Overview

• US protective apparel maker's fiscal Q1 net sales rose 1.4%, slightly beating analyst expectations

• Adjusted EBITDA excluding FX improved year-over-year, supported by Fire Services growth

• Company completed sale of HPFR and HiViz product lines, generating $13.2 mln in cash proceeds

• Swings to profit in Q1 as Fire Services unit expands

Outlook

• Lakeland expects high single-digit revenue growth and positive operating cash flow in FY27

• Company anticipates stronger margin and revenue conversion in the second half of FY27

• Company sees continued momentum in fire services and recurring service revenue platforms

Result Drivers

• FIRE SERVICES GROWTH - Q1 sales were driven by 11% growth in Fire Services, with strong demand for certified fire portfolio and increased tender activity, especially in Latin America

• SERVICE PLATFORM MOMENTUM - Recurring revenue and customer retention improved as the Service platform expanded inspection, cleaning, and decontamination services

• MARGIN PRESSURE - Gross profit declined due to timing, mix, certification transition costs, inventory-related freight release, and operational execution items, though management is focused on improvement

Company press release: ID:nGNX6vgt6Z

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Sales	Slight Beat*	$47.40 mln	$47.35 mln (4 Analysts)
Q1 EPS		$0.04
Q1 Gross Profit		$14.90 mln
Q1 Operating Expenses		$19.10 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy"

• Wall Street's median 12-month price target for Lakeland Industries Inc is $15.00, about 59.4% above its June 8 closing price of $9.41

• The stock recently traded at 66 times the next 12-month earnings vs. a P/E of 20 three months ago

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