Q4 FY26 Net Sales of $45.8 Million; FY26 Net Sales Increased 15% to $192.6 Million Driven by 49% Growth in Fire Services

Delivers Operating Cash Flow in Q4 FY26, Demonstrating Improved Operating Discipline

Completed Divestiture of HPFR and HiViz Product Lines for Approximately $14 Million in Cash Proceeds in March 2026

Received All NFPA 1970 Certifications for Head-to-Toe Fire Portfolio Enabling Customers to Commence Purchase Orders

New Certified Products and Expanded PPE Options to be Showcased at FDIC 2026 in April

Company Repositioning with New Leadership Enhances Operating Discipline and Visibility to Support More Consistent Margins, Inventory Efficiency, and Cash Flow in FY2027

Targets High Single-Digit Revenue Growth & Positive Cash Flow from Operations in FY 2027

Management to Host Conference Call Today at 4:30 p.m. Eastern Time

HUNTSVILLE, Ala., April 16, 2026 (GLOBE NEWSWIRE) -- Lakeland Industries, Inc. ("Lakeland Fire + Safety" or "Lakeland") $(LAKE)$, a leading global manufacturer of protective clothing and apparel for industry, healthcare and first responders, has reported its financial and operational results for its fiscal fourth quarter and year ended January 31, 2026.

Key Fiscal FY 2026 Fourth Quarter Financial and Operational Highlights

 
                       Q4 Comparison                          FY Comparison 
            ------------------------------------  ------------------------------------- 
$ in                         $ Change  % Change              FY     $ Change  % Change 
millions    Q4'26    Q4'25      YoY       YoY     FY 2026    2025      YoY       YoY 
            ------  -------  --------  ---------  -------  -------  --------  --------- 
Net Sales    $45.8    $46.6    ($0.8)     (1.7%)   $192.6   $167.2     $25.4      15.2% 
Gross 
 Profit      $14.7    $18.7    ($4.0)    (21.2%)    $63.3    $68.7    ($5.3)     (7.8%) 
Gross 
 Margin      32.2%    40.1%        --  (794 BPS)    32.9%    41.1%        --  (820 BPS) 
Net (Loss) 
 Income     ($6.2)  ($18.4)     $12.2      66.3%  ($25.3)  ($18.1)    ($7.2)    (40.0%) 
Adjusted 
 EBITDA(1)    $0.8     $5.1    ($4.3)    (83.6%)     $5.0    $15.0   ($10.0)    (66.7%) 
Adjusted 
 EBITDA 
 ex. 
 FX(1)        $1.3     $6.1    ($4.8)    (78.3%)     $7.2    $17.4   ($10.2)    (58.5%) 
 

(1) Adjusted EBITDA and Adjusted EBITDA excluding FX are non-GAAP financial measures. Reconciliations are provided in the tables of this press release.

Management Commentary

"While our fourth quarter results reflect the continued impact of cost volatility and a challenging operating environment, we believe they do not fully reflect the actions taken during fiscal 2026 to simplify the business, reduce costs, and strengthen operating discipline across Lakeland" said Jim Jenkins, President and Chief Executive Officer. "Results during the quarter reflected inflationary cost pressures, tariff impacts, and later period demand softness, conditions that reinforced the importance of our ongoing focus on cost control, planning discipline and inventory management. Even in that environment, we generated an approximately $1.8 million improvement in cash flows from operations and approximately $1.3 million in Adjusted EBITDA excluding FX. Delivering that level of cash generation and EBITDA on lower revenue than the third quarter reflects improved discipline across the organization, stronger cost control, and better day-to-day operating execution.

"I also want to recognize the work of our team, whose efforts helped to drive meaningful improvement in the quarter. Subsequent to year end, we successfully completed the divestiture of the HPFR and HiViz product lines, generating approximately $14 million in cash proceeds, simplifying the business, and further strengthening our capital position. This transaction reduces operational complexity, strengthens liquidity and allows us to concentrate resources more directly on our core Fire Services and industrial protective products businesses.

"Stepping back to the full year, fiscal 2026 was characterized by solid demand across our core markets alongside a volatile cost environment and a deliberate focus on cost reduction and simplification. Revenue increased approximately 15% to $192.6 million, supported by continued momentum in Fire Services. While revenue increased during the year, earnings were pressured as we prioritized expense actions, inventory discipline, and structural simplification amid these conditions. We do not view that as a demand issue, but as a reflection of cost headwinds, mix, and the timing of benefits from actions taken during the year.

