LSI Industries (LYTS) posts 51% Q4 sales surge but higher leverage
Rhea-AI Filing Summary
LSI Industries Inc. (LYTS) reported strong top-line growth for fiscal 2026 and its fourth quarter, driven by both organic gains and the March 24, 2026 acquisition of Royston Group. Fourth-quarter net sales were $234.6 million, up 51% year over year; excluding Royston, organic net sales rose 8%. Display Solutions net sales doubled, while Lighting segment sales declined 3% versus the prior-year quarter.
Fourth-quarter net income was $6.9 million or $0.18 diluted EPS, below last year’s $0.26, reflecting acquisition-related costs. On a non-GAAP basis, adjusted net income was $14.4 million or $0.38 per diluted share, up 37%, and adjusted EBITDA was $25.7 million, up 50%. For the full year, net sales were $689.4 million, up 20%, with Lighting up 7% and Display Solutions up 30%. Adjusted EPS increased to $1.25 from $1.07, and adjusted EBITDA rose 27% to $69.7 million with a 10.1% margin.
LSI generated free cash flow of $39.0 million in fiscal 2026 and ended June 30, 2026 with total assets of $829.9 million, shareholders’ equity of $360.7 million, and long-term debt of $245.9 million, resulting in net debt to trailing adjusted EBITDA of 2.71x. The board declared a quarterly cash dividend of $0.05 per share (annualized $0.20), payable September 8, 2026 to shareholders of record on August 31, 2026.
Positive
- Q4 net sales up 51% to $234.6 million, with organic net sales growth of 8% and Display Solutions segment sales doubling year over year.
- Adjusted profitability improved: Q4 adjusted net income rose 37% to $14.4 million and adjusted EBITDA increased 50% to $25.7 million, with full-year adjusted EBITDA up 27% to $69.7 million.
- Full-year net sales grew 20% to $689.4 million, including 30% growth in Display Solutions and 7% growth in the Lighting segment.
- Consistent free cash flow generation: fiscal 2026 free cash flow was $39.0 million, up 13% from $34.7 million in fiscal 2025.
- Dividend maintained with a regular quarterly cash dividend of $0.05 per share, indicating an annualized rate of $0.20 per share.
Negative
- GAAP earnings declined: Q4 net income fell 16% to $6.9 million and full-year net income declined 7% to $22.6 million, with diluted EPS decreasing to $0.67 from $0.79.
- Leverage increased materially: net debt to adjusted EBITDA rose to 2.71x at June 30, 2026 from 0.82x a year earlier, reflecting higher debt after the Royston acquisition.
Filing Explained
Liquidity was disclosed as cash on hand plus borrowing access: $14.3 million cash and approximately $95 million facility availability.
This Form 8-K furnishes LSI’s fiscal 2026 results and reports the company’s liquidity position as of
At
The release says its non-GAAP measures are supplemental, are not based on a comprehensive accounting framework, and should be considered with the corresponding GAAP measures.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
free cash flow financial
Net Debt to Adjusted EBITDA financial
organic sales growth financial
book-to-bill financial
Earnings Snapshot
FAQ
How did LSI Industries (LYTS) perform in the fourth quarter of fiscal 2026?
What were LSI Industries’ full-year fiscal 2026 results for LYTS?
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
(d) | Exhibits |
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Exhibit No. | Description |
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99.1 | LSI Press Release dated August 20, 2026 |
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99.2 | Conference Call Presentation |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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LSI INDUSTRIES INC. |
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BY:/s/ James E. Galeese |
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James E. Galeese |
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Executive Vice President, Chief Financial Officer |
Exhibit 99.1
LSI INDUSTRIES REPORTS FISCAL 2026 FOURTH QUARTER AND FULL-YEAR RESULTS
AND DECLARES QUARTERLY CASH DIVIDEND
CINCINNATI, August 20, 2026 – LSI Industries Inc. (Nasdaq: LYTS, “LSI” or the “Company”) a leading U.S. based manufacturer of commercial lighting and display solutions, today reported financial results for its fiscal 2026 fourth quarter and full year ended June 30, 2026.
FISCAL 2026 FOURTH QUARTER RESULTS
| ● | Net Sales +51% y/y to $234.6 million; organic growth +8% |
| ● | Net Income $6.9 million; Adjusted Net Income $14.4 million |
| ● | Diluted EPS of $0.18; Adjusted EPS $0.38 per diluted share |
| ● | EBITDA $21.2 million; Adjusted EBITDA $25.7 million or 10.9%/sales |
| ● | Free Cash Flow $9.7 million |
FISCAL 2026 FULL YEAR RESULTS
| ● | Net Sales +20% y/y to record $689.4 million |
| ● | Net Income $22.6 million; Adjusted net income $42.2 million |
| ● | Diluted EPS of $0.67; Adjusted EPS of $1.25 per diluted share |
| ● | EBITDA of $55.0 million; Adjusted EBITDA $69.7 million or 10.1%/sales |
| ● | Free Cash Flow of $39.0 million |
| ● | Ratio of net debt to proforma TTM Adjusted EBITDA of 2.7x |
LSI reported net sales of $234.6 million in the fourth quarter, an increase of 51% versus the prior year period, led by sustained growth in key vertical markets and the first full-quarter contributions from the acquisition of Royston Group (“Royston”) on March 24, 2026. Excluding acquisition-related contributions, net sales increased 8% in the fourth quarter when compared to the year-ago period.
LSI reported fourth quarter net income of $6.9 million, or $0.18 per diluted share, including $3.0 million of acquisition-related expenses, while adjusted net income was $14.4 million, or $0.38 per diluted share.
The Company generated adjusted EBITDA of $25.7 million in the fourth quarter, an increase of 50% when compared to $17.1 million in the prior year quarter. Fourth quarter adjusted EBITDA margin rate increased 90 basis points sequentially versus the fiscal third quarter, driven by sustained operational discipline and a favorable margin contribution from the Royston acquisition.
LSI Industries Fourth Quarter and Full Year Fiscal 2026 Results
August 20, 2026
For the twelve-month period ended June 30, 2026, LSI reported net sales of $689.4 million with adjusted earnings per diluted share of $1.25 compared to $1.07 in fiscal 2025. Fiscal 2026 sales include the partial year impact from the strategic acquisition of Royston.
For full-year fiscal 2026, LSI delivered margin expansion across adjusted operating income, adjusted net income, and adjusted EBITDA, driven by volume growth, strategic price actions, and productivity initiatives.
LSI generated Adjusted EBITDA of $69.7 million in fiscal year 2026, an increase of 27% versus the prior year, inclusive of an adjusted EBITDA margin rate of 10.1%, or 50 basis points above fiscal year 2025. A reconciliation of GAAP and non-GAAP financial results is included in this press release.
LSI generated free cash flow of $9.7 and $39.0 million for the fourth quarter and full year fiscal 2026, respectively. As of June 30, 2026, the Company had a ratio of net debt to proforma trailing twelve month adjusted EBITDA of 2.7x, and approximately $95 million of availability under its $350 million senior secured credit facility.
The Company declared a regular cash dividend of $0.05 per share payable on September 8, 2026, to shareholders of record on August 31, 2026.
MANAGEMENT COMMENTARY
“Fiscal 2026 was a transformational year for LSI, one in which we delivered record sales and profitability within our core business, while completing our largest acquisition to-date, with the purchase of Royston Group,” stated James A. Clark, President and CEO of LSI. “Over the past year, we continued to expand our differentiated portfolio of integrated retail branding solutions across a growing roster of leading brands, while reinforcing our market-leading positions in key consumer environments, including refueling, grocery and quick-service restaurants, through a collaborative approach focused on elevating the consumer experience.
“Fiscal fourth quarter net sales increased materially versus the prior-year period, supported by a combination of organic growth and contributions from the Royston acquisition,” stated Clark. “The addition of Royston has taken our vertical market strategy to a new level, creating unprecedented opportunities for commercial synergies that, over time, are expected to further demonstrate the power and durability of our value-compounding business model. To that end, adjusted net income increased nearly 40% versus the prior-year period in the fourth quarter, driven by a combination of volume growth, price discipline, and improved operational efficiency, consistent with our strategic focus.
“Our acquisition of Royston has further strengthened our differentiated value proposition across our vertical markets, creating a one-of-one platform that is generating strong enthusiasm among customers and partners for its ability to elevate the consumer experience and strengthen their brands in the marketplace,” continued Clark. “We are well positioned to capitalize on incremental growth opportunities by expanding our share of business with existing customers while attracting new customers that recognize the many benefits of partnering with our integrated, one-of-one, solutions-based platform.
