LSI Industries (LYTS) Investor presentation summary

Business profile and strategy

• Vertically integrated lighting, display and branding solutions span design, manufacturing, installation and service; customer programs commonly cover hundreds to thousands of sites over multi-year periods.

• FY26 revenue mix: Display Solutions 61%, Lighting 39%; 95% of revenue was U.S. and 5% international.

• Core markets include refueling and convenience stores, grocery, QSR, auto and parking, commercial and industrial, and other retail; replacement, refresh and new-construction cycles support demand.

• FY20–FY25 sales CAGR was 13.4%, compared with 7.8% for U.S. non-residential construction; average adjusted operating free cash flow conversion was ~60%.

Fiscal 2026 performance

• Q4 FY26 net sales were $234.6M, up 51% YoY, including 8% organic growth; adjusted EBITDA rose 50% YoY to $25.7M, with a 10.9% margin.

• FY26 net sales were $689.4M, up 20% YoY; adjusted EBITDA was $69.7M, up from $55.1M, with a 10.1% margin versus 9.6%.

• Display Solutions Q4 sales were $164.2M, up 100% reported and 18% organically; adjusted EBITDA was $20.8M, with a 12.6% margin.

• Lighting Q4 sales declined 3% YoY to $70.5M, while FY26 sales rose 7% to $266.2M; FY growth reflected national-account penetration and stronger outdoor-area lighting demand.

• Both segments had book-to-bill above 1.0x at June 30, 2026; Display Solutions cited sustained grocery and refueling demand, while Lighