Lakeland Industries (LAKE) upped its financial outlook for the 2025 fiscal year as it begins to integrate its latest acquisition, rekindling its stock’s recent rally.
The protective clothing maker now projects net sales of $160 million to $170 million and adjusted Ebitda of between $18.0 million and $21.5 million. At the midpoint, these new ranges are $12.5 million and $1.3 million higher than the upwardly revised forecast it provided in early June and indicate substantially higher growth of 34% and 73% over the remainder of the year than the 21% and 54% projected by the Street.
The new guidance was announced as LAKE closed its $16.3 million purchase of the fire and rescue business of Germany’s LHD Group, including subsidiaries in Hong Kong and Australia, on July 1. This follows a stronger-than-anticipated start to the year fueled by its acquisitions of Pacific Helmets in November 2023 and Jolly Scarpe in February 2024. These acquisitions round out its head-to-toe fire product offering, strengthen its geographic diversity and provide it with new cross-selling opportunities. The new business is expected to add $27 million to annual revenue and be immediately accretive to the bottom line.
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In light of these improved prospects, I’m not surprised to see the stock up over 6% on this news. But with LAKE’s shares still a ways off the high of $24.80 they hit following its favorable Q1 results in June, I think they have a lot more room to run.
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