Lakeland Revenue Jumps 36% in Fiscal Q2

Lakeland Industries (NASDAQ:LAKE) posted impressive second quarter fiscal 2026 results, with revenue soaring 36% year-over-year to $52.5 million. The surge was primarily fueled by their Fire Services product line, which more than doubled with a staggering 113% increase in sales. These firefighting products now represent nearly half of the company’s total revenue - a significant shift in their business model that seems to be paying off handsomely.

I’ve watched protective equipment manufacturers struggle with margins lately, and Lakeland is no exception. Their gross margin fell to 35.9% from 39.6% last year - a concerning drop that management attributes to supply chain costs and an unfavorable product mix. The Italian Ministry of Interior’s $3.1 million boot order through their Jolly Scarpe line boosted revenue but apparently at thinner margins.

Geographically, Lakeland’s performance was mixed. U.S. sales jumped 78% and European revenue more than doubled with a 113% increase. However, Latin American sales plummeted 42%, with management blaming tariff uncertainties and currency issues. I’m skeptical about how quickly they can turn this region around given the current global trade tensions.

Despite margin pressures, the company managed to swing from a $1.4 million loss last year to an $0.8 million profit this quarter. Adjusted EBITDA excluding foreign exchange nearly doubled to $5.1 million. Cash position stands at $17.7 million - down 29% from last year, which raises some questions about their liquidity management.

The outlook isn’t entirely rosy. Management lowered their full-year adjusted EBITDA guidance to $20-$24 million from the previous $24-$29 million forecast. They’re citing the usual suspects - tariffs, supply chain costs, and Latin American delays - but I wonder if there are deeper operational issues they’re not fully addressing.

Their cost-cutting efforts are noteworthy, with facility closures in England and Arkansas aimed at saving $4 million annually, plus another $3 million targeted for the second half. The $6.1 million sale-leaseback of their Alabama warehouse seems more like a band-aid for short-term debt than a strategic move.

For investors, the key question is whether Lakeland can maintain this revenue momentum while solving its margin problems. The company’s pivot toward higher-margin protective gear makes sense, but execution will be critical in an increasingly competitive global market.