Executive Summary
Lakeland Industries delivered a robust Q4 2025 revenue uptick of 49.3% year over year to $46.6 million, underpinned by the contribution from recent acquisitions (LHD, Veridian, and the broader Fire Services portfolio). The quarterly gross margin expanded to 40.1% from 35.9% a year ago, aided by an organic margin improvement (48.5% organic gross margin in Q4) and a favorable product mix, albeit partially offset by higher margins from recent acquisitions. Management highlighted ongoing strategic initiatives including four acquisitions in the last 12–24 months, ERP modernization, Lean Six Sigma deployment, and a global logistics optimization program, all aimed at improving operating discipline, lead times, and profitability. However, GAAP profitability was pressured by non-cash impairments: a $10.5 million goodwill impairment at Eagle and Pacific Helmets and a $7.6 million impairment related to Bodytrak, contributing to a Q4 net loss of $18.4 million or $2.42 per diluted share. On a trailing basis, the company generated a full-year net loss of $18.1 million and adjusted EBITDA excluding FX of $17.4 million. Notwithstanding near-term GAAP headwinds, Lakeland outlined a constructive 2026 plan anchored by revenue of $210–$220 million and adjusted EBITDA of $24–$29 million, reflecting expected operating leverage from acquisitions, margin improvements from organic growth, and the ERP/Lean initiatives. The company remains confident in its ability to scale in a fragmented higher-margin $2 billion fire protection opportunity while balancing tariff mitigation and currency risk with a diversified manufacturing footprint.
Key Performance Indicators
QoQ: -1 423.79% | YoY:-197.00%
QoQ: -21 539.53% | YoY:-1 787.21%
QoQ: -20 738 548.28% | YoY:-1 850 407.69%
Key Insights
Revenue and mix: Q4 2025 revenue rose to $46.6 million, up 49.3% YoY (Q4 2024: $31.2 million); full-year 2025 revenue was $167.2 million, up 34.1% YoY. Fire Services drove the growth, increasing by $14.7 million in Q4 YoY and supported by the LHD acquisition (July 2024) and organic gains; Veridian contributed $1.9 million in Q4. Domestic sales were $18.3 million (39% of quarterly revenue) and international sales $28.3 million (61%)....
Financial Highlights
Revenue and mix: Q4 2025 revenue rose to $46.6 million, up 49.3% YoY (Q4 2024: $31.2 million); full-year 2025 revenue was $167.2 million, up 34.1% YoY. Fire Services drove the growth, increasing by $14.7 million in Q4 YoY and supported by the LHD acquisition (July 2024) and organic gains; Veridian contributed $1.9 million in Q4. Domestic sales were $18.3 million (39% of quarterly revenue) and international sales $28.3 million (61%).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
46.63M |
49.26% |
1.89% |
| Gross Profit |
18.69M |
66.85% |
0.72% |
| Operating Income |
-10.68M |
-197.00% |
-1 423.79% |
| Net Income |
-18.44M |
-1 787.21% |
-21 539.53% |
| EPS |
-2.41K |
-1 850 407.69% |
-20 738 548.28% |
Key Financial Ratios
operatingProfitMargin
-22.9%
operatingCashFlowPerShare
$-0.44
freeCashFlowPerShare
$-0.45
dividendPayoutRatio
-1.21%
Management Commentary
Key management themes from the earnings call:
- Strategy and M&A: Jim Jenkins stated that Lakeland has closed four strategic acquisitions over the past 18–24 months (Veridian, LHD, Jolly Scarpe, Pacific Helmets, plus Eagle previously) and is building a portfolio of premium global fire brands to scale in fragmented markets. Quote: "During the quarter, we closed an oversubscribed $46 million public equity offering, the proceeds utilized to pay down our loan agreement, substantially improving our balance sheet and improving net debt ratio and resulting in expected cash interest savings of approximately $2.5 million annually." (Jim Jenkins)
- Tariffs and mitigation: Jenkins highlighted tariff mitigation steps, including inventory buildup and cross-production between Veridian and Lakeland, with USMCA-compliant production and certification for cross-border capability. Quote: "We increased net inventory by $14.2 million, which as of January 31, 2025 totaled $82.7 million... tariff mitigation initiatives include cross certification of Lakeland's Mexico-produced fire turnout gear by Veridian for production in the US." (Jim Jenkins)
