Lakeland Industries (LAKE) Q2 2025 earnings summary

Executive summary

• Q2 FY25 net sales rose to $38.5M, up 16–16.5% year-over-year, driven by acquisitions and strong fire service and industrial product growth.

• Fire services revenue grew 34% ($3M), now 31% of total revenue, with significant contributions from LHD, Jolly, and Pacific acquisitions.

• Net loss of $1.4M ($0.19/share) in Q2 FY25, compared to net income of $2.5M ($0.33/share) in Q2 FY24, due to higher costs and integration expenses.

• Completed LHD, Jolly, and Pacific acquisitions, expanding fire service offerings and European presence.

• Rebranded as Lakeland Fire + Safety to unify fire and industrial safety brands and reinforce sector commitment.

Financial highlights

• Gross profit was $15.2M (39.6% margin), down from 42.9% last year due to integration, inventory, and acquisition effects.

• Operating loss of $1.6M vs. $3.7M profit last year; adjusted EBITDA (ex-FX) was $2.7M (6.9% margin), down from $4.7M (14.3%).

• TTM revenue reached $137.7M, up 16% year-over-year; TTM adjusted EBITDA (ex-FX) at $14.5M, up 10%.

• Operating expenses increased due to acquisitions and one-time costs; cash at quarter-end was $24.9M, debt $29.5M.

• Quarterly dividend of $0.03 per share paid in August 2024.

Outlook and guidance

• FY25 revenue guidance reaffirmed at $160M–$170M; adjusted EBITDA (ex-FX) expected at $18M–$21.5M.

• Management expects improved gross margins and shipment acceleration in H2 as inventory is shipped and integration matures.

• High single-digit organic growth and continued M&A activity anticipated.