Lakeland Industries (LAKE) investor relations material

Executive summary

• Net sales for Q1 FY27 reached $47.4 million, up 1.4% year-over-year, driven by 11% growth in Fire Services and strong tender activity.

• Adjusted EBITDA excluding FX rose to $1.1 million from $0.6 million year-over-year, with sequential margin improvement.

• Net income improved to $0.4 million from a net loss of $3.9 million in the prior year period.

• The company completed the divestiture of its High Performance FR and Hi-Vis product lines, generating $13.2–$14 million in cash, simplifying operations and strengthening the balance sheet.

• Leadership strengthened with new Board, CFO, and EMEA Fire appointments, and service platform expansion positioning the business for further growth.

Financial highlights

• Adjusted gross margin was 33.6%, down from 35.2% year-over-year but up sequentially from 33.5% in Q4 FY26.

• Adjusted operating expenses excluding FX were $14.8 million, down from $15.9 million year-over-year.

• Cash and cash equivalents ended at $17.4 million, up from $12.5 million at FY26 end.

• Net cash provided by operating activities was $5.8 million, a significant improvement from a $4.8 million use in the prior year.

• Inventory was $77.7 million, down $4.8 million from year-end, mainly due to the divestiture.

Outlook and guidance

• Management expects high single-digit revenue growth and positive cash flow from operations for FY27.

• Margins are expected to improve through the year as tender wins, new sales, and service revenue gain traction.

• Margin improvement is expected in the second half of FY27 as production volumes rise and certification transition costs moderate.

• Continued focus on inventory discipline, cost control, and converting backlog into revenue.

• Liquidity is expected to be sufficient for at least the next twelve months, supported by cash, borrowing capacity, and operating cash flow.