margin: 37% vs. 35.9% a year ago and 31.4% in Q1; adjusted gross margin 37.7%, up 410 basis points sequentially from 33.6%. Gross Profit: $18.5 million, down 1.5% from $18.8 million, with a 114 basis point year-over-year margin increase. Adjusted EBITDA (excl. FX): $2.7 million vs. $5.1 million a year ago and $1.1 million in Q1; margin of 5.4%. Net Loss: $4.9 million, or $0.50 per basic share, vs. net income of $0.8 million, or $0.08 a year ago; includes ~$3.2 million non-cash goodwill impairment charge related to LHD. Operating Expenses: $20.6 million, up 7% from $19.3 million; adjusted operating expenses excluding FX $16.2 million, up 11.1%. Operating Cash Flow: $5.4 million generated in the first half of fiscal 2027, a $15.1 million year-over-year improvement. Cash: $17.9 million, up from $12.5 million at year-end. Total Debt: Declined to $28.7 million from $32.3 million at January 31, 2026; $24.9 million drawn on revolver with $15.1 million availability. Working Capital: Approximately $90.8 million. Inventory: $74.9 million, down $2.8 million sequentially, $7.6 million from fiscal year-end, and $15.3 million year-over-year. Fire Revenue: $26.1 million, up 2% year-over-year and ~12% sequentially; 52% of net sales vs. 49% in both Q2 FY26 and Q1 FY27; helmets +41%, hoods +66%, turnout gear +5.5%; comparable fire revenue up ~10% adjusting for prior-year tender and current-year service acquisitions. Industrial Revenue: $24 million, down 10.8% reported; up ~3% excluding $3.7 million from divested product lines; chemical protective +9%, critical environment +28%. Fire Services Revenue: Grew 78% year-over-year; independent service provider business contributed $3.5 million. FX Impact: $1.3 million headwind vs. $43,000 a year ago. Expedited Freight: ~$600,000 tied to strategic fire inventory build. Monterey Lease Resolution: $1.9 million second quarter gain; permanent elimination of ~$400,000 in related annual cash usage. Trailing 12-Month Basis: Revenue ~$191 million; adjusted EBITDA excluding FX ~$5.4 million. Warning! GuruFocus has detected 8 Warning Signs with LAKE. Is LAKE fairly valued? Test your thesis with our free DCF calculator. Release Date: September 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sequential improvement across revenue, margin, and profitability: net sales up 5.7% sequentially to $50.1 million, gross margin improved to 37% from 31.4% in Q1, and adjusted EBITDA excluding FX more than doubled to $2.7 million. Fire segment showed strong growth: revenue up 2% year-over-year and 12% sequentially, with helmets up 41%, hoods up 66%, and turnout gear up 5.5%; comparable fire revenue grew approximately 10%. Multiple tender wins across nine countries, including a seven-year UK National Firefighter PPE Framework with potential value up to 220 million, providing long-term recurring revenue opportunities. Operating cash flow improved significantly: generated $5.4 million in the first half of fiscal 2027, a $15.1 million year-over-year improvement, with cash up to $17.9 million and total debt reduced to $28.7 million. Inventory reduction efforts paying off: inventory down $2.8 million sequentially and $15.3 million year-over-year to $74.9 million, with expectations for further reduction as sales increase. Net sales declined 4.5% year-over-year to $50.1 million, primarily due to the divestiture of product lines that contributed $3.7 million in the prior year quarter. Net loss of $4.9 million or $0.50 per share, compared to net income of $0.8 million or $0.08 per share a year ago, including a $3.2 million non-cash goodwill impairment charge related to LHD Germany. Adjusted EBITDA excluding FX decreased to $2.7 million from $5.1 million a year ago, with adjusted operating expenses rising 11.1% to $16.2 million due to trade show costs, new service location start-up costs, and a full quarter of service operating costs. Foreign exchange was a significant headwind, with a $1.3 million negative impact compared to $43,000 a year ago, and the company faces challenges in hedging, particularly in Argentina. Industrial segment revenue declined 10.8% on a reported basis to $24 million, though it increased approximately 3% excluding divested product lines; the company also expects timing of certain fire orders to shift into Q4 and near-term impact from portfolio repositioning. Q: Mark Smith of Lake Street Capital asked for insight into the underlying gross margin run rate for the second half, excluding the tariff refund benefit.A: CFO J. Calven Swinea said the tariff refund is not expected to be significant in the second half, and the company should build off a normalized run rate in the mid-30s. He expects continued improvement driven by fire growth and turnout gear, which carry higher margins, with strengthening in Q3 and Q4. Q: Mark Smith asked about trends in the fire services business, including revenue, margin, and capital outlay for new locations like Denver.A: CEO James Jenkins said a greenfield location costs roughly $350,000 to $500,000 in capital, offering an attractive return on investment, and the industry trend is positive. Chief Revenue Officer - Fire Barry Phillips added that Denver is opening this month after validation, following the successful Fresno launch, and the company is targeting greenfield opportunities in regions with large departments and strong demand. Q: Mark Smith asked for elaboration on portfolio actions being considered to simplify the business and exit areas not producing acceptable returns.A: CEO James Jenkins said the company is looking at geographies where it can consolidate warehousing and other synergies, including combining its European fire and industrial presence. It is also reviewing its manufacturing footprint, and he expects meaningful changes in the next six months that should benefit the bottom line into fiscal 2028. Q: Michael Shlisky of D.A. Davidson asked whether organic fire growth was about 10% in the quarter and whether a high single-digit to 10% growth rate is sustainable near to medium term.A: CFO J. Calven Swinea confirmed the company is seeing high single-digit to low double-digit organic growth in the fire space. CEO James Jenkins noted that backing out a $3.1 million prior-year Italian government tender and $3.7 million of divested product line revenue implies a comparable base of roughly $46 million versus the $50.1 million reported. Q: Michael Shlisky asked about the timing of recently announced tender wins in the UK, Hong Kong, and Thailand, and when they will flow to the bottom line.A: CEO James Jenkins said Lakeland is one of a few winners on the UK framework and will now compete for opportunities within it, with some tenders moving faster than others depending on region, and more tender wins expected this quarter. EVP of EMEA Fire Sales Kevin Rae said the UK scheme is a seven-year program covering gloves, turnout gear, and boots, with 25 brigades contracting at different times and considerable activity expected over the next 12 to 18 months. Q: Michael Shlisky asked about the cadence for the third and fourth quarters, including whether sequential growth should continue from Q2 into Q3 and Q3 into Q4.A: CEO James Jenkins confirmed that sequential growth is expected in both periods based on the company's pipeline and order flow, while noting that the timing of certain fire orders is expected to shift into the fourth quarter. Q: Gerry Sweeney of Roth Capital asked how to frame operating expenses, including what is truly one-time versus what will be leveraged through revenue expansion such as the ISP build-out.A: CFO J. Calven Swinea said the ISP costs will be leveraged through revenue going forward, with a modest build in the third quarter as new locations come online. The InterShoots trade show occurs every five years, and the expedited freight was needed to position product for fire growth; any future expedited freight would be tied directly to a purchase order with revenue support. Q: Gerry Sweeney asked whether the foreign exchange headwind is hedgeable.A: CEO James Jenkins said a lot of the exposure is Argentina, which cannot be hedged, along with Europe and a stronger renminbi. The company is moving inventory quickly in Latin America as the peso declines to reduce the FX hit, and a $1 million bond in Argentina expected to be released around this time next year should help. He added that the finance team is evaluating hedging strategies where reasonably available and financially appropriate. Q: Gerry Sweeney asked about the revenue capacity of the ISP business and whether it could reach $5 million to $6 million per quarter with the current footprint.A: CEO James Jenkins said a location typically reaches capacity at around $3.5 million, depending on facility size, but that is not limiting because the company can expand or add facilities, as it did in Riverside and Fresno. He said the business could reach $5 million to $6 million per quarter with planned growth, and the company is eyeing additional locations in Northern California, the Midwest, Texas, and the East Coast, likely through builds rather than acquisitions. Q: Gerry Sweeney asked about the operating expense ratio and the company's targets.A: CEO James Jenkins said the OpEx line is a keen focus and needs to come down to the mid to high 20s as a percentage of revenue from roughly 32% this quarter. He also said the company must find ways to address FX pressure as the dollar weakens, including evaluating hedging strategies. Q: Mark Smith asked about the drivers behind the strong sequential and year-over-year gross margin improvement to 37%.A: CFO J. Calven Swinea noted that excluding the net tariff benefit of $1.4 million, gross margin still improved sequentially to 34%, up 280 basis points, demonstrating the improvement was structural. The gain was driven by tariff refunds and a favorable fire mix, partially offset by higher inbound freight, including roughly $600,000 of expedited freight for the fire inventory build. Q: Analysts asked about the non-cash goodwill impairment charge recorded in the quarter.A: CEO James Jenkins said the approximately $3.2 million non-cash goodwill impairment relates to LHD and is attributed exclusively to the performance and revised outlook of LHD Germany. It reflects an accounting valuation at a point in time, does not represent a cash outflow, does not affect liquidity or the ability to invest in strategic priorities, and is not reflective of the well-performing Australia and Hong Kong operations. The company has made leadership and organizational changes and is repositioning the business to improve operating performance, cost structure, and long-term returns. Q: Analysts asked about the resolution of the Monterey lease matter and its financial impact.A: For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Lakeland Industries, Inc.? Here are five stocks we like better. Revenue and profitability trends improved sequentially: Fiscal Q2 revenue was $50.1 million, down 4.5% year over year but up 5.7% from Q1, while gross margin rose to 37.0% and adjusted EBITDA more than doubled to $2.7 million. The company still posted a $4.9 million net loss, including a $3.2 million non-cash goodwill impairment charge. Fire operations led growth: Fire revenue increased 2% year over year and 12% sequentially to $26.1 million, representing 52% of sales, with especially strong helmet and hood growth. Fire services revenue surged 78%, and Lakeland is expanding its independent service-provider footprint. Management expects further improvement: Lakeland anticipates sequential revenue growth in Q3 and Q4, supported by fire demand, tender awards and recovering industrial markets. The company also strengthened its balance sheet, ending the quarter with $17.9 million in cash, lower debt and improved operating cash flow. Lakeland Industries (NASDAQ:LAKE) reported fiscal second-quarter 2027 revenue of $50.1 million for the period ended July 31, 2026, down 4.5% from a year earlier but up 5.7% sequentially, as growth in its fire business and improving margins helped offset declines associated with divested product lines. President, CEO and Executive Chairman James Jenkins said revenue increased 2.8% excluding $3.7 million of prior-year sales from product lines the company divested in March. Gross margin rose to 37.0%, compared with 35.9% in the prior-year quarter and 31.4% in the fiscal first quarter. Adjusted EBITDA excluding foreign exchange effects more than doubled sequentially to $2.7 million from $1.1 million. → 3 Under-the-Radar Defense Stocks With Record Backlogs The company recorded a net loss of $4.9 million, or $0.50 per share, compared with net income of $0.8 million, or $0.08 per share, a year earlier. The quarterly loss included a roughly $3.2 million non-cash goodwill impairment charge related to LHD Group Deutschland GmbH. Fire revenue totaled $26.1 million, up 2% year over year and approximately 12% sequentially, accounting for 52% of total sales. That compared with 49% in both the prior-year period and the first quarter. Within fire, helmet sales increased 41%, hood sales rose 66%, and turnout gear revenue increased 5.5%. → Ride-Share Reckoning: Tesla Drives Into Uber's Lane Jenkins said comparable fire revenue grew about 10% after adjusting for a prior-year tender and current-year service acquisitions. During the question-and-answer session, he said the company is seeing “high single, low double-digit growth” organically in the fire business. The company cited strengthening demand as customers transition to updated National Fire Protection Association standards. Lakeland said its certified product portfolio, including helmets, turnout gear, boots and gloves, enables customers to source a full range of equipment from one supplier. → High Gas Prices Aren't Budging—Here Are 3 Stocks That Benefit Fire services revenue rose 78% year over year, with the independent service provider, or ISP, operation contributing $3.5 million during the quarter. Lakeland plans to open a Denver ISP location during the month and is evaluating further expansion opportunities in the Midwest, Texas and the East Coast. Jenkins said a greenfield service location generally requires $350,000 to $500,000 of capital. He added that individual service locations can reach capacity at approximately $2.5 million to $3.5 million in revenue, depending on facility size, though the company can expand facilities or add locations. Lakeland said its existing ISP footprint could potentially generate $5 million to $6 million in quarterly revenue as planned growth develops. Industrial revenue was $24 million, down 10.8% on a reported basis. Excluding the $3.7 million contribution from divested product lines in the prior-year quarter, industrial revenue increased about 3%. Chemical protective product sales rose 9%, while critical-environment sales increased 28%. Jenkins said critical-environment operations returned to plan following forecasting, demand-planning and capacity actions undertaken earlier in the year. The company’s primary manufacturing facilities remain at capacity, supported by improved demand and order visibility. Lakeland also announced tender and contract awards across nine countries in fire, disaster response, law enforcement, industrial and utility markets. Among them was notification of an intended award under the U.K. National Fire Chiefs Council’s National Firefighter PPE Framework, a seven-year program with total potential value of up to £220 million across all awarded