Lakeland Industries Stock Earnings Reports

Lakeland delivered record Q2 fiscal 2026 revenue of $52.5M (up 36% YoY), driven by recent acquisitions and strong fire services sales. Adjusted EBITDA (excluding FX) rose to $5.1M (up ~90% YoY) and adjusted EBITDA margin improved sequentially to 9.6%. Growth was broad-based with US revenue up 78% and Europe up 113%; acquisitions contributed ~$9M to YoY revenue growth and organic sales grew ~14% YoY. Gross margins declined YoY (adjusted gross margin 37.4% vs 41.1% prior year) due to lower acquired-company margins, higher material costs and tariffs, and inventory purchase accounting amortization, though margins improved sequentially (+220 bps). Inventory is elevated ($90.2M) and management is executing targeted inventory optimization and cost-savings initiatives (initially $1.0M identified for FY2026, with an additional ~$3.0M annualized savings targeted). Operational moves included announced facility closures and the $6.1M sale and partial leaseback of the Decatur facility (proceeds used to pay down the revolver). Balance sheet: cash $17.7M, long-term debt $28.1M (post-quarter Decatur sale applied to revolver). Management reiterated a capital-light, acquisition-driven strategy (service/rental/decontamination focus in the U.S.), expects the Jolly boot NFPA US launch in 2026, and maintains an active M&A pipeline. Guidance was updated: fiscal 2026 adjusted EBITDA (ex-FX) now targeted at $20M–$24M and revenue expected near the lower end of $210M–$220M. Management expects margin expansion over the next 3–5 years (mid-to-high teens EBITDA margins) as synergies and operational efficiencies are realized.