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1. Company Snapshot

1.a. Company Description

Lakeland Industries, Inc.manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide.It offers limited use/disposable protective clothing, such as coveralls, laboratory coats, shirts, pants, hoods, aprons, sleeves, arm guards, caps, and smocks; high-end chemical protective suits to provide protection from highly concentrated, toxic and/or lethal chemicals, and biological toxins; and firefighting and heat protective apparel to protect against fire.


The company also provides durable woven garments, including electrostatic dissipative apparel used in electronics clean rooms; flame resistant meta aramid, para aramid, and FR cotton coveralls/pants/jackets used in petrochemical, refining operations, and electrical utilities; FR fabrics; and cotton and polycotton coveralls, lab coats, pants, and shirts.In addition, it provides high visibility clothing comprising reflective apparel, including vests, T-shirts, sweatshirts, jackets, coats, raingear, jumpsuits, hats, and gloves; and gloves and sleeves that are used in the automotive, glass, and metal fabrication industries.The company sells its products to a network of approximately 1,600 safety and industrial supply distributors through in-house sales teams, customer service group, and independent sales representatives.


It serves end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry; and federal, state, and local governmental agencies and departments.The company was incorporated in 1982 and is headquartered in Huntsville, Alabama.

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1.b. Last Insights on LAKE

Lakeland Industries' recent performance was impacted by several negative factors. Despite strong revenue growth driven by acquisitions, the company faced ongoing volatility and risk. Profitability improved year-over-year, but cash flow worsened due to rising cost pressures, tariffs, and weakness in Latin America. The company's net debt continues to rise as it funnels cash into M&A, raising concerns about leverage and future profitability. Additionally, gross margins fell, and adjusted EBITDA was heavily reliant on adjustments. However, a recent $5.6 million contract from the Hong Kong Fire Services Department and a $6.1 million sale of a warehouse facility could provide some relief.

1.c. Company Highlights

2. Lakeland Fire and Safety's Q2 2026 Earnings: A Strong Surge

Lakeland Fire and Safety reported record net sales of $52.5 million, a 36% year-over-year increase driven by a 113% growth in fire service products and recent acquisitions. The company's adjusted EBITDA surged 89% to $5.1 million. Earnings per share (EPS) came in at $0.36, significantly better than estimates of -$0.04.

Publication Date: Sep -23

📋 Highlights
  • Record Net Sales:: $52.5 million, up 36% year-over-year driven by 113% growth in fire service products and acquisitions.
  • EBITDA Surge:: Adjusted EBITDA rose 89% to $5.1 million, with sequential EBITDA growth of 740% in Q2 2026.
  • Regional Expansion:: US sales increased 78% to $22.1 million; Europe rose 113% to $15.1 million, fueled by acquisitions and market penetration.
  • Major Order Win:: $3.1 million order from the Italian Ministry of the Interior for Jolly Scarfe boots, boosting fire service revenue.
  • Operational Efficiency:: $6.1 million asset sale in Decatur, Alabama, and facility closures targeting $4 million in annual savings by 2026.

Revenue Breakdown and Operational Highlights

US sales rose 78% to $22.1 million, while Europe increased 113% to $15.1 million. Fire service sales, including a $3.1 million order from the Italian Ministry of the Interior for Jolly Scarfe boots, accounted for a significant portion of the revenue growth. The company completed four acquisitions, adding $9 million in revenue via acquisitions and achieving $5 million organic growth.

Strategic Initiatives and Future Outlook

Lakeland Fire and Safety remains focused on M&A, operational efficiency, and expanding its fire suit rental and decontamination services. Strategic initiatives, including facility closures and a $6.1 million asset sale in Decatur, Alabama, aim to generate $4 million in annual savings by 2026. The company reported $17.7 million in cash and $28.1 million in long-term debt, with a strong balance sheet supporting future acquisitions.

Valuation Metrics

With a P/E Ratio of 0.19 and EV/EBITDA of -6.13, the market seems to have already priced in significant growth expectations. The company's ROE stands at 1.01%, and ROIC at 0.35%. As Lakeland continues to expand through acquisitions and improve operational efficiencies, investors will be watching to see if the company can meet these lofty expectations.

