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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. AlphAI read Lsi Industries's fiscal 2027 first quarter filing as mixed. 2 quarters are on record below.

fiscal 2027 first quarter

Filed Nov 5, 2026
AlphAI · Earnings readLYTS · fiscal 2027 first quarter · ended September 30, 2026

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.

→Mixed quarter

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%.

Revenue
$226M
44% y/y
Lighting Segment
$64.8M
-6% y/y
EPS · non-GAAP
$0.31
- y/y

Key metrics

shortened, hover for the filing’s print
MetricValueq/qy/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, basicGAAP37.19M––
Weighted average common shares outstanding, dilutedGAAP37.89M––
EBITDAnon-GAAP$20.70M–46%
Adjusted EBITDAnon-GAAP$22.17M–41%
Adjusted EBITDA as a percentage of salesnon-GAAP9.8%––
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-GAAP2.6––
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

SegmentRevenueq/qy/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.

Read our full coverage of this filing →

Fiscal 2026 fourth quarter and full year

Filed Aug 20, 2026
AlphAI · Earnings readLYTS · Fiscal 2026 fourth quarter and full year · ended June 30, 2026

LSI Industries reports fiscal 2026 fourth-quarter net sales growth of 51% to $234.6 million, supported by 8% organic growth and the first full-quarter contribution from Royston.

✓Solid quarter

Fourth-quarter revenue, organic growth, adjusted earnings, adjusted EBITDA, and free cash flow increased, while GAAP net income and diluted EPS declined amid acquisition-related expenses. Display Solutions delivered substantial growth and margin improvement, whereas Lighting sales declined year over year and leverage increased following the Royston acquisition.

Revenue
$235M
+51% y/y
Lighting Segment, fourth quarter
$70.5M
-3% y/y · +17% versus the fiscal third quarter q/q
EPS · non-GAAP
$0.38
+13% y/y

Key metrics

shortened, hover for the filing’s print
MetricValueq/qy/y
Net sales, fourth quarterGAAP$234.6M–+51%
Organic net sales growth, fourth quarternon-GAAP8%–+8%
Net sales, fiscal yearGAAP$689.4M–+20%
Cost of products sold, fourth quarterGAAP$177.2M––
Cost of products sold, fiscal yearGAAP$516.0M––
Gross profit, fourth quarterGAAP$57.41M––
Gross profit, fiscal yearGAAP$173.4M––
Selling and administrative costs, fourth quarterGAAP$42.92M––
Selling and administrative costs, fiscal yearGAAP$135.0M––
Operating income, fourth quarterGAAP$14.5M–+21%
Operating income, fiscal yearGAAP$38.4M–+7%
Adjusted operating income, fourth quarternon-GAAP$22.7M–+50%
Adjusted operating income, fiscal yearnon-GAAP$61.8M–+28%
Net income, fourth quarterGAAP$6.9M–-16%
Net income, fiscal yearGAAP$22.6M–-7%
Adjusted net income, fourth quarternon-GAAP$14.4M–+37%
Adjusted net income, fiscal yearnon-GAAP$42.2M–+28%
Diluted EPS, fourth quarterGAAP$0.18 per diluted share–-31%
Adjusted diluted EPS, fourth quarternon-GAAP$0.38 per diluted share–+13%
Diluted EPS, fiscal yearGAAP$0.67 per diluted share–-15%
Adjusted diluted EPS, fiscal yearnon-GAAP$1.25 per diluted share–+17%
EBITDA, fourth quarternon-GAAP$21.2M–+37%
Adjusted EBITDA, fourth quarternon-GAAP$25.7M–+50%
Adjusted EBITDA as a percentage of sales, fourth quarternon-GAAP10.9%+90 basis points–
EBITDA, fiscal yearnon-GAAP$55M–+14%
Adjusted EBITDA, fiscal yearnon-GAAP$69.7M–+27%
Adjusted EBITDA as a percentage of sales, fiscal yearnon-GAAP10.1%–+50 basis points
Cash flow from operations, fourth quarterGAAP$11.6M–+22%
Cash flow from operations, fiscal yearGAAP$44.1M–+16%
Capital expenditures, fourth quarterother−$1.9M––
Capital expenditures, fiscal yearother−$5.1M––
Free cash flow, fourth quarternon-GAAP$9.7M–+13%
Free cash flow, fiscal yearnon-GAAP$39M–+13%
Net debt to adjusted EBITDA rationon-GAAP2.71––

