REVENUEMiss -2.4%
EPSMiss -809.1%
Actuals vs. estimates
| Metric | Actual | Consensus | Surprise |
|---|---|---|---|
| RevenueNet sales | $50.1M | $51.4M | ▼ Miss -2.4% |
| EPS(GAAP diluted) | $(0.50) | $(0.06) | ▼ Miss -809.1% |
Verdict
- Net sales of $50.1 million missed the $51.4 million consensus by 2.4%, down 4.5% year over year and up 5.7% sequentially.
- GAAP diluted loss of $(0.50) missed the $(0.06) consensus and reversed $0.08 of income a year ago.
- No financial guidance was given; management framed the second half as the start of a return to more consistent growth.
- The one thing that matters: almost the whole reported loss sits outside the business Lakeland says it is building, so the Fire mix shift is in better shape than the loss line suggests.
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Fire revenue | $26.1m | — | +2% YoY, +12% QoQ |
| Fire Services revenue | $3.5m | — | +78% YoY |
| Industrial revenue | $24.0m | — | -10.8% YoY |
| Gross margin | 37.0% | 35.9% | +114 bps |
| Adjusted EBITDA excluding FX | $2.7m | $5.1m | -47.1% |
| Cash from operations (1H FY27) | $5.4m | $(9.7)m | +$15.1m |
Guidance changes
No financial guidance change disclosed.
Quality of earnings
- The loss is mostly non-operating. A $3.2 million write-off of the remaining LHD goodwill, $1.3 million of currency losses and $1.2 million of tax expense on a $(3.7) million pre-tax loss more than account for the $(4.9) million net loss, against a $1.9 million gain on the Monterrey lease settlement going the other way.
- The margin gain is part one-off. Gross margin of 37.0% versus 35.9% includes a $1.4 million net tariff refund; on an adjusted basis the sequential move is the real one, 37.7% from 33.6% in Q1.
- The revenue decline is optical. Excluding $3.7 million of prior-year revenue from the HPFR and HiViz lines divested in March 2026, net sales rose 2.8%.
Gotchas & watch items
- Europe sales fell 17.9% to $12.4 million and Lakeland impaired all remaining LHD goodwill on lower-than-expected performance at LHD Germany; accumulated impairments at that unit now total $5.8 million.
- Adjusted EBITDA fell 72.8% to $1.4 million on a 4.5% sales decline, because operating expenses rose 7.0% to $20.6 million while sales fell.
- Currency losses of $1.3 million against $43 thousand a year ago are unhedged; management says it is still evaluating hedging strategies.
- Industrial revenue of $24.0 million fell 10.8% reported, and the release says primary manufacturing facilities remain at capacity — growth there needs capital, not just demand.