3. NewsRoom

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Lakeland Fire + Safety Secures Order from Fire and Rescue Department of Malaysia for Firefighter Personal Protective Equipment

Dec -03

Source: globenewswire.com

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Lakeland Advances Growth Strategy Through California PPE Expansion

Nov -19

Source: globenewswire.com

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Hub Cyber Security (NASDAQ:HUBC) and Lakeland Industries (NASDAQ:LAKE) Financial Analysis

Nov -18

Source: defenseworld.net

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4 Security & Safety Stocks to Consider on Promising Industry Trends

Nov -06

Source: zacks.com

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Bull Of The Day: Lakeland Industries (LAKE)

Oct -30

Source: zacks.com

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REJUVENATION OPENS 13TH STORE NATIONWIDE IN SALT LAKE CITY

Oct -17

Source: businesswire.com

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Wall Street Analysts Believe Lakeland Industries (LAKE) Could Rally 63.85%: Here's is How to Trade

Oct -02

Source: zacks.com

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Lakeland Fire + Safety Awarded USD $5.6 Million Contract from Hong Kong Fire Services Department

Sep -15

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.63%)

6. Segments

Disposables

Expected Growth: 5.5%

Lakeland Industries' Disposables segment growth of 5.5% is driven by increasing demand for personal protective equipment (PPE) in the healthcare and industrial sectors, coupled with the company's strategic expansion into emerging markets and product innovation, such as the introduction of new disposable garments and accessories.

Fire

Expected Growth: 5.8%

Lakeland Industries' 5.8% growth driven by increasing demand for protective gear in manufacturing and oil & gas industries, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation, quality, and customer service has led to market share gains and higher sales.

Chemical

Expected Growth: 5.2%

Lakeland Industries, Inc.'s 5.2% growth in the Chemical segment is driven by increasing demand for personal protective equipment (PPE) and industrial cleaning products, coupled with strategic acquisitions and expansion into new markets. Additionally, the company's focus on innovation and product development has led to the introduction of new, high-margin products, contributing to revenue growth.

Wovens

Expected Growth: 5.6%

Lakeland Industries' Wovens segment growth of 5.6% is driven by increasing demand for protective clothing and textiles in the industrial and healthcare sectors, coupled with strategic acquisitions and expansion into new markets. Additionally, the company's focus on innovative products and cost-saving initiatives has contributed to the segment's growth.

High Performance Wear

Expected Growth: 6.2%

Lakeland Industries' High Performance Wear segment growth of 6.2% is driven by increasing demand for protective clothing in industries such as oil and gas, chemical, and manufacturing. Additionally, the company's focus on innovative products, strategic acquisitions, and expansion into new markets have contributed to its high performance.

High Visibility

Expected Growth: 6.5%

High Visibility from Lakeland Industries, Inc. is driven by increasing demand for protective clothing and gear, particularly in the industrial and healthcare sectors. The company's strategic acquisitions, expanded product offerings, and strong online presence have also contributed to its 6.5% growth rate.

Gloves

Expected Growth: 5.9%

Lakeland Industries, Inc.'s 5.9% growth in gloves segment is driven by increasing demand for personal protective equipment (PPE) in industries such as manufacturing, construction, and healthcare. Additionally, growing awareness of workplace safety and government regulations mandating PPE use contribute to the growth.

7. Detailed Products

Chemical Protective Clothing

Lakeland Industries offers a wide range of chemical protective clothing, including suits, gloves, and boots, designed to protect workers from hazardous chemicals and substances.

Flame Resistant (FR) Clothing

Lakeland's FR clothing is designed to protect workers from flash fires and electrical arc flashes, providing a safe and reliable solution for workers in high-risk industries.

High-Visibility Clothing

Lakeland's high-visibility clothing is designed to increase worker visibility in low-light environments, reducing the risk of accidents and injuries.

Disposable Protective Clothing

Lakeland's disposable protective clothing is designed for single-use applications, providing a convenient and cost-effective solution for workers in a variety of industries.

Heat and Flame Resistant (HFR) Materials

Lakeland's HFR materials are designed to provide thermal protection in high-heat environments, protecting workers from burns and injuries.

8. Lakeland Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Lakeland Industries, Inc. is medium due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Lakeland Industries, Inc. is low due to the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Lakeland Industries, Inc. is high due to the concentration of suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Lakeland Industries, Inc. is medium due to the moderate barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for Lakeland Industries, Inc. is high due to the high level of competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.52%
Debt Cost 3.95%
Equity Weight 97.48%
Equity Cost 6.39%
WACC 6.33%
Leverage 2.59%

11. Quality Control: Lakeland Industries, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
G-III Apparel

A-Score: 4.9/10

Value: 8.9

Growth: 5.6

Quality: 6.8

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Superior Group of Companies

A-Score: 4.8/10

Value: 6.9

Growth: 5.1

Quality: 3.9

Yield: 7.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Oxford Industries

A-Score: 4.7/10

Value: 5.7

Growth: 5.3

Quality: 5.8

Yield: 8.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Culp

A-Score: 4.1/10

Value: 9.8

Growth: 1.2

Quality: 5.0

Yield: 1.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Lakeland Industries

A-Score: 3.5/10

Value: 9.0

Growth: 2.1

Quality: 3.7

Yield: 1.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Hanesbrands

A-Score: 3.0/10

Value: 3.5

Growth: 0.9

Quality: 4.5

Yield: 2.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.33$

Current Price

15.33$

Potential

-0.00%

Expected Cash-Flows