“Within our Display Solutions segment, net sales doubled from the previous year period, including 18% organic growth, when compared to the fiscal fourth quarter 2025. Display segment adjusted EBITDA margin rate increased to 12.4%, the highest level reached in nearly three years, and an increase of 180 basis points versus the year-ago period,” stated Clark.
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LSI Industries Fourth Quarter and Full Year Fiscal 2026 Results
August 20, 2026
“Organic growth in Display Solutions for the fourth quarter was supported by strengthening demand across the grocery and refueling/c-store vertical markets. Within the grocery vertical, refrigerated and non-refrigerated display cases sales increased 21% year-over-year, as grocery customers continued to invest in store décor and an enhanced consumer shopping experience. Activity within this vertical has steadily improved over the past two years following the industry-wide pause related to the proposed merger of two large grocery chains, and we expect demand to remain elevated entering fiscal 2027.
“Across the refueling/c-store vertical, fourth quarter sales increased 16% versus the prior year quarter. Both outdoor print graphics and EMI store interior products produced double-digit growth. Project activity remains healthy across our multi-brand customer base, including both new store and renovation activity. In the quarter, LSI was awarded a multi-year program with a large oil company to renovate approximately 2,500 sites. The program includes renovation of all exterior branding elements and includes both products and services. This represents a new customer win for our business, with the breadth of our integrated One LSI solution set serving as a key differentiator in displacing long-standing incumbent suppliers.
“The integration of Royston continues to advance at an accelerated pace as we refine and deploy a unified customer-facing value proposition and go-to-market model. Royston fourth quarter sales declined modestly on a year-over-year basis, consistent with our expectations, as we narrow our strategic focus around a higher-value product/project mix. Importantly, several of Royston’s largest c-store customers are in the initial phase of a multi-year renovation and new construction cycle, with project activity that is expected to ramp beginning in fiscal 2027 and continue throughout the next several years,” stated Clark.
“Entering fiscal 2027, we anticipate a sustained, elevated pace of project activity within the Display Solutions segment. As has been the case in recent years, we also expect the timing of project activity will not be linear, as customers navigate site scheduling, permitting, and procurement requirements. Given a dynamic operating environment, we will continue to adapt and respond accordingly, while providing our customers with an integrated, on-stop solution that solves for the complexities of large-scale site construction and remodeling project management.
“Within Display Solutions, project activity remains elevated and order rates remain strong, with a book-to-bill of approximately 1.0x on strong sales,” continued Clark. “Importantly, order rates do not include the $30 million refueling/c-store program award we received during the fourth quarter 2026.
“For our Lighting segment, fourth quarter sales increased 17% versus the fiscal third quarter but declined 3% when compared to the fiscal fourth quarter 2025, the result of a soft quarter for the automotive and QSR verticals, where project activity can be uneven throughout the fiscal year.
“For fiscal year 2026, Lighting segment sales increased 7%, with growth driven by increased penetration of national accounts, together with improved demand for outdoor area lighting,” continued Clark. “Our recently launched V-LOCITY family of outdoor area lighting continues to gain market acceptance, with customers recognizing the industry leading specifications and performance afforded by the new product line. In addition, we are in the final development phase of our new Velocity Flood light fixture line, with initial sizes to be launched in the calendar year fourth quarter. The new Flood range expands our high performing Velocity series of products, further strengthening our outdoor range of products. Lighting fourth quarter orders were 5% above last year with a book-to-bill above 1.0.”
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LSI Industries Fourth Quarter and Full Year Fiscal 2026 Results
August 20, 2026
Clark concluded, “During fiscal 2026, we built upon a strong foundation for profitable growth as we meaningfully expanded our capabilities, significantly increased our market share in key verticals, and continued to focus on driving a unique-to-market value proposition that has fundamentally redefined the retail branding solution category. With the addition of Royston, we’re focused on realizing the benefits of scale, while leveraging a proven playbook that prioritizes on-plan execution. Our long-standing customer relationships, together with the trust and confidence customers place in the combined LSI and Royston brands, position us to become an even more valuable strategic partner and capture a greater share of wallet, over time. We’re confident in the outlook for our business and look forward to continuing to create value with our customers, employees and shareholders in the years ahead.”
