Lakeland Industries, Inc. (LAKE) Market Cap
Lakeland Industries, Inc. has a market capitalization of $117.3M.
Financials based on reported quarter end 2026-01-31
Price: $10.94
▲ 0.11 (1.02%)
Market Cap: 117.31M
NASDAQ · time unavailable
CEO: James Jenkins
Sector: Consumer Cyclical
Industry: Apparel - Manufacturers
IPO Date: 1986-09-09
Website: https://www.lakeland.com
Lakeland Industries, Inc. (LAKE) - Company Information
Market Cap: 117.31M · Sector: Consumer Cyclical
Lakeland Industries, Inc. manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide. It offers limited use/disposable protective clothing, such as coveralls, laboratory coats, shirts, pants, hoods, aprons, sleeves, arm guards, caps, and smocks; high-end chemical protective suits to provide protection from highly concentrated, toxic and/or lethal chemicals, and biological toxins; and firefighting and heat protective apparel to protect against fire. The company also provides durable woven garments, including electrostatic dissipative apparel used in electronics clean rooms; flame resistant meta aramid, para aramid, and FR cotton coveralls/pants/jackets used in petrochemical, refining operations, and electrical utilities; FR fabrics; and cotton and polycotton coveralls, lab coats, pants, and shirts. In addition, it provides high visibility clothing comprising reflective apparel, including vests, T-shirts, sweatshirts, jackets, coats, raingear, jumpsuits, hats, and gloves; and gloves and sleeves that are used in the automotive, glass, and metal fabrication industries. The company sells its products to a network of approximately 1,600 safety and industrial supply distributors through in-house sales teams, customer service group, and independent sales representatives. It serves end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry; and federal, state, and local governmental agencies and departments. The company was incorporated in 1982 and is headquartered in Huntsville, Alabama.
Analyst Sentiment
Based on 9 ratings
Analyst 1Y Forecast: $16.38
Average target (based on 2 sources)
Consensus Price Target
Low
$10
Median
$14
High
$19
Average
$14
Potential Upside: 31.6%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"Latest quarter (2026-01-31): Revenue $45.82M, Net Income -$6.21M (EPS -0.66). QoQ (vs 2025-10-31): Revenue declined -3.7% and net income improved materially from -$15.96M to -$6.21M (net income improvement of +$9.75M). YoY comparisons are not fully available because the dataset does not include the same quarter from the prior year (2025-01-31). Profitability trend over the available 4 quarters is volatile: net income swung from losses (2025-04-30, -$3.91M; 2025-10-31, -$15.96M) to a brief profit in 2025-07-31 (+$0.77M), then back to a larger loss in 2026-01-31. Net margin improved QoQ (roughly -33.5% to -13.6%), suggesting cost/control improved near-term, but the company remains unprofitable. Cash flow quality improved sharply in the latest quarter: Operating Cash Flow $32.07B and Free Cash Flow $36.19B vs prior quarters that were slightly to deeply negative. However, these cash flow figures are orders of magnitude larger than the revenue base and should be treated cautiously due to likely data scaling/anomalies. Balance sheet also shows an extreme asset drop (total assets from $220.7M to $47.0M) with equity/liabilities missing/zero in the latest quarter—again suggesting data quality issues. Total shareholder returns appear weak: price is $11.2 and is down -29.4% over 1Y, which outweighs the presence of small declared dividends. Analyst targets imply upside (consensus target $14 vs $11.2), but near-term fundamentals remain inconsistent."
Revenue Growth
QoQ revenue declined -3.7% (from $47.59M to $45.82M). Across the broader 4-quarter window revenue is mixed (range ~$45–52.5M). YoY revenue growth for the latest quarter could not be computed because the prior-year same quarter (2025-01-31) is not provided.
Profitability
QoQ net income improved substantially (-$15.96M to -$6.21M), improving net margin (approx. -33.5% to -13.6%). However, profitability is still negative in the latest quarter and earnings are highly volatile (profit only in 2025-07-31, then losses again). YoY net income growth not computable from provided data.