suppliers. Kevin Rae, executive vice president of EMEA fire sales, said Lakeland qualified across multiple product categories, including gloves, turnout gear and boots. He said 25 fire brigades in the U.K. enter contracts at different times, with a “considerable amount” of activity expected over the next 12 to 18 months. Jenkins noted that revenue timing from tenders varies by region and contract structure. CFO J. Calven Swinea said gross profit was $18.5 million, down 1.5% from $18.8 million a year earlier. Gross margin benefited from $1.4 million in net tariff refunds and a more favorable fire revenue mix, partly offset by higher inbound freight costs. The company incurred about $600,000 in expedited freight related to a strategic fire inventory build. Excluding the tariff benefit, gross margin was 34%, representing a 280-basis-point sequential improvement. Swinea said Lakeland expects continued margin improvement in the second half as fire and turnout-gear sales grow, though it does not expect a significant tariff-refund effect during that period. Operating expenses rose 7% to $20.6 million. Adjusted operating expenses excluding foreign exchange were $16.2 million, up 11.1%, reflecting approximately $500,000 in Interschutz trade-show costs, service-location startup expenses and a full quarter of service operating costs. Management said the trade-show expense is infrequent, while ISP costs are expected to be increasingly supported by revenue as locations mature. Cash at quarter-end was $17.9 million, up from $12.5 million at fiscal year-end. Total debt declined to $28.7 million from $32.3 million at Jan. 31, 2026. Operating cash flow was $5.4 million in the first half, a $15.1 million year-over-year improvement. Inventory declined to $74.9 million, down $2.8 million sequentially and $15.3 million from a year earlier. The company also resolved its Monterrey lease matter, resulting in a $1.9 million second-quarter gain and permanently eliminating approximately $400,000 of quarterly cash usage, according to Jenkins. Management said it expects some fire orders to shift into the fiscal fourth quarter but anticipates sequential revenue growth in both the third and fourth quarters based on its pipeline and order flow. Jenkins said the third quarter should show material year-over-year improvement in industrial markets in North America and Asia, alongside another quarter of sequential margin improvement. Lakeland is evaluating geographic, warehousing and manufacturing consolidations as part of a broader effort to simplify operations and reallocate capital toward higher-growth opportunities. Jenkins said the company expects “meaningful changes” over the next six months that could benefit results in fiscal 2028. The company remains focused on generating positive cash flow from operations during fiscal 2027 and improving sustainable margins and EBITDA, management said. Lakeland Industries, Inc (NASDAQ:LAKE) is a global provider of high-performance protective apparel and accessories designed to safeguard workers in industrial, healthcare, laboratory, and emergency response environments. The company's expertise lies in producing garments that shield against chemical, biological, radiological, and thermal risks, supporting safety protocols in sectors such as oil and gas, petrochemicals, pharmaceuticals, and first responders. The product portfolio encompasses both single-use and reusable solutions, including chemical protective coveralls, flame-resistant garments, arc flash clothing, medical isolation gowns, and cleanroom suits. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Lakeland Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Q2 FY27 Net Sales of $50.1 Million; Fire Increased 12% Sequentially Adjusted EBITDA Excluding FX More Than Doubled Sequentially to $2.7 Million Tender Momentum Building Across Global Fire Portfolio Year-to-Date Operating Cash Flow Improved $15.1 Million Year Over Year to $5.4 Million; Inventory Down $15.3 Million Management to Host Conference Call Today at 4:30 p.m. Eastern Time HUNTSVILLE, Ala., Sept. 09, 2026 (GLOBE NEWSWIRE) -- Lakeland Industries, Inc. (“Lakeland Fire + Safety” or “Lakeland”) (NASDAQ: LAKE), a leading global manufacturer of protective clothing and apparel for industry, healthcare and first responders, has reported its financial and operational results for its fiscal second quarter ended July 31, 2026. Key FY 2027 Second Quarter Financial and Operational Highlights (1)Adjusted EBITDA, Adjusted EBITDA excluding FX, and Adjusted gross margin are non-GAAP financial measures. Reconciliations are provided in the tables of this press release. Management Commentary “Our second quarter results provide further evidence that the underlying business is improving,” said Jim Jenkins, President and Chief Executive Officer. “We are seeing momentum in Fire, continued expansion of our Fire Services platform and improving performance across several parts of Industrial. Just as importantly, we are becoming increasingly focused on where we want to invest, where we need to improve and where we need to simplify the business. “Fire remains at the center of our growth strategy. We have built a differentiated head-to-toe product portfolio, and we are increasingly complementing those Products with Services. We believe bringing Products and Services together strengthens our customer relationships, creates recurring revenue opportunities and gives us a platform that can support sustainable growth over time. We are accelerating our investment in Fire Services, but we are going to do so with discipline. Our priority is to build density in attractive markets, generate appropriate returns on the capital we deploy, and create a Service network that strengthens the broader Fire business. We will continue to evaluate greenfield opportunities and small strategic acquisitions, but improving and growing our existing businesses remains our first priority. “We are taking a much more deliberate approach to the portfolio. Businesses that are performing and where we see attractive opportunities for growth will receive our capital and management attention. Where returns have not met our expectations, we are taking action on leadership, cost structure and, where appropriate, our level of investment. Our objective is a simpler company with better operating leverage, stronger returns on invested capital, and a greater concentration of resources behind our best opportunities. “Our priorities from here are straightforward: execute better, improve margins and operating leverage, reduce complexity, and convert more of our earnings into cash. We have made progress, but we are not satisfied with where we are today. We believe the actions underway across the portfolio, combined with the momentum we are seeing in Fire Products and Fire Services, can produce a more consistent, profitable and higher-return business. That is where our attention is focused,” Jenkins concluded. Fiscal 2027 Second Quarter and Subsequent Operational Highlights Secured multiple tender and contract awards across 9 countries globally, spanning Fire, disaster response, law enforcement, industrial and utility markets. These included notifications of an intended award across multiple product categories under the UK National Fire Chiefs Council National Firefighter PPE Framework, with a total potential value of up to £220 million over seven years across all awarded suppliers, as well as significant contract wins across Asia-Pacific and Latin America. Expanded the Company’s certified Fire Products portfolio, including UL certification of the Wildland Glove to the NFPA 1950 (1977), 2025 edition standard for wildland and urban interface firefighting hand protection, while continuing certification