Core Insights - Lakeland Industries has secured an order from the Fire and Rescue Department of Malaysia for firefighter personal protective equipment, indicating a strong foothold in the Southeast Asian market [1][3] - The order highlights the potential for additional future orders from Bomba, as Lakeland aims to expand its presence in the high-growth Asia Pacific region [3][4] - The transaction showcases Lakeland's ability to leverage its local sales force and marketing team for effective cross-selling opportunities across its product portfolio [4] Company Overview - Lakeland Fire + Safety is a global manufacturer of protective clothing for various sectors, including industry, healthcare, and first responders, with a comprehensive line of fire services and industrial protective clothing [5] - The company sells its products globally through in-house sales teams and authorized independent sales representatives, catering to a diverse range of industries and governmental agencies [5] - Lakeland operates in over 50 countries, with significant sales in regions such as China, the European Economic Community, and Southeast Asia [5]

Core Viewpoint - Lakeland Industries, Inc. will host a conference call on December 9, 2025, to discuss its financial results for the fiscal third quarter of 2026, which ended on October 31, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled for December 9, 2025, at 4:30 p.m. Eastern Time [2]. - Participants can access the call via a dial-in number or through a webcast link provided [2]. - A telephone replay of the call will be available for three months after the event [2]. Group 2: Company Overview - Lakeland Fire + Safety manufactures protective clothing and accessories for various industries, including healthcare and first responders [3]. - The company sells its products globally through in-house sales teams and authorized independent sales representatives [3]. - Key markets served include oil, chemical, automotive, construction, and governmental agencies, with international sales to over 50 countries [3].

Core Insights - Lakeland Industries is expanding its service capabilities through its subsidiary California PPE by leasing a new 8,000 square-foot facility in Fresno, CA, aimed at enhancing operational capacity and service offerings in the firefighting market [1][2][3] Facility Expansion - The new facility will support increased throughput for decontamination, inspection, repair services, and rental gear logistics, as well as enhanced training capacity for fire service clients [2][3] - The half-acre site allows for additional support space and efficient scaling as demand grows [2] Strategic Rationale - The expansion is a significant milestone for Lakeland's U.S. service platform, reflecting confidence in the long-term growth of the fire service PPE market [5][8] - Enhanced infrastructure will enable faster turnaround times and improved workflows, allowing for potential additional shifts and new service modalities [3][8] Future Growth Opportunities - Future services may include expanded rental gear programs, training, and consulting for NFPA 1850 care and maintenance standards, aligning with Lakeland's service-oriented growth objectives [8]

Core Points - Lakeland Industries, Inc. declared a cash dividend of $0.03 per share for its fiscal fourth quarter of 2026, to be paid on November 24, 2025, to stockholders of record as of November 17, 2025 [1] Company Overview - Lakeland Fire + Safety manufactures and sells a wide range of protective clothing and accessories for industrial and first responder markets, with a global sales network [2] - The company serves various industries including oil, chemical, automotive, transportation, and healthcare, supplying both governmental agencies and private sector clients [2] - Lakeland's international sales extend to over 50 countries, with significant markets in China, the European Economic Community, Canada, and several countries in Latin America and Asia [2]

Core Viewpoint - Lakeland Industries (LAKE) is recognized as a strong buy despite having low ratings for value and growth, with a focus on manufacturing safety garments for various protective needs [1] Company Overview - Lakeland Industries, Inc. specializes in manufacturing and selling safety garments and accessories for industrial and public protective clothing markets, operating in both domestic and international segments [2] - The product range includes disposable protective clothing, chemical protective clothing, fire protective gear, and other safety garments [2] Earnings Performance - The company has missed the Zacks Consensus Estimate in three of the last four quarters, but recently reported an EPS of $0.36, exceeding the estimate of a loss of $0.04, resulting in a 1000% positive earnings surprise [4] - The average positive surprise over the last four quarters is 106% [4] Earnings Estimates Revisions - Earnings estimates for Lakeland Industries have been revised upwards, with the full year 2025 estimate increasing from $0.18 to $0.50 and 2026 from $1.23 to $1.28 over the last 60 days [5] Growth Projections - Analysts project revenue of $213 million for the current fiscal year, indicating a 27% growth, with expectations of $240 million next fiscal year, reflecting a 12.7% sales growth [6] Valuation Metrics - The company has a price to book ratio of 1.06x, suggesting investors are paying a slight premium over the asset cost, while the forward PE ratio is 32x, which is considered high but justified by expected growth [7] - The price to sales ratio stands at 0.82x, indicating the market may not fully recognize the company's sales performance, partly due to negative operating margins in recent quarters [7]

Core Viewpoint - Lakeland Industries (LAKE) shows significant upside potential with a mean price target of $24.25, indicating a 63.9% increase from the current price of $14.8 [1] Price Targets - The average price target consists of four estimates ranging from a low of $20.00 to a high of $27.00, with a standard deviation of $3.1, suggesting a consensus among analysts [2] - The lowest estimate indicates a 35.1% increase, while the highest suggests an 82.4% upside [2] Analyst Sentiment - Analysts exhibit strong agreement on LAKE's ability to report better earnings than previously predicted, which supports the potential for stock upside [4] - A positive trend in earnings estimate revisions has been correlated with near-term stock price movements, reinforcing the optimistic outlook [11] Earnings Estimates - Over the past 30 days, one earnings estimate has increased, leading to a Zacks Consensus Estimate rise of 177.8% [12] - LAKE holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors [13] Conclusion on Price Targets - While the consensus price target may not be a reliable indicator of the extent of LAKE's potential gains, it does provide a useful guide for price movement direction [14]

Core Insights - Lakeland Industries has successfully acquired Arizona PPE and California PPE, expanding its presence in the U.S. personal protective equipment market and enhancing its fire service offerings [1][4][5] - The acquisitions are expected to add approximately $5 million in annual recurring revenue to Lakeland's operations [1] Company Overview - Arizona PPE is a leading UL-certified independent service provider in Arizona, specializing in decontamination, inspection, and repair of firefighting garments, as well as offering training and rental services [2][8] - California PPE is a rapidly expanding UL-certified independent service provider in California, focusing on similar services for firefighting equipment and has a strong vision for growth in the Southern California area [3][9] Strategic Importance - The acquisitions are seen as complementary to Lakeland's existing fire service business, providing opportunities for growth in gear rentals and manufacturing [5] - The integration of Arizona PPE and California PPE is expected to leverage Lakeland's existing strengths in Asia and Australia to develop a robust North American platform for advanced decontamination and rental services [4][5]