Cash Flow Quality
Latest quarter shows very large positive OCF/FCF ($32.07B/$36.19B) and dividends paid (~-$1.71B), while prior quarters were negative/near-zero. Because the cash flow magnitudes are wildly disproportionate to revenue and likely reflect data scaling/anomalies, cash flow reliability is low. Dividend safety cannot be validated with consistent FCF history.
Leverage & Balance Sheet
Prior quarters show a typical funded balance sheet (assets ~$218–226M; equity ~$143–147M). Latest quarter data is inconsistent with total equity/liabilities reported as 0 and assets dropping to $47M, making trend assessment unreliable. Net debt improved earlier (net debt $35.0M -> $24.7M -> $21.6M) but latest quarter cannot be trusted.
Shareholder Returns
Price momentum is negative: 1Y change -29.38% and 6M -30.17%. Dividends exist (~$0.03 quarterly entries), but yield/ratio inputs (e.g., ~18.9% dividend yield) appear inconsistent with fundamentals and therefore are not relied on. Net total shareholder return appears weak.
Analyst Sentiment & Valuation
Street targets suggest upside: consensus $14 vs current $11.2 (~+25%). High uncertainty remains because earnings and cash flow show large swings and balance sheet data appears inconsistent.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Lakeland reported strong revenue growth in FY2026 (+15.2% to $192.6M) driven by a rapid shift toward fire services (+48.6% to $93.6M; ~49% of total revenue). However, profitability deteriorated materially: adjusted gross margin fell ~810 bps year over year (34.4% vs 42.5%), and adjusted EBITDA (ex FX) dropped to ~$7.2M from ~$17.4M, with Q4 margin down ~890 bps to 33.5% and Q4 adjusted EBITDA (ex FX) ~$1.3M. Management attributes the miss to execution and cost dynamics (freight, raw materials, tariffs/duties) plus deleverage from manufacturing underutilization in Mexico/Vietnam and a structurally lower-margin initial fire mix. The offsetting positives are clear: NFPA 1970/2025 certification unlock enables head-to-toe ordering, and the fire open pipeline is now highly visible ($130M+), with FDIC next week and Interschutz in June as key conversion catalysts. Liquidity improved post-year-end via ~$14M HPFR/HiViz divestiture proceeds and an anticipated ABL facility, while FY2027 targets remain single-to-high-single-digit revenue growth with line of sight to positive operating cash flow.
Growth Catalysts
- Fire services segment scaled rapidly: fire service revenue +48.6% to $93.6 million in FY2026; segment now ~49% of total revenue (from ~21% two years prior).
- NFPA 1970/2025 certification unlock across portfolio (structural turnout/proximity gear, Meridian gloves/hoods, Jolly boots, Pacific helmets) enabling full head-to-toe ordering.
- Recurring decontamination/service expansion: California PPE Fresno facility opened January 2026; Denver location expected to open in 2026; ISP growth “faster than initially projected.”
Business Development
- Divestiture: HPFR and HiViz product lines sold to National Safety Apparel for ~$14 million cash proceeds (completed after fiscal year-end).
- Acquisitions completed during FY2026: Arizona PPE and California PPE (expanded U.S. fire services distribution and rental with ISP locations; also added Fresno facility).
- Fire international wins cited: National Fire Department of Colombia (emergency follow-on orders), Fire and Rescue Department of Malaysia (order), ANAC Argentina (fire equipment tender award).
- EMEA brand platform event: planned LHD Germany relaunch at Interschutz 2026 (held every five years).
Financial Highlights
- FY2026 net sales: $192.6 million, +$25.4 million (+15.2%) vs FY2025 $167.2 million.
- Q4 net sales: $45.8 million, down $0.8 million (-1.7%) vs prior-year quarter ($46.6 million).
- Adjusted EBITDA (ex FX): FY2026 ~$7.2 million vs ~$17.4 million prior year; Q4 ~$1.3 million vs ~$6.1 million prior year.
- Adjusted gross margin: Q4 33.5% vs 42.4% Q4 FY2025 (-~890 bps). Full year 34.4% vs 42.5% (-~810 bps).
- Drivers of margin compression: lower initial margins from fire mix (fire grew to ~49% of revenue), manufacturing underutilization in Mexico/Vietnam, raw material cost pressure, elevated inbound freight and duties, and execution gaps in production planning.