"As we move into fiscal 2027, we are encouraged that these issues are actively being addressed, and that we are already seeing signs of progress. Inventory is down approximately $5.3 million since October, reflecting improved inventory alignment and tighter controls across sourcing and production. We are removing costs across logistics and operations, strengthening accountability, and putting a tighter structure around sales and production planning. Operating cadence and planning discipline improved during the latter part of fiscal 2026, reducing reactive decision-making and supporting better short-term visibility. Through the first two months of Q1 FY27, the business is tracking consistent with expectations as cost actions and inventory discipline begin to carry forward.

"Just as importantly, Lakeland now offers a full head-to-toe range of NFPA 1970:2026 certified products across our brand portfolio. The timing of these certifications had limited ordering activity during fiscal 2026, and completion of these certifications improves product availability as we move forward. We look forward to displaying our NFPA-certified fire portfolio at FDIC 2026.

"Looking ahead, we believe Lakeland is entering fiscal 2027 with a simpler portfolio, improved internal discipline, and a healthy level of demand across both Fire and Industrial. We are modestly ahead of budget going into the new fiscal year, and the pipeline continues to build. Our focus in fiscal 2027 is to build on the cost reductions, simplified portfolio, and inventory discipline established in fiscal 2026, with the objective of delivering more consistent margins and positive operating cash flow. Based on these actions and the underlying demand environment, we are providing FY 2027 objectives of high single-digit revenue growth and positive cash flows from operations," Jenkins concluded.

Fiscal 2026 and Subsequent Operational Highlights

   -- Completed the acquisitions of Arizona PPE and California PPE, expanding 
      U.S. Fire Services distribution and rental capabilities. 
 
   -- Completed the sale and partial leaseback of Decatur, Alabama warehouse 
      facilities in August 2025, for $6.1 million, generating a pre-tax gain of 
      approximately $4.3 million and reducing fixed cost exposure. 
 
   -- Announced the shipment of a USD $3.1 million order through its Jolly 
      Scarpe brand for fire intervention boots from the Italian Ministry of the 
      Interior - Firefighters Department, as part of a previously-awarded four 
      year supply contract. 
 
   -- Lakeland LHD subsidiary was awarded an approximately USD $5.6 million 
      three-year contract to provide advanced decontamination, managed care and 
      maintenance services for the Hong Kong Fire Services Department's (HKFSD) 
      firefighter protective gear. 
 
   -- Received significant emergency follow-on orders to supply turnout gear, 
      gloves, and hoods to the National Fire Department of Colombia ("DNBC"). 
 
   -- Secured a contract renewal of up to 12 years with Fire and Emergency New 
      Zealand (FENZ), New Zealand's main firefighting and emergency services 
      body, for a range of apparel and decontamination services. 
 
   -- Products including Lakeland Structural Turnout and Proximity Gear; 
      Veridian Gloves and Fire Particulate Blocking Hoods; and Pacific Helmets, 
      have officially achieved NFPA 1970:2025 certification, further 
      strengthening Lakeland's full head-to-toe firefighter Personal Protective 
      Equipment (PPE) portfolio. 
 
   -- California PPE opened "California PPE, Fresno", a new state-of-the-art 
      facility providing compliant decontamination, inspection and repair 
      services to California Fire Departments and National Fire Protection 
      Association (NFPA) 1850 training. 
 
   -- Completed the divestiture of the HPFR (High Performance FR) and HiViz 
      product lines in March 2026, generating approximately $14 million of cash 
      proceeds and meaningfully strengthening the Company's balance sheet. 
 
   -- Appointed Lee D. Rudow to its Board of Directors, effective April 9, 
      2026. Mr. Rudow previously served as Chief Executive Officer of 
      Nasdaq-listed Transcat, Inc. 
 
   -- Calven Swinea appointed Chief Financial Officer in February 2026 after 
      having served as Interim Chief Financial Officer since December 2025 and 
      Vice President of Finance since September 2020. 
 
   -- Kevin Rae appointed Executive Vice President, Europe, the Middle East, 
      and Africa Fire Sales after having served as Vice President, EMEA Fire 
      and Global M&A Integration since 2022. 

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