Group 1: Rewey Asset Management Overview - Rewey Asset Management's "RAM Smid Composite" increased by 6.11% in Q2 2025, slightly trailing the benchmark Russell 2500 Value Total Return Index which gained 7.29% [1] - Year-to-date, the composite returned -1.29% compared to a 1.03% gain for the benchmark [1] - The firm expresses confidence in the Smid value sector as it approaches the second half of 2025 [1] Group 2: Lakeland Industries, Inc. Performance - Lakeland Industries, Inc. (NASDAQ:LAKE) was highlighted as the weakest performer for Rewey Asset Management in Q2 2025, declining by 31.40% due to a soft FY1Q26 report with revenue and earnings below expectations [3] - The stock's one-month return was -2.86%, and it lost 28.32% of its value over the last 52 weeks, closing at $14.63 per share with a market capitalization of $139.199 million on September 12, 2025 [2] - The company is transitioning to a full-service provider of firefighter gear, with expectations to improve margins through recent acquisitions and fulfillment of delayed orders [3] Group 3: Market Sentiment and Hedge Fund Activity - Lakeland Industries, Inc. was held by 11 hedge fund portfolios at the end of Q2 2025, down from 14 in the previous quarter [4] - While acknowledging Lakeland's potential, the company believes certain AI stocks offer greater upside potential and carry less downside risk [4]

Core Insights - Lakeland Industries, Inc. has secured a three-year contract valued at approximately USD $5.6 million with the Hong Kong Fire Services Department for advanced decontamination and maintenance services for firefighter protective gear [1][3][4] Company Overview - Lakeland Fire + Safety is a leading global manufacturer of protective clothing and apparel for various sectors, including industry, healthcare, and first responders [1][6] - The company has been supplying firefighter ensembles to the Hong Kong Fire Services Department since 2011 and has a strong presence in the Asia Pacific market [2][4] Contract Details - The contract will cover advanced decontamination services and maintenance for an estimated 14,500 firefighter ensembles annually, enhancing firefighter safety by removing harmful carcinogens [3][4] - The contract was awarded through a competitive selection process involving several leading companies in the industry [3] Financial Performance - In the fiscal second quarter of 2026, Lakeland reported a 36% increase in net sales to a record USD $52.5 million, driven by a 113% increase in fire services products [5] - Sales in the Asian market reached USD $3.7 million for the same quarter, representing 7% of total revenue, indicating significant growth potential in this region [5]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Lakeland Fire + Safety reported record fiscal Q2'26 net sales of $52.5 million, a 36% increase YoY, primarily driven by a 113% surge in Fire Services products. The company achieved positive net income of $0.8 million and improved sequential gross margin, despite ongoing global tariff uncertainties [Q2'26 Key Financial Highlights](index=1&type=section&id=Q2%2726%20Key%20Financial%20Highlights) Fiscal Q2'26 saw significant financial improvements, including a 36% increase in net sales to $52.5 million and a return to positive net income of $0.8 million, a 157% improvement YoY. Adjusted EBITDA excluding FX also grew substantially by 89% to $5.1 million Fiscal Q2'26 Key Financial Highlights (YoY Comparison) | Metric | Q2'26 | Q2'25 | $ Change YoY | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $52.5M | $38.5M | $14.0M | 36% | | Gross Profit | $18.8M | $15.2M | $3.6M | 24% | | Gross Margin | 35.9% | 39.6% | — | (370)BPS | | Net Income (Loss) | $0.8M | ($1.4M) | $2.2M | 157% | | Adjusted EBITDA ex. FX | $5.1M | $2.7M | $2.4M | 89% | [Q2'26 Key Operational Highlights](index=1&type=section&id=Q2%2726%20Key%20Operational%20Highlights) Operational highlights for Q2'26 include robust growth in Fire Services products, strong performances in North America and Europe, and strategic initiatives like a $6.1 million property sale and facility closures aimed at cost reduction and efficiency - Fire Services product line sales increased by **$13.6 million** or **113% YoY**, reaching **$25.6 million** and representing **49% of total revenue**[1](index=1&type=chunk)[13](index=13&type=chunk) - U.S. net sales increased **78% to $22.1 million**, and Europe net sales increased **113% to $15.1 million**[1](index=1&type=chunk)[13](index=13&type=chunk) - Completed a **$6.1 million** sale and partial leaseback of its Decatur, Alabama, warehouse property to strengthen the balance sheet and provide financial flexibility[13](index=13&type=chunk) - Announced closures of its Hull, England warehouse and Veridian