Lakeland Industries Reports Fiscal First Quarter 2026 Financial Results Q1 26 Net Sales Increased 29% to a Record $46.7 Million Led by a 100% Increase in Fire Services Products, Representing 45% of Total Revenue U.S. Net

Lakeland Industries Reports Fiscal First Quarter 2026 Financial Results

Q1 26 Net Sales Increased 29% to a Record $46.7 Million Led by a 100% Increase in

Fire Services Products, Representing 45% of Total Revenue

U.S. Net Sales Increased 42% to $22.5 Million & Europe Net Sales Increased 102% to $12.1 Million

Q1 26 Represented Full Impact of Tariff Uncertainty & Associated Mitigation Strategies to Build Inventory

Improving Global Tariff Environment & Reduction in Mitigation Strategies Positions Company for Sequential Growth in Gross Margin

and Adjusted EBITDA Excluding FX in Q2 26

Maintains Previously Issued FY 2026 Revenue and Adjusted EBITDA Excluding FX

Management to Host Conference Call Today at 4:30 p.m. Eastern Time

HUNTSVILLE, AL June 9, 2025 - Lakeland Industries, Inc. ( Lakeland Fire + Safety or Lakeland ) (NASDAQ:

LAKE), a leading global manufacturer of protective clothing and apparel for industry, healthcare and first responders, has reported its financial and operational results for its fiscal first quarter ended April 30, 2025.

Key Fiscal FY 2026 First Quarter and Subsequent Financial and Operational Highlights

Management Commentary

The first quarter of fiscal 2026 was highlighted by continued sales revenue growth of 29%, led by a 100% increase in Fire Services revenue and ongoing

momentum from our recent acquisitions, said Jim Jenkins, President, Chief Executive Officer and Executive Chairman. Robust growth in our U.S. Fire Services

Segment - both organic and acquisition-driven - was partially offset by softness in Latin America and Canada, where margins are typically above our corporate average. While first quarter revenue

approached internal expectations, shortfalls in Latin America, due mainly to shipment timing, and in Canada, largely due to tariff-related delays, impacted results. Our outlook for Latin America and Canada remains positive, and we believe that once

uncertainty surrounding tariffs subsides, momentum in these markets will rebound. To that end, we continue to focus on expanding opportunities in Latin America and expect a resumption of growth in FY26. Additional factors affecting revenue included

tariff uncertainty and currency issues, as well as Pacific Helmets resulting from production issues and updates to product offerings. We continue to believe that a significant Jolly fire boots order originally anticipated for shipment in Q2 of

FY25 is still likely to materialize. While timing remains subject to the Italian Government s final procurement steps, we remain encouraged by ongoing engagement and the customer s reaffirmed intent to proceed.

Looking ahead, we are focused on navigating the continued challenges from tariff uncertainties, growing top-line

revenue in our fire services and industrial verticals, and implementing operating and manufacturing efficiencies to achieve higher margins. We also continue to pursue M&A opportunities, particularly within the fire suit rental, decontamination

and services business, to further consolidate the fragmented fire market. Our acquisition pipeline remains strong, and we are actively engaged in several strategic discussions that align with our growth strategy. We believe that with the four

recently completed acquisitions, which added product line extensions, innovative new products, and expanded our global markets, channels, and customer base, we are well-positioned to grow our global head-to-toe fire portfolio in this fragmented market. We look forward to sharing upcoming milestones in weeks and months ahead, concluded Mr. Jenkins.

Tariff Mitigation Measures Updates

Fiscal 2026 First Quarter

Fiscal 2026 First Quarter Financial Results

Net sales were $46.7 million for the first quarter of fiscal 2026, an increase of $10.4 million or 29% compared to $36.3 million for the

first quarter of fiscal 2025. Sales from our recent acquisitions accounted for $9.9 million of the increase, while organic sales increased $0.6 million, or 2%, over the prior year. Sales of the Fire Services product line increased by

$10.5 million year-over-year, driven by $9.9 million in sales from Veridian and LHD, as well as organic Fire Services growth of $0.6 million.

