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Sep 30
LSI Q1 2026 Earnings Report
LSI Industries reported strong fiscal 2026 first quarter results, driven by robust sales growth in both Lighting and Display Solutions segments and improved profitability.
Key Takeaways
LSI Industries delivered a successful start to fiscal year 2026 with a 14% increase in net sales to $157.3 million, fueled by broad-based demand and strategic acquisitions. The company achieved significant growth in adjusted net income, up 22% to $9.7 million, and adjusted EBITDA, which rose 17% to $15.6 million, demonstrating improved operating leverage and margin realization.
Net sales increased by 14% year-over-year to $157.3 million, with organic growth of 7%.
Adjusted net income grew by 22% to $9.7 million, resulting in adjusted diluted EPS of $0.31.
Adjusted EBITDA increased by 17% to $15.6 million, with the adjusted EBITDA margin rate expanding to 10.0%.
Both Lighting and Display Solutions segments experienced double-digit sales growth, with Lighting up 18% and Display Solutions up 11%.
LSI
LSI
LSI Revenue by Segment
Revenue by Segment
Lighting Segment Revenue
CapyFin.comDisplay Solutions Segment Revenue
CapyFin.com Forward Guidance
LSI Industries anticipates continued sustained, profitable sales growth in fiscal 2026, driven by share gains, price discipline, and cost controls within targeted vertical markets. The company expects to return to positive free cash flow in the fiscal second quarter and remains opportunistic regarding acquisitions of complementary assets.
Positive Outlook
- Expects a return to positive free cash flow during the fiscal second quarter.
- Strategic focus on high-value verticals is expected to drive sustained growth and outperform broader market indices.
- Development activity for proposed programs within the refueling/c-store vertical remains high, indicating strong intermediate-to-longer-term outlook.
- Anticipates year-over-year sales growth in the grocery vertical for fiscal 2026.
- Lower tariff levels and recently implemented cost reduction measures are expected to significantly offset tariff impacts in the Lighting segment.
Challenges Ahead
- Timing of working capital investments impacted free cash generation in the first quarter.
- Fiscal 2026 second quarter grocery project volumes are expected to be below the record-setting prior year due to specific market events.
- The pipeline of new project launch activity in the grocery vertical has increasingly focused on near-term investments, potentially impacting long-term project visibility.
- The company operates in a fluid trade policy environment, which impacts tariff levels, raw material costs, and inventory availability.
- While not explicitly negative, the report highlights the need for diligent margin management to align project price quotations with current cost information.
Revenue & Expenses
Visualization of income flow from segment revenue to net income