and product development initiatives across structural and wildland firefighting PPE. Expanded and qualified manufacturing capacity across Fire Products and Critical Environments, including UL-certified production of Vanguard® structural turnout gear and full qualification of the Company’s new cleanroom with the first production lot achieving Class 1 cleanliness in independent SGS Helmke Drum testing. These investments increase capacity and supply-chain flexibility while allowing existing manufacturing capacity to be redirected toward higher-value Fire Products. Continued expansion of the Company’s higher-growth Fire Services platform, commencing start-up of a new Independent Service Provider location in Denver, Colorado, while expanding existing Service capacity to support growth in the Company’s recurring-revenue service business. Fiscal 2027 Second Quarter Financial Highlights Net sales were $50.1 million in Q2 FY27, compared to $52.5 million in Q2 FY26, a decrease of 4.5%, and increased 5.7% sequentially from $47.4 million in Q1 FY27. Fire generated $26.1 million of revenue, up 2% year-over-year and 12% sequentially, representing 52% of total net sales. Growth was broad-based, with turnout gear up 5.5%, helmets up 41% and hoods up 66% on sustained strong demand across its certified head-to-toe Fire Products portfolio as customers transition to updated NFPA standards. Global tender wins accelerated during the quarter, with continued tender activity expected into the third and fourth fiscal quarters. Fire as a percentage of revenue was 52%, compared to 49% in Q2 FY26 and 49% in Q1 FY27. Fire Services revenue increased 78% year-over-year to approximately $3.5 million during the quarter. The Company continued to expand its service footprint, including the start-up of a new service location and expansion of an existing facility. Industrial revenue was $24.0 million, down 10.8% on a reported basis. Excluding the $3.7 million contribution from the divested HPFR and HiViz product lines in the prior-year quarter, Industrial revenue increased approximately 3%. The Company’s primary manufacturing facilities remain at capacity. U.S. sales were $21.3 million in Q2 FY27, a decrease of $0.8 million or 3.6% compared to $22.1 million in Q2 FY26. Europe sales, including Eagle, Jolly and LHD, were $12.4 million in Q2 FY27, a decrease of $2.7 million or 17.9% compared to $15.1 million in Q2 FY26, primarily reflecting a $3.1 million Jolly boot tender delivered to the Italian Ministry of the Interior in the prior-year quarter. LATAM sales were $4.1 million in Q2 FY27, a decrease of $0.2 million, or 4.7%, compared to $4.3 million in Q2 FY26. Asia sales were $4.7 million in Q2 FY27, an increase of $1.0 million, or 27.0%, compared to $3.7 million in Q2 FY26. Gross profit in Q2 FY27 was $18.5 million, a decrease of $0.3 million, or 1.5%, compared to $18.8 million in Q2 FY26. Gross margin was 37.0% compared to 35.9% in Q2 FY26 and 31.4% in Q1 FY27, benefitting from favorable a Fire Products mix and a $1.4 million net tariff refund received during the quarter. Operating expenses in Q2 FY27 were approximately $20.6 million, an increase of $1.4 million or 7.0%, compared to $19.3 million in Q2 FY26, reflecting approximately $0.5 million of Interschutz expenses and $0.6 million of expedited freight associated with a strategic inventory build, while foreign exchange remained a meaningful headwind, with currency losses of $1.3 million compared with $43 thousand in the prior-year quarter. Adjusted operating expenses excluding FX(1) in Q2 FY27 were approximately $16.2 million, an increase of $1.6 million or 11.1%, compared to $14.6 million in Q2 FY26. Adjusted EBITDA excluding FX(1) was approximately $2.7 million in Q2 FY27, compared to $5.1 million in Q2 FY26 and $1.1 million in Q1 FY27. Foreign currency losses were $1.3 million in Q2 FY27, compared to $43 thousand in Q2 FY26. Inventory ended the quarter at $74.9 million, down $2.8 million sequentially and $15.3 million year-over-year. As of July 31, 2026, there were borrowings of $24.9 million outstanding under the revolving credit facility, with an additional $15.1 million of available credit under the Loan Agreement. The Company was in compliance with its debt covenants as of July 31, 2026. (1) Adjusted operating expenses excluding FX, Adjusted EBITDA and Adjusted EBITDA excluding FX are non-GAAP financial measures. Reconciliations are provided in the tables of this press release. “Net sales were $50.1 million in the second quarter. Gross margin improved to 37.0% from 35.9% in the prior-year quarter and 31.4% in the first quarter, while adjusted EBITDA excluding FX more than doubled sequentially to $2.7 million. Excluding $3.7 million of prior-year revenue from the High Performance FR and High Visibility product lines divested in March 2026, net sales increased 2.8%,” said J. Calven Swinea, Chief Financial Officer. “Cash flow also improved materially, with $5.4 million of cash generated from operations during the first six months of fiscal 2027, a $15.1 million year-over-year improvement. Inventory declined $7.6 million from fiscal year-end, cash and equivalents increased to $17.9 million, and total debt declined to $28.7 million from $32.3 million at January 31, 2026. “We also resolved the Monterrey, Mexico lease matter during the quarter, recording a $1.9 million gain on lease settlement and eliminating the remaining lease liability. Foreign exchange had a $1.3 million negative impact during the quarter, and we are evaluating appropriate hedging strategies to mitigate this risk going forward. We also recorded a non-cash goodwill impairment charge of approximately $3.2 million related exclusively to the performance and revised outlook of LHD Germany. The impairment does not represent a cash outflow or affect our liquidity. The Company has taken actions to address the performance of LHD Germany, including leadership and organizational changes, and is executing a broader repositioning of the business focused on improving operating performance, cost structure and long-term returns. LHD’s operations in Australia and Hong Kong continue to perform well, and the impairment charge is not reflective of the performance of those businesses. “We are focused on sustaining and expanding margins over the balance of fiscal 2027. The margin recovery processes we put in place are working. We now track manufacturing efficiency, revenue conversion and gross margin performance consistently by business, product line and region, and the sequential improvement in adjusted gross margin reflects that discipline. As production volumes improve, the North American inventory build converts to revenue, and recent tender wins and sales opportunities are delivered, we expect margin performance to continue to improve. “Overall, the second quarter demonstrated sequential progress across revenue, gross margin, adjusted EBITDA and cash generation. With the Monterrey lease matter resolved, the divestiture behind us and a more focused portfolio, we believe we are entering the back half of fiscal 2027 with improving margin discipline and better visibility,” Swinea concluded. Jenkins added, "Our priorities for the second half are straightforward: convert demand and backlog into revenue, continue improving gross margin, maintain expense discipline and simplify the areas of the business that are not producing acceptable returns. We believe the second half marks the beginning of our return to more consistent growth, although the cadence may vary from quarter to quarter. What remains is disciplined execution: delivering against the demand we see, completing the portfolio and cost actions already underway, and translating growth into stronger earnings and cash generation. Together, these efforts position us to enter fiscal 2028 with a more focused portfolio, a stronger cost structure and greater operating leverage.” Fiscal Second Quarter 2027 Results Conference Call Lakeland President, Chief Executive Officer and Executive Chairman Jim Jenkins and Chief Financial Officer Calven Swinea will host the conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here. To access the call, please use the following information: A telephone replay will be available commencing approximately three hours after the call and will remain available through December 9, 2026, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13761308. The replay can also be viewed through the webcast link above and the presentation utilized during the call will be available via the investor relations section of the Company’s website here. Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles (GAAP), the Company uses the following non-GAAP financial measures in this press release: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA excluding FX, Adjusted EBITDA excluding FX margin and adjusted operating expenses, excluding FX. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company believes that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. For more information on the non-GAAP financial measures, please see the Reconciliation of GAAP to non-GAAP Financial Measures tables in this press release. These accompanying tables include details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The financial data above includes non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin and Adjusted Operating Expenses. Management excludes from EBITDA and adjusted EBITDA all expenses for interest, taxes, depreciation and amortization, Goodwill impairment, impairment of investment, and Other Income which is comprised of interest income and gains (losses) from equity method investments. For adjusted EBITDA management also excludes equity compensation, acquisition-related expenses, severance, restructuring and transformation costs, costs associated with our Mexican operations, PFAS litigation expenses, ERP Project related costs, start-up costs for new service locations, lease impairment charges, the gain on lease settlement and the gain on sale of certain assets. This press release also discusses (i) Adjusted EBITDA margin, which is calculated by dividing Adjusted EBITDA by GAAP net sales; (ii) Adjusted EBITDA excluding FX, which is calculated by subtracting foreign currency losses from Adjusted EBITDA and (iii) Adjusted EBITDA excluding FX margin, which is calculated by dividing Adjusted EBITDA excluding FX by GAAP net sales. Management excludes these items principally because such charges or benefits are not directly related to the Company’s ongoing core business operations. We use such non-GAAP measures in order to (1) make more meaningful period-to-period comparisons of the Company’s operations, both internally and externally, (2) guide management in assessing the performance of the business, internally allocating resources and making decisions in furtherance of the Company’s strategic plan, and (3) provide investors with a better understanding of how management plans and measures the business. The material limitations to management’s approach include the fact that the charges, benefits and expenses excluded are nonetheless charges, benefits and expenses required to be recognized under GAAP and, in some cases, consume cash which reduces the Company’s liquidity. Management compensates for these limitations primarily by reviewing GAAP results to obtain a complete picture of the Company’s performance and by including a reconciliation of non-GAAP results to GAAP results in its earnings releases. Non-GAAP financial measures are not alternatives for measures of financial performance prepared in accordance with GAAP and may be different from similarly titled non-GAAP measures presented by other companies, limiting their usefulness as comparative measures. Additional information regarding the adjustments is provided below. (1) Adjustments for Equity Compensation, which consist of non-cash expenses for equity awards granted and recognized over their respective service periods. (2) Adjustments for Other Income, which consist primarily of interest income and gains/(losses) from dispositions of fixed assets. (3) Adjustments for acquisition-related expenses included advisory fees, due diligence expenses, accounting fees and legal fees related to the Company's acquisitions. (4) Adjustments for accrued employee severance, restructuring costs and transformation related costs which include expenses associated with strategic transformation initiatives and certification activities. (5) Adjustments for costs for our Mexican operations consist of external services and legal fees associated with a property-related dispute with the landlord of our manufacturing site in Monterrey, Mexico. (6) Adjustments for PFAS and shareholder litigation. (7) Adjustments for the implementation of new ERP consisting of external services and employee-related expenses. (8) Adjustments for start-up costs associated with new Independent Service Provider service locations. (9) Adjustments for amortization of the step-up in basis for inventory acquired related to the Company's acquisitions. (10) The Company recorded a gain on settlement of lease liability in connection with the lease for its Monterrey, Mexico manufacturing site during the second quarter of fiscal 2027. (11) The Company recorded an impairment in the prior-year period primarily related to the right-of-use asset for the Monterrey, Mexico facility. (12) The Company recorded an impairment of the remaining goodwill of the LHD reporting unit in Q2 FY27. (13) The Company recorded a gain related to the sale of certain assets related to the HPFR and HiViz product lines in March 2026. About Lakeland Fire + Safety Lakeland Fire + Safety manufactures and sells a comprehensive line of fire products and industrial protective clothing and accessories for the industrial and first responder markets. In addition, we provide decontamination, repair and rental services that complement our fire services portfolio. Our products are sold globally by our in-house sales teams, our customer service group, and authorized independent sales representatives to a strategic global network of selective fire and industrial distributors and wholesale partners. Our authorized distributors supply end users across various industries, including integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high-tech electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry. In addition, we supply federal, state and local governmental agencies and departments, including fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control. Internationally, we sell to a mix of end-users directly and to industrial distributors, depending on the particular country and market. In addition to the United States, sales are made into more than 50 foreign countries, the majority of which were into China, the European Economic Community ("EEC"), Canada, Chile, Argentina, Commonwealth of Independent States (“CIS”) Region, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, Australia, Hong Kong and New Zealand. For more information about Lakeland, please visit the Company's website at www.lakeland.com. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 This press release contains estimates, predictions, opinions, goals and other "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's expectations for earnings, revenues, expenses, inventory levels, capital levels, liquidity levels, or other future financial or business performance, strategies or expectations, including without limitation our expectations of margin improvement. All statements, other than statements of historical facts, which address Lakeland's expectations of sources or uses for capital, or which express the Company's expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions as described from time to time in press releases and Forms 8-K, registration statements, quarterly and annual reports and other reports and filings filed with the Securities and Exchange Commission or made by management. As a result, there can be no assurance that Lakeland's future results will not be materially different from those described herein as "believed," "projected," "planned," "intended," "anticipated," "can," "estimated" or "expected," or other words which reflect the current view of the Company with respect to future events. We caution readers that these forward-looking statements speak only as of the date hereof. The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which such statement is based, except as may be required by law. Investor RelationsChris TysonExecutive Vice PresidentMZ Group - MZ North [email protected] www.mzgroup.us