manufacturing facility in Quitman, Arkansas, as part of an operational consolidation strategy to enhance efficiency and reduce costs[13](index=13&type=chunk) [Management Commentary & Business Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Business%20Outlook) Management highlighted record Q2'26 net sales driven by Fire Services and strong regional performance, despite global tariff uncertainties. Strategic focus includes expanding sales in key verticals, optimizing inventory, and implementing operational efficiencies. The company updated its FY26 guidance, reflecting continued tariff impacts and order delays [CEO's Strategic Overview](index=1&type=section&id=CEO%27s%20Strategic%20Overview) CEO Jim Jenkins emphasized record Q2'26 net sales, led by Fire Services, and sequential margin improvement. He noted strong performances in North America, Asia, and Europe, offset by softness in Latin America due to tariff and currency issues. Future strategies include expanding Fire Services, optimizing inventory, and enhancing operational efficiencies to achieve higher margins and free cash flow, while capitalizing on long-term industry tailwinds - Record fiscal Q2'26 net sales revenue growth of **36% to $52.5 million**, led by a **113% increase in Fire Services revenue**[5](index=5&type=chunk) - Strong performances in North American Industrial and Fire segments, Asia, and LHD Australia, with rebounds in Europe and Canada, partially offset by softness in Latin America due to tariff uncertainty and currency issues[6](index=6&type=chunk) - Focus on navigating tariff uncertainties, growing top-line revenue in fire services and industrial verticals, and implementing operating and manufacturing efficiencies for higher margins and improved free cash flow[8](index=8&type=chunk) - Initiated targeted actions to optimize inventory levels in U.S. Critical Environment, Jolly, LHD Australia, and Veridian, with further initiatives planned for the second half of FY26[8](index=8&type=chunk) - Expects U.S. and EMEA Fire Services tender cycles to restart in late FY26 and into Q1 FY27, increasing demand and improving performance[9](index=9&type=chunk) [CFO's Financial Review](index=5&type=section&id=CFO%27s%20Financial%20Review) CFO Roger Shannon detailed the 36% revenue growth, driven by U.S. and Canadian Fire Services and Industrial divisions, with organic revenue up 14%. He noted a consolidated gross margin decrease to 35.9% due to tariffs and supply chain costs, but a sequential improvement of 240 basis points. Operating expenses increased due to acquisitions but declined sequentially due to cost reduction initiatives, leading to an 89% increase in Adjusted EBITDA excluding FX. The balance sheet remains strong, supported by $4 million in annual cost reduction initiatives and a property sale - Revenue grew **$14.0 million (36%) YoY**, with organic revenue increasing **14% to $42.0 million**, driven by growth in the U.S., Canada, Europe, and Asia[26](index=26&type=chunk) - Consolidated gross margin decreased to **35.9% YoY** due to increased tariffs and supply chain expenses but improved sequentially by **240 basis points** from 33.5% in Q1'26[27](index=27&type=chunk) - Operating expenses increased by **$2.5 million (15%) YoY** (with **$1.6 million from acquisitions**) but declined sequentially by **$1.0 million (5%) to $19.3 million** due to expense reduction initiatives[28](index=28&type=chunk)[29](index=29&type=chunk) - Adjusted EBITDA excluding FX increased by **$2.4 million (89%) YoY to $5.1 million**, and by **$4.5 million (740%) QoQ**, reaching a margin of **9.6%**[30](index=30&type=chunk) - Balance sheet strengthened by **$4 million in annual cost reduction initiatives**, including facility closures, and a **$6.1 million property sale**[31](index=31&type=chunk) [FY 2026 Guidance Update](index=6&type=section&id=FY%202026%20Guidance%20Update) Lakeland updated its fiscal year 2026 guidance, adjusting revenue expectations to the lower end of the $210-$220 million range and Adjusted EBITDA excluding FX to $20-$24 million. This revision reflects continued uncertainty with the global tariff environment, lower margins, and near-term order delays FY 2026 Guidance Update | Metric | Previous Guidance | Updated Guidance | Reason for Change | | :--- | :--- | :--- | :--- | | Revenue | $210M - $220M | Near lower end of $210M - $220M | Continued uncertainty with global tariff environment | | Adjusted EBITDA ex. FX | (Not specified) | $20M - $24M | Lower margins, near-term order delays, tariff uncertainty, higher operating expenses | - The company is actively assessing the financial impact of tariffs and is committed to protecting margins through pricing adjustments, operational efficiencies, and supply chain diversification[33](index=33&type=chunk) [Fiscal Second Quarter 2026 Detailed Financial & Operational Highlights](index=3&type=section&id=Fiscal%20Second%20Quarter%202026%20Detailed%20Financial%20%26%20Operational%20Highlights) Lakeland's Q2'26 financial results show strong top-line growth driven by acquisitions and Fire Services, alongside challenges in gross margin due to tariffs and supply chain costs. Despite an increase in operating expenses from acquisitions, the company achieved positive net income and significantly improved Adjusted EBITDA, while managing cash and debt [Net Sales Performance](index=3&type=section&id=Net%20Sales%20Performance) Net sales for Q2'26 reached a record $52.5 million, a 36% increase YoY, with acquisitions contributing $9.0 million and organic sales growing 14% to $42.0 million. Fire Services sales surged 113% to $25.6 million, becoming 49% of total revenue. Domestic sales increased to 42% of total revenue, while international sales remained dominant at 58% Q2'26 Net Sales Breakdown | Category | Q2'26 Sales | % Change YoY | Contribution to Total Sales | | :--- | :--- | :--- | :--- | | Total Net Sales | $52.5M | 36% | 100% | | Organic Revenue | $42.0M | 14% | 80% | | Acquisition Revenue | $9.0M | N/A | 17% | | Fire Services Product Line | $25.6M | 113% | 49% | | U.S. Net Sales | $22.1M | 78% | 42% | | Europe Net Sales | $15.1M | 113% | 29% | | LATAM Net Sales | $4.3M | (42%) | 8% | | Asia Net Sales | $3.7M | 6% | 7% | [Gross Profit and Margin Analysis](index=3&type=section&id=Gross%20Profit%20and%20Margin%20Analysis) Gross profit increased 24% to $18.8 million in Q2'26, but the gross margin percentage decreased to 35.9% from 39.6% YoY. This decline was primarily attributed to increased supply chain costs, tariffs, higher inbound freight, and amortization of acquired inventory step-up. Organic gross margin also saw a slight decrease to 38.6% Q2'26 Gross Profit and Margin | Metric | Q2'26 | Q2'25 | % Change YoY | | :--- | :--- | :--- | :--- | | Gross Profit | $18.8M | $15.2M | 24% | | Gross Margin | 35.9% | 39.6% | (370)BPS | | Organic Gross Margin | 38.6% | 41.0% | (240)BPS | - Gross margin percentage decreased due to increased supply chain costs and tariffs, higher inbound freight expenses, and amortization of the step-up in the basis of acquired inventory[16](index=16&type=chunk) [Operating Expenses and Loss](index=4&type=section&id=Operating%20Expenses%20and%20Loss) Operating expenses rose by $2.5 million (15%) to $19.3 million in Q2'26, mainly due to the acquisitions of Veridian and LHD ($1.6 million), higher equity compensation, and depreciation/amortization. These increases were partially offset by reductions in acquisition expenses, restructuring costs, and professional fees. The company reported an operating loss of $4.0 million, exacerbated by a $3.6 million impairment of the Monterrey, Mexico facility lease Q2'26 Operating Expenses and Loss | Metric | Q2'26 | Q2'25 | $ Change YoY | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | Operating Expenses | $19.3M | $16.8M | $2.5M | 15% | | Operating Loss | ($4.0M) | ($1.6M) | ($2.4M) | (150%) | | Operating Margins | (7.6%) | (4.1%) | — | (350)BPS | - Operating expenses increased primarily due to **$1.6 million** from Veridian and LHD acquisitions, higher equity compensation, and depreciation/amortization, partially offset by reductions in acquisition, restructuring, and professional fees[17](index=17&type=chunk) - Operating loss was significantly impacted by a **$3.6 million** impairment of the Monterrey, Mexico facility lease[17](index=17&type=chunk) [Net Income and EPS](index=5&type=section&id=Net%20Income%20and%20EPS) Lakeland achieved a net income of $0.8 million, or $0.08 per diluted share, in Q2'26, a significant turnaround from a net loss of ($1.4) million, or ($0.19) per diluted share, in