Lakeland Industries announced that it has won a comprehensive fire‑equipment contract from Argentina’s National Civil Aviation Administration (ANAC). The deal will supply structural suits, gloves, boots, hoods, helmets and proximity suits to the country’s airport rescue and firefighting units, marking the company’s first major contract in Latin America.
The win is a strategic milestone for Lakeland’s multi‑brand portfolio, which has been built through recent acquisitions such as Jolly Scarpe, Arizona PPE Recon, California PPE Recon and LHD Group. CEO Jim Jenkins said the integrated portfolio was a key factor in overcoming incumbent manufacturers that historically dominated ANAC’s tenders.
While the contract value was not disclosed, analysts expect it to contribute materially to the fire‑services segment, which grew 31% in fiscal Q3 2026 and accounted for 53% of total revenue. The segment’s growth is driven by strong demand for airport safety gear and the company’s ability to offer a full suite of products under one contract.
Jenkins highlighted that the tender specifications historically favored locally produced equipment, so winning the award demonstrates Lakeland’s ability to compete on quality and certification. He also noted that the company is navigating tariff uncertainties and certification delays while pursuing operating efficiencies to improve margins.
The contract win comes amid a challenging financial backdrop. In fiscal Q3 2026, Lakeland reported a net loss of $16 million and earnings per share of –$1.64, a miss of $1.90 versus the consensus estimate of $0.2625. Revenue fell to $47.6 million from $59.58 million expected, and gross margins contracted to 29.7% from 40.6% a year earlier. The company has withdrawn its 2026 guidance and suspended its dividend, prompting downgrades from several analysts.
Despite the positive operational development, the market reaction to the earnings miss was negative, with investors focusing on margin compression, the loss, and the suspension of guidance. The Argentina contract, while a significant win, is currently offset by these broader financial headwinds, underscoring the need for continued cost discipline and margin improvement to sustain long‑term growth.
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