FISCAL 2026 FOURTH QUARTER CONFERENCE CALL
A conference call will be held today at 11:00 A.M. ET to review the Company’s financial results and conduct a question-and-answer session.
A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of LSI Industries’ website at www.lsicorp.com. Individuals can also participate by teleconference dial-in. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software.
Details of the conference call are as follows:
Domestic Live: 877-407-4018
International Live: 201-689-8471
To listen to a replay of the teleconference, which subsequently will be available through September 3, 2026:
Domestic Replay: 844-512-2921
International Replay: 412-317-6671
Conference ID: 13761791
ABOUT LSI INDUSTRIES
Headquartered in Cincinnati, LSI is a publicly held company traded over the NASDAQ Stock Exchange under the symbol LYTS. The company manufactures advanced lighting, graphics, and display solutions across strategic vertical markets. The company’s American-made products, which include non-residential indoor and outdoor lighting, print graphics, digital graphics, refrigerated and custom displays, help create value for customer brands and enhance the consumer experience. LSI also provides comprehensive project management services in support of large-scale product rollouts. The company employs approximately 3,000 people at 23 manufacturing plants in the U.S. and Canada. Additional information about LSI is available at www.lsicorp.com
Page 4 of 11
LSI Industries Fourth Quarter and Full Year Fiscal 2026 Results
August 20, 2026
FORWARD-LOOKING STATEMENTS
Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the federal securities laws and is intended to receive the protections of such laws.
All statements, other than historical facts, included or incorporated in this release could be deemed forward-looking statements, particularly statements that reflect our expectations or beliefs of LSI Industries Inc. (the “Company,” “LSI,” “we,” or “us”) concerning future events or our future financial performance. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by discussions of strategy, plans, or intentions or by the use of words such as “may,” “would,” “could,” “should,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” “plan,” “forecast,” “project,” “predict,” “potential,” “continue,” or “intend,” the negative or other variants of such terms, or other comparable terminology.
The Company cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations as a result of various factors, including, but not limited to: the impact of competitive products and services; product and pricing demands and market acceptance risks; LSI’s reliance on third-party manufacturers and suppliers; substantial changes to the refueling and convenience store and grocery markets; LSI’s stock price volatility and market volatility in the debt and equity markets; potential costs associated with litigation, other proceedings and regulatory compliance; LSI’s ability to adequately protect intellectual property, information technology security threats and computer crime; financial difficulties experienced by customers; the cyclical and seasonal nature of our business; the failure of acquisitions or acquired companies to achieve their plans or objectives generally; our ability to consummate, successfully integrate, and achieve strategic and other objectives, including any expected synergies, relating to pending or recently completed acquisitions; the inability to effectively execute our business strategies; the ability to retain key employees, including key employees of acquired businesses; labor shortages or an increase in labor costs; changes in product mix; unfavorable economic, political, and market conditions, including interest rate fluctuations and inflation; changes in U.S. trade policy, including mitigating the impacts of increased costs related to tariffs; the results of asset impairment assessments; price increases of materials; significant shortages of materials; shortages in transportation and increases in fuel prices; sudden or unexpected changes in customer creditworthiness; write-offs or impairment of capitalized costs or intangible assets in the future; and the other risk factors LSI describes from time to time in the Company’s Annual Report on Form 10-K (the “Form 10-K”) and in other reports filed with or furnished to the U.S. Securities and Exchange Commission (the "SEC") by the Company. You should carefully consider the trends, risks, and uncertainties described in this news release, the Form 10-K, and other reports filed with or furnished to the SEC by the Company before making any investment decision with respect to our securities. If any of these trends, risks, or uncertainties continues or occurs, our business, financial condition, or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment.
