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1. Company Snapshot

1.a. Company Description

LSI Industries Inc.manufactures and sells non-residential lighting and retail display solutions in the United States, Canada, Mexico, Australia, and Latin America.It operates in two segments, Lighting and Display Solutions.


The Lighting segment manufactures, markets, and sells non-residential outdoor and indoor lighting solutions.It also offers lighting control products, including sensors, photocontrols, dimmers, motion detection, and Bluetooth systems to support lighting fixtures; and designs, engineers, and manufactures electronic circuit boards, assemblies, and sub-assemblies.The Display Solutions segment manufactures, sells, and installs exterior and interior visual image and display elements, including printed and structural graphics, digital signage, menu board systems, display fixtures, refrigerated displays, and custom display elements.


Its products comprise signage and canopy graphics, pump dispenser graphics, building fascia graphics, decals, interior signage and marketing graphics, aisle markers, wall mural graphics, and refrigerated and non-refrigerated merchandising displays.This segment also implements, installs, and provides program management services, such as installation management, site surveys, permitting, and content management; and manages and executes the implementation of large rollout programs.It serves petroleum/convenience, parking lot and garage, quick-service restaurant, retail and grocery store, automotive, warehouse, and sports complex markets.


The company was founded in 1976 and is headquartered in Cincinnati, Ohio.

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1.b. Last Insights on LYTS

LSI Industries Inc.'s recent performance was driven by strong Q4 2025 earnings, announced on August 21, 2025. The company's CEO, James A. Clark, participated in the earnings conference call, discussing recent events and financial results. A notable increase in commercial lighting and display solutions sales likely contributed to the positive momentum. The company's decision to host a conference call to review its financial results and conduct a Q&A session also underscores its transparency and commitment to stakeholders.

1.c. Company Highlights

2. LSI Reports Strong Q1 FY2026 Earnings, Driven by Double-Digit Growth in Display Solutions and Lighting

The company's Q1 FY2026 financial performance was robust, with revenues reaching $157 million, adjusted EBITDA of $15.7 million, and an EBITDA margin rate of 10%. Adjusted earnings per share improved to $0.31, a 19% increase from the prior year quarter. The strong performance was driven by double-digit growth in both Display Solutions and Lighting businesses, with sales increasing 11% and 18%, respectively. As James Galeese noted, "Q1 was a solid start to our fiscal '26 year," highlighting the company's effective management of demand and its focus on project quotation processes.

Publication Date: Nov -26

📋 Highlights
  • Strong Q1 Financial Performance:: Sales reached $157M, adjusted EBITDA $15.7M (10% margin), and adjusted EPS rose 19% to $0.31.
  • Lighting Segment Growth:: Sales grew 18% YoY, driven by volume (not pricing) and large account conversions, with 170 bps gross margin improvement.
  • Display Solutions Momentum:: Sales increased 11%, fueled by grocery recovery (seasonally impacted Q2) and refueling/convenience store demand.
  • Integration Success:: EMI and Canada’s Best Store Fixtures outperformed expectations, with plans to align sales/manufacturing operations fully.
  • Capacity for Expansion:: 20% unused capacity in lighting projects and confident outlook for continued volume-driven growth in fiscal 2026.

Segment Performance

The Lighting segment's 18% sales growth was driven by the company's vertical market approach and the features and functions of its purpose-built products. The Display Solutions segment's 11% sales growth was led by the continued recovery in the grocery vertical and sustained program site release activity in refueling C-store. The company's ability to manage demand and execute on its project quotation process was a key factor in its success.

Valuation Metrics

With the company's P/E Ratio at 22.17 and EV/EBITDA at 11.83, the market appears to be pricing in moderate growth expectations. Analysts estimate next year's revenue growth at 7.3%, which is relatively in line with the company's historical performance. The company's ROIC of 18.58% and ROE of 10.96% indicate a strong ability to generate returns on invested capital and equity. The Net Debt / EBITDA ratio of 0.94 suggests a manageable debt burden.

Outlook and Growth Prospects

The company's guidance and comments on the earnings call suggest a positive outlook for FY2026, driven by the continued growth in its Display Solutions and Lighting businesses. The company's focus on vertical market-based strategy and its ability to drive higher value for customers and shareholders are expected to contribute to its future success. With a strong start to the year, LSI is well-positioned to achieve its growth objectives.