Segments

SegmentRevenueq/qy/y
Lighting Segment, fourth quarterA soft quarter in automotive and quick-service restaurant verticals, where project activity can be uneven throughout the fiscal year.$70.5M+17% versus the fiscal third quarter-3%
Display Solutions Segment, fourth quarterComparable Display Solutions sales increased 18%, Royston contributed $66.9 million, and grocery and refueling/c-store demand strengthened.$164.2M–doubled from last year's fourth quarter net sales
Lighting Segment, fiscal yearGrowth was driven by increased penetration of national accounts and improved demand for outdoor area lighting.$266.2M–+7%
Display Solutions Segment, fiscal yearFiscal 2026 sales included the partial-year impact from the Royston acquisition.$423.2M–+30%

Capital returns

  • The Board declared a regular cash dividend of $0.05 per share for the fourth quarter of fiscal 2026.
  • The dividend is 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.

What drove it

  • Fourth-quarter sales growth reflected sustained growth in key vertical markets and the first full-quarter contribution from Royston, acquired on March 24, 2026.
  • Excluding acquisition-related contributions, fourth-quarter net sales increased 8% year over year.
  • Adjusted EBITDA margin improved 90 basis points sequentially, driven by operational discipline and favorable margin contribution from Royston.
  • Display Solutions comparable sales grew 18%, supported by strengthening grocery and refueling/c-store demand.
  • Refrigerated and non-refrigerated display cases sales increased 21% year over year in grocery.
  • Refueling/c-store fourth-quarter sales increased 16% year over year, with double-digit growth in outdoor print graphics and EMI store interior products.
  • The Company received a multi-year award from a large oil company to renovate approximately 2,500 sites, representing a new customer win.
  • Lighting fourth-quarter orders were 5% above last year and book-to-bill was above 1.0.

Concerns

  • Fourth-quarter GAAP net income declined to $6.9 million from $8.2 million and GAAP diluted EPS declined to $0.18 from $0.26.
  • The fourth quarter included $3.0 million of acquisition-related expenses.
  • Royston fourth-quarter sales declined modestly year over year as LSI narrows its focus toward a higher-value product and project mix.
  • Lighting segment sales declined 3% year over year due to softness in automotive and quick-service restaurant verticals.
  • Net debt to adjusted EBITDA increased to 2.71 from 0.82 as of June 30, 2026.
  • Management expects project timing to remain non-linear as customers navigate site scheduling, permitting, and procurement requirements.

What to watch

  • The ramp of several of Royston's largest c-store customers' multi-year renovation and new-construction cycles beginning in fiscal 2027.
  • Conversion and timing of the approximately $30 million refueling/c-store program award, which is excluded from reported fourth-quarter order rates.
  • Display Solutions order rates and book-to-bill of approximately 1.0x on strong sales.
  • The planned calendar-year fourth-quarter launch of initial sizes of the Velocity Flood light fixture line.
  • Progress integrating Royston through a unified customer-facing value proposition and go-to-market model.
  • Lighting demand in automotive and quick-service restaurant verticals.

Balance sheet and cash flow

  • Cash was $14.3 million as of June 30, 2026.
  • Current assets were $295.9 million, current liabilities were $149.9 million, and working capital was $146.0 million as of June 30, 2026.
  • The current ratio was 2.0 to 1 as of June 30, 2026.
  • Shareholders' equity was $360.7 million and long-term debt was $245.9 million as of June 30, 2026.
  • Total debt was $255.9 million, net debt was $241.7 million, and adjusted EBITDA trailing twelve months was $89.0 million as of June 30, 2026.
  • The Company had approximately $95 million of availability under its $350 million senior secured credit facility as of June 30, 2026.

