Financial Performance - Net sales for the three months ended July 31, 2025, were $52.5 million, an increase of $14.0 million or 36.4% compared to $38.5 million for the same period in 2024[124] - Gross profit for the three months ended July 31, 2025, was $18.8 million, an increase of $3.6 million or 23.7% compared to $15.2 million for the same period in 2024[125] - Net income for the three months ended July 31, 2025, was $0.8 million, compared to a net loss of $(1.4) million for the same period in 2024[131] - Net sales for the six months ended July 31, 2025, were $99.2 million, an increase of 32.6% compared to $74.8 million for the same period in 2024[132] - Gross profit for the six months ended July 31, 2025, was $34.5 million, an increase of $3.1 million, or 9.9%, from $31.4 million for the same period in 2024[133] - Net loss was $(3.1) million for the six months ended July 31, 2025, compared to net income of $0.3 million for the same period in 2024[138] Operating Expenses - Operating expenses increased by $2.5 million or 14.6% from $16.8 million for the three months ended July 31, 2024, to $19.3 million for the same period in 2025[127] - Operating expenses increased by $8.8 million, or 28.6%, to $39.6 million for the six months ended July 31, 2025, primarily due to acquisitions and increased selling expenses[134] - The company recorded a $3.6 million lease impairment related to the Monterrey, Mexico facility, with no lease impairment charges recorded for the same period in 2024[135] - Operating loss was $(8.7) million for the six months ended July 31, 2025, compared to an operating income of $0.6 million for the same period in 2024, resulting in operating margins of (8.8%)[136] Acquisitions - The company acquired Veridian Limited for approximately $26.1 million, which had an annual revenue of approximately $21.0 million[116] - The company acquired LHD Group for $14.8 million, which is a leading provider of firefighter turnout gear and has 111 employees[119] - The company acquired Jolly Scarpe for $9.0 million, a leading designer and manufacturer of professional footwear for firefighting and rescue markets[120] - Sales of the Fire Service product line increased by $24.1 million for the six months ended July 31, 2025, due to acquisitions and organic growth[132] Tax and Cash Position - The effective tax rate for the second quarter of FY26 was 117.2%, significantly higher than the U.S. federal statutory rate of 21%[130] - Income tax benefit was $6.4 million for the six months ended July 31, 2025, compared to a benefit of less than $0.1 million for the same period in 2024[137] - Cash and cash equivalents were approximately $17.7 million as of July 31, 2025, with working capital increasing by $5.3 million from January 31, 2025[139] Capital Expenditures and Stock Repurchase - Capital expenditures were $2.1 million for the six months ended July 31, 2025, with anticipated FY26 capital expenditures of approximately $4.0 million[150] - The company has a stock repurchase program authorized for up to $5.0 million, with no shares repurchased in the six months ended July 31, 2025[149] - The company expects to meet its projected operating and investing requirements for at least the next twelve months with current cash and borrowing capacity[142]

