Lakeland Industries 2026 Q3 Earnings Sharp Net Loss Amid Revenue Growth

Lakeland Industries reported a significant net loss in Q3 2026 despite 4% revenue growth, missing earnings expectations and withdrawing guidance. The company swung to a $1.64-per-share loss from a $0.01 profit year-over-year, with management citing margin pressures and operational challenges.

Revenue

Lakeland’s total revenue rose 4% to $47.59 million in Q3 2026, driven by a 31% increase in Fire Services to $25.30 million, which accounted for 53% of total sales. Disposables contributed $10.90 million, while High Performance Wear and High Visibility segments added $2.40 million and $1.50 million, respectively. The Chemical segment reported $5.00 million, and Gloves and Wovens generated $300,000 and $2.20 million. Consolidated external sales aligned closely with total revenue at $47.60 million.

Earnings/Net Income

The company reported a net loss of $15.96 million, or $1.64 per share, marking a 18,652.3% decline from the $86,000 profit in Q3 2025. The sharp deterioration stemmed from margin pressures, operational inefficiencies, and revenue shortfalls, underscoring a challenging quarter for profitability.

Price Action

The stock edged up 0.47% on the latest trading day but fell 6.30% month-to-date. The post-earnings strategy of buying shares after a revenue increase underperformed the market, with a CAGR of 6.74% and a Sharpe ratio of 0.14.

CEO Commentary

CEO Jim Jenkins acknowledged operational challenges, including tariffs, inflation, and certification delays, but highlighted strategic acquisitions and $178 million in global tender opportunities. He emphasized inventory optimization and forecasting improvements to rebuild trust and drive long-term growth.

Guidance

Lakeland withdrew formal guidance due to forecasting inaccuracies but outlined expectations for high single-digit revenue growth and adjusted EBITDA margins of 10%-12% in the near term. Long-term margin expansion to 15%-17% hinges on cost discipline and operational efficiencies.

Post-Earnings Price Action Review

The post-earnings strategy of buying Lakeland shares after a revenue increase quarter-over-quarter and holding for 30 days showed moderate returns but underperformed the market. With a CAGR of 6.74%, it trailed the benchmark by 46.29%, while a maximum drawdown of 0.00% and a Sharpe ratio of 0.14 indicated low risk but modest gains.

Additional News

Lakeland expanded its North American footprint through the $9.5 million acquisitions of Arizona PPE and California PPE, adding $5 million in annual recurring revenue. The company also leased an 8,000-square-foot facility in Fresno, California, to enhance fire safety operations. Additionally, Lakeland secured a $5.6 million contract with Hong Kong’s fire services department and a $5.6 million order from Malaysia’s fire and rescue department, signaling strong international demand.