Lakeland Industries, Inc. (NASDAQ: LAKE) announced on December 3 2025 that it has secured a new contract with Malaysia’s Fire and Rescue Department to supply firefighter personal protective equipment for the department’s approximately 15,000 employees. The order represents a significant expansion of Lakeland’s presence in the Asia‑Pacific region and adds a new revenue source to the company’s fire services portfolio.
While the financial value of the contract has not been disclosed, the deal comes at a time when Lakeland’s recent results show strong revenue growth offset by net losses. In the fourth quarter of fiscal 2025, the company reported net sales of $46.6 million, up 49.3% from $31.2 million in the same quarter a year earlier, yet it posted a net loss of $18.4 million versus a $1.0 million loss in Q4 FY2024. The loss was largely driven by a $10.5 million goodwill impairment and a $7.6 million write‑off of an investment in Bodytrak. For the full fiscal year 2025, net sales rose 34.1% to $167.2 million, but the company still recorded a net loss of $18.1 million compared with a $5.4 million profit in FY2024.
Segment analysis shows that Fire Services product revenue surged 226% year‑over‑year, while Disposables grew 12%. Gross profit as a percentage of net sales increased to 40.1% in Q4 FY2025 from 35.9% in Q4 FY2024, driven by strong organic sales. However, recent acquisitions have exerted downward pressure on margins, and in Q1 FY2026 the gross margin fell to 33.5% from 44.6% in Q1 FY2025 due to geographic mix shifts and integration costs. The company’s FY2026 revenue guidance of $210 million to $220 million and adjusted EBITDA guidance of $24 million to $29 million reflect management’s confidence in continued growth while acknowledging cost pressures.
CEO Jim Jenkins emphasized that the Malaysia order “complements recent orders and further highlights the significant potential in the Asia‑Pacific market with one of the largest end‑users in Southeast Asia.” He added that the contract opens “attractive global cross‑selling opportunities” and could lead to additional orders from Bomba, underscoring Lakeland’s strategic focus on high‑growth regions and its ability to deliver best‑in‑class personal protective equipment to first responders.
The contract signals a positive near‑term development and reinforces Lakeland’s international expansion strategy. Yet the company’s ongoing net losses, margin compression, and the need for significant goodwill and investment write‑offs illustrate the challenges it faces in scaling its acquisitions and managing cost pressures. The FY2026 guidance indicates management’s confidence in revenue growth but also highlights the need to control costs and integrate new businesses. Overall, the Malaysia order is a meaningful milestone that strengthens Lakeland’s market position while the broader financial context reminds investors that the company must navigate headwinds to achieve sustainable profitability.
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