LSI Industries Inc. (NASDAQ: LYTS) said its shares rose 2.2% in pre-market trading after the lighting and display solutions provider reported fourth-quarter results that exceeded analyst estimates.
The Cincinnati-based company posted adjusted earnings per share of $0.38, topping the consensus forecast of $0.35. Revenue reached $234.6 million, above the $222.78 million estimate. On a year-over-year basis, revenue surged 51% from $155.1 million in the prior-year period, driven by organic growth and the acquisition of Royston Group, completed in March 2026.
Excluding acquisition-related contributions, net sales increased 8% YoY. Adjusted net income totaled $14.4 million, while GAAP net income was $6.9 million, or $0.18 per diluted share, reflecting $3.0 million in acquisition-related expenses. Adjusted EBITDA rose 50% to $25.7 million, with the margin expanding by 90 basis points sequentially to the third quarter.
For the full fiscal year ended June 30, LSI reported record net sales of $689.4 million, up 20% YoY, and adjusted EPS of $1.25 compared with $1.07 in fiscal 2025. Free cash flow for the year totaled $39.0 million, while the company maintained a net debt to trailing twelve-month adjusted EBITDA ratio of 2.7x.
Segment performance showed strength in display solutions, where net sales more than doubled YoY, including 18% organic growth and an adjusted EBITDA margin of 12.4%. Lighting segment sales rose 17% sequentially but declined 3% YoY due to softness in automotive and quick-service restaurant markets.
LSI declared a regular cash dividend of $0.05 per share, payable on September 8, 2026, to shareholders of record as of August 31, 2026. CEO James A. Clark noted that fiscal 2026 marked a transformational year, with record sales, profitability, and the completion of the company's largest acquisition to date.
