Lakeland Q2 Sales Miss, But Fire Momentum and Cash Flow Improve
LAKE sits 44% above its 52-week low of $7.15.
Summary
Lakeland's Q2 sales missed consensus at $50.1 million, but gross margin, adjusted EBITDA, and operating cash flow all improved sequentially, driven by Fire segment momentum and a major UK tender award notification.
Key Events · Earnings and Guidance · LAKE
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Q2 Sales Miss, Sequential Improvement
Net sales of $50.1 million missed consensus of $51.36 million and fell 4.5% year-over-year, but rose 5.7% sequentially from Q1. Excluding $3.7 million of divested product lines, sales increased 2.8% year-over-year.
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Gross Margin Expansion
Gross margin improved to 37.0% from 35.9% a year ago and 31.4% in Q1, helped by favorable Fire product mix and a $1.4 million net tariff refund. Adjusted gross margin rose 410 basis points sequentially to 37.7%.
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Goodwill Impairment and Lease Settlement
Recorded a $3.2 million non-cash goodwill impairment for LHD Germany and a $1.9 million gain on settling the Monterrey, Mexico lease matter. The impairment does not affect liquidity.
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Fire Momentum and UK Tender Award
Fire revenue grew 12% sequentially to $26.1 million (52% of sales), with helmets up 41% and hoods up 66%. Received notification of intended award under the UK National Firefighter PPE Framework worth up to £220 million over seven years across all awarded suppliers.
Analysis · LAKE · Industrial Applications And Services
Lakeland reported Q2 FY27 net sales of $50.1 million, down 4.5% year-over-year and below consensus, but the underlying business shows sequential improvement: gross margin expanded to 37.0% from 31.4% in Q1, adjusted EBITDA excluding FX more than doubled sequentially to $2.7 million, and operating cash flow swung to positive $5.4 million year-to-date. The quarter included a $3.2 million non-cash goodwill impairment for LHD Germany and a $1.9 million gain on settling the Monterrey lease. Fire revenue grew 12% sequentially to $26.1 million, now 52% of sales, with helmets up 41% and hoods up 66%. The company also disclosed a notification of intended award under the UK National Firefighter PPE Framework worth up to £220 million over seven years across all awarded suppliers. The stock trades near $10.28 with a market cap around $110 million, so the earnings miss and impairment are notable, but the cash flow inflection and Fire momentum are the more important signals for the investment thesis.
How filings like this one have moved
In the 30 days to Sep 10, 2026, 30% of the 1973 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. 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 $10.28 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $110.2M. The 52-week trading range was $7.15 to $18.00. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.