LSI INDUSTRIES REPORTS FISCAL 2027 FIRST QUARTER RESULTS
LSI INDUSTRIES INC (LYTS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 LSI INDUSTRIES REPORTS FISCAL 2027 FIRST QUARTER RESULTS AND DECLARES QUARTERLY CASH DIVIDEND CINCINNATI, Nov. 5, 2026 – LSI Industries Inc. (Nasdaq: LYTS, “LSI” or the “Company”) a leading U.S. based manufacturer of commercial lighting and display solutions, today r
How this was made
The 30-second read
Why it matters
The earnings beat and dividend launch provide fresh catalysts for short‑term price movement.
Market read
First‑report earnings release with strong growth metrics, likely to move LYTS today.
What to watch
Higher interest rates and construction softness may pressure future demand.
LSI Industries reports fiscal 2027 first-quarter net sales of $225.9 million, up 44% year over year, with adjusted EBITDA up 41% to $22.2 million.
Reported sales and adjusted EBITDA grew strongly with Royston contributions, but organic net sales declined 2%, GAAP net income declined 2%, Lighting sales declined 6%, and adjusted EBITDA margin declined to 9.8% from 10.0%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $225.9M | – | 44% |
| Total organic net salesnon-GAAP | $153.4M | – | -2% |
| Cost of products soldGAAP | $173.6M | – | – |
| Gross profitGAAP | $52.23M | – | – |
| Selling and administrative costsGAAP | $38.07M | – | – |
| Operating income as reportedGAAP | $14.16M | – | 29% |
| Operating income as adjustednon-GAAP | $19.41M | – | 38% |
| Other expenseGAAP | $115K | – | – |
| Interest expense, netGAAP | $3.86M | – | – |
| Income before taxesGAAP | $10.19M | – | – |
| Income taxGAAP | $3.06M | – | – |
| Net income as reportedGAAP | $7.13M | – | -2% |
| Net income as adjustednon-GAAP | $11.60M | – | 19% |
| Basic earnings per shareGAAP | $0.19 | – | – |
| Diluted earnings per share as reportedGAAP | $0.19 | – | -18% |
| Diluted earnings per share as adjustednon-GAAP | $0.31 | – | - |
| Weighted average common shares outstanding, basicGAAP | 37.19M | – | – |
| Weighted average common shares outstanding, dilutedGAAP | 37.89M | – | – |
| EBITDAnon-GAAP | $20.70M | – | 46% |
| Adjusted EBITDAnon-GAAP | $22.17M | – | 41% |
| Adjusted EBITDA as a percentage of salesnon-GAAP | 9.8% | – | – |
| Cash flow from operationsGAAP | $15.23M | – | N/M |
| Capital expendituresother | −$1.44M | – | – |
| Free cash flownon-GAAP | $13.79M | – | N/M |
| Net debtnon-GAAP | $227.4M | – | – |
| Net debt to adjusted EBITDA rationon-GAAP | 2.6 | – | – |
| Adjusted EBITDA, trailing twelve monthsnon-GAAP | $87.64M | – | – |
| CashGAAP | $12.8M | – | – |
| Total debtGAAP | $240.2M | – | – |
| Long-term debtGAAP | $230.2M | – | – |
| Current assetsGAAP | $288.3M | – | – |
| Current liabilitiesGAAP | $144.3M | – | – |
| Working capitalGAAP | $144M | – | – |
| Shareholders' equityGAAP | $368M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Lighting SegmentSoft demand across broader commercial and industrial markets. Growth in refueling, sports, and banking applications was offset by declines in parking, small retail, warehouse, and automotive applications. | $64.82M | – | -6% |
| Display Solutions SegmentRoyston contributed $72,412 (in thousands); comparable Display Solutions sales increased 1%, with elevated demand and project activity in refueling/c-store and grocery partly offset by soft QSR demand. | $161.0M | – | 83% |
| Comparable Display Solutions SalesRefueling/c-store and grocery vertical markets experienced elevated demand and project activity, while demand from QSR customers remained soft. | $88.62M | – | 1% |
| RoystonOn a standalone basis, sales increased 8% and adjusted EBITDA margin expanded 100 basis points sequentially from fiscal fourth quarter 2026. | $72.41M | – | n/m |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- The Board declared a regular quarterly cash dividend of $0.05 per share, payable November 24, 2026, to shareholders of record as of the close of business on November 16, 2026.
- The indicated annual cash dividend rate is $0.20 per share.
What drove it
- Royston acquisition contributions drove reported net-sales growth, while total organic net sales declined 2%.
- Display Solutions order rates increased 4% compared to the prior year; Refueling/C-store and Grocery orders increased 5% and 12%, respectively.
- Lighting orders increased 1% compared to the prior-year period; the segment book-to-bill ratio was 1.0.
- Proforma backlog increased 4% year over year, led by order activity in refueling/c-store and grocery.
- Lighting segment gross margin improved despite lower sales volumes, reflecting focused price actions in response to cost inflation.
- LSI expects the consolidation of Collingwood, Ontario manufacturing operations into an existing Toronto-area facility to generate annual cost savings of over $1.0 million.
Concerns
- Organic net sales declined 2% compared with the prior-year period.
- GAAP net income declined 2% to $7,127 (in thousands), and diluted earnings per share declined 18% to $0.19.
- Lighting segment net sales declined 6% amid soft demand across broader commercial and industrial markets.
