The EPS beat is entirely non-operational (asset sale gain). Watch for Q2 margin trajectory — management expects sequential improvement but Q2 is framed as a 'steppingstone.' The UK NFCC framework award (£220M potential across suppliers) is a multi-year catalyst but not yet reflected in revenue. Monitor the transition to asset-based lending and covenant compliance. The stock's 67% win rate at T+20 on prior reports suggests positive momentum, but the mixed operational signals warrant caution.
Price Chart
Executive Summary
Lakeland Industries reported Q1 FY27 revenue of $47.4M (+1.4% YoY), slightly below the $47.4M consensus, and GAAP EPS of $0.04, a significant beat versus the consensus estimate of -$0.14. However, the EPS beat was driven entirely by a $6.5M gain on the sale of HPFR/HiViz assets, not operational improvement. Adjusted EBITDA ex-FX improved to $1.1M from $0.6M, but gross margin continued to contract YoY (33.6% vs 35.2%). The company maintained its FY27 targets of high single-digit revenue growth and positive operating cash flow, with Fire Services growing 11% and backlog building. The prior quarter's covenant waiver and ongoing transition to an asset-based lending structure remain overhangs.
Key Financial Metrics
Key Facts
- Q1 FY27 net sales $47.4M, +1.4% YoY vs $46.7M, in line with $47.4M consensus
- GAAP net income $0.4M ($0.04 diluted EPS) vs net loss of $3.9M (-$0.41) in Q1 FY26; EPS beat consensus of -$0.14
- GAAP EPS beat driven by $6.5M gain on sale of HPFR/HiViz assets, not core operations
- Adjusted EBITDA ex-FX $1.1M, up from $0.6M YoY; adjusted gross margin 33.6% vs 35.2% YoY
- Fire Services revenue $23.4M, +11% YoY; backlog at historic levels
- Completed HPFR/HiViz divestiture for $13.2M cash proceeds; cash balance $17.4M vs $12.5M at Jan 31, 2026
- Revolver borrowings $23.8M with $16.2M available; company in compliance with all debt covenants as of Apr 30, 2026
- Maintained FY27 targets: high single-digit revenue growth and positive operating cash flow
- Eagle subsidiary received notification of intended award under UK NFCC framework with potential value up to £220M over 7 years across all suppliers
Financial Impact
Revenue $47.4M, GAAP net income $0.4M, Adjusted EBITDA ex-FX $1.1M, cash from operations $5.8M (includes $6.5M gain on asset sale)
Risk Factors
- Gross margin compression continuing (33.6% vs 35.2% YoY) due to product mix, tariff headwinds, and underutilization
- Revenue growth of only 1.4% is well below the 'high single-digit' FY27 target, raising execution risk
- LHD Germany and Middle East operations in transition; Middle East uncertainty has frozen budgets
- U.S. industrial and disposable businesses have not yet recovered; oil & gas turnaround activity remains absent
- Prior quarter covenant waiver and ongoing transition to asset-based lending structure indicate balance sheet constraints
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-263790 |
| Document: lake-20260609.htm | 0001193125-26-263790 |
| Document: lake-ex99_2.htm | 0001193125-26-263790 |
| Document: 0001193125-26-263790-index-headers.html | 0001193125-26-263790 |
| Document: 0001193125-26-263790-index.html | 0001193125-26-263790 |
| Document: 0001193125-26-263790.txt | 0001193125-26-263790 |
| 8-K Data (Synthetic) | 0001193125-26-263790 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 9, 2026 16w ago | 8-K | $11.35 $12.13 | ▲ +6.87% | ▲ +0.29% | $10.27 (−9.52%) |
May 27, 2026 18w ago | Press Release | $10.79 $11.25 | ▼ −4.26% | ▼ −2.38% | $10.27 (+4.82%) |
May 20, 2026 19w ago | Press Release | $10.18 $11.86 | ▲ +16.45% | ▲ +11.45% | $10.27 (+0.88%) |
May 14, 2026 20w ago | Press Release | $10.49 $12.05 | ▲ +14.87% | ▲ +11.28% | $10.27 (−2.10%) |
Apr 16, 2026 24w ago | 8-K | $11.20 $10.74 | ▲ +4.11% | ▲ +10.25% | $10.27 (+8.30%) |
Apr 16, 2026 24w ago | Press Release | $11.20 $10.74 | ▲ +4.11% | ▲ +10.25% | $10.27 (+8.30%) |
Apr 13, 2026 24w ago | Press Release | $9.07 $11.25 | ▲ +24.04% | ▲ +15.11% | $10.27 (+13.23%) |
Apr 8, 2026 25w ago | Press Release | $8.91 $12.36 | ▲ +38.72% | ▲ +28.26% | $10.27 (+15.26%) |
Apr 6, 2026 25w ago | Press Release | $8.86 $11.60 | ▼ −30.93% | ▼ −17.46% | $10.27 (−15.91%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access