Forward-looking statements are made in the context of information available as of the date of this news release and are based on our current expectations, forecasts, estimates, and assumptions. The Company undertakes no obligation to update or revise such statements to reflect circumstances or events occurring after this news release except as may be required by applicable law. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
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LSI Industries Fourth Quarter and Full Year Fiscal 2026 Results
August 20, 2026
INVESTOR & MEDIA CONTACT
Noel Ryan
720.778.2415
LYTS@vallumadvisors.com
Three Months Ended | | (Unaudited) | | Twelve Months Ended | |
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2026 | | | 2025 | | (In thousands, except per share data) | | 2026 | | | 2025 | |
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$ | 234,621 | | | $ | 155,066 | | Net sales | | $ | 689,397 | | | $ | 573,377 | |
| | | | | | | | | | | | | | | |
| 177,206 | | | | 114,633 | | Cost of products sold | | | 516,032 | | | | 431,592 | |
| | | | | | | | | | | | | | | |
| 57,415 | | | | 40,433 | | Gross profit | | | 173,365 | | | | 141,785 | |
| | | | | | | | | | | | | | | |
| 42,925 | | | | 28,489 | | Selling and administrative costs | | | 134,962 | | | | 106,016 | |
| | | | | | | | | | | | | | | |
| 14,490 | | | | 11,944 | | Operating Income | | | 38,403 | | | | 35,769 | |
| | | | | | | | | | | | | | | |
| 330 | | | | (698 | ) | Other (income) expense | | | 1,001 | | | | (398 | ) |
| 4,134 | | | | 865 | | Interest expense, net | | | 5,928 | | | | 3,129 | |
| | | | | | | | | | | | | | | |
| 10,026 | | | | 11,777 | | Income before taxes | | | 31,474 | | | | 33,038 | |
| | | | | | | | | | | | | | | |
| 3,150 | | | | 3,605 | | Income tax | | | 8,895 | | | | 8,655 | |
| | | | | | | | | | | | | | | |
$ | 6,876 | | | $ | 8,172 | | Net income | | $ | 22,579 | | | $ | 24,383 | |
| | | | | | | | | | | | | | | |
| | | | | | | Weighted Average Common Shares Outstanding | | | | | | | | |
| 36,908 | | | | 30,090 | | Basic | | | 32,871 | | | | 29,903 | |
| 37,690 | | | | 30,968 | | Diluted | | | 33,707 | | | | 30,832 | |
| | | | | | | | | | | | | | | |
| | | | | | | Earnings Per Share | | | | | | | | |
$ | 0.19 | | | $ | 0.27 | | Basic | | $ | 0.69 | | | $ | 0.82 | |
$ | 0.18 | | | $ | 0.26 | | Diluted | | $ | 0.67 | | | $ | 0.79 | |
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LSI Industries Fourth Quarter and Full Year Fiscal 2026 Results
August 20, 2026
| | (amounts in thousands) | |
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| | June 30, | | | June 30, | |
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| | 2026 | | | 2025 | |
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Current assets | | $ | 295,885 | | | $ | 194,166 | |
Property, plant and equipment, net | | | 56,714 | | | | 31,154 | |
Other assets | | | 477,265 | | | | 171,042 | |
Total assets | | $ | 829,864 | | | $ | 396,362 | |
| | | | | | | | |
Current maturities of long-term debt | | $ | 10,000 | | | $ | 3,571 | |
Other current liabilities | | | 139,919 | | | | 93,778 | |
Long-term debt | | | 245,931 | | | | 44,986 | |
Other long-term liabilities | | | 73,337 | | | | 23,305 | |
Shareholders' equity | | | 360,677 | | | | 230,722 | |
| | $ | 829,864 | | | $ | 396,362 | |
Three Months Ended June 30, 2026, Results
Net sales for the three months ended June 30, 2026, were $234.6 million, up 51% from the three months ended June 30, 2025, reported net sales of $155.1 million. Lighting Segment net sales of $70.5 million decreased 3% and Display Solutions Segment net sales of $164.2 million doubled from last year’s fourth quarter net sales. Net income for the three months ended June 30, 2026, was $6.9 million, or $0.18 per share, compared to $8.2 million or $0.26 per share for the three months ended June 30, 2025. Earnings per share represent diluted earnings per share.
Twelve Months Ended June 30, 2026, Results
Net sales for the twelve months ended June 30, 2026, were $689.4 million, up 20% from the twelve months ended June 30, 2025, reported net sales of $573.4 million. Lighting Segment net sales of $266.2 million increased 7% and Display Solutions Segment net sales of $423.2 million increased 30% from last year’s net sales. Net income for the twelve months ended June 30, 2026, was $22.6 million, or $0.67 per share, compared to $24.4 million or $0.79 per share for the twelve months ended June 30, 2025. Earnings per share represent diluted earnings per share.
