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- **Revenue Surge**: Q2 2026 sales up 36% YoY to $52.5M, driven by 113% fire services growth and acquisitions.
- **Profitability**: Adjusted EBITDA $5.1M (89% YoY increase), but gross margin pressured by tariffs and acquisition costs.
- **Cost Savings**: Targeting $3M annual savings via facility closures and operational efficiency.
- **Tariff Risk**: Latin America sales down 36% YoY, but U.S./Europe recovery offsets. EBITDA guidance lowered to $20-24M due to tariff uncertainty.
- **M&A Momentum**: 4 acquisitions in 12 months; pursuing 1-2 deals in fire services support business.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q2 2026 net sales reached $52.5 million, up 36% YoY, driven by 113% growth in fire services and recent acquisitions. U.S. sales rose 78% to $22.1 million, while Europe saw a 113% increase to $15.1 million.
- **Adjusted EBITDA Excluding FX**: $5.1 million (up 89% YoY), with a 740% sequential increase from Q1. Gross margin was 37.4%, down 370bps YoY due to acquisition-related costs and tariffs.
- **Strategic Initiatives**: Completed 4 acquisitions in 12 months, including Veridian, and pursuing M&A in fire suit rental and decontamination. Targeting $3 million in annualized cost savings by Q2 2026.
- **Tariff Impact**: Latin America sales dropped 36% YoY due to delayed purchases, but U.S. and Europe showed strong recovery. Expecting gradual normalization post-Supreme Court ruling.

**【CFO Financial Commentary】**
- **Net Income**: $0.8 million (vs. -$1.4 million YoY), with Non-GAAP EPS improving on cost controls.
- **Margins**: Adjusted gross margin 37.4% (down 370bps YoY), operating expenses up 10% YoY to $14.6 million due to acquisitions.
- **Balance Sheet**: Cash $17.7 million, long-term debt $28.1 million. Sold Decatur facility for $6.1 million to reduce debt.
- **Inventory Management**: Total inventory $90.2 million (up 33% YoY), with focus on optimizing acquired company stock and high-performance products.

**【Q&A Highlights】**
- **Guidance Adjustments**: Lowered FY2026 EBITDA target to $20-24 million (prev. $24-28M) due to Latin America delays, but expect sequential margin improvement. FY2026 revenue near $210 million (lower end of $210-220M range).
- **Organic Growth**: 14% YoY organic growth, targeting mid-single to low-double-digit growth long-term. Fire services RFPs expected to accelerate in H2.
- **Tariff Mitigation**: Price increases offset 1.2% margin impact in Q2, with balance improving in Q3. Inventory liquidation efforts underway to reduce $90M to $80M by end-2026.
- **M&A Pipeline**: Actively pursuing 1-2 deals in decontamination/rental services, targeting U.S. market expansion.


Lakeland Industries, Inc. (LAKE) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LAKE

LAKE fundamentals

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