LAKE LAKELAND INDUSTRIES INC
Price Chart
Executive Summary
Lakeland Industries reported Q1 FY27 revenue of $47.4M (+1.4% YoY), slightly below the $47.4M consensus, and GAAP EPS of $0.04, a significant beat versus the consensus estimate of -$0.14. However, the EPS beat was driven entirely by a $6.5M gain on the sale of HPFR/HiViz assets, not operational improvement. Adjusted EBITDA ex-FX improved to $1.1M from $0.6M, but gross margin continued to contract YoY (33.6% vs 35.2%). The company maintained its FY27 targets of high single-digit revenue growth and positive operating cash flow, with Fire Services growing 11% and backlog building. The prior quarter's covenant waiver and ongoing transition to an asset-based lending structure remain overhangs.
Key Financial Metrics
Actionable Insight
The EPS beat is entirely non-operational (asset sale gain). Watch for Q2 margin trajectory — management expects sequential improvement but Q2 is framed as a 'steppingstone.' The UK NFCC framework award (£220M potential across suppliers) is a multi-year catalyst but not yet reflected in revenue. Monitor the transition to asset-based lending and covenant compliance. The stock's 67% win rate at T+20 on prior reports suggests positive momentum, but the mixed operational signals warrant caution.
Key Facts
- Q1 FY27 net sales $47.4M, +1.4% YoY vs $46.7M, in line with $47.4M consensus
- GAAP net income $0.4M ($0.04 diluted EPS) vs net loss of $3.9M (-$0.41) in Q1 FY26; EPS beat consensus of -$0.14
- GAAP EPS beat driven by $6.5M gain on sale of HPFR/HiViz assets, not core operations
- Adjusted EBITDA ex-FX $1.1M, up from $0.6M YoY; adjusted gross margin 33.6% vs 35.2% YoY
- Fire Services revenue $23.4M, +11% YoY; backlog at historic levels
- Completed HPFR/HiViz divestiture for $13.2M cash proceeds; cash balance $17.4M vs $12.5M at Jan 31, 2026
- Revolver borrowings $23.8M with $16.2M available; company in compliance with all debt covenants as of Apr 30, 2026
- Maintained FY27 targets: high single-digit revenue growth and positive operating cash flow
- Eagle subsidiary received notification of intended award under UK NFCC framework with potential value up to £220M over 7 years across all suppliers
Financial Impact
Revenue $47.4M, GAAP net income $0.4M, Adjusted EBITDA ex-FX $1.1M, cash from operations $5.8M (includes $6.5M gain on asset sale)
Risk Factors
- Gross margin compression continuing (33.6% vs 35.2% YoY) due to product mix, tariff headwinds, and underutilization
- Revenue growth of only 1.4% is well below the 'high single-digit' FY27 target, raising execution risk
- LHD Germany and Middle East operations in transition; Middle East uncertainty has frozen budgets
- U.S. industrial and disposable businesses have not yet recovered; oil & gas turnaround activity remains absent
- Prior quarter covenant waiver and ongoing transition to asset-based lending structure indicate balance sheet constraints
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-263790 |
| Document: lake-20260609.htm | 0001193125-26-263790 |
| Document: lake-ex99_2.htm | 0001193125-26-263790 |
| Document: 0001193125-26-263790-index-headers.html | 0001193125-26-263790 |
| Document: 0001193125-26-263790-index.html | 0001193125-26-263790 |
| Document: 0001193125-26-263790.txt | 0001193125-26-263790 |
| 8-K Data (Synthetic) | 0001193125-26-263790 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 9, 2026
7d ago
|
8-K
| $11.35 $10.83 | ▼ −4.63% | ▼ −6.33% | $9.93 (−12.51%) |
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May 27, 2026
20d ago
|
Press Release
| $10.79 $10.93 | ▼ −1.30% | ▼ −0.75% | $9.93 (+7.97%) |
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May 20, 2026
27d ago
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Press Release
| $10.18 $9.89 | ▼ −2.85% | ▼ −3.04% | $9.93 (−2.46%) |
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May 14, 2026
4w ago
|
Press Release
| $10.49 $9.53 | ▼ −9.15% | ▼ −7.92% | $9.93 (−5.34%) |
|
Apr 16, 2026
8w ago
|
8-K
| $11.20 $10.83 | ▲ +3.30% | ▲ +3.11% | $9.93 (+11.34%) |
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Apr 16, 2026
8w ago
|
Press Release
| $11.20 $10.83 | ▲ +3.30% | ▲ +3.11% | $9.93 (+11.34%) |
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Apr 13, 2026
9w ago
|
Press Release
| $9.07 $9.46 | ▲ +4.30% | ▲ +3.09% | $9.93 (+9.48%) |
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Apr 8, 2026
9w ago
|
Press Release
| $8.91 $9.00 | ▲ +1.01% | ▲ +0.44% | $9.93 (+11.45%) |
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Apr 6, 2026
10w ago
|
Press Release
| $8.86 $9.16 | ▼ −3.39% | ▼ −3.32% | $9.93 (−12.08%) |
US Market Status
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