- Lakeland posted Q2 FY2025 revenue of $38.51 million, up ~16% year over year from $33.10 million in Q2 FY2024, supported by organic growth and acquisitions (including one month of LHD Group). Despite top-line strength, profitability declined as the company absorbed acquisition-related costs and carried a sizable inventory step-up impact from purchase accounting. Operating loss of $0.69 million contrasted with a $3.70 million operating income in the prior-year quarter, and net loss widened to $1.38 million from net income of $2.50 million a year ago. The company reported adjusted EBITDA excluding FX of $2.7 million (margin 6.9%), down from $4.7 million (margin 14.3%) in Q2 FY2024, reflecting integration costs and inventory timing effects, though management expects improvement in H2 as acquired inventory is shipped and cost synergies take hold.
- Management emphasized the strategic rationale of the SSQ (Strategic, Structural, and Quick) M&A program, highlighted ongoing post-acquisition integration (LHD, Jolly, Pacific Helmets) and the newly formed Lakeland Fire & Safety brand. The management team noted meaningful contributions from LatAm (63% YoY growth; now ~20% of sales), expanded fire service offerings, and early-stage monetization opportunities from LHD’s care and software platform. They also flagged LineDrive as a near-term headwind in the US but expect the sales pipeline to accelerate into the second half of the year as the go-to-market model shifts toward end-user engagement.
- The FY25 revenue guidance was reaffirmed at $160–$170 million and adjusted EBITDA excluding FX at $18–$21.5 million, factoring in the acquisitions and expected second-half back-end loading of orders. The near-term risk mix includes European market softness, the LineDrive transition’s execution risk, and the pace of backlog conversion in Germany and other regions. With continued backlog execution, product mix shift toward fire services, and cross-region productization of services (including care and maintenance software), Lakeland remains positioned for mid-single-digit organic growth with margin leverage as the year progresses.