Q2'25 Q2'26 Net Income and EPS | Metric | Q2'26 | Q2'25 | $ Change YoY | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $0.8M | ($1.4M) | $2.2M | 157% | | Diluted EPS | $0.08 | ($0.19) | $0.27 | 142% | [Adjusted EBITDA Performance](index=3&type=section&id=Adjusted%20EBITDA%20Performance) Adjusted EBITDA excluding FX for Q2'26 increased by $2.4 million (89%) to $5.1 million, driven by strong North American performance and reduced operating expenses, despite lower sales in the higher-margin LATAM region. The Adjusted EBITDA excluding FX margin improved significantly to 9.6%, up 270 basis points YoY and 830 basis points QoQ Q2'26 Adjusted EBITDA excluding FX | Metric | Q2'26 | Q2'25 | Q1'26 | $ Change YoY | % Change YoY | BPS Change YoY | BPS Change QoQ | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA ex. FX | $5.1M | $2.7M | $0.6M | $2.4M | 89% | — | — | | Adjusted EBITDA ex. FX Margin | 9.6% | 6.9% | 1.3% | — | — | 270 | 830 | [Balance Sheet and Cash Flow](index=5&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) As of July 31, 2025, cash and cash equivalents totaled $17.7 million, with working capital at $106.9 million, both showing slight increases from January 31, 2025, primarily due to inventory increases. The company had $24.9 million outstanding on its revolving credit facility, which was fully repaid post-quarter-end using proceeds from a $6.1 million property sale. Net cash used in operating activities increased to $9.7 million for the six months ended July 31, 2025. A quarterly dividend of $0.03 per share was paid Key Balance Sheet and Cash Flow Metrics (as of July 31, 2025) | Metric | July 31, 2025 | January 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $17.7M | $17.5M | +$0.2M | | Working Capital | $106.9M | $102.6M | +$4.3M | | Revolving Credit Facility Outstanding | $24.9M | N/A | N/A | - Net cash used in operating activities for the six months ended July 31, 2025, was **$9.7 million**, compared to **$4.1 million** in the prior year, driven by increased net loss and non-cash charges[24](index=24&type=chunk)[59](index=59&type=chunk) - The company paid a quarterly dividend of **$0.03 per share** on August 22, 2025[25](index=25&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides a detailed reconciliation of GAAP results to various non-GAAP financial measures, including EBITDA, Adjusted EBITDA, and organic revenue/gross margin. It also explains the rationale behind using these non-GAAP measures and the specific adjustments made to provide a clearer view of the company's core operational performance [Reconciliation Tables](index=8&type=section&id=Reconciliation%20Tables) The reconciliation tables present the adjustments made to GAAP net income (loss) to derive EBITDA, Adjusted EBITDA, and Adjusted EBITDA excluding FX, along with the calculation of Adjusted EBITDA margins. It also shows the reconciliation for Adjusted Operating Expenses excluding FX, Organic Revenue, and Organic Gross Margin Reconciliation of GAAP Results to Non-GAAP Results (Three and Six Months Ended July 31, 2025 & 2024) ($000's) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $766 | ($1,376) | ($3,147) | $277 | | **EBITDA** | **$841** | **($281)** | **($2,550)** | **$2,580** | | **Adjusted EBITDA** | **$5,013** | **$1,816** | **$4,836** | **$5,669** | | Adjusted EBITDA Margin | 9.6% | 4.7% | 4.9% | 7.6% | | **Adjusted EBITDA excluding FX** | **$5,056** | **$2,659** | **$5,658** | **$6,519** | | Adjusted EBITDA excluding FX Margin | 9.6% | 6.9% | 4.9% | 7.6% | | Operating Expenses | $19,283 | $16,826 | $39,561 | $30,809 | | **Adjusted Operating Expenses excluding FX** | **$14,574** | **$13,176** | **$30,433** | **$25,685** | | Net Sales | $52,496 | $38,512 | $99,242 | $74,822 | | **Organic Revenue** | **$41,959** | **$36,973** | **$78,743** | **$73,282** | | Gross Profit | $18,818 | $15,235 | $34,462 | $31,420 | | **Organic Gross Profit** | **$16,183** | **$14,612** | **$30,012** | **$30,796** | | Organic Gross Margin | 38.6% | 39.5% | 38.1% | 42.0% | [Explanation of Non-GAAP Measures and Adjustments](index=9&type=section&id=Explanation%20of%20Non-GAAP%20Measures%20and%20Adjustments) Management uses non-GAAP measures like EBITDA, Adjusted EBITDA, and organic revenue/gross margin to provide more meaningful period-to-period comparisons, guide internal decision-making, and offer investors a clearer understanding of core business performance. These measures exclude items not directly related to ongoing core operations, such as interest, taxes, depreciation, amortization, equity compensation, acquisition-related expenses, restructuring costs, and specific litigation/project costs - Non-GAAP measures (EBITDA, Adjusted EBITDA, organic revenue/gross margin) are used to make meaningful period-to-period comparisons, guide management decisions, and provide investors with a better understanding of core business performance[43](index=43&type=chunk) - Exclusions from non-GAAP measures include interest, taxes, depreciation, amortization, equity compensation, acquisition-related expenses, severance and restructuring costs, Mexican operations start-up costs, PFAS litigation expenses, ERP Project costs, and earnout revaluation[42](index=42&type=chunk)[43](index=43&type=chunk) - Organic revenue and organic gross margin exclude the effects of acquisitions completed within the previous fiscal year to understand trends in the legacy business[42](index=42&type=chunk)[43](index=43&type=chunk) [Company Information](index=10&type=section&id=Company%20Information) Lakeland Fire + Safety is a global manufacturer of protective clothing and accessories for industrial and first responder markets, serving diverse industries and governmental agencies across more than 50 countries. The company's press release includes a standard "Safe Harbor" statement regarding forward-looking statements and provides contact information for investor relations [About Lakeland Fire + Safety](index=10&type=section&id=About%20Lakeland%20Fire%20%2B%20Safety) Lakeland Fire + Safety manufactures and sells a comprehensive line of fire services and industrial protective clothing and accessories globally. Its products are distributed to end-users in various industries, including oil, chemical, automotive, healthcare, and governmental agencies, across over 50 countries, with significant presence in China, Europe, Canada, and other emerging markets - Lakeland Fire + Safety manufactures and sells protective clothing and accessories for industrial and first responder markets[49](index=49&type=chunk) - Products are sold globally through in-house sales, customer service, and authorized distributors to diverse industries (e.g., oil, chemical, healthcare) and governmental agencies (e.g., fire, law enforcement, Department of Defense)[49](index=49&type=chunk) - International sales are made into more than **50 foreign countries**, including China, the European Economic Community, Canada, India, and Australia[49](index=49&type=chunk) [Safe Harbor Statement](index=10&type=section&id=Safe%20Harbor%20Statement) The "Safe Harbor" statement clarifies that the press release contains forward-looking statements, including estimates, predictions, and expectations for future financial and operational performance. These statements involve risks, uncertainties, and assumptions, and actual results may differ materially. The company disclaims any obligation to update these statements, except as required by law - The press release contains forward-looking statements regarding future business, financial performance, goals, and strategies, including M&A and tariff mitigation plans[52](index=52&type=chunk) - Forward-looking statements involve risks, uncertainties, and assumptions, and actual results may differ materially from expectations[52](index=52&type=chunk) - The company disclaims any obligation to publicly update or revise these statements, except as required by law[52](index=52&type=chunk) [Contacts](index=11&type=section&id=Contacts) Contact information for Lakeland Fire + Safety's Chief Financial Officer, Roger Shannon, and Investor Relations, Chris Tyson of MZ Group - MZ North America, is provided for inquiries Company Contacts | Role | Name | Contact | | :--- | :--- | :--- | | Chief Financial Officer | Roger Shannon | rdshannon@lakeland.com | | Investor Relations (MZ Group) | Chris Tyson | LAKE@mzgroup.us | [Financial Statements](index=12&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Lakeland Industries, Inc. and its subsidiaries, including the Statements of Operations, Balance Sheets, and Statements of Cash Flows for