Financial Data and Key Metrics Changes - The company achieved record net sales of $52.5 million, representing a 36% year-over-year increase, driven by a 113% increase in fire service products [3][14] - Adjusted EBITDA, excluding FX, was $5.1 million, an increase of $2.4 million or 90% compared to the same period last year [4][18] - Net income was $800,000 or $0.08 per share, compared to a net loss of $1.4 million or $0.19 per share for the same quarter last year [14] - Adjusted gross profit as a percentage of net sales decreased to 37.4% from 41.1% year-over-year, but increased sequentially by 220 basis points from the first quarter [4][17] Business Line Data and Key Metrics Changes - Sales from fire service products increased by $13.6 million year-over-year, with contributions from Meridian and LHD Group [16][23] - Organic sales increased by $5 million or 14% over the prior year [15] - Adjusted gross profit for the second quarter was $19.6 million, an increase of 24% compared to the same period last year [16] Market Data and Key Metrics Changes - Domestic sales were $22.1 million, representing 42% of total revenues, while international sales were $30.4 million, accounting for 58% of total revenues [15] - U.S. revenue increased 78% year-over-year, while European revenue grew 113% [23] - Latin American operations experienced a $3.6 million decrease in sales due to delayed purchase decisions from tariff uncertainty [24] Company Strategy and Development Direction - The company anticipates continued robust growth in fire services and industrial segments, both organically and through acquisitions [4][10] - Strategic focus remains on expanding top-line revenue in fire service products and industrial verticals while driving operational efficiencies [29] - The M&A pipeline is robust, with active discussions underway for acquisitions in the fire suit rental and decontamination services [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tariff uncertainties with clear priorities and thoughtful planning [10] - The company expects to achieve adjusted EBITDA excluding FX in the range of $20 to $24 million for fiscal year 2026, with revenue near the lower end of the $210 to $220 million range [30] - Management remains optimistic about long-term growth driven by cost discipline, acquisition strategy, and operational improvements [30][31] Other Important Information - The company completed four major acquisitions in the past 12 months, which are expected to generate long-term value for shareholders [12][19] - Cash and cash equivalents were $17.7 million, with long-term debt of $28.1 million [25] - The company is actively working on inventory optimization to align with demand and improve efficiency [26][50] Q&A Session Summary Question: Full-year guidance and margin improvement expectations - Management indicated that the current EBITDA run rate may not be sustainable, with expectations for growth in the U.S. and recovery in Latin America [35][36] Question: Expectations for full-year organic growth - Management anticipates mid-teens organic growth, depending on the timing of fire service RFPs and large orders [38][39] Question: Update on M&A targets - Management confirmed ongoing discussions for several imminent acquisitions, focusing on service-related opportunities [40] Question: Gross profit margin implications from tariffs - Management noted that tariffs impacted margins by approximately 1.2 points, with expectations for improvement in gross margins in the coming quarters [46][48] Question: Inventory levels and optimization - Management acknowledged high inventory levels and plans to optimize them over the next six months [49][50] Question: Changes in buying behavior in Latin America - Management reported some movement in Latin America, with expectations for substantial recovery in the second half of the year [53][54]

Financial Performance - Net sales increased by $14 million, or 36%, reaching a record of $52.5 million[12] - U S net sales increased 78% to $22.1 million[12] - Europe net sales increased 113% to $15.1 million[12] - Adjusted EBITDA excluding FX was $5.1 million, an increase of $2.4 million, or 89%, compared with $2.7 million for the comparable year ago period[12] - Adjusted Gross profit as a percentage of net sales decreased to 37.4% from 41.1% for the comparable year ago period[12] Operational Highlights - Fire Services products saw a 113% increase[12] - Shipment of a $3.1 million order through its Jolly Scarpe brand for fire intervention boots from the Italian Ministry of the Interior - Firefighters Department[12] - Completed a $6.1 million sale and partial leaseback of the Decatur, Alabama, warehouse property[12] Strategic Initiatives and Outlook - The company is executing on initiatives to realize up to $4 million in cash savings, excluding Veridian consolidation[45] - FY 2026 revenue guidance range at the lower end of $210 to $220 million and Adjusted EBITDA Excluding FX of $20 to $24 million[45]