Balance Sheet
The balance sheet on June 30, 2026, included current assets of $295.9 million, current liabilities of $149.9 million and working capital of $146.0 million, which includes cash of $14.3 million. The current ratio was 2.0 to 1. The balance sheet also included shareholders’ equity of $360.7 million and long-term debt of $245.9 million. It is the Company’s priority to continuously generate sufficient cash flow, coupled with our credit facility, to adequately fund operations.
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LSI Industries Fourth Quarter and Full Year Fiscal 2026 Results
August 20, 2026
Cash Dividend Actions
The Board of Directors declared a regular cash dividend of $0.05 per share for the fourth quarter of fiscal 2026, payable September 8, 2026, to shareholders of record as of the close of business on August 31, 2026. The indicated annual cash dividend rate is $0.20 per share. The Board of Directors has adopted a policy regarding dividends which provides that dividends will be determined by the Board of Directors in its discretion based upon its evaluation of earnings both on a GAAP and non-GAAP basis, cash flow requirements, financial condition, debt levels, stock repurchases, future business developments and opportunities, and other factors deemed relevant by the Board.
Non-GAAP Financial Measures
This press release includes adjustments to GAAP operating income, net income, and earnings per share for the three and twelve months ended June 30, 2026, and 2025. Operating income, net income, and earnings per share, which exclude the impact of long-term performance-based compensation expense, the amortization expense of acquired intangible assets, commercial growth opportunity expense, acquisition costs, the lease expense on the step-up basis of acquired leases, and restructuring and severance costs, are non-GAAP financial measures. We further note that while the amortization expense of acquired intangible assets is excluded from the measures, the revenue of the acquired companies is reflected in the measures, and the acquired assets contribute to revenue generation. We exclude these items because we believe they are not representative of the ongoing results of the operations of the business. Also included in this press release are non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA and Adjusted EBITDA), Net Debt to Adjusted EBITDA, Free Cash Flow, and organic sales growth. We believe that these are useful as supplemental measures in assessing the operating performance of our business. These measures are used by our management, including our chief operating decision maker, to evaluate business results, and are frequently referenced by those who follow the Company. These non-GAAP measures may be different from non-GAAP measures used by other companies. In addition, the non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations, in that they do not reflect all amounts associated with our results as determined in accordance with U.S. GAAP. Therefore, these measures should be used only to evaluate our results in conjunction with corresponding GAAP measures. Below is a reconciliation of these non-GAAP measures to net income and earnings per share reported for the periods indicated, along with the calculation of EBITDA, Adjusted EBITDA, Free Cash Flow, Net Debt to Adjusted EBITDA, and organic sales growth.
Page 8 of 11
LSI Industries Fourth Quarter and Full Year Fiscal 2026 Results
August 20, 2026
Three Months Ended | | (Unaudited) | | Twelve Months Ended | |
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2026 | | | 2025 | | | % Change | | (In thousands, except per share data) | | 2026 | | | 2025 | | | % Change | |
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$ | 234,621 | | | $ | 155,066 | | | | 51 | % | Net sales | | $ | 689,397 | | | $ | 573,377 | | | | 20 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 14,490 | | | | 11,944 | | | | 21 | % | Operating income as reported | | | 38,403 | | | | 35,769 | | | | 7 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 1,118 | | | | 970 | | | | 15 | % | Long-term performance based compensation | | | 4,117 | | | | 4,939 | | | | -17 | % |
