Lakeland Fire + Safety Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
Rhea-AI Summary
Lakeland Fire + Safety (NASDAQ: LAKE) reported Q4 FY26 net sales of $45.8 million and FY26 net sales up 15.2% to $192.6 million, driven by 49% growth in Fire Services. The company completed the HPFR and HiViz divestiture for ~$14 million in March 2026 and secured full NFPA 1970 certifications for its head-to-toe fire portfolio.
FY26 margins declined (gross margin 32.9% vs 41.1% FY25), net loss widened to ($25.3M), and management targets high single-digit revenue growth and positive operating cash flow in FY2027.
Positive
- Net sales +15.2% to $192.6M in FY26
- Fire Services revenue +48.6% to $93.6M in FY26
- Completed HPFR and HiViz divestiture for approximately $14M cash proceeds
- Received full NFPA 1970 certifications for head-to-toe fire portfolio
- Q4 FY26 generated approximately $1.7M improvement in operating cash flow
Negative
- Gross margin down to 32.9% in FY26 from 41.1% (820 bps decline)
- Net loss widened to ($25.3M) in FY26 from ($18.1M) in FY25
- Adjusted EBITDA excluding FX fell to $7.2M in FY26 from $17.4M (decline $10.2M)
- Operating expenses increased 14.2% to $77.0M in FY26
- Established a $8.4M full valuation allowance on U.S. deferred tax assets
News Market Reaction – LAKE
In the Apr 17 session, LAKE gained 25.56%, reflecting a significant positive market reaction. Argus tracked a peak move of +26.8% during that session. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. Trading volume was elevated at 2.2x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 09 | Q3 2026 earnings | Negative | -39.0% | Revenue growth but sharp margin erosion, large net loss, guidance withdrawn. |
| Sep 09 | Q2 2026 earnings | Positive | -4.4% | Record sales, improved margins, and positive net income with strong Fire growth. |
| Jun 09 | Q1 2026 earnings | Negative | -22.2% | Record sales but lower gross margin and swing to net loss despite guidance. |
| Apr 09 | FY 2025 results | Neutral | -14.3% | Strong revenue and gross profit growth offset by large non-cash impairments. |
| Dec 05 | Q3 2025 earnings | Positive | +1.6% | Record sales and Fire growth, with modest net income despite margin dip. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often been followed by negative moves, even when revenue growth was strong, highlighting market focus on margins, losses, and guidance resets.
Over the last five earnings reports, Lakeland delivered repeated record or strong sales driven by Fire Services, but also persistent margin compression, rising operating costs, and a shift from prior profitability to net losses. Guidance was first introduced for FY2026 and later withdrawn as cost and tariff headwinds mounted. This FY2026 Q4/FY update continues the pattern: higher revenues, weaker margins, and sustained losses amid ongoing portfolio reshaping and cost-control efforts.
Key Terms
adjusted EBITDA financial
goodwill impairment financial
revolving credit facility financial
working capital financial
NFPA 1970 technical
valuation allowance financial
right-of-use asset financial
transition services agreement financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Q4 FY26 Net Sales of
Delivers Operating Cash Flow in Q4 FY26, Demonstrating Improved Operating Discipline
Completed Divestiture of HPFR and HiViz Product Lines for Approximately
Received All NFPA 1970 Certifications for Head-to-Toe Fire Portfolio Enabling Customers to Commence Purchase Orders
New Certified Products and Expanded PPE Options to be Showcased at FDIC 2026 in April
Company Repositioning with New Leadership Enhances Operating Discipline and Visibility to Support More Consistent Margins, Inventory Efficiency, and Cash Flow in FY2027
Targets High Single-Digit Revenue Growth & Positive Cash Flow from Operations in FY 2027
Management to Host Conference Call Today at 4:30 p.m. Eastern Time
HUNTSVILLE, Ala., April 16, 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 fourth quarter and year ended January 31, 2026.
Key Fiscal FY 2026 Fourth Quarter Financial and Operational Highlights
| Q4 Comparison | FY Comparison | |||||||||||||||
| $ in millions | Q4’26 | Q4’25 | $ Change YoY | % Change YoY | FY 2026 | FY 2025 | $ Change YoY | % Change YoY | ||||||||
| Net Sales | ( | ( | ||||||||||||||
| Gross Profit | ( | ( | ( | ( | ||||||||||||
| Gross Margin | — | (794 BPS) | — | (820 BPS) | ||||||||||||
| Net (Loss) Income | ( | ( | ( | ( | ( | ( | ||||||||||
| Adjusted EBITDA(1) | ( | ( | ( | ( | ||||||||||||
| Adjusted EBITDA ex. FX(1) | ( | ( | ( | ( | ||||||||||||
(1) Adjusted EBITDA and Adjusted EBITDA excluding FX are non-GAAP financial measures. Reconciliations are provided in the tables of this press release.
