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LSI Q3 2025 Earnings Report
LSI Industries reported solid fiscal third quarter results, with significant year-over-year sales growth driven by organic growth in Display Solutions and contributions from recent acquisitions.
Key Takeaways
LSI Industries reported strong fiscal third quarter results with net sales increasing by 22% year-over-year to $132.5 million. The growth was primarily driven by organic expansion in Display Solutions and the inclusion of sales from the EMI and Canada's Best acquisitions. Despite fluctuating demand and scheduling changes impacting margins in the short term, the company maintained a strong balance sheet and generated positive free cash flow.
Net sales increased by 22% year-over-year to $132.5 million.
Diluted EPS was $0.13, with Adjusted Diluted EPS at $0.20.
Free cash flow generated was $4.7 million.
The company completed the acquisition of Canada's Best Holdings for $24 million all-cash purchase price.
LSI
LSI
LSI Revenue by Segment
Revenue by Segment
Lighting Segment Revenue
CapyFin.comDisplay Solutions Revenue
CapyFin.com Forward Guidance
LSI Industries plans to continue its growth strategy by focusing on organic and inorganic expansion, leveraging its integrated portfolio of products and solutions, and maintaining a strong balance sheet to pursue capital allocation priorities.
Positive Outlook
- Continued focus on organic and inorganic growth strategies.
- Strong balance sheet providing flexibility for capital allocation.
- Integrated portfolio of products and solutions to generate growth opportunities.
- Agility and proven capabilities to manage large custom project business environment.
- Improving fulfillment plans and schedules in the fiscal fourth quarter.
Challenges Ahead
- Calendar year first quarter is typically choppy due to customer budget finalization.
- Transitory impact to margins in the quarter due to rapid increase in demand and customer scheduling changes.
- Potential impact of additional tariffs on pricing and sourcing decisions.
- Project shipment activity in the Lighting segment was lower year-over-year.
- Quote to order conversion cycles may remain choppy for any one month or quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income