| 121 | | | | 240 | | | NM | | Severance costs and restructuring costs | | | 75 | | | | 300 | | | | -75 | % |
|
| 3,801 | | | | 1,588 | | | | 139 | % | Amortization expense of acquired intangible assets | | | 8,645 | | | | 5,869 | | | | 47 | % |
| 3,040 | | | | 225 | | | | 1251 | % | Acquisition costs | | | 9,979 | | | | 1,047 | | | NM | |
|
| 152 | | | | 153 | | | NM | | Expense on step-up basis of acquired leases | | | 605 | | | | 356 | | | | 70 | % |
|
| - | | | | - | | | NM | | Consulting expense: commercial growth initiatives | | | - | | | | 81 | | | NM | |
||
| | | | | | | | | | | | | | | | | | | | | | | |
$ | 22,722 | | | $ | 15,120 | | | | 50 | % | Operating income as adjusted | | $ | 61,824 | | | $ | 48,361 | | | | 28 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
$ | 6,876 | | | $ | 8,172 | | | | -16 | % | Net income as reported | | $ | 22,579 | | | $ | 24,383 | | | | -7 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
$ | 14,439 | | | $ | 10,577 | | | | 37 | % | Net income as adjusted | | $ | 42,205 | | | $ | 32,883 | | | | 28 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
$ | 0.18 | | | $ | 0.26 | | | | -31 | % | Earnings per share (diluted) as reported | | $ | 0.67 | | | $ | 0.79 | | | | -15 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
$ | 0.38 | | | $ | 0.34 | | | | 13 | % | Earnings per share (diluted) as adjusted | | $ | 1.25 | | | $ | 1.07 | | | | 17 | % |
Three Months Ended | | | | Twelve Months Ended | |
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June 30 | | | | June 30 | |
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2026 | | | | | | | 2025 | | | | | | (In thousands, except per share data) | | 2026 | | | | | | | 2025 | | | | | |
||||
| | | | Diluted EPS | | | | | | | Diluted EPS | | Reconciliation of net income to adjusted net income | | | | | | Diluted EPS | | | | | | | Diluted EPS | |
||||
$ | 6,876 | | | $ | 0.18 | | | $ | 8,172 | | | $ | 0.26 | | Net income as reported | | $ | 22,579 | | | $ | 0.67 | | | $ | 24,383 | | | $ | 0.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1,194 | | | | 0.03 | | | | 912 | | | | 0.04 | | Long-term performance based compensation | | | 3,458 | | | | 0.10 | | | | 3,951 | | | | 0.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| - | | | | - | | | | - | | | | - | | Consulting expense: commercial growth initiatives | | | - | | | | - | | | | 62 | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 3,135 | | | | 0.09 | | | | 211 | | | | - | | Acquisition costs | | | 8,340 | | | | 0.25 | | | | 838 | | | | 0.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 168 | | | | - | | | | 130 | | | | - | | Expense on step-up basis of acquired leases | | | 508 | | | | 0.02 | | | | 285 | | | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 98 | | | | - | | | | 195 | | | | 0.01 | | Severance costs and restructuring costs | | | 63 | | | | - | | | | 240 | | | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 3,569 | | | | 0.10 | | | | 1,485 | | | | 0.05 | | Amortization expense of acquired intangible assets | | | 7,220 | | | | 0.21 | | | | 4,745 | | | | 0.16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 122 | | | | - | | | | (489 | ) | | | (0.02 | ) | Foreign currency transaction loss (gain) on intercompany loan | | | 329 | | | | 0.01 | | | | (489 | ) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (723 | ) | | | (0.02 | ) | | | (39 | ) | | | - | | Tax rate difference between reported and adjusted net income | | | (293 | ) | | | (0.01 | ) | | | (1,132 | ) | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ | 14,439 | | | $ | 0.38 | | | $ | 10,577 | | | $ | 0.34 | | Net income adjusted | | $ | 42,205 | | | $ | 1.25 | | | $ | 32,883 | | | $ | 1.07 | |
The foreign currency transaction gain (loss) on intercompany loan relates to an intercompany loan established as a result of the acquisition Canada’s Best Holdings as a method to repatriate cash generated in Canada to the Unites States without being subject to a withholding penalty.
