Lakeland Fire + Safety Sees Strong Revenue Growth, but Execution Issues Impact Earnings
Lakeland Fire + Safety reported a strong fiscal year 2026, with net sales increasing $25.4 million or 15.2% to $192.6 million. The company's Chief Executive Officer, James M. Jenkins, attributed the growth to continued strength in fire services, with U.S. sales increasing 35.1% for the full-year and 7.1% in the Q4.
However, despite the revenue growth, the company experienced execution issues that impacted earnings. Adjusted EBITDA excluding FX was $7.2 million for the full-year and $1.3 million in the Q4, which fell short of expectations. Gross margin was 32.9% for the full-year and 32.2% in the Q4, also lower than expected.
Jenkins stated that the company views this as an execution issue, not a demand issue, and emphasized that the underlying demand environment across their core markets remains intact. The company operated in a volatile cost environment during FY2026, with factors such as freight inflation, raw material pressure, tariffs, and certification timing delays exposing weaknesses in their planning and pricing response.
Despite these challenges, Lakeland Fire + Safety is taking steps to address the issues. The company is seeing early signs that their actions are beginning to work, with improved discipline across the organization, stronger cost control, and better day-to-day execution leading to a Q4 operating cash generation of approximately $2 million.
In addition, the company completed the divestiture of its HPFR and HiViz product lines to National Safety Apparel, generating approximately $14 million of cash proceeds. This transaction simplifies the business and allows management to concentrate fully on their core fire services and industrial protective product lines, where they see the greatest long-term opportunity.
Lakeland Fire + Safety also achieved a significant milestone with numerous NFPA 1970 (2025) certifications across their brand portfolio. Products such as Lakeland structural turnout and proximity gear, Veridian gloves, and fire particulate-blocking hoods are now fully certified, enabling customers to order from a complete head-to-toe NFPA-certified range of products across Lakeland's brands.
