Lakeland Industries (LAKE) Q1 2026 earnings summary

Executive summary

• Net sales reached a record $46.7 million in Q1 FY26, up 29% year-over-year, driven by a 100% increase in Fire Services products and recent acquisitions.

• U.S. net sales rose 42% to $22.5 million; Europe net sales surged 102% to $12.1 million; Latin America and Canada saw declines due to shipment timing and tariff delays.

• Gross margin declined to 33.5% from 44.6% year-over-year, impacted by lower-margin acquisitions, geographic mix, and higher manufacturing/freight costs.

• Net loss was $3.9 million, or $0.41 per share, versus net income of $1.7 million and $0.22 per share in the prior year; Adjusted EBITDA excluding FX fell 84% to $0.6 million.

• Integration of four acquisitions and ERP system implementation underway to support growth and efficiency.

Financial highlights

• Revenue grew $10.4 million year-over-year to $46.7 million, a 29% increase, primarily from Fire Services growth.

• Gross profit was $15.6 million, down 4% year-over-year; operating loss was ($4.6M) compared to $2.2M operating income in Q1 FY25.

• Operating expenses increased 45% to $20.3 million, mainly from acquisitions, higher SG&A, severance, litigation, and selling costs.

• Cash and cash equivalents were $18.6 million as of April 30, 2025; working capital was $104.4 million.

• Borrowings under the revolving credit facility were $19.8 million, with $20.2 million available.

Outlook and guidance

• FY26 revenue guidance maintained at $210–$220 million; Adjusted EBITDA excluding FX expected at the lower end of $24–$29 million.

• Sequential improvement in gross margin and Adjusted EBITDA anticipated in Q2 FY26 as tariff impacts and purchase variances normalize.

• Long-term EBITDA margin targeted to reach mid-to-high teens over 3–5 years as scale and efficiencies are realized.

• Management expects current cash, borrowing capacity, and cash from operations to be sufficient for at least the next twelve months.

• Strategic M&A pipeline remains robust, with ongoing discussions aligned with growth strategy.