On a consolidated basis, for the first quarter of fiscal year 2026, domestic sales were $20.7 million, or 44% of total revenues, and international sales

were $26.0 million, or 56% of total revenues, as our recent acquisitions continue to skew growth internationally. This compares with domestic sales of $14.3 million, or 39% of the total, and international sales of $22.0 million, or

61%, in the first quarter of fiscal year 2025.

Gross profit for the first quarter of fiscal 2026 was $15.6 million, a decrease of

$0.6 million, or 4%, compared to $16.2 million for the first quarter of fiscal 2025. Gross profit as a percentage of net sales decreased to 33.5% for the first quarter of fiscal 2026 from 44.6% for the first quarter of fiscal 2025. Gross

margin percentage decreased in the first quarter of fiscal 2026 due to geographic revenue mix, combined

with lower margins and the impact of purchase accounting in our acquired businesses, and higher manufacturing and freight costs. Margins in the acquired businesses were impacted by the

amortization of the write-up in inventory as part of purchase accounting. Organic gross margin percentage decreased to 35.9% from 44.6% for the first quarter of fiscal 2026, primarily due to lower sales in our

higher-margin Latin American and Canadian markets and material price variance allocations.

Operating expenses increased by $6.3 million, or

45%, from $14.0 million for the first quarter of fiscal 2025 to $20.3 million for the first quarter of fiscal 2026. Operating expenses increased due to the acquisitions of Veridian and LHD, which added $3.0 million to operating

expenses, as well as severance costs, litigation expenses, and selling expenses. Adjusted operating expenses increased by $3.3 million, primarily due to acquired companies operating expenses. Operating loss was $4.6 million for the

first quarter of fiscal 2026, compared to an operating profit of $2.2 million for the first quarter of fiscal 2025, primarily due to the aforementioned impacts. Operating margins were (9.9%) for the first quarter of fiscal 2026, as compared to

6.1% for the first quarter of fiscal 2025.

Net loss was ($3.9) million, or ($0.41) per diluted earnings per share, for the first quarter of fiscal

2026, compared to net income of $1.7 million, or $0.22 per diluted earnings per share, for the first quarter of fiscal 2025.

excluding FX for the first quarter of fiscal year 2026 was $0.6 million, a decrease of $3.2 million, or 84%, compared with $3.8 million for the first quarter of fiscal year 2025. The decrease was driven by a materials purchase

variance, where the full amount was reflected in COGS, rather than being partially capitalized and that we expect to reverse in subsequent quarters.

Cash and cash equivalents totaled $18.6 million as of April 30, 2025, and working capital was approximately $104.4 million. Cash and

cash equivalents increased by $1.1 million, and working capital increased by $2.8 million from January 31, 2025, due to the balance sheet fluctuations.

As of April 30, 2025, we had borrowings of $19.8 million outstanding under the revolving credit facility, with an additional $20.2 million of

available credit under the Loan Agreement.

Net cash used in operating activities was $4.8 million in the three months ended April 30,

2025, compared to net cash provided of $0.3 million in the three months ended April 30, 2024. The increase was driven by a net loss of ($3.9) million and an increase in working capital of $3.0 million, offset by non-cash charges of $2.1 million.

The Company s quarterly dividend of $0.03 per share was paid on

May 22, 2025, to stockholders of record as of May 15, 2025.

Roger Shannon, Lakeland s Chief Financial Officer, added, Our Fire

Services acquisitions continued to support revenue growth in the fiscal first quarter. Revenue grew $10.4 million, or 29%, compared to the first quarter of fiscal year 2025. Veridian contributed revenue of $4.4 million in the first

quarter. Revenues for Eagle, Pacific Helmets, Jolly, LHD and Veridian totaled $15.6 million. Organic revenue increased 2% to $36.9 million in the first quarter, driven by a return to growth in the U.S. and Europe.

