Lakeland Fire + Safety reported fiscal second-quarter 2027 net sales of $50.1 million, down 4.5% year over year but up 5.7% sequentially, as improving performance in its Fire business and Fire Services operations offset continued challenges elsewhere in the portfolio.
Gross profit was $18.5 million, compared with $18.8 million a year earlier, while gross margin increased to 37% from 35.9%. Adjusted gross margin reached 37.7%, representing a 410-basis-point sequential improvement.
Lakeland reported a net loss of $4.9 million, compared with net income of $800,000 a year earlier. Adjusted EBITDA was $1.4 million, while adjusted EBITDA excluding foreign exchange effects was $2.7 million and more than doubled sequentially.
Cash generation has also improved. Year-to-date operating cash flow increased by $15.1 million year over year to $5.4 million, while inventory declined by $15.3 million.
Fire remains central to Lakeland’s growth strategy. The company has expanded both its protective equipment portfolio and higher-growth Fire Services operation, with Fire revenue increasing 12% sequentially.
During and after the quarter, Lakeland secured tender and contract awards across nine countries spanning firefighting, disaster response, law enforcement, industrial and utility markets. These included notice of an intended award under the UK National Fire Chiefs Council National Firefighter PPE Framework, which has a potential aggregate value of up to £220 million over seven years across all awarded suppliers.
Lakeland also began establishing a new Independent Service Provider location in Denver as it expands its recurring-revenue Fire Services network.
KEY QUOTES:
“Our second quarter results provide further evidence that the underlying business is improving,” said Jim Jenkins, President and Chief Executive Officer. “We are seeing momentum in Fire, continued expansion of our Fire Services platform and improving performance across several parts of Industrial. Just as importantly, we are becoming increasingly focused on where we want to invest, where we need to improve and where we need to simplify the business.
“Fire remains at the center of our growth strategy. We have built a differentiated head-to-toe product portfolio, and we are increasingly complementing those Products with Services. We believe bringing Products and Services together strengthens our customer relationships, creates recurring revenue opportunities and gives us a platform that can support sustainable growth over time. We are accelerating our investment in Fire Services, but we are going to do so with discipline. Our priority is to build density in attractive markets, generate appropriate returns on the capital we deploy, and create a Service network that strengthens the broader Fire business. We will continue to evaluate greenfield opportunities and small strategic acquisitions, but improving and growing our existing businesses remains our first priority.
“We are taking a much more deliberate approach to the portfolio. Businesses that are performing and where we see attractive opportunities for growth will receive our capital and management attention. Where returns have not met our expectations, we are taking action on leadership, cost structure and, where appropriate, our level of investment. Our objective is a simpler company with better operating leverage, stronger returns on invested capital, and a greater concentration of resources behind our best opportunities.
“Our priorities from here are straightforward: execute better, improve margins and operating leverage, reduce complexity, and convert more of our earnings into cash. We have made progress, but we are not satisfied with where we are today. We believe the actions underway across the portfolio, combined with the momentum we are seeing in Fire Products and Fire Services, can produce a more consistent, profitable and higher-return business. That is where our attention is focused,” Jenkins concluded.
Jim Jenkins, President and Chief Executive Officer of Lakeland Fire + Safety
