revenue growth
7–9 pct
FY 2027
official guidance
LAKELAND INDUSTRIES, INC.
Last · NASDAQ$11.95-0.18 (-1.48%)stale · yahoo · 123h ago
Market cap$117.94M9.9M sh
P/E · TTM-5.5fwd 20.8 · eps -2.18 · loss
Beta1.45vs S&P 500
Div yield—annual · TTM
52w range
$7.15$18.00
Volume21.9Ksession
| Revenue | $191.0M |
|---|---|
| Operating income | $-1.1M |
| Net income | $-4.6M |
| Free cash flow | $4.0M |
| Operating margin | -0.6% |
| Net margin | -2.4% |
| Return on equity | -3.6% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Promising demand and balance-sheet progress remain offset by low profitability and unproven backlog conversion.
Hold: Lakeland’s Q1 showed improving earnings but not yet investable execution—revenue rose only 1.4% to $47.4 million, while Fire Services grew 11% and adjusted EBITDA ex-FX increased to $1.1 million, or a thin 2.3% margin. The bull case is certified NFPA product demand, record backlog, and a $4–$5 million quarterly services business; the tension is that management still targets high-single-digit FY2027 revenue growth despite needing a sharp acceleration after Q1, with gross margin down to 33.6% from 35.2% year over year.
Themes
- Fire Services
- Nfpa Certification
- Isp Services
- Backlog Conversion
- Gross Margin Recovery
- Industrial Recovery
Near term
Q2 backlog conversion and production ramp-up across Veridian, Lakeland, Pacific, and Jolly will determine whether the promised acceleration begins.
Gross margin should improve as certification costs, inventory positioning, freight releases, and Fresno startup costs normalize; failure to expand from 33.6% would weaken the recovery case.
U.S. industrial demand remains the key near-term execution test, while Canada and Critical Environment are expected to rebound in Q2.
Trade-show spending should decline after Q2, supporting the $1.1 million year-over-year operating-expense reduction.
Longer term
NFPA 1970-2025 certification enables a complete head-to-toe portfolio and could support multi-year tender growth, including the seven-year U.K. framework with £220 million of potential value across all awarded suppliers.
The ISP platform is scaling through Fresno, Denver, Phoenix, Australia, and potential small acquisitions; management indicated a feasible site can reach at least $2 million of revenue with upper-double-digit EBITDA contribution.
Service revenue of roughly $4–$5 million per quarter could become a higher-quality recurring base, but management’s longer-term $50–$60 million revenue aspiration remains unquantified and not yet demonstrated.
Fire now represents approximately 49% of revenue, increasing exposure to a potentially higher-growth category but also raising execution risk around manufacturing capacity, inventory, certification, and tender timing.
The divestiture of High-Performance FR and HiViz simplifies the portfolio and improved liquidity, while the planned asset-based lending structure could provide additional working-capital flexibility.
Red flags
Q1 revenue growth of 1.4% is materially below the high-single-digit FY2027 target, and the CFO acknowledged that the implied remainder-of-year growth may require near-double-digit performance.
The backlog was described as being at historic levels, but management did not quantify its dollar value, conversion schedule, cancellation risk, or associated margins.
Gross margin declined 160 basis points year over year, and the explanation that roughly 330 basis points of pressure was temporary remains largely unverified until subsequent quarters show sustained recovery.
Fire demand is currently running ahead of manufacturing capacity, with turnout-gear lead times extending beyond the typical eight-to-12-week window; missed deliveries could delay revenue and damage customer relationships.
Inventory remains high at $77.7 million against only $17.4 million of cash, while the company had $23.8 million drawn on its revolver and plans to fund additional fire inventory and expansion.
Management did not provide detailed ISP site-level revenue, contribution margins, or ROIC; the stated $2 million revenue and upper-double-digit EBITDA profile is an expectation rather than reported performance.
U.S. industrial recovery and oil-and-gas turnaround demand remain largely prospective, and Middle East uncertainty is delaying EMEA projects and freezing some regional budgets.
Forward outlook
gross margin
—
FY 2027
management framework
ebitda
—
FY 2027
management framework
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-04-16
- Operating Cf Burn
- Net Margin Sharply Negative
- Cash Conversion Weak
- Cash Runway Low
Red flags
- Operating Cf Burn — Negative operating cash flow
- Net Margin Sharply Negative — Net margin -13.1%
- Cash Conversion Weak — Cash conversion (CFO/Rev) -8.2%
- Cash Runway Low — Cash runway ~0.8 years
Upcoming earnings
10:00 PM UTC+2
Period
Jul 2026
Est. EPS
−$0.06
Est. revenue
51.4M
Earnings transcripts
Press & signals
- GlobeNewswire
Lakeland Fire + Safety Reports Fiscal Second Quarter 2027 Results
- GlobeNewswire
Lakeland Fire + Safety Secures Second Consecutive Contract for Foul Weather Gear with the Hong Kong Government Flying Service for Pilots and Engineering Officers