- ERP/operations: Management discussed a company-wide ERP rollout planned in phases with first phase by year-end, plus Lean Six Sigma deployment to drive cost efficiency. Quote: "We began implementing a company-wide enterprise resource planning system, which will roll out in phases over the next several years. We expect to complete the first phase by the end of this fiscal year." (Jim Jenkins)
- Bodytrak and Eagle/Pacific impairment: The call addressed non-cash impairment charges and strategic repositioning of Bodytrak; management emphasized these did not reflect the long-term value of Eagle/Pacific Helmets or the core business’s cash-generation capability. Quote: "For fiscal year 2025, net loss was $18.1 million... Both Q4 and fiscal 2025 were affected by a $10.5 million goodwill impairment at Eagle and Pacific Helmets and a $7.6 million write off of our investment at Bodytrak." (Roger Shannon)
- Outlook and cadence: The team outlined a path to 2026, with Q1 expected to be the lightest quarter and stronger cadence through Q3, aided by the 2H2026 ramp in orders and backlog recovery. Quote: "With that overview, we expect FY 2026 revenue of $210 million to $220 million and FY 2026 adjusted EBITDA, excluding FX, of $24 million to $29 million." (Roger Shannon/Jim Jenkins)
"We closed an oversubscribed $46 million public equity offering, the proceeds utilized to pay down our loan agreement, substantially improving our balance sheet and improving net debt ratio and resulting in expected cash interest savings of approximately $2.5 million annually."
— Jim Jenkins
"During the quarter, we closed four strategic acquisitions that added product line extensions, innovative new products and expanded global markets, channels and customers... Veridian closed in December 2024, LHD closed in July 2024, Jolly Scarpe closed in February 2024, and Pacific Helmets closed in November 2023, plus Eagle closed in December 2022."
— Jim Jenkins
Forward Guidance
Outlook and assessment:
- 2026 revenue target: LakelandGuides toward $210–$220 million, incorporating Veridian, LHD, Jolly Scarpe, and Pacific Helmets acquisitions. This implies a meaningful uplift above 2025 revenue of $167.2 million, supported by accretive acquisitions and an expanding Fire Services and Industrial portfolio.
- Adjusted EBITDA guidance: $24–$29 million excluding FX impacts, suggesting ~14–16% adjusted EBITDA margin on mid-point revenue guidance, assuming synergies from ERP, Lean Six Sigma, and cross-selling initiatives begin to materialize.
- Profitability dynamics: The company flagged that its 2025 quarterly results included non-cash impairment charges (goodwill at Eagle and Pacific Helmets and Bodytrak investment). The 2026 path hinges on realized cost synergies from ERP consolidation, improved manufacturing efficiency, and higher contribution from Fire Services and industrial products, alongside ongoing tariff mitigation.
- Key risks and catalysts: Tariffs and geopolitical shifts remain a near-term risk to material cost and pricing. However, Lakeland’s approach—diversified manufacturing footprint, USMCA-driven cross-production opportunities, and pricing actions—aims to mitigate downside. The ERP consolidation and Lean Six Sigma program are critical catalysts for margin expansion and cost reduction. The company also signaled two to three smaller, service-oriented acquisitions in the next 12–18 months to complement core capabilities.
- What investors should monitor: (1) progression of ERP phase 1 completion and realized operating savings; (2) trajectory of Fire Services orders and LHD/Veridian cross-selling; (3) progress on tariff mitigation and the impact on gross margins; (4) LHD and Jolly backlogs and their effect on near-term revenue rhythm (Q1 expected to be the lightest quarter, Q3 peak); (5) the pace of accretion from M&A and any further bolt-on opportunities in the 12–18 month window.