Lakeland Q2 Loss Widens on Goodwill Impairment; Material Weakness Persists
LAKE sits 42% above its 52-week low of $7.15.
Summary
Lakeland reported a wider Q2 loss on a $3.2 million goodwill impairment, while confirming its material weakness in internal controls persists and PFAS litigation exposure expands.
Key Events · Earnings and Guidance · LAKE
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Q2 Net Loss Widens to $4.9M
Net loss of $4.9 million for Q2 FY27 compared to net income of $0.8 million a year ago, driven by a $3.2 million goodwill impairment and $1.2 million income tax expense.
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Goodwill Impairment for LHD Germany
Recorded a $3.2 million non-cash goodwill impairment for the LHD reporting unit in Europe, eliminating all remaining goodwill for that unit.
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Material Weakness Remains Unremediated
Disclosure controls and procedures remain ineffective as of July 31, 2026 due to the previously disclosed material weakness in internal control over financial reporting related to foreign reporting packages.
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PFAS Litigation Exposure Expands
New multidistrict litigation established for non-AFFF firefighter turnout gear claims; Crady v. 3M Co. personal injury action in Missouri state court not eligible for transfer.
Analysis · LAKE · Industrial Applications And Services
Lakeland's Q2 net loss widened to $4.9 million from a $0.8 million profit a year ago, driven by a $3.2 million goodwill impairment for its LHD Germany unit and a $1.2 million income tax expense. Gross margin improved to 37.0% from 35.9% on tariff refunds and favorable Fire product mix, but the company disclosed its material weakness in internal controls remains unremediated and its disclosure controls are ineffective. The company also faces expanding PFAS litigation, including a new multidistrict litigation transfer and a personal injury case in Missouri state court.
How filings like this one have moved
In the 30 days to Sep 9, 2026, 36.4% of the 1919 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, LAKE was trading at $10.17 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $109.3M. The 52-week trading range was $7.15 to $18.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.