Lakeland Industries, Inc. Q2 FY2026 earnings call

• Achieved record net sales of $52.5 million, a 36% year-over-year increase, driven by a 113% increase in fire service products and recent acquisitions.
• Adjusted EBITDA, excluding FX, was $5.1 million, an increase of $2.4 million or 89% compared to the prior year.
• Discussed acquisition synergies, such as contributions from acquisitions like Meridian and Viridian.
• Announced facility closures and the sale and partial leaseback of the Decatur facility, expecting annual savings of approximately $1 million with an additional $3 million in annualized savings anticipated.
• Noted institutional holdings increased, and inclusion in Russell indices due to expanding market capitalization.
• Fire services strong in US and Europe, but Latin American and Mexican sales decreased due to tariff uncertainty.

Lakeland Fire and Safety achieved record net sales of $52.5 million for the fiscal 2026 second quarter, representing a 36% year-over-year increase. Domestic sales were $22.1 million, a 78% year-over-year increase, accounting for 42% of total revenues. International sales were $30.4 million, a 113% year-over-year increase, accounting for 58% of total revenues. Sales from the fire services product line increased by $13.6 million year-over-year. For the industrials product lines, disposables accounted for 27% of the year-to-date revenue, chemicals accounted for 12%, and the remainder of industrial products accounted for 14% of sales.

• Adjusted EBITDA excluding FX for fiscal 2026 is expected to be in the range of $20 million to $24 million.
• Fiscal 2026 revenue is expected to be near the lower end of the $210 million to $220 million range.
• Anticipate accelerated growth over the next 3-4 years with cost discipline, acquisitions, and operational improvements, aiming for mid to high teens EBITDA margins over the next 3-5 years.

• Tariff environment challenges impacting margins and supply chain.
• High inventory levels requiring optimization.
• Sales decline in Latin America and Mexico due to tariff uncertainty.

Q: Mike Shlisky asked about full-year guidance and organic growth expectations.

A: Roger and Jim responded on EBITDA run rates and mid-single digit to low double-digit organic growth expectations.

Q: Mark Smith inquired about gross margin and inventory.

A: Roger explained tariff impact and inventory optimization plans, while Jim discussed inventory levels and actions to reduce them.

Q: Gerry Sweeney asked about tariffs and operational expense savings.

A: Jim and Roger responded on tariff mitigation efforts and progress on operational expense savings initiatives