LSI Industries Inc. (NASDAQ:LYTS) shares advanced 2.20% in premarket trading on Thursday after the company delivered fourth-quarter earnings and revenue above analyst expectations, supported by organic growth and its acquisition of Royston Group.
Adjusted earnings per share reached $0.38, exceeding the consensus estimate of $0.35, while quarterly revenue of $234.6 million came in ahead of the $222.78 million forecast.
Revenue jumped 51% from $155.1 million in the same period a year earlier, benefiting from continued expansion across key vertical markets and the first full-quarter contribution from Royston Group, which LSI acquired on March 24, 2026. Excluding acquisition-related sales, revenue still increased 8% year on year.
Profitability improves as Royston contributes
LSI reported GAAP net income of $6.9 million, equivalent to $0.18 per diluted share, after absorbing $3.0 million of expenses associated with acquisitions.
On an adjusted basis, net income reached $14.4 million, while adjusted EBITDA climbed 50% to $25.7 million from $17.1 million in the prior-year quarter.
The adjusted EBITDA margin also improved by 90 basis points sequentially from the fiscal third quarter, indicating stronger profitability alongside the substantial increase in sales.
LSI delivers record fiscal 2026 sales
For the full fiscal year ended June 30, 2026, LSI generated record net sales of $689.4 million, representing growth of 20% from the previous year.
Adjusted earnings per share increased to $1.25 from $1.07 in fiscal 2025, while the company generated $39.0 million of free cash flow during the year.
Net debt stood at 2.7 times pro forma trailing 12-month adjusted EBITDA, reflecting the impact of the company’s recent acquisition activity.
“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,” stated James A. Clark, President and CEO of LSI.
Display Solutions posts strong organic growth
Performance was particularly strong within LSI’s Display Solutions segment, where fourth-quarter net sales doubled from the corresponding period last year.
Organic growth within the division reached 18%, while its adjusted EBITDA margin increased to 12.4%.
The Lighting segment produced a more mixed performance. Sales increased 17% sequentially from the third quarter but declined 3% year on year, reflecting softer activity in the automotive and quick-service restaurant markets.
LSI maintains quarterly dividend
Alongside its results, LSI declared a regular quarterly cash dividend of $0.05 per share.
The dividend will be paid on September 8, 2026, to shareholders of record as of August 31.
The combination of better-than-expected quarterly results, record annual sales, improving profitability and continued organic growth helped support the positive premarket reaction, while the Royston acquisition has significantly expanded the scale of LSI’s operations.
LSI Industries stock price
