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Dec 31, 2025
LSI Q2 2026 Earnings Report
LSI reported solid Q2 results with strong free cash flow, stable revenue, and improved margins despite challenging comps from the prior year.
Key Takeaways
LSI Industries delivered steady Q2 FY2026 performance with flat revenue of $147M, higher net income, and strong free cash flow of $23.3M. Segment-wise, Lighting grew while Display Solutions declined. Adjusted EBITDA margin held firm at 9.1%.
Revenue remained flat at $147.0 million despite a challenging prior-year comparison.
Net income increased to $6.3 million, with adjusted net income at $8.4 million.
Lighting segment sales rose 15% YoY, while Display Solutions fell 10%.
Free cash flow was strong at $23.3 million, reducing leverage to 0.4x.
Revenue by Segment
Forward Guidance
LSI anticipates continued growth in Lighting and a rebound in Display Solutions, supported by strong backlog and customer activity across key verticals.
Positive Outlook
- Lighting segment orders up 10% YoY with book-to-bill ratio > 1.0x
- Display Solutions orders rose 8% YoY, supporting Q3 backlog
- Grocery orders saw double-digit growth YoY
- Strong balance sheet supports strategic investments
- Continued emphasis on project pricing and productivity driving margins
Challenges Ahead
- Display Solutions sales declined 10% YoY in Q2
- Organic sales down 5% excluding acquisition
- Grocery vertical only now returning to seasonal demand levels
- Softness in Mexico only recently recovering
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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