Management Commentary
“While our fourth quarter results reflect the continued impact of cost volatility and a challenging operating environment, we believe they do not fully reflect the actions taken during fiscal 2026 to simplify the business, reduce costs, and strengthen operating discipline across Lakeland” said Jim Jenkins, President and Chief Executive Officer. “Results during the quarter reflected inflationary cost pressures, tariff impacts, and later period demand softness, conditions that reinforced the importance of our ongoing focus on cost control, planning discipline and inventory management. Even in that environment, we generated an approximately
“I also want to recognize the work of our team, whose efforts helped to drive meaningful improvement in the quarter. Subsequent to year end, we successfully completed the divestiture of the HPFR and HiViz product lines, generating approximately
“Stepping back to the full year, fiscal 2026 was characterized by solid demand across our core markets alongside a volatile cost environment and a deliberate focus on cost reduction and simplification. Revenue increased approximately
“As we move into fiscal 2027, we are encouraged that these issues are actively being addressed, and that we are already seeing signs of progress. Inventory is down approximately
“Just as importantly, Lakeland now offers a full head-to-toe range of NFPA 1970:2026 certified products across our brand portfolio. The timing of these certifications had limited ordering activity during fiscal 2026, and completion of these certifications improves product availability as we move forward. We look forward to displaying our NFPA-certified fire portfolio at FDIC 2026.
“Looking ahead, we believe Lakeland is entering fiscal 2027 with a simpler portfolio, improved internal discipline, and a healthy level of demand across both Fire and Industrial. We are modestly ahead of budget going into the new fiscal year, and the pipeline continues to build. Our focus in fiscal 2027 is to build on the cost reductions, simplified portfolio, and inventory discipline established in fiscal 2026, with the objective of delivering more consistent margins and positive operating cash flow. Based on these actions and the underlying demand environment, we are providing FY 2027 objectives of high single-digit revenue growth and positive cash flows from operations,” Jenkins concluded.
Fiscal 2026 and Subsequent Operational Highlights
- Completed the acquisitions of Arizona PPE and California PPE, expanding U.S. Fire Services distribution and rental capabilities.
- Completed the sale and partial leaseback of Decatur, Alabama warehouse facilities in August 2025, for
$6.1 million , generating a pre-tax gain of approximately$4.3 million and reducing fixed cost exposure. - Announced the shipment of a USD
$3.1 million order through its Jolly Scarpe brand for fire intervention boots from the Italian Ministry of the Interior - Firefighters Department, as part of a previously-awarded four year supply contract. - Lakeland LHD subsidiary was awarded an approximately USD
$5.6 million three-year contract to provide advanced decontamination, managed care and maintenance services for the Hong Kong Fire Services Department’s (HKFSD) firefighter protective gear. - Received significant emergency follow-on orders to supply turnout gear, gloves, and hoods to the National Fire Department of Colombia ("DNBC”).
- Secured a contract renewal of up to 12 years with Fire and Emergency New Zealand (FENZ), New Zealand's main firefighting and emergency services body, for a range of apparel and decontamination services.
- Products including Lakeland Structural Turnout and Proximity Gear; Veridian Gloves and Fire Particulate Blocking Hoods; and Pacific Helmets, have officially achieved NFPA 1970:2025 certification, further strengthening Lakeland’s full head-to-toe firefighter Personal Protective Equipment (PPE) portfolio.
- California PPE opened “California PPE, Fresno”, a new state-of-the-art facility providing compliant decontamination, inspection and repair services to California Fire Departments and National Fire Protection Association (NFPA) 1850 training.
- Completed the divestiture of the HPFR (High Performance FR) and HiViz product lines in March 2026, generating approximately
$14 million of cash proceeds and meaningfully strengthening the Company's balance sheet. - Appointed Lee D. Rudow to its Board of Directors, effective April 9, 2026. Mr. Rudow previously served as Chief Executive Officer of Nasdaq-listed Transcat, Inc.