Analysis

LSI ended fiscal 2026 with fourth-quarter net sales of $234.6 million, up 51% year over year, including 8% organic growth. The first full-quarter contribution from Royston was central to reported growth, contributing $66.9 million of fourth-quarter sales. Fiscal-year net sales increased 20% to a record $689.4 million, with the Company citing volume growth, strategic price actions, productivity initiatives, and the partial-year impact of Royston.

Display Solutions was the principal growth engine. Fourth-quarter segment sales doubled to $164.2 million, with comparable Display Solutions sales up 18%. Grocery refrigerated and non-refrigerated display cases sales rose 21%, while refueling/c-store sales rose 16%; outdoor print graphics and EMI store interior products both produced double-digit growth. The segment's adjusted EBITDA margin reached 12.4%, its highest level in nearly three years and 180 basis points above the year-ago period. A multi-year award to renovate approximately 2,500 sites and a separate approximately $30 million refueling/c-store program award add to the disclosed project pipeline, although the latter is not included in fourth-quarter order rates.

Profitability showed a clear difference between GAAP and adjusted results. Fourth-quarter GAAP net income fell to $6.9 million and diluted EPS fell to $0.18, while adjusted net income rose 37% to $14.4 million and adjusted diluted EPS rose 13% to $0.38. Acquisition costs were $3.0 million in the quarter. Adjusted EBITDA increased 50% to $25.7 million, and its margin was 10.9%, with management attributing the 90-basis-point sequential margin improvement to operational discipline and Royston's favorable margin contribution. For the full year, adjusted EBITDA rose 27% to $69.7 million and adjusted EBITDA margin increased to 10.1% from 9.6%.

Lighting produced mixed signals. Fourth-quarter sales of $70.5 million were up 17% sequentially but down 3% year over year amid softness in automotive and quick-service restaurant project activity. For the full year, Lighting sales increased 7% to $266.2 million, aided by national-account penetration and outdoor area-lighting demand. Fourth-quarter orders were 5% above the prior year and book-to-bill was above 1.0, while management also cited market acceptance for V-LOCITY outdoor area lighting and plans to launch initial Velocity Flood fixture sizes in the calendar-year fourth quarter.

Cash generation remained positive, with fourth-quarter free cash flow of $9.7 million and fiscal-year free cash flow of $39.0 million. The Company declared a $0.05-per-share quarterly cash dividend. The Royston transaction materially changed the balance-sheet profile: net debt was $241.7 million and net debt to adjusted EBITDA was 2.71 as of June 30, 2026, compared with 0.82 a year earlier. LSI reported approximately $95 million of availability under its $350 million senior secured credit facility. No quantitative fiscal 2027 financial guidance was provided; management instead described elevated Display Solutions activity and strong order rates, while noting that project timing will not be linear.

Management, verbatim

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.

James A. Clark, President and CEO of LSI

Within Display Solutions, project activity remains elevated and order rates remain strong, with a book-to-bill of approximately 1.0x on strong sales.

James A. Clark, President and CEO of LSI

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.

James A. Clark, President and CEO of LSI

Not in the filing

stated, not guessed
  • Quantitative forward revenue guidance
  • Quantitative forward gross-margin guidance
  • Quantitative forward operating-expense guidance
  • Quantitative forward tax-rate guidance
  • Prior-quarter revenue, income, EPS, cash flow, and balance-sheet figures other than the stated sequential changes
  • GAAP gross margin
  • Segment operating income or segment adjusted EBITDA amounts for Lighting and Display Solutions
  • Share repurchases or repurchase authorization
  • Management's quantitative outlook for fiscal 2027

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.

Read our full coverage of this filing →

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