LAKE · Lakeland Industries, Inc.

Lakeland Industries announced fiscal Q4 and full year 2026 results, with full year net sales rising 15.2% to $192.6 million, propelled by 48.6% growth in the Fire Services segment to $93.6 million, bolstered by contributions from acquisitions like Veridian, LHD, Jolly, Pacific Helmets, Arizona PPE, and California PPE. Q4 sales dipped 1.7% to $45.8 million, with Fire Services still up 2% to $21.7 million (47% of revenue), offset by declines in Disposables and Wovens. Gross margins contracted sharply to 32.2% in Q4 from 40.1% YoY and 32.9% for the full year from 41.1%, due to product mix shifts, manufacturing underutilization in Mexico and Vietnam, raw material inflation, tariffs, and freight costs. Net loss narrowed to $6.2 million in Q4 from $18.4 million, aided by lower operating expenses and reduced impairment charges, though full year loss widened to $25.3 million from $18.1 million, impacted by higher opex and a valuation allowance on deferred tax assets. Adjusted EBITDA ex-FX fell to $1.3 million in Q4 and $7.2 million for the year. Post-year end, the company divested non-core HPFR and HiViz lines for $14 million cash in March 2026, simplifying operations and boosting liquidity beyond the $12.5 million cash at January 31. Inventory declined $5.3 million since October, signaling improved discipline. Management, led by CEO Jim Jenkins, emphasized cost controls yielding $1.8 million operating cash flow improvement in Q4 despite lower revenue. All NFPA 1970 certifications for head-to-toe fire PPE were secured, enabling orders and to be showcased at FDIC 2026. New leadership appointments include Calven Swinea as CFO and Kevin Rae as EVP EMEA Fire Sales. For FY2027, targets high single-digit revenue growth and positive operating cash flow, supported by a simpler portfolio, demand stabilization, and execution focus.