3. NewsRoom

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LSI Industries Inc. (NASDAQ:LYTS) Given Average Recommendation of “Moderate Buy” by Brokerages

Nov -27

Source: defenseworld.net

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Campbell & CO Investment Adviser LLC Makes New Investment in LSI Industries Inc. $LYTS

Nov -18

Source: defenseworld.net

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LSI Industries Inc. (LYTS) Q1 2026 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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LSI (LYTS) Beats Q1 Earnings and Revenue Estimates

Nov -06

Source: zacks.com

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LSI Industries: Turning The Lights On

Sep -04

Source: seekingalpha.com

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LSI Industries Inc. (LYTS) Q4 2025 Earnings Call Transcript

Aug -21

Source: seekingalpha.com

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LSI Industries Announces Fiscal 2025 Fourth Quarter and Full-Year Results Conference Call Date

Jul -31

Source: businesswire.com

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LSI Industries Renews Partnership as Official Lighting Sponsor of USA Pickleball

May -06

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Lighting

Expected Growth: 6%

LSI Industries Inc.'s lighting segment growth is driven by increasing adoption of energy-efficient LED lighting, rising demand from e-commerce and retail customers, and growing need for smart lighting solutions in industrial and commercial spaces. Additionally, the company's strategic acquisitions and investments in technology have enhanced its product offerings and expanded its customer base, contributing to the 6% growth rate.

Display Solutions

Expected Growth: 6%

LSI Industries Inc.'s Display Solutions segment growth is driven by increasing demand for energy-efficient lighting and graphics, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovative product offerings, such as LED lighting and digital signage, is contributing to its growth.

7. Detailed Products

Lighting Products

LSI Industries Inc. offers a wide range of lighting products, including LED lighting, high-bay lighting, and outdoor lighting solutions for various industries such as commercial, industrial, and retail.

Graphics and Display Solutions

LSI Industries Inc. provides graphics and display solutions, including signage, digital signage, and display fixtures for retail, petroleum, and convenience store markets.

Digital Signage Solutions

LSI Industries Inc. offers digital signage solutions, including digital displays, media players, and content management software for various industries such as retail, hospitality, and healthcare.

Image Processing Solutions

LSI Industries Inc. provides image processing solutions, including image processing software and hardware for various industries such as retail, healthcare, and government.

Smart City and IoT Solutions

LSI Industries Inc. offers smart city and IoT solutions, including smart lighting, smart traffic management, and smart energy management solutions for municipalities and cities.

8. LSI Industries Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for LSI Industries Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for LSI Industries Inc. is high due to the concentration of customers in the industry and their ability to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for LSI Industries Inc. is low due to the availability of multiple suppliers in the market and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for LSI Industries Inc. is medium due to the moderate barriers to entry in the industry and the availability of resources.

Intensity Of Rivalry

The intensity of rivalry for LSI Industries Inc. is high due to the high level of competition in the industry and the need to differentiate products and services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.54%
Debt Cost 8.04%
Equity Weight 83.46%
Equity Cost 8.04%
WACC 8.04%
Leverage 19.82%

11. Quality Control: LSI Industries Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
LSI Industries

A-Score: 5.7/10

Value: 3.9

Growth: 6.3

Quality: 6.0

Yield: 3.0

Momentum: 9.5

Volatility: 5.7

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Bel Fuse

A-Score: 4.8/10

Value: 4.6

Growth: 7.1

Quality: 6.2

Yield: 0.0

Momentum: 7.0

Volatility: 3.7

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CTS

A-Score: 4.4/10

Value: 4.7

Growth: 5.8

Quality: 7.0

Yield: 0.0

Momentum: 2.0

Volatility: 7.0

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Daktronics

A-Score: 4.2/10

Value: 3.7

Growth: 4.0

Quality: 5.8

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

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Vishay Precision Group

A-Score: 4.0/10

Value: 4.5

Growth: 2.9

Quality: 4.6

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

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SigmaTron International

A-Score: 3.2/10

Value: 9.3

Growth: 2.2

Quality: 2.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.79$

Current Price

18.8$

Potential

-0.00%

Expected Cash-Flows