HUNTSVILLE, Ala., Aug. 27, 2026 (GLOBE NEWSWIRE) -- Lakeland Industries, Inc. ("Lakeland Fire + Safety" or "Lakeland") (NASDAQ: LAKE), a leading global manufacturer of protective clothing and apparel for industry, healthcare and first responders, will host a conference call on Wednesday, September 9, 2026, at 4:30 p.m. Eastern Time to discuss its financial results for the fiscal second quarter ended July 31, 2026. A press release detailing these results will be issued prior to the call. Lakeland management will host the conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here. To access the call, please use the following information: A telephone replay will be available commencing approximately three hours after the call and will remain available through December 9, 2026, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13761308. The replay can also be viewed through the webcast link above and the presentation utilized during the call will be available via the investor relations section of the Company’s website here. About Lakeland Fire + Safety Lakeland Fire + Safety manufactures and sells a comprehensive line of fire services and industrial protective clothing and accessories for the industrial and first responder markets. In addition, we provide decontamination, repair and rental services that complement our fire services portfolio. Our products are sold globally by our in-house sales teams, our customer service group, and authorized independent sales representatives to a strategic global network of selective fire and industrial distributors and wholesale partners. Our authorized distributors supply end users across various industries, including integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high-tech electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry. In addition, we supply federal, state and local governmental agencies and departments, including fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control. Internationally, we sell to a mix of end-users directly and to industrial distributors, depending on the particular country and market. In addition to the United States, sales are made into more than 50 foreign countries, the majority of which were into China, the European Economic Community ("EEC"), Canada, Chile, Argentina, Commonwealth of Independent States (“CIS”) Region, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, Australia, Hong Kong and New Zealand. For more information about Lakeland, please visit the Company's website at www.lakeland.com. Investor RelationsChris TysonExecutive Vice PresidentMZ Group - MZ North [email protected] www.mzgroup.us

Stratasys (SSYS) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +200.00%. A quarter ago, it was expected that this maker of 3D printers would post a loss of $0.02 per share when it actually produced a loss of $0.01, delivering a surprise of +50%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Stratasys, which belongs to the Zacks Commercial Printing industry, posted revenues of $137.61 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.56%. This compares to year-ago revenues of $138.09 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Stratasys shares have added about 1.8% since the beginning of the year versus the S&P 500's gain of 13.2%. While Stratasys has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Stratasys was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $143.74 million in revenues for the coming quarter and $0.13 on $567.28 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Commercial Printing is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Industrial Products sector, Lakeland Industries (LAKE), is yet to report results for the quarter ended July 2026. This safety garments manufacturer is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of -105.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Lakeland Industries' revenues are expected to be $48.5 million, down 7.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stratasys, Ltd. (SSYS) : Free Stock Analysis Report Lakeland Industries, Inc. (LAKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by 11% growth in fire services, which now represents 49% of total revenue, reflecting a strategic shift from industrial disposables to higher-margin fire protection. The divestiture of high-performance FR and high-vis product lines for $14 million simplified the business model to focus resources on core fire and industrial segments. Management attributes first-quarter margin pressure to non-structural factors, including product mix shifts, NFPA certification costs, and strategic inventory builds ahead of product launches. The company is transitioning from a pure product manufacturer to a full-service partner by expanding its Independent Service Provider (ISP) platform for PPE decontamination and repair. Industrial demand showed regional strength in Latin America and Asia, though U.S. performance was hampered by tariff uncertainty and a lack of oil and gas turnaround activity. Operational focus has shifted toward converting a record open order backlog into revenue as manufacturing capacity ramps up in Mexico and the United States. Management maintains high single-digit revenue growth guidance and expects positive cash flow from operations for fiscal 2027. Profitability and EBITDA expansion are expected to become more visible in the second half of the year as inventory levels normalize and recent tender wins convert to revenue. The company plans to open new service locations in Denver and expand existing facilities in Arizona and Australia to capture growing demand for PPE maintenance. Strategic M&A efforts will prioritize small candidates in North America that can expand the service footprint and build a durable recurring revenue platform. The transition to an asset-based lending (ABL) structure is underway to provide greater liquidity and flexibility for executing the long-term operating improvement plan. Completed the sale of HPFR and HiViz product lines, resulting in a $6.5 million gain and a significant improvement in working capital. Middle East conflict has introduced regional budget freezes and extended lead times for shipments into Latin America, requiring tighter commercial alignment. The transition of LHD Germany to a third-party logistics model is expected to drive margin improvements in the coming quarters as the team focuses on commercial growth. Emerging demand for protective products related to Ebola preparedness is noted as an incremental opportunity rather than a core forecast driver. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Backlog is at historic levels, primarily tied to turnout gear with 8-12 week lead times; management is ramping up capacity in Mexico and the U.S. to meet this demand. The certification process previously delayed tenders, but the new NFPA-certified head-to-toe portfolio is now driving clear visibility for revenue growth. Greenfield ISP locations cost approximately $350,000 to $500,000 to build and can generate $2 million in annual revenue within 12 months. Service margins are described as having significant EBITDA contribution, with a long-term goal of reaching $50 million to $60 million in critical mass for the service segment. The framework is a 7-year program valued at £220 million; Lakeland is one of only a few winners across categories like boots, gloves, and structural fire kit. While revenue will build gradually as 25 different brigades order at intervals, the award serves as a global testimonial for the brand's quality. Management intends to keep the ISP business 'independent' and brand-agnostic to maintain trust with fire departments, though it provides valuable touchpoints for future sales. Advanced CO2 decontamination technology is a key differentiator, offering nearly 100% efficacy in removing contaminants compared to the 50% industry standard.

This article first appeared on GuruFocus. Net Sales: $47.4 million, an increase of 1.4% from $46.7 million in the prior year period. Fire Services Revenue: $23.4 million, up 11% from $21 million in the prior year period. Net Income: Approximately $0.4 million or $0.04 per basic and diluted share, compared to a net loss of $3.9 million or $0.41 per share in the prior year period. Adjusted EBITDA Excluding FX: $1.1 million, up from $0.6 million in the prior year period. Adjusted Gross Margin: 33.6%, compared to 35.2% in the prior year period. Adjusted Operating Expenses Excluding FX: $14.8 million, down from $15.9 million in the prior year period. Cash and Cash Equivalents: $17.4 million, up from $12.5 million at the end of fiscal '26. Inventory: $77.7 million, down from $82.5 million at the end of fiscal '26. Trailing 12-Month Revenue: $193.3 million. Trailing 12-Month Adjusted EBITDA Excluding FX: $7.7 million. Warning! GuruFocus has detected 7 Warning Signs with LAKE. Is LAKE fairly valued? Test your thesis with our free DCF calculator. Release Date: June 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lakeland Industries Inc (NASDAQ:LAKE) reported a 1.4% increase in net sales for the first quarter of fiscal 2027, reaching $47.4 million, driven by an 11% growth in Fire Services. The company achieved NFPA 1,970 certifications for its head-to-toe fire portfolio, enhancing its competitive advantage in the market. Lakeland Industries Inc (NASDAQ:LAKE) completed the divestiture of its high-performance FR and high-vis product lines, simplifying the business and strengthening the balance sheet with $14 million in cash proceeds. The company is expanding its service platform, including opening a new ISP location in Denver and enhancing decontamination capabilities with a CO2 machine in Fresno, California. Lakeland Industries Inc (NASDAQ:LAKE) reported a significant improvement in net income, moving from a net loss of $3.9 million in the prior year to a net income of $0.4 million in the first quarter of fiscal 2027. Adjusted gross margin decreased to 33.6% from 35.2% in the prior year period, impacted by product mix and additional certification costs. The company experienced lower performance in North America, primarily due to the sale of inventory and intellectual property of its HDFR and high-vis product line. The disposable business has not yet seen a meaningful recovery in the United States, nor a significant uptick in oil and gas turnaround activity. Middle East uncertainty has temporarily slowed project timing and frozen certain regional budgets, affecting the company's operations in that region. The first quarter gross margin was below expectations, impacted by timing-related, transitional, and investment costs, which are not expected to be permanent. Q: How has the backlog in the fire business changed over the last six months, and what is the outlook for converting this backlog into revenue? A: James Jenkins, CEO, explained that the certification process had previously delayed some decisions and tenders, but now with the enhanced turnout gear, they are seeing clear visibility to growth. Barry Phillips, Chief Revenue Officer - Fire, added that the backlog is primarily tied to turnout gear with an 8 to 12-week lead time, and they are ramping up production to meet demand. Q: What is the growth outlook for the Independent Service Provider (ISP) business, and how significant is it in terms of revenue? A: James Jenkins, CEO, stated that the ISP business is a growth market, potentially growing faster than the fire product market. Calvin Sweeney, CFO, mentioned that the ISP business is currently generating $4 to $5 million per quarter, with significant growth potential as they expand locations and services. Q: How has Lakeland managed operating expenses, and what is the expectation for OpEx in the coming quarters? A: Calvin Sweeney, CFO, noted that restructuring efforts and cost control measures have driven down operating expenses by $1.1 million year-over-year. While Q1 and Q2 include trade show expenses, these are expected to decline in the second half of the year. Q: How is Lakeland handling pricing in light of recent inflation and shipping costs? A: James Jenkins, CEO, stated that they have managed freight expenses well, with costs actually decreasing over the last few months. Cameron Stokes, Chief Commercial Officer, confirmed that they have been able to maintain pricing discipline despite inflationary pressures. Q: What is the strategy for capital allocation following the recent divestiture and expected free cash flow? A: James Jenkins, CEO, emphasized that the focus is on supporting growth in fire production and industrials, particularly through greenfield ISP expansions, which offer significant and early returns on investment. Calvin Sweeney, CFO, added that they are also considering an asset-based lending structure to enhance liquidity. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Lakeland Industries, Inc.? Here are five stocks we like better. Lakeland swung to profitability in fiscal Q1, posting $47.4 million in revenue, net income of about $0.4 million, and improved adjusted EBITDA, even though adjusted gross margin dipped year over year. Fire services was the standout growth engine, with revenue up 11% to $23.4 million and backlog reaching historic levels after key NFPA 1970 certifications and strong demand at major industry events. Management said margin pressure is temporary, driven by product mix, certification and transition costs, inventory and startup expenses, while reaffirming fiscal 2027 guidance for high single-digit revenue growth and positive operating cash flow. Lakeland Industries (NASDAQ:LAKE) reported a modest increase in fiscal first-quarter revenue and a swing to profitability, as management said demand in its fire services platform continued to build while the company works through margin pressures tied to product mix, certification costs and operational transitions. President, Chief Executive Officer and Executive Chairman Jim Jenkins said net sales for the quarter ended April 30, 2026, were $47.4 million, up 1.4% from $46.7 million in the prior-year period. Net income was approximately $0.4 million, or $0.04 per basic and diluted share, compared with a net loss of $3.9 million, or $0.41 per basic and diluted share, in the first quarter of fiscal 2026. → Meta Unveils Subscriptions: A New Offering With Real Growth Potential Adjusted EBITDA excluding foreign exchange