Core Insights - Lakeland Industries reported a record net sales of $52.5 million for Q2 FY2026, marking a 36% increase year-over-year, driven primarily by a 113% increase in Fire Services revenue, which constituted 49% of total revenue [1][11][24] - The company experienced significant growth in U.S. net sales, which rose 78% to $22.1 million, and European net sales, which increased 113% to $15.1 million [1][11] - Despite the revenue growth, gross margin decreased to 35.9%, down from 39.6% in the previous year, attributed to increased supply chain costs and tariffs [1][15][25] Financial Performance - Net income for Q2 FY2026 was $0.8 million, a significant turnaround from a net loss of $1.4 million in Q2 FY2025 [1][18] - Adjusted EBITDA excluding FX for the quarter was $5.1 million, an increase of 89% compared to $2.7 million in Q2 FY2025, with an adjusted EBITDA margin of 9.6% [1][19][27] - Organic revenue increased by 14% to $42.0 million, with notable contributions from the U.S., Canada, and India, although Latin America showed weakness [11][13][24] Operational Highlights - The company is focusing on inventory optimization initiatives to align inventory levels with demand, particularly in U.S. Critical Environment and other key segments [6][28] - Management anticipates a material recovery in Latin America in Q4 FY2026, despite current delays in purchasing decisions due to tariff uncertainties [3][4] - Lakeland is well-positioned to capitalize on long-term industry trends and aims to transition to higher-margin products and services over the next three to five years [8][29] Guidance and Outlook - The company has adjusted its FY2026 revenue guidance to a range of $210 million to $220 million, reflecting ongoing uncertainties in the global tariff environment [29][33] - Adjusted EBITDA excluding FX is expected to be in the range of $20 million to $24 million for FY2026, influenced by lower margins and higher operating expenses [29][33] - Management remains confident in the company's ability to drive sustained EBITDA improvement despite macroeconomic challenges [31]

Core Insights - Lakeland Industries, Inc. will participate in two upcoming conferences: the Lake Street 9th annual Best Ideas Growth (BIG9) Conference on September 11, 2025, and the D.A. Davidson 24th Annual Diversified Industrials & Services Conference from September 17-19, 2025 [1][2][3] Group 1: Conference Details - The Lake Street 9th annual Best Ideas Growth (BIG9) Conference will take place at The Yale Club in New York, NY, featuring in-person one-on-one meetings [3] - The D.A. Davidson 24th Annual Diversified Industrials & Services Conference will be held at the Four Seasons Hotel in Nashville, TN, also with in-person one-on-one meetings [3] - Lakeland's President and CEO Jim Jenkins and CFO Roger Shannon will host meetings with institutional investors at both conferences [2][3] Group 2: Company Overview - Lakeland Fire + Safety specializes in manufacturing and selling protective clothing and accessories for various industries, including fire services and industrial markets [4] - The company distributes its products globally through in-house sales teams and authorized independent sales representatives, serving a wide range of industries such as oil, chemical, automotive, and healthcare [4] - Lakeland's international sales extend to over 50 countries, with significant markets including China, the European Economic Community, Canada, and several countries in Latin America and Asia [4]

Core Viewpoint - Lakeland Industries has completed the sale of its Decatur, Alabama warehouse for $6.1 million, which is part of a broader strategy to streamline operations and enhance profitability while providing financial flexibility for future enhancements [1][2][4]. Financial Summary - The sale price of the Decatur facility was $6.1 million, excluding customary commissions and closing expenses [3]. - The company anticipates generating annual savings of approximately $1 million for the remainder of fiscal year 2026 from this sale and other planned closures [4]. - Additional initiatives are expected to yield an extra $3 million in annualized savings, with benefits anticipated in the second half of fiscal 2026 [4]. Operational Strategy - The sale is part of Lakeland's operational consolidation strategy aimed at enhancing efficiency and reducing costs [4]. - The company is searching for a new, upgraded warehouse, logistics, and lab facility in a more strategic location to replace the Decatur facility [2]. - The short-term leaseback arrangement allows the company to maintain operational continuity while exploring alternative sites [3]. Future Outlook - The company is focused on growing top-line revenue through the implementation of operating and manufacturing efficiencies, including the consolidation of warehousing and logistics [5]. - These efforts are expected to enable higher margins and create a more agile and cost-effective organization in the long term [5].

Company Overview - Lakeland Industries, Inc. is a leading global manufacturer of protective clothing and apparel for various sectors including industry, healthcare, and first responders [3] - The company offers a comprehensive line of fire services and industrial protective clothing and accessories, catering to a wide range of industries such as oil, chemical, automotive, construction, and pharmaceuticals [3] Upcoming Financial Results - Lakeland will host a conference call on September 9, 2025, at 4:30 p.m. Eastern Time to discuss its financial results for the fiscal second quarter of 2026, which ended on July 31, 2025 [1][2] - A press release detailing these financial results will be issued prior to the call [1] Conference Call Details - The call will be led by Lakeland's President and CEO Jim Jenkins, and CFO Roger Shannon, followed by a question-and-answer session [2] - Access information for the call includes a dial-in number and a webcast link, with a replay available for three months post-call [2] Global Sales and Distribution - Lakeland's products are sold globally through in-house sales teams and authorized independent sales representatives, reaching over 50 countries [3] - The company supplies to various end-users including governmental agencies, fire departments, and law enforcement, as well as industries like high-tech electronics and medical laboratories [3]

Core Points - Lakeland Industries, Inc. declared a cash dividend of $0.03 per share for its fiscal third quarter of 2026, payable on August 22, 2025, to stockholders of record as of August 15, 2025 [1] Company Overview - Lakeland Fire + Safety is a global manufacturer of protective clothing and apparel for various sectors including industry, healthcare, and first responders [2] - The company sells a comprehensive line of fire services and industrial protective clothing and accessories through in-house sales teams and authorized independent sales representatives [2] - Lakeland's products are distributed globally, serving industries such as oil, chemical, automobile, transportation, and healthcare, among others [2] - The company has a diverse international market presence, selling to over 50 countries, with significant sales in China, the EEC, Canada, and several Latin American countries [2]

Core Points - The Government of British Columbia has approved a new First Nations Woodland Licence in the Smithers area, marking a significant milestone in the partnership between West Fraser Timber Co. Ltd. and Lake Babine Nation Forestry Limited Partnership [1][2] - This new licence is a result of contributions from West Fraser and LBN Forestry, aimed at enhancing timber tenure collaboration in British Columbia's forest sector [1][5] Company Overview - West Fraser is a diversified wood products company with over 50 facilities across Canada, the United States, the United Kingdom, and Europe, focusing on sustainable forest practices [8] - The company produces a variety of products including lumber, engineered wood products, pulp, and newsprint, which are utilized in home construction and industrial applications [8] Indigenous Partnership - The partnership between West Fraser and Lake Babine Nation is designed to integrate Indigenous knowledge with modern forestry practices, ensuring sustainable resource management and economic opportunities for the Lake Babine Nation [3][4] - Lake Babine Nation has established its forestry company in 2016, emphasizing the importance of growing its role in forestry and forest management [9] Economic Impact - The collaboration is expected to create jobs and strengthen the forest economy in British Columbia, benefiting local communities [8] - The new licence builds on previous agreements, including a Joint Development Agreement signed in April 2024 and a Log Supply and Forest Management Agreement signed in January 2025, indicating a long-term commitment to this partnership [7]

Core Insights - Lakeland Industries, Inc. announced a $3.1 million shipment of fire intervention boots to the Italian Ministry of the Interior as part of a four-year supply contract [2][5] - This order is expected to significantly impact Lakeland's fiscal year 2026 results and reflects the company's strong partnership with the Italian Fire Brigade [5][7] - The Jolly intervention fire boot model exceeds the EN 15090:2012 standards, emphasizing comfort, safety, and performance [6][7] Company Overview - Lakeland Fire + Safety specializes in protective clothing and apparel for various sectors, including industry, healthcare, and first responders [11] - The company has a global sales network and supplies products to numerous industries, including oil, chemical, transportation, and government agencies [11] - Lakeland's acquisition of Jolly Scarpe has expanded its fire product offerings and enhanced its presence in Europe and other international markets [8][9] Product Details - The Jolly intervention fire boot is made from sustainable, full-grain tanned leather and features a GORE-TEX CROSSTECH lining for protection against pathogens and hazardous chemicals [6] - The boot's outsole is engineered for maximum heat resistance and grip under extreme conditions, showcasing the company's commitment to quality [6][7] - Lakeland is also working on bringing a NFPA-certified Jolly fire boot to the U.S. market, which is the largest market for fire turnout gear [9]