- Expense discipline: adjusted operating expenses (ex FX) up only +10.2% FY to $59.2 million; management emphasized expense minimal year-over-year and expense discipline holding.
- Cash flow: Q4 generated ~$2.0 million of operating cash (also referenced ~$1.8 million operating cash by CFO); focus on inventory/work-capital alignment.
- Inventory: ended Jan 31, 2026 inventory $80.5 million, down ~$5.4 million from $87.9 million at Q3; essentially flat YoY while revenue grew ~15%.
Capital Funding
- Total borrowings: $32.3 million; $28.5 million outstanding under revolving credit facility with ~$11.5 million additional availability on revolver (as of 01/31/2026).
- Decatur, Alabama warehouse transaction: $6.1 million sale and partial leaseback generating ~$4.3 million pretax gain; $100% of net proceeds used to repay revolving credit facility.
- ABL facility: in advanced negotiations; expected to close “soon” but timing not assured; Bank of America covenant waiver secured with expectation of being in covenant throughout FY2027.
- Post-year-end liquidity uplift: HPFR/HiViz divestiture generated ~ $14 million additional cash proceeds not reflected at year-end.
Strategy & Ops
- Forecasting/accountability tightening and sales-to-production planning structure added to address execution gaps.
- Manufacturing footprint consolidation and supply chain restructuring planned; transition production from India into Mexico and Vietnam facilities to improve utilization.
- ERP rollout plan revised with “new implementation partner” targeting 2027.
- Inventory optimization explicitly prioritized to reduce carrying costs and release working capital (inventory down from October; further disciplined lowering targeted in FY2027).
- EMEA operational restructuring for LHD Germany: reduce overhead/rightsize cost base for current conditions.
Market Outlook
- FY2027 goalposts: single to high single-digit revenue growth and “clear line of sight to positive cash flow from operations.”
- Event-driven commercial timing: FDIC 2026 next week (NFPA push through North/South America) and Interschutz 2026 in June (LHD Germany relaunch and integrated EMEA head-to-toe platform launch).
- LHD Germany relaunch timing: planned at Interschutz 2026 in June 2026.
- Denver facility: expected to open in 2026; Fresno opened in January 2026.
Risks & Headwinds
- Cost volatility and planning/pricing execution weaknesses: freight inflation, raw material pressure, tariffs, and certification timing delays impacted production efficiency and gross margin conversion.
- Gross margin pressure from mix and deleverage: fire services ramp shifted revenue mix toward lower initial margin profile; underutilization in Mexico/Vietnam created fixed-cost deleverage.
- Q4 timing softness: Europe Q4 revenue down primarily due to timing of LHD and Jolly orders and delayed government tenders; not viewed as structural demand loss.
- Tariff environment remains a factor for industrial (disposables faced pressure via tariff-related cost increases and North America softness), though management expects mitigation without structural disruption to cost base.
- Iran conflict referenced as potential impact on logistics/freight and supply chain costs.
Q&A: Analyst Interest
- Topic: Size/visibility of the fire services order pipeline and how certifications translate into order-writing; Management’s detailed response: Management clarified “largest open orders” means the open book of scheduled production orders with C-sale/invoice visibility, driven by integrating CRM into Salesforce and sales ops structuring a full global view. They cited $130+ million visible open pipeline, $22+ million in higher probabilities over half. Certifications released act like “opening of the spigot,” with FDIC next week central to North/South America and a broader global rollout at the June show.
- Topic: Mechanics of conversion at major shows (FDIC/Interschutz) and what types of orders can appear; Management’s detailed response: Management explained FDIC is largely a visible/tire-kicking forum, not typically an order-writing show, but it can trigger inputs for field trials/user trials. They noted that smaller commodity item orders (e.g., helmets/boots) may appear, while larger department conversions usually lead to tender/RFQ or wear-trial cycles, pushing commercialization beyond mere exhibitor interest.
Sentiment: CAUTIOUS
Note: This summary was synthesized by AI from the LAKE Q4 2026 (fiscal year ended 01/31/2026) earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.