Lakeland Industries (LAKE) Q4 2026 earnings summary

Executive summary

• FY2026 net sales rose 15.2% year-over-year to $192.6 million, driven by 48.6% growth in Fire Services and strong U.S. and European performance.

• Strategic acquisitions (Arizona PPE, California PPE) and divestitures (HPFR, HiViz) simplified the portfolio and expanded recurring revenue streams, generating $14 million in cash.

• Operational discipline improved, with inventory reduced by $5.3 million since October, positive Q4 operating cash flow, and expense control.

• New leadership team and board appointments to support growth, integration, and operational focus.

• Entering FY2027 with a robust backlog, improved forecasting, and high single-digit revenue growth guidance.

Financial highlights

• Q4 FY2026 net sales were $45.8 million, down 1.7% year-over-year; full-year net sales up 15.2% to $192.6 million.

• Adjusted EBITDA excluding FX was $7.2 million for FY2026, down from $17.4 million in FY2025; Q4 was $1.3 million.

• Adjusted gross margin declined to 32.9% for FY2026 from 41.1% in FY2025, mainly due to mix shift and cost pressures.

• Net loss widened to $25.3 million for FY2026, or $2.63 per diluted share, compared to $18.1 million in FY2025.

• Year-end cash balance was $12.5 million; working capital at year-end was $96.5 million.

Outlook and guidance

• FY2027 guidance targets high single-digit revenue growth and positive operating cash flow.

• Margin recovery expected through improved sales mix, manufacturing utilization, and pricing discipline.

• Focus on cost reductions, portfolio simplification, and inventory discipline to deliver more consistent margins.

• Strong backlog and pipeline visibility, especially in fire services, support growth outlook.

• Transition to asset-based lending structure underway to enhance financial flexibility.