- Calven Swinea appointed Chief Financial Officer in February 2026 after having served as Interim Chief Financial Officer since December 2025 and Vice President of Finance since September 2020.
- Kevin Rae appointed Executive Vice President, Europe, the Middle East, and Africa Fire Sales after having served as Vice President, EMEA Fire and Global M&A Integration since 2022.
Fiscal 2026 Fourth Quarter Financial Highlights
- Net sales were
$45.8 million for Q4 FY26, compared to$46.6 million in Q4 FY25, a decrease of$0.8 million or1.7% , driven by decreases in Disposables, and Wovens, offset partially by increases in Fire Services and HPFR. - Sales of the Fire Services product line were
$21.7 million for the fourth quarter of fiscal 2026, an increase of$0.5 million or2% compared to$21.2 million for the fourth quarter of fiscal 2025. - Fire segment as a percentage of revenue was
47% . - U.S. sales were
$19.6 million for the fourth quarter of fiscal 2026, an increase of$1.3 million or7% compared to$18.3 million for the fourth quarter of fiscal 2025. - Europe sales, including Eagle, Jolly and LHD, were
$12.1 million for the fourth quarter of fiscal 2026, a decrease of$2.4 million or17% compared to$14.5 million for the fourth quarter of fiscal 2025. - LATAM sales were
$3.8 million for the fourth quarter of fiscal 2026, a decrease of$0.2 million or5% compared to$4.0 million for the fourth quarter of fiscal 2025. - Asia sales were
$4.3 million for the fourth quarter of fiscal 2026, an increase of$0.7 million or19% compared to$3.6 million for the fourth quarter of fiscal 2025. - Gross profit for the fourth quarter of fiscal 2026 was
$14.7 million , a decrease of$4.0 million , or21% , compared to$18.7 million for the fourth quarter of fiscal 2025. - Adjusted EBITDA excluding FX(1) was approximately
$1.3 million in Q4 FY26, compared to$6.1 million in Q4 FY25. - Q4 FY26 generated an approximately
$1.7 million improvement in cash flows from operations, demonstrating improved cost control and greater operating leverage relative to prior periods despite lower revenue.
(1) Adjusted EBITDA and Adjusted EBITDA excluding FX are non-GAAP financial measures. Reconciliations are provided in the tables of this press release.
Fiscal 2026 Full Year Financial Highlights
- Net sales increased
15.2% to$192.6 million for FY26, compared to$167.2 million for FY25, driven by a$30.6 million , or48.6% , increase in Fire Services revenue, supported by the full-year contributions of Veridian, LHD, Jolly, and Pacific Helmets acquisitions and the addition of Arizona PPE and California PPE in FY26. - Gross margin was
32.9% for FY26, compared to41.1% for FY25, primarily reflecting product mix, underutilization in Mexico and Vietnam, tariff and raw material cost headwinds, and integration-related costs. - Net loss was (
$25.3) million , or ($2.63) per diluted share, for FY26, compared to a net loss of ($18.1) million , or ($2.43) per diluted share, for FY25. The increase in net loss was driven by higher operating expenses to support growth and an$8.4 million establishment of a full valuation allowance on U.S. deferred tax assets. - Adjusted EBITDA excluding FX was approximately
$7.2 million for FY26, compared to$17.4 million for FY25. - Cash and cash equivalents were
$12.5 million at January 31, 2026. Working capital was approximately$96.2 million . Subsequent to January 31, 2026, completed the divestiture of the HPFR (High Performance FR) and HiViz product lines, generating approximately$14 million of cash proceeds. - Inventories decreased approximately
$5.3 million since October 31, 2025, reflecting progress on inventory rightsizing.
Fiscal Fourth Quarter 2026 Financial Results
Net sales were
Gross profit for Q4 FY26 was approximately
Operating expenses were approximately
Net loss was (
Adjusted EBITDA excluding FX for Q4 FY26 was approximately
Fiscal Year 2026 Financial Results
Net sales were
Gross profit was
Operating expenses increased
Net loss was (
Adjusted EBITDA excluding FX for FY26 was approximately
Cash and cash equivalents were
As of January 31, 2026, there were borrowings of
Net cash used in operating activities was
J. Calven Swinea, Chief Financial Officer, added, "In fiscal 2026, revenues increased
“Gross margin compression in fiscal 2026 was primarily driven by product mix associated with our fire acquisitions, underutilization in our Mexico and Vietnam facilities, and raw material and tariff headwinds. These are operational issues that we are actively addressing. We are also taking structural actions, including the planned consolidation of India production into Vietnam, that we believe will support improved efficiency and utilization over time.