the reported periods [Condensed Consolidated Statements of Operations](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Condensed Consolidated Statements of Operations provide a summary of the company's revenues, costs, and profitability for the three and six months ended July 31, 2025, and 2024, detailing net sales, gross profit, operating expenses, and net income (loss) Condensed Consolidated Statements of Operations ($000's) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $52,496 | $38,512 | $99,242 | $74,822 | | Cost of goods sold | 33,678 | 23,277 | 64,780 | 43,403 | | Gross profit | 18,818 | 15,235 | 34,462 | 31,419 | | Operating expenses | 19,283 | 16,826 | 39,561 | 30,809 | | Lease impairments | 3,577 | — | 3,577 | — | | Operating (loss) income | (4,042) | (1,591) | (8,676) | 610 | | Other income, net | 38 | 165 | 144 | 177 | | Interest expense | (445) | (370) | (1,028) | (542) | | (Loss) income before taxes | (4,449) | (1,796) | (9,560) | 245 | | Income tax benefit | (5,215) | (420) | (6,413) | (32) | | Net income (loss) | $766 | ($1,376) | ($3,147) | $277 | | Basic EPS | $0.08 | ($0.19) | ($0.33) | $0.04 | | Diluted EPS | $0.08 | ($0.19) | ($0.33) | $0.04 | [Condensed Consolidated Balance Sheets](index=13&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets present the company's financial position as of July 31, 2025, and January 31, 2025, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets ($000's) | Asset/Liability/Equity | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $17,749 | $17,476 | | Accounts receivable, net | 30,931 | 27,607 | | Inventories, net | 90,202 | 82,739 | | Total current assets | 147,064 | 136,531 | | Property and equipment, net | 13,539 | 13,948 | | Operating leases right-of-use assets | 9,031 | 13,917 | | Goodwill | 15,047 | 16,240 | | Intangible assets, net | 26,007 | 25,503 | | **Total assets** | **$226,304** | **$212,531** | | **LIABILITIES** | | | | Accounts payable | $18,116 | $15,742 | | Total current liabilities | 40,221 | 34,907 | | Loans payable – long term | 28,100 | 16,426 | | **Total liabilities** | **$79,042** | **$65,905** | | **STOCKHOLDERS' EQUITY** | | | | Total stockholders' equity | 147,262 | 146,626 | | **Total liabilities and stockholders' equity** | **$226,304** | **$212,531** | [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows detail the cash inflows and outflows from operating, investing, and financing activities for the six months ended July 31, 2025, and 2024, showing the net change in cash and cash equivalents Condensed Consolidated Statements of Cash Flows ($000's) | Cash Flow Activity | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | | Net (loss) income | ($3,147) | $277 | | Net cash (used in) operating activities | (9,660) | (4,053) | | Net cash (used in) investing activities | (2,130) | (24,431) | | Net cash provided by financing activities | 10,941 | 27,048 | | Effect of exchange rate changes on cash | 1,122 | 1,094 | | Net increase (decrease) in cash | 273 | (342) | | Cash and cash equivalents at beginning of period | 17,476 | 25,222 | | Cash and cash equivalents at end of period | $17,749 | $24,880 | [Conference Call Information](index=7&type=section&id=Conference%20Call%20Information) Lakeland Fire + Safety hosted a conference call on September 9, 2025, to discuss its fiscal Q2'26 financial results, with details provided for accessing the live call and subsequent replay [Call Details](index=7&type=section&id=Call%20Details) The conference call for Q2'26 financial results was held on Tuesday, September 9, 2025, at 4:30 p.m. Eastern Time. Participants could access it via dial-in numbers or webcast, with a replay available until December 9, 2025 Q2 2026 Financial Results Conference Call Details | Detail | Information | | :--- | :--- | | Date | Tuesday, September 9, 2025 | | Time | 4:30 p.m. Eastern Time | | U.S. Dial-in | 1-877-407-9208 | | International Dial-in | 1-201-493-6784 | | Conference Code | 13754808 | | Webcast | Q2 2026 Financial Results Conference Call | | Replay Availability | Through December 9, 2025 | - Lakeland President, CEO, and Executive Chairman Jim Jenkins and CFO Roger Shannon hosted the conference call, accompanied by a presentation accessible via the company's investor relations website[38](index=38&type=chunk)