LYTS · LSI Industries Inc.

LSI Industries delivered strong fiscal 2026 third quarter results with net sales reaching $150.5 million, a 14% increase year-over-year, including contributions from the recently completed Royston Group acquisition on March 24, 2026, which added $6.6 million in sales over six days. Excluding Royston, organic growth was robust at 9%, fueled by heightened demand across both Lighting and Display Solutions segments. The Display Solutions segment excelled with 23% sales growth (14% excluding Royston), 64% increase in adjusted operating income excluding Royston, and 230 basis point gross margin expansion, driven by strong activity in grocery and refueling/c-store markets, double-digit display case sales growth, 25% order increase yielding 1.2 book-to-bill, and a $5 million program award from North America's largest c-store chain. Lighting segment grew sales 2% despite weather impacts on outdoor projects, with strategic pricing yielding 30 basis point adjusted gross margin improvement. Adjusted EBITDA rose 34% to $15.0 million at 10.0% margin, reflecting volume gains, productivity, and price optimization. GAAP net income of $2.1 million included $6.5 million non-recurring acquisition costs; adjusted net income climbed 52% to $9.6 million. Management highlighted the Royston acquisition as transformative, creating a one-stop branding solutions platform after $500 million in strategic deals over five years, accelerating growth in high-margin categories and key retail verticals. Free cash flow excluding acquisition items was $11.8 million, with net debt to pro forma TTM adjusted EBITDA at 2.7x and $100 million liquidity. A $0.05 per share dividend was declared, payable May 12, 2026. CEO James A. Clark emphasized sustained organic growth, operational excellence, and the Fast Forward strategy for value creation through accretive M&A and base business profitability. A conference call was held April 23, 2026, at 11:00 A.M. ET.