“Importantly, the approximately
Fiscal Fourth Quarter and Full Year 2026 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:
| Date: | Thursday, April 16, 2026 |
| Time: | 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) |
| Dial-in: | 1-877-407-9208 |
| International Dial-in: | 1-201-493-6784 |
| Conference Code: | 13758334 |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1750467&tp_key=d6dc402422 |
A telephone replay will be available commencing approximately three hours after the call and will remain available through July 16, 2026, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13758334. 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. The non-GAAP financial measures used by the Company in this press release may be different from the methods used by other companies.
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.
| LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES Operating Results ( Reconciliation of GAAP Results to Non-GAAP Results | ||||
| Three Months Ended | Twelve Months Ended | |||
| January 31, | January 31, | |||
| 2026 | 2025 | 2026 | 2025 | |
| Net loss to EBITDA | ||||
| Net loss | ( | ( | ( | ( |
| Interest expense | 617 | 618 | 2,147 | 1,650 |
| Income tax expense | 356 | (397) | 7,612 | (281) |
| Depreciation and amortization | 1,447 | 1,756 | 5,063 | 4,775 |
| EBITDA | ($3,788) | ($16,461) | ($10,489) | ($11,931) |
| EBITDA to Adjusted EBITDA | ||||
| (excluding non-cash expenses) | ||||
| EBITDA | ( | ( | ( | ( |
| Equity compensation (1) | 369 | 476 | 3,391 | 1,558 |
| Other income (expense) (2) | 22 | (105) | 40 | (198) |
| Acquisition expenses (3) | 395 | 1,528 | 3,237 | 3,709 |
| Earnout revaluation (4) | - | - | - | (689) |
| Severance and restructuring (5) | 891 | 847 | 2,251 | 2,246 |
| New Monterrey, Mexico facility start-up costs (6) | 204 | 352 | 1,855 | 1,258 |
| PFAS Litigation (7) | (466) | 122 | (319) | 740 |
| ERP Project (8) | 390 | 174 | 1,796 | 174 |
| Amortization of step-up in inventory basis (9) | 217 | - | 1,395 | - |
| Goodwill impairment (10) | 2,604 | 10,538 | 2,604 | 10,538 |
| Gain on sale-leaseback (11) | - | - | (4,333) | - |
| Lease impairment (12) | - | - | 3,577 | - |
| Impairment of equity method investment (13) | - | 7,639 | - | 7,639 |
| Adjusted EBITDA | $836 | $5,110 | $5,005 | $15,043 |
| Adjusted EBITDA Margin | ||||
| Adjusted EBITDA | ||||
| Divided by net sales | 45,820 | 46,628 | 192,649 | 167,211 |
| Adjusted EBITDA Margin | 1.8% | 11.0% | 2.6% | 9.0% |
| Adjusted EBITDA to Adjusted EBITDA excluding FX | ||||
| Adjusted EBITDA | ||||
| Currency Fluctuation | 492 | 1,000 | 2,197 | 2,312 |
| Adjusted EBITDA excluding FX | $1,329 | $6,110 | $7,202 | $17,355 |
| Adjusted EBITDA Margin to Adjusted EBITDA excluding FX Margin | ||||
| Adjusted EBITDA excluding FX | ||||
| Divided by net sales | 45,820 | 46,628 | 192,649 | 167,211 |
| Adjusted EBITDA excluding FX Margin | 2.9% | 13.1% | 3.7% | 10.4% |
| Operating Expenses to Adjusted Operating Expensesexcluding FX | ||||
| Operating Expenses | ||||
| Depreciation and amortization | (1,113) | (682) | (3,750) | (2,412) |
| Equity compensation (1) | (369) | (476) | (3,391) | (1,558) |
| Acquisition expenses (3) | (395) | (1,528) | (3,237) | (3,709) |
| Earnout revaluation (4) | - | - | - | 689 |
| Severance and restructuring (5) | (891) | (847) | (2,251) | (2,246) |
| New Monterrey, Mexico facility start-up costs (6) | (204) | (352) | (1,855) | (1,258) |
| PFAS Litigation (7) | 466 | (122) | 319 | (740) |
| ERP Project (8) | (329) | (174) | (1,514) | (174) |
| FX | (492) | (1,000) | (2,197) | (2,312) |
| Adjusted Operating Expenses excluding FX | $14,015 | $13,658 | $59,114 | $53,681 |
The financial data above includes non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA 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 and restructuring costs, start-up costs for our Mexican operations, PFAS litigation expenses, ERP Project related costs and earnout revaluation. 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 the grant of equity awards.
