EarningsQ2 2027 Earnings Report
DE:LLI Q2 2027 EPS Results
Actual EPS-€0.43
Consensus EPS-€0.05
Beat/MissMissed by -€0.38
One Year Ago EPS€0.07
DE:LLI Q2 2027 Revenue Results
Actual Revenue€43.27M
Expected Revenue€44.33M
Beat/MissMissed by -€1.05M
YoY Revenue Growth-4.49%
Earnings Announcement Details
QuarterQ2 2027
Date09/09/2026
TimeAfter Close
Conference CallWednesday, September 9, 2026
DE:LLI Upcoming Earnings
Lakeland Industries's next earnings date is estimated for December 3, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
DE:LLI Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly optimistic, with management highlighting sequential improvement in revenue, gross margin, adjusted EBITDA, operating cash flow, inventory, Fire growth, tender wins, and the expansion of recurring-revenue Fire Services. Offsetting concerns included year-over-year revenue and adjusted EBITDA declines, higher operating expenses, foreign-exchange pressure, the LHD Germany impairment, expedited freight, and the expected shift of some Fire orders into the fourth quarter. Management nevertheless described the outlook as optimistic and expects sequential growth and further margin improvement.Company Guidance
Sequential Revenue, Margin, and Profitability Improvement
Second-quarter net sales were $50.1 million, down 4.5% year-over-year but up 5.7% sequentially from $47.4 million. Gross margin improved to 37% from 35.9% a year ago and 31.4% in the first quarter, while adjusted EBITDA excluding FX more than doubled sequentially to $2.7 million.
Underlying Revenue Growth Excluding Divested Product Lines
Excluding $3.7 million of prior-year revenue from product lines divested in March, net sales increased 2.8%.
Global Tender and Contract Wins
Lakeland secured multiple tender and contract awards across 9 countries spanning Fire, disaster response, law enforcement, industrial, and utility markets. The U.K. National Fire Chiefs Council National Firefighter PPE Framework is a 7-year program with total potential value of up to GBP 220 million across all awarded suppliers, with additional significant wins across Asia Pacific and Latin America.
Expanded Certified Product Portfolio and Manufacturing Capacity
The company significantly expanded its certified products and manufacturing capacity across Fire and Critical Environments, strengthening capacity, supply chain flexibility, and support for higher-value growth opportunities. Certification and product development work is continuing across product lines.
Industrial Business Growth Excluding Divestitures
Industrial revenue was $24 million, down 10.8% on a reported basis, but increased approximately 3% excluding the $3.7 million prior-year contribution from divested product lines. Chemical protective grew 9% and critical environment grew 28%; management said critical environment is back on plan following forecasting, demand planning, and capacity actions.
Manufacturing Facilities Operating at Capacity
Primary manufacturing facilities remained at capacity, supported by improving demand and better order visibility. Management's priorities for the balance of the year are channel execution, pricing discipline, inventory alignment, and converting demand into revenue and margin.
Fire Revenue Growth and Increased Mix
Fire revenue was $26.1 million, up 2% from $25.6 million a year ago and approximately 12% from $23.4 million in the first quarter. Fire represented 52% of net sales versus 49% in both the prior-year quarter and the first quarter. Helmets increased 41%, hoods increased 66%, and turnout gear increased 5.5%.
Strong Comparable Organic Fire Growth
After adjusting for the prior-year tender and current-year service acquisitions, comparable Fire revenue grew approximately 10%. Management said demand continues to strengthen as customers transition to updated NFPA standards and identified the certified head-to-toe portfolio as a competitive advantage.
Fire Services Expansion
Fire Services revenue grew 78% year-over-year, with the independent service provider business contributing $3.5 million in the quarter. Lakeland is accelerating investment in the platform, including the Denver ISP startup planned to open in September 2026; management said ISPs generate recurring revenue and support higher-margin revenue over time.
ISP Expansion Economics and Capacity
Management stated that building a greenfield ISP location requires approximately $350,000 to $500,000 of capital and said the model has worked well for Fresno and Denver. Individual locations generally reach capacity at between $2.5 million and $3.5 million of revenue, while the existing platform could reach $5 million to $6 million per quarter with planned growth.
Structural Gross Margin Improvement
Excluding the net tariff benefit of $1.4 million, gross margin still improved sequentially to 34%, up 280 basis points, which management described as evidence that margin improvement was structural and not solely attributable to tariff refunds. Adjusted gross margin expanded 410 basis points sequentially to 37.7%.
Improved Cash Flow and Balance Sheet
Operating cash flow was $5.4 million in the first half of fiscal 2027, a $15.1 million year-over-year improvement. Cash ended the quarter at $17.9 million, up from $12.5 million at fiscal year-end, while total debt declined to $28.7 million from $32.3 million. The company had $15.1 million of revolving-credit availability and was in compliance with all covenants.
Inventory Reduction
Inventory ended the quarter at $74.9 million, down $2.8 million sequentially, $7.6 million from the end of fiscal 2026, and $15.3 million year-over-year. Management said inventory is starting to move and expects the trend to continue as sales increase, while selectively building Fire inventory where availability is essential.
Monterrey Lease Resolution
Resolution of the Monterrey lease matter resulted in a $1.9 million second-quarter gain and permanently eliminated approximately $400,000 of related quarterly cash usage.
Positive Near-Term Outlook
Management described the third-quarter outlook as optimistic, expects industrial performance to shape up materially better year-over-year, anticipates another quarter of sequential margin improvement, and expects sequential growth from the second quarter into the third quarter and from the third quarter into the fourth quarter based on pipeline and order flow.
Long-Term Simplification and Repositioning Initiatives
Lakeland is evaluating geographic warehouse consolidation, European Fire and industrial synergies, and changes to its manufacturing footprint. Management expects meaningful changes over the next 6 months that it said would benefit the bottom line in fiscal 2028.
DE:LLI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed