Lakeland Industries’ subsidiary California PPE announced that it has leased an 8,000‑square‑foot facility on a half‑acre parcel in Fresno, California. The new location is designed to increase throughput for decontamination, inspection, repair, rental‑gear logistics and training services for California fire‑service customers, positioning the company to better serve a high‑growth market.
The expansion is part of Lakeland’s broader strategy to grow its U.S. service platform and create additional recurring‑revenue streams. By adding capacity, the company aims to improve turnaround times, support potential new shifts and offer new service modalities in the coming quarters, thereby strengthening its competitive position in the California firefighting market.
Despite the positive operational development, the company’s recent financial results highlight ongoing challenges. In Q2 2025, Lakeland reported revenue of $52.5 million, below the consensus forecast of $54.59 million, and an EPS of $0.08, missing the expected $0.2925. The company’s operating margin slipped to –2.32 % and net margin to –11.22 %, reflecting negative profitability and a declining operating margin that investors are closely monitoring.
The market reaction to the announcement was muted. On the day of the release, Lakeland’s stock closed 4.41 % lower, continuing a five‑day downward trend. Analysts noted that the decline was driven more by the recent earnings miss and reduced full‑year outlook than by the facility expansion itself, underscoring investor focus on the company’s overall financial health.
CEO Jim Jenkins emphasized the strategic importance of the new facility, stating, “Expanding California PPE’s footprint with this 8,000‑square‑foot facility is a major milestone for our U.S. service platform. This investment underscores our confidence in the long‑term growth of the decontamination, inspection, repair and rental market for fire service PPE.” The company also recently completed acquisitions of Arizona PPE Recon and California PPE Recon for $9.5 million, expected to add approximately $5 million in annual recurring revenue, further supporting its service‑centric growth strategy.
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