improved to $1.1 million from $0.6 million a year earlier, while adjusted gross margin was 33.6%, down from 35.2% in the prior-year quarter but slightly above 33.5% in the fourth quarter of fiscal 2026. “The first quarter reflected continued progress against our plan,” Jenkins said, adding that the company does not view the quarter’s margin headwinds as structural. “Importantly, this is not a demand story. Demand across our fire services platform, our service business, and key industrial channels remains healthy.” → Planet Labs: Coming Back Down to Earth Chief Revenue Officer Barry Phillips said fire services revenue rose 11% year over year to $23.4 million, representing about 49% of total company revenue. Management said the mix reflects Lakeland’s continued transformation toward the global fire protection market. Phillips said the quarter was a “milestone period” for the company’s fire portfolio, with NFPA 1970 certifications achieved for Pacific Helmets, Jolly boots, Veridian turnout gear, boots and gloves, and Lakeland turnout gear and gloves. The certifications allow customers to order a complete certified head-to-toe range across the company’s brands. → The Energy Trade Is Bigger Than Oil Prices: 3 Stocks to Buy and 2 to Sell The company showcased the portfolio at FDIC in the U.S. and Interschutz in Germany. Phillips said those events, combined with the certification progress, accelerated sales activity and pushed open order backlog to “historic levels.” Manufacturing ramp-up activities are underway at Lakeland, Veridian, Pacific and Jolly, he said. In response to a question from ROTH Capital Partners analyst Gerard Sweeney, Phillips said the backlog is tied primarily to turnout gear, which typically carries an eight- to 12-week manufacturing lead time, though capacity constraints are pushing that out somewhat. Jenkins said the operational focus has shifted from generating demand to ensuring production can meet the sales pipeline. Lakeland also highlighted growth in its independent service provider, or ISP, platform, which provides inspection, cleaning, repair, rental and decontamination services for fire departments and other safety customers. Jenkins said the company expects to open another ISP location in Denver and is expanding its Arizona PPE facility in Phoenix. It also added CO2 decontamination capability in Fresno, California. Management described CO2 decontamination as an advanced service that can complement traditional wet washing. During the question-and-answer session, Jenkins said the combination of wet wash and CO2 could provide significantly higher decontamination efficacy than the minimum baseline required for a certified ISP. Phillips said the two methods are effective against different contaminants, making the combination important for a broader range of exposures. Chief Financial Officer Calven Swinea said the service business is currently running at about $4 million to $5 million in revenue per quarter globally. In response to Lake Street Capital analyst Mark Smith, management said the U.S. portion is “a little less than half” of that total, with acquired sites in California and Arizona, the Fresno expansion and the planned Colorado site supporting future growth. Jenkins said greenfield ISP expansion is attractive from a capital allocation standpoint, estimating a new location can cost about $350,000 to $500,000 to build out and potentially reach $2 million in revenue within about 12 months. Chief Commercial Officer Cameron Stokes said the industrial and chemical critical environment business showed improved momentum across most regions in the first quarter, with the U.S. and Canada the only businesses not exceeding budget. Latin America delivered 119% of plan, while Asia delivered 132% of plan, he said. Stokes said chemical improved in most regions, while critical environment remains a recovery priority. He said the company expects a strong second quarter in critical environment, supported by better forecasting, demand planning, capacity resolution and stronger end-user demand generation. Disposables performed well overall despite a “significant U.S. miss,” Stokes said. Jenkins added that while demand has improved in certain industrial channels, Lakeland has not yet seen a meaningful recovery in the U.S. or a meaningful uptick in oil and gas turnaround activity. Swinea said adjusted gross profit was $15.9 million, compared with $16.5 million in the prior-year period. He attributed the lower gross margin to sales mix and product costs, as well as macroeconomic pressure, partially offset by lower inbound freight and duties. Swinea said about 330 basis points of first-quarter margin pressure came from items the company views as timing related, transitional or investment-driven. Those included: Approximately 150 basis points from product mix, including inventory build ahead of Jolly’s U.S. fire market launch; About 80 basis points from NFPA certification costs and transition costs tied to prior certified products; Roughly 70 basis points from the release of previously capitalized freight costs as inventory was reduced; About 30 basis points from startup costs at the Fresno ISP location. “First quarter margin pressure was driven by timing, certification transition, inventory positioning, capitalized freight release, and start-up costs, not by a loss of pricing power or fundamental deterioration in the business model,” Swinea said. Adjusted operating expenses excluding foreign exchange fell to $14.8 million from $15.9 million a year earlier. Swinea said restructuring and cost-control efforts initiated in the prior year drove the reduction, though trade show expenses affected the first half of the year. Lakeland ended the quarter with $17.4 million in cash and cash equivalents, up from $12.5 million at the end of fiscal 2026. Working capital was approximately $92.4 million. Swinea said the company had $23.8 million outstanding under its revolving credit facility and $16.2 million of additional available credit, and was in compliance with all debt covenants at quarter-end. During the quarter, Lakeland completed the divestiture of its High Performance FR and Hi-Vis product lines for approximately $14 million in cash proceeds. Jenkins said the transaction simplified the business, strengthened liquidity and allowed the company to focus resources on fire services and industrial protective products. Inventory declined to $77.7 million from $82.5 million at the end of fiscal 2026, mainly due to the divestiture. Swinea said inventory reduction may moderate in coming quarters as sales increase and the company builds select fire categories to support demand. Management reaffirmed its expectation for high single-digit revenue growth and positive cash flow from operations in fiscal 2027. Jenkins said margin improvement should become more visible in the second half of the fiscal year as tenders convert, service revenue grows and operational actions take hold. Lakeland Industries, Inc (NASDAQ:LAKE) is a global provider of high-performance protective apparel and accessories designed to safeguard workers in industrial, healthcare, laboratory, and emergency response environments. The company's expertise lies in producing garments that shield against chemical, biological, radiological, and thermal risks, supporting safety protocols in sectors such as oil and gas, petrochemicals, pharmaceuticals, and first responders. The product portfolio encompasses both single-use and reusable solutions, including chemical protective coveralls, flame-resistant garments, arc flash clothing, medical isolation gowns, and cleanroom suits. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Lakeland Industries Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.