Our first quarter consolidated gross margin decreased to 33.5% due to geographic revenue mix coupled

with lower margins in our acquired businesses, and higher manufacturing costs. Our margins in the acquired businesses were impacted by the amortization of the inventory write-up as part of the purchase

accounting. This accounting treatment affected reported margins by $0.4 million. Profit in ending inventory is currently $1.3 million, having increased by approximately $0.3 million in the quarter due to a build-up in inventory, which slightly reduces the reported gross margin. Freight expenses were approximately $0.6 million above typical levels, driven by increased U.S. customer demand following the suspension

of U.S. tariffs on certain personal protective equipment (PPE) products. To a lesser degree, Gross Profit was also diluted by acquisitions (LHD and Veridian), for which we are still working through the purchase accounting.

Operating expenses increased by $6.3 million for the quarter, of which $3.0 million was attributable to the acquisition of Veridian and LHD,

as well as severance costs, litigation expenses, and higher selling expenses.

Adjusted EBITDA excluding FX was $0.6 million for the fiscal

first quarter. The shortfall was a direct result of revenue falling in key high-margin regions, the impact of the purchase variance described above, elevated freight costs resulting from tariff-related inventory build, and dilution from

acquisitions. We also experienced higher-than-expected SG&A expenses, including increased travel and trade show participation, as well as commission and incremental operating costs associated with the acquisition of Veridian. Considering that we

completed four major acquisitions in the past twelve months, the full integration and implementation of which does take some time, we believe those benefits will begin translating into even greater improved financial performance, which will be

recognized in the coming quarters.

We maintain a strong balance sheet and expect a meaningful cash infusion from

non-core asset dispositions and insurance recoveries from PFAS-related legal expenses. We have also identified up to $4 million in cash savings, excluding Veridian consolidation, which we believe will

further improve financial performance and be recognized in the coming quarters. Additionally, we have listed our Decatur facility and are pursuing a short-term sale-leaseback transaction to enhance our financial flexibility as we evaluate more

strategically located facilities. We anticipate that this transaction will be closed during the current fiscal year.

Despite margin pressure in Q1,

we remain confident in our long-term trajectory and current year outlook. Looking further ahead, we believe our cost discipline, acquisition strategy, and operational improvements will position the company for accelerated growth over the next

three to four years. We continue to target EBITDA margins to expand incrementally, reaching the mid-to-high teens as we gain scale over the next 3-5 years, realize efficiencies, and drive stronger mix and pricing across our platform, concluded Shannon.

2026 Guidance and Outlook

This guidance is based on our current backlog of orders and current expectations. These metrics constitute forward-looking

statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these metrics, see Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

Revenue - We expect FY 2026 Revenue of $210 to $220 million. This Revenue expectation includes the recently completed Veridian

Adjusted EBITDA excluding FX Due to lower margins, near-term order

delays, uncertainty related to tariffs and higher operating expenses in the first quarter, we expect FY 2026 Adjusted EBITDA, excluding any material negative impact from foreign exchange, to be in the lower end of a range of $24 million to

Fiscal First Quarter 2026 Results Conference Call

Lakeland President, Chief Executive Officer and Executive Chairman Jim Jenkins and Chief Financial Officer Roger Shannon will host the conference call,

followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor

relations section of the Company s website here.

To access the call, please use the following information:

A telephone replay will be available commencing approximately three hours after the call and will remain available through

September 9, 2025, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13754098. The replay can also be viewed through the webcast link above, and the

presentation utilized during the call will be available via the investor relations section of the Company s website here.

LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

Operating Results ($000) (Unaudited)

Reconciliation of GAAP Results to Non-GAAP Results

The financial data above includes non-GAAP financial measures, including EBITDA,

adjusted EBITDA, adjusted EBITDA Margin, adjusted EBITDA excluding FX, adjusted EBITDA excluding FX Margin, Adjusted Operating Expenses, organic revenue, and organic gross margin. Management excludes from EBITDA and adjusted EBITDA all expenses for