LSI Industries Reports Record-Breaking Fiscal Year 2026 Results
The conference call for LSI Industries' fiscal 2026 fourth quarter and full year results took place on August 20, 2026. During the call, Jim Clark, President and Chief Executive Officer of LSI, presented the company's achievements in the recently concluded fiscal year.
LSI delivered a transformational year, marked by record sales and profitability in its core business. The acquisition of the Royston Group, the largest in the company's history, was also completed during this period. Clark expressed his pride in what the team accomplished and acknowledged the work that lies ahead.
According to the results presented, full-year net sales reached a record $689 million, an increase of 20% compared to the previous year. Adjusted earnings per diluted share grew to $1.25, surpassing the $1.04 achieved in fiscal 2025. The company generated almost $70 million of adjusted EBITDA for the year, up 28% from the prior year at a margin rate of 10.1%. Additionally, LSI produced $39 million of free cash flow for the year, representing a conversion of more than 50% of adjusted EBITDA.
In terms of segment results, the lighting segment experienced an increase in fourth-quarter sales by 17% sequentially versus the fiscal third quarter but declined by 3% compared to the same period last year. However, the full-year growth was driven by increased penetration of national accounts and improved demand for outdoor area lighting, resulting in a 7% overall growth.
The company's Velocity family of outdoor area lighting continues to gain traction in the market, with customers responding positively to its performance and specifications. LSI is nearing the completion of its new Velocity floodlight fixture line, with initial sizes set to launch next quarter. The company reported that lighting orders for the fourth quarter were 5% higher than last year, with a book-to-bill ratio above one times.
Within Display Solutions, fourth-quarter sales nearly doubled compared to the prior period, including organic growth of 18%. The segment's adjusted EBITDA margin rate increased to 12.4%, the highest level achieved in nearly three years and an increase of 180 basis points over the previous year's period.
The company experienced broad-based growth across all display solutions segments, with strong organic growth reported in grocery vertical refrigerated and non-refrigerated display case sales (21% year-over-year) and refueling and convenience store verticals (16% versus the prior year quarter). LSI also noted that project activity remains healthy, spanning both new store construction and renovation programs. The company was awarded a multi-year program with a large oil retailer to renovate approximately 2,500 sites during the quarter.
