Lakeland Industries, Inc. (NASDAQ: LAKE), a global manufacturer of protective clothing and safety apparel for industrial, healthcare, and emergency response markets, reported fiscal first-quarter 2027 results on Monday, posting modest revenue growth and a return to profitability as demand for its fire services products continued to strengthen.
For the quarter ended April 30, 2026, the company reported net sales of $47.4 million, up 1.4% from $46.7 million in the same period last year. Growth was primarily driven by continued momentum in the company’s Fire Services business, which recorded double-digit sales growth during the quarter.
Lakeland reported net income of $0.4 million, compared with a net loss of $3.9 million in the prior-year period. Adjusted EBITDA improved to $0.3 million from a loss of $0.2 million a year earlier, while adjusted EBITDA excluding foreign exchange impacts rose to $1.1 million from $0.6 million.
The company’s Fire Services segment generated revenue of $23.4 million, an increase of 11% year-over-year, and accounted for approximately 49% of total quarterly revenue. Management attributed the growth to expanding demand for firefighter protective equipment and increased contributions from recently acquired service operations.
Gross profit totaled $14.9 million, down from $15.6 million in the prior-year quarter, while gross margin remained relatively stable. Adjusted gross margin improved slightly on a sequential basis to 33.6%, compared with 33.5% in the fourth quarter of fiscal 2026.
Operating expenses declined 6% year-over-year to $19.1 million, reflecting ongoing efforts to improve efficiency and simplify operations. The company said it continues to focus on cost discipline, inventory management, and margin recovery initiatives across its global operations.
Fire Services Business Drives Growth
Lakeland highlighted strong customer interest in its expanded firefighter safety portfolio, including products certified under the NFPA 1970:2025 standard. The company showcased its lineup of turnout gear, helmets, gloves, boots, and hoods at major industry events, including FDIC 2026 and Interschutz, where management reported strong customer engagement and tender activity.
The company also noted growing backlog levels across its U.S. fire business, including demand for products from Veridian and legacy Lakeland brands. Additional fire-related opportunities are emerging across Latin America, Mexico, and Asia as departments transition to updated safety standards.
Several operational milestones were achieved during and after the quarter, including significant orders from fire departments across Latin America and follow-on orders from Colombia’s National Fire Department. Lakeland also completed deliveries of structural fire gear and related equipment to fire agencies in the United States.
Service Platform Expansion Continues
Management emphasized the growing importance of its Independent Service Provider (ISP) platform, which provides inspection, cleaning, repair, rental, and decontamination services for firefighter protective equipment.
The company plans to open an additional service location in Denver, Colorado, while expanding its Arizona PPE facility in Phoenix. It also recently added new decontamination capabilities at its Fresno, California, facility to support fire departments and first responders across the region.
Executives said the service business represents an attractive recurring revenue opportunity that can strengthen customer retention and improve long-term profitability.
Portfolio Simplification Strengthens Balance Sheet
During the quarter, Lakeland completed the sale of inventory and intellectual property associated with its High Performance FR (HPFR) and HiViz product lines. The transaction generated approximately $13.2 million in cash proceeds and was designed to streamline operations and strengthen liquidity.
The company said the divestiture allows management to focus resources on its core fire safety and industrial protective equipment businesses while reducing operational complexity.
Regional Performance Mixed
Revenue trends varied across geographic markets. Latin America posted strong growth, with sales rising 15% to $4.7 million, while Asia recorded a modest increase to $3.7 million. European sales declined slightly to $11.4 million as the company continued restructuring efforts within its LHD business.
Lakeland said Europe remains in a transitional phase as it implements operational improvements, leadership changes, and logistics optimization initiatives. Management expects these efforts to position the business for stronger performance later in fiscal 2027.
Outlook
Looking ahead, the company expects continued momentum in its fire services and decontamination businesses, supported by recent tender wins, expanding service operations, and growing demand for certified firefighter protective equipment.
Management also reported early signs of improvement in portions of its industrial business that had previously been affected by tariff uncertainty and broader macroeconomic challenges. Manufacturing facilities in Vietnam and China remain fully utilized, supported by improving order visibility.
While demand in some industrial and disposable product categories remains uneven, Lakeland said it is focused on improving revenue conversion, margin performance, and cash generation throughout the remainder of fiscal 2027.
The company continues to target high single-digit revenue growth and positive operating cash flow for the full fiscal year, supported by expanding fire services operations, margin improvement initiatives, and growing recurring service revenue.