- Adjusted EBITDA as a percentage of sales was 9.8%, compared with 10.0% in the prior-year period.
- QSR customer demand remained soft, and customers faced challenges meeting project renovation schedules ahead of the seasonal holiday slowdown.
- Cost inflation and elevated interest rates remain potential headwinds for non-residential construction activity.
What to watch
- Execution of cross-selling opportunities across combined LSI-Royston customers in refueling/c-store, grocery, and QSR markets.
- The 2,500 refueling/c-store site refresh, which is expected to steadily ramp throughout fiscal 2027 and into fiscal 2028.
- A 3,000-store QSR interior renovation program scheduled to begin late in the third quarter of fiscal 2027 and expected to continue over three years.
- The fiscal second- and third-quarter transfer from the Collingwood facility and the expected annual cost savings of over $1.0 million.
- The level of delayed site releases and changes to product delivery and installation requirements during the seasonal slowdown.
Balance sheet and cash flow
- Free cash flow was $13,787 (in thousands), compared with $(291) (in thousands) in the prior-year period.
- Cash flow from operations was $15,231 (in thousands), compared with $676 (in thousands) in the prior-year period.
- Capital expenditures were $(1,444) (in thousands), compared with $(967) (in thousands) in the prior-year period.
- Cash and availability on the credit facility totaled $122.6 million at the end of the first quarter.
- Total debt was $240,195 (in thousands), compared with $255,931 (in thousands) at June 30, 2026.
- Net debt was $227,390 (in thousands), compared with $241,682 (in thousands) at June 30, 2026.
- The net debt to adjusted EBITDA ratio was 2.6 at September 30, 2026, compared with 2.7 at June 30, 2026.
- The current ratio was 2.0 to 1.
Analysis
LSI reported fiscal 2027 first-quarter net sales of $225,855 (in thousands), up 44% from $157,249 (in thousands). The reported increase included $72,412 (in thousands) of Royston sales. Total organic net sales were $153,443 (in thousands), down 2% from $157,249 (in thousands), reflecting demand softness in the North American non-residential lighting market.
Display Solutions was the principal source of reported growth. Segment sales were $161,032 (in thousands), up 83%, while comparable Display Solutions sales increased 1%. Management cited elevated refueling/c-store and grocery demand and project activity, while QSR demand remained soft. Display Solutions order rates increased 4%, with Refueling/C-store orders up 5% and Grocery orders up 12%; proforma backlog increased 4% year over year.
Lighting segment sales declined 6% to $64,823 (in thousands). Management attributed the decline to soft commercial and industrial demand, with growth in refueling, sports, and banking applications offset by declines in parking, small retail, warehouse, and automotive applications. Lighting orders increased 1%, project quote activity was stable both sequentially and year over year, and the book-to-bill ratio was 1.0. The company said Lighting gross margin improved despite lower volumes because of price actions responding to cost inflation.
GAAP operating income increased 29% to $14,161 (in thousands), but GAAP net income declined 2% to $7,127 (in thousands) and diluted EPS declined 18% to $0.19. Adjusted operating income increased 38% to $19,406 (in thousands), adjusted net income increased 19% to $11,602 (in thousands), and adjusted diluted EPS was unchanged at $0.31. Adjusted EBITDA increased 41% to $22,167 (in thousands), while adjusted EBITDA as a percentage of sales was 9.8%, versus 10.0% in the prior-year period.
Cash generation and debt reduction were notable in the quarter. Cash flow from operations was $15,231 (in thousands), free cash flow was $13,787 (in thousands), and net debt was $227,390 (in thousands), versus $241,682 (in thousands) at June 30, 2026. The net debt to adjusted EBITDA ratio was 2.6, compared with 2.7 at June 30, 2026. LSI declared a $0.05 per share quarterly cash dividend. The release contained no formal financial guidance.
Management, verbatim
During the first quarter, we continued to advance the integration of Royston as we build a leading, retail branding solutions platform of scale across North America.
James A. Clark, President and CEO of LSI
Display Solutions segment order rates in the fiscal first quarter increased 4% compared to the prior year.
James A. Clark, President and CEO of LSI
Our team executed well in the fiscal first quarter, delivering another quarter of profitable growth, strong free cash flow conversion, and debt reduction.
James A. Clark, President and CEO of LSI
Not in the filing
stated, not guessed- Formal forward financial guidance
- Prior outlook for comparison
- Total GAAP gross margin
- Total GAAP gross-margin prior-year comparison
- GAAP operating margin
- GAAP effective tax rate
- Share repurchases
- Segment operating income or segment profitability
- Prior-quarter total revenue comparison
- Prior-quarter GAAP operating income, net income, and earnings per share comparisons
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
LSI Industries is a Nasdaq‑listed manufacturer of commercial lighting and display solutions.
Ticker impact
LSI Industries reported FY2027 Q1 results with 44% sales growth and a $0.05 dividend.
likely upward pressure as investors price in higher earnings and dividend.
Revenue beat and dividend announcement are fresh, material facts that can move the stock today.
Market effects
Positive for commercial lighting and display sector, may lift peers.
U.S. lighting and retail solutions market sees a boost.
Limited to niche industrial segment, minor global effect.
Counterpoint
Growth partly driven by recent acquisition; organic sales still flat, could temper upside.
Key entities
- ExecutiveJames A. Clark
President and CEO of LSI Industries, quoted on results.
