Lakeland Industries Inc Q3 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gerard Sweeney - ROTH Capital Partners - Analyst : Good afternoon, Jim. Thanks for taking my call.

Question: Gerard Sweeney - ROTH Capital Partners - Analyst : I wanted to talk about the fire service tenders, $38 million high probability. What makes you think they're high probability? And then the follow-on of that was would be that $178 million total, is there an opportunity for that to expand further, especially with some of the NFPA determinations coming out in the next couple, hopefully, in the next month or two?

Question: Gerard Sweeney - ROTH Capital Partners - Analyst : Got it. And then on the margin front, if I heard you correctly, Obviously, there's a lot more costs, tariffs, raw materials, logistics, et cetera. But it sounded also -- that sounds as though you could recover those costs to just higher absorption or higher production levels and absorbing some of the overhead? Did I hear that correctly, or could you walk through that?

Question: Gerard Sweeney - ROTH Capital Partners - Analyst : Got you. One more question. Obviously, multiple international acquisitions, global footprint. How important is getting the ERP system up and running to really give you visibility on those mechanics?

Question: Mark Smith - Lake Street Capital Markets LLC - Analyst : I just wanted to ask about kind of certification delays. Can you give us an update on anything that changed on that since the end of the quarter?

Question: Mark Smith - Lake Street Capital Markets LLC - Analyst : Okay. And then if you think about kind of mitigate and offer to improve gross profit margin, can you just talk about headwinds and this one maybe you expect to normalize?

Question: Mark Smith - Lake Street Capital Markets LLC - Analyst : Okay. And then lastly for me, thinking about tariffs, pipeline cost, raw material cost, can you just talk about pricing opportunities?

Question: Mark Smith - Lake Street Capital Markets LLC - Analyst : Yes.

Question: Mark Smith - Lake Street Capital Markets LLC - Analyst : Okay, thank you.

Question: Michael Shlisky - DA Davidson & Co - Analyst : Yes, hi. Good afternoon. Just to start with, I want to maybe ask for a quick NFPA 101 here. As far as I could tell, you're paying member or paying a paying customer of this organization, people on the board on the committee that approve all these products. And now their action or their lack of action is now causing your business to struggle and other parts of the industry as well. I get that they need time to make sure that firefighter safety is obviously the most important priority. But do you know what they're doing at the NFPA to increase their approval throughput? It just seems like at this point, they're now affecting business activity among their members, and that sounds like a real issue.

Question: Michael Shlisky - DA Davidson & Co - Analyst : Okay. So now let's go the next question. They're a public company at this point. And their lack of action is now causing your business to suffer. So have you heard anything from those folks about how fast they're going to increase the throughput of approvals?

Question: Michael Shlisky - DA Davidson & Co - Analyst : Okay. Maybe last one on this topic. Who's paying the bill the NPA or Lakeland for the UL and other agency testing?

Question: Michael Shlisky - DA Davidson & Co - Analyst : Okay. Thank you for all the information. Moving on, on the Hong Kong deal in Malaysia, do you think those are going to provide an is margin benefit given the size and the footprint you have there? Should we expect to see some really good margins I guess, starting in fiscal '27 from those two contracts?

Question: Michael Shlisky - DA Davidson & Co - Analyst : Okay. Great. Sounds good. And then I guess, given this data, there's some -- quite a few contracts in the pipeline on the fire side. But given the status of -- you mentioned there are some customers or some competitors that were struggling, are you concerned at all in the pricing environment for what's being bid on today and some of the other folks out there might get a little bit of rationale if they're in a bit of a pickle financially?

Question: Michael Shlisky - DA Davidson & Co - Analyst : Okay, makes sense. I'll pass it along. Thank you so much. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 9:30PM, LAKE.OQ - Q3 2026 Lakeland Industries Inc Earnings Call