Page 9 of 11
LSI Industries Fourth Quarter and Full Year Fiscal 2026 Results
August 20, 2026
Three Months Ended | | (Unaudited; In thousands) | | Twelve Months Ended | |
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June 30 |
| Net Income to Adjusted EBITDA |
| June 30 |
|
||||||||||||||||||
2026 | | | 2025 | | | % Change | | | 2026 | | | 2025 | | | % Change | |
|||||||
$ | 6,876 | | | $ | 8,172 | | | | -16 | % | Net income as reported | | $ | 22,579 | | | $ | 24,383 | | | | -7 | % |
| 3,150 | | | | 3,605 | | | | | | Income tax | | | 8,895 | | | | 8,655 | | | | | |
| 4,134 | | | | 865 | | | | | | Interest expense, net | | | 5,928 | | | | 3,129 | | | | | |
| 330 | | | | (698 | ) | | | | | Other expense (income) | | | 1,001 | | | | (398 | ) | | | | |
$ | 14,490 | | | $ | 11,944 | | | | 21 | % | Operating income as reported | | $ | 38,403 | | | $ | 35,769 | | | | 7 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 6,745 | | | | 3,555 | | | | | | Depreciation and amortization | | | 16,565 | | | | 12,575 | | | | | |
$ | 21,235 | | | $ | 15,499 | | | | 37 | % | EBITDA | | $ | 54,968 | | | $ | 48,344 | | | | 14 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 1,118 | | | | 970 | | | | | | Long-term performance based compensation | | | 4,117 | | | | 4,939 | | | | | |
| 121 | | | | 240 | | | | | | Severance costs and restructuring costs | | | 75 | | | | 300 | | | | | |
| 3,040 | | | | 225 | | | | | | Acquisition costs | | | 9,979 | | | | 1,047 | | | | | |
| - | | | | - | | | | | | Consulting expense: commercial growth initiatives | | | - | | | | 81 | | | | | |
| 152 | | | | 153 | | | | | | Expense on step-up basis of acquired lease | | | 605 | | | | 356 | | | | | |
$ | 25,666 | | | $ | 17,087 | | | | 50 | % | Adjusted EBITDA | | $ | 69,744 | | | $ | 55,067 | | | | 27 | % |
| 10.9 | % | | | 11.0 | % | | | | | Adjusted EBITDA as a Percentage of Sales | | | 10.1 | % | | | 9.6 | % | | | | |
Three Months Ended | | (Unaudited; In thousands) | | Twelve Months Ended | |
||||||||||||||||||
June 30 |
| Free Cash Flow |
| June 30 |
|
||||||||||||||||||
2026 | | | 2025 | | | % Change | | | 2026 | | | 2025 | | | % Change | |
|||||||
$ | 11,559 | | | $ | 9,499 | | | | 22 | % | Cash flow from operations | | $ | 44,148 | | | $ | 38,118 | | | | 16 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| (1,900 | ) | | | (950 | ) | | | | | Capital expenditures | | | (5,142 | ) | | | (3,465 | ) | | | | |
$ | 9,659 | | | $ | 8,549 | | | | 13 | % | Free cash flow | | $ | 39,006 | | | $ | 34,653 | | | | 13 | % |
Net Debt to Adjusted EBITDA Ratio | | June 30, | |
|||||
(amounts in thousands) | | 2026 | | | 2025 | |
||
Current Maturity of Debt | | $ | 10,000 | | | $ | 3,571 | |
Long-Term Debt | | | 245,931 | | | | 44,986 | |
Total Debt | | $ | 255,931 | | | $ | 48,557 | |
Less: Cash | | | (14,249 | ) | | | (3,457 | ) |
Net Debt | | $ | 241,682 | | | $ | 45,100 | |
Adjusted EBITDA - Trailing Twelve Months | | $ | 89,027 | | | $ | 55,067 | |
Net Debt to Adjusted EBITDA Ratio | | | 2.71 | | | | 0.82 | |
Page 10 of 11
LSI Industries Fourth Quarter and Full Year Fiscal 2026 Results
August 20, 2026
| | Fourth Quarter | | | | | |
|||||
Organic compared to Inorganic Sales | | Q4 2026 | | | Q4 2025 | | | % Variance | |
|||
| | | | | | | | | | | | |
Lighting Segment | | $ | 70,458 | | | $ | 72,743 | | | | -3 | % |
Display Solutions Segment | | | | | | | | | | | | |
- Comparable Display Solutions Sales | | | 97,266 | | | | 82,323 | | | | 18 | % |
- Royston | | | 66,897 | | | | - | | | NM | |
|
Total Diplay Solutions Sales | | $ | 164,163 | | | $ | 82,323 | | | | 99 | % |
Total net sales | | $ | 234,621 | | | $ | 155,066 | | | | 51 | % |
Less: | | | | | | | | | | | | |
Royston | | | 66,897 | | | | - | | | | - | |
Total organic net sales | | $ | 167,724 | | | $ | 155,066 | | | | 8 | % |
Page 11 of 11
Exhibit 99.2