(2) Adjustments for Other Income, which consists of interest income and gains/(losses) from Investments accounted for under the equity method of accounting.
(3) Adjustments for acquisition-related expenses included advisory fees, due diligence expenses and legal fees related to the Company's acquisitions.
(4) Adjustments for the reduction of the estimated earnout payment related to the Eagle acquisition. Reduction to the accrued earnout payment reflected in operating expenses.
(5) Adjustments for accrued employee severance and restructuring costs.
(6) 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.
(7) Adjustments for PFAS Litigation.
(8) Adjustments for the implementation of new ERP consisted of external services and employee related expenses.
(9) Adjustments for amortization of the step-up in basis for inventory acquired related to the Company's acquisitions.
(10) Goodwill impairment charges of
(11) The Company recorded a gain on sale-leaseback for the sale of the Decatur, Alabama warehouse facility.
(12) The Company recorded an impairment primarily related to the right of use asset for the Monterrey, Mexico facility.
(13) Impairment loss of
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.
"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 stated objectives of high single-digit revenue growth and positive cash flow from operations and our planned transition to an asset-based lending structure. 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," “will,” “likely,” “focus,” “objectives,” "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 Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
LAKE@mzgroup.us
www.mzgroup.us
| Lakeland Industries, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended January 31, 2026 and 2025 ( | |||||||
| 2026 | 2025 | ||||||
| Net sales | $ | 192,648 | $ | 167,211 | |||
| Cost of goods sold | 129,322 | 98,537 | |||||
| Gross profit | 63,326 | 68,674 | |||||
| Operating expenses | 76,990 | 67,401 | |||||
| Goodwill impairment | 2,604 | 10,538 | |||||
| Gain on sale-leaseback | (4,333 | ) | — | ||||
| Lease impairments | 3,577 | — | |||||
| Operating loss | (15,512 | ) | (9,265 | ) | |||
| Impairment of equity method investment | — | (7,639 | ) | ||||
| Other (expense) income, net | (40 | ) | 198 | ||||
| Interest expense | (2,147 | ) | (1,650 | ) | |||
| Loss before income tax expense (benefit) | (17,699 | ) | (18,356 | ) | |||
| Income tax expense (benefit) | 7,612 | (281 | ) | ||||
| Net loss | $ | (25,311 | ) | $ | (18,075 | ) | |
| Net loss per common share: | |||||||
| Basic | $ | (2.63 | ) | $ | (2.43 | ) | |
| Diluted | $ | (2.63 | ) | $ | (2.43 | ) | |
| Weighted average common shares outstanding: | |||||||
| Basic | 9,626,477 | 7,426,401 | |||||
| Diluted | 9,626,477 | 7,426,401 | |||||
| Lakeland Industries, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS January 31, 2026 and 2025 ( | |||||||
| ASSETS | |||||||
| Current assets | 2026 | 2025 | |||||
| Cash and cash equivalents | $ | 12,515 | $ | 17,476 | |||
| Accounts receivable, net of allowance for doubtful accounts of at January 31, 2026 and 2025, respectively | 32,043 | 27,607 | |||||
| Inventories | 82,542 | 82,739 | |||||
| Prepaid VAT and other taxes | 2,429 | 2,598 | |||||
| Income tax receivable and other current assets | 4,657 | 6,111 | |||||
| Total current assets | 134,186 | 136,531 | |||||
| Property and equipment, net | 11,640 | 13,948 | |||||
| Operating leases right-of-use assets | 11,248 | 13,917 | |||||
| Deferred tax assets | 1,149 | 6,270 | |||||
| Goodwill | 15,287 | 16,240 | |||||
| Intangible assets, net | 31,724 | 25,503 | |||||
| Other assets | 4,699 | 122 | |||||
| Total assets | $ | 209,933 | $ | 212,531 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 15,565 | $ | 15,742 | |||
| Accrued compensation and benefits | 4,984 | 4,501 | |||||
| Other accrued expenses | 8,964 | 8,130 | |||||
| Income tax payable | 1,802 | 1,993 | |||||
| Current portion of long-term debt | 1,891 | 939 | |||||
| Current portion of operating lease liabilities | 4,756 | 3,602 | |||||
| Total current liabilities | 37,962 | 34,907 | |||||
| Deferred income taxes | 2,198 | 3,891 | |||||
| Long-term debt | 30,382 | 16,426 | |||||
| Long-term portion of operating lease liabilities | 10,264 | 10,681 | |||||
| Total liabilities | 80,806 | 65,905 | |||||
| Commitments and contingencies (Footnote 12) | |||||||
| Stockholders’ equity | |||||||
| Preferred stock, | — | — | |||||
| Common stock, and 10,856,812; outstanding 9,806,128 and 9,498,604 at January 31, 2026 and 2025, respectively | 112 | 109 | |||||
| Treasury stock, at cost; 1,358,208 shares at January 31, 2026 and 2025 | (19,979 | ) | (19,979 | ) | |||
| Additional paid-in capital | 129,391 | 123,136 | |||||
| Retained earnings | 23,857 | 50,320 | |||||
| Accumulated other comprehensive loss | (4,254 | ) | (6,960 | ) | |||
| Total stockholders' equity | 129,127 | 146,626 | |||||
| Total liabilities and stockholders’ equity | $ | 209,933 | $ | 212,531 | |||
| Lakeland Industries, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended January 31, 2026 and 2025 ( | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (25,311 | ) | $ | (18,075 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities | |||||||
| Deferred income taxes | 2,510 | (4,086 | ) | ||||
| Depreciation and amortization | 5,063 | 3,316 | |||||
| Impairment of goodwill | 2,604 | 10,538 | |||||
| Lease impairments | 3,577 | — | |||||
| Amortization of step-up in inventory basis | 1,395 | 1,036 | |||||
| Stock based and restricted stock compensation | 3,391 | 1,558 | |||||
| Gain on sale-leaseback transaction | (4,333 | ) | — | ||||
| Loss on disposal of property and equipment | 113 | 61 | |||||
| Equity in loss of equity method investment | — | 384 | |||||
| Change in fair value of earnout consideration | — | (711 | ) | ||||
| Impairment of equity method investment | — | 7,639 | |||||
| Change in operating assets and liabilities, net of effect of business acquisitions | |||||||
| Accounts receivable, net | (2,674 | ) | (2,644 | ) | |||
| Inventories | 1,770 | (14,242 | ) | ||||
| Prepaid VAT and other taxes | 170 | 244 | |||||
| Other assets | (2,305 | ) | (1,477 | ) | |||
| Accounts payable | (1,051 | ) | 5,979 | ||||
| Accrued expenses and other liabilities | (488 | ) | (3,500 | ) | |||
| Operating lease liabilities | (181 | ) | (1,901 | ) | |||
| Net cash used in operating activities | (15,750 | ) | (15,881 | ) | |||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (671 | ) | (1,540 | ) | |||
| Proceeds from sale of property and equipment | 5,652 | — | |||||
| Acquisitions, net of cash acquired | (6,165 | ) | (45,084 | ) | |||
| Investments | — | (1,118 | ) | ||||
| Net cash used in investing activities | (1,184 | ) | (47,742 | ) | |||
| Cash flows from financing activities | |||||||
| Secondary stock offering proceeds | — | 42,626 | |||||
| Term loan borrowings | 2,048 | 2,688 | |||||
| Term loan repayments | (3,202 | ) | (635 | ) | |||
| Credit line borrowings | 44,334 | 59,400 | |||||
| Payments on debt facilities | (29,094 | ) | (46,158 | ) | |||
| Dividends paid | (1,152 | ) | (887 | ) | |||
| Shares returned to pay employee taxes under restricted stock program | (429 | ) | (446 | ) | |||
| Net cash provided by financing activities | 12,505 | 56,588 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (532 | ) | (711 | ) | |||
| Net decrease in cash and cash equivalents | (4,961 | ) | (7,746 | ) | |||
| Cash and cash equivalents at beginning of year | 17,476 | 25,222 | |||||
| Cash and cash equivalents at end of year | $ | 12,515 | $ | 17,476 | |||
| Supplemental disclosure of cash flow information: | |||||||
| Cash paid for interest | $ | 2,129 | $ | 1,650 | |||
| Cash paid for income taxes | $ | 3,045 | $ | 3,219 | |||
| Stock issued for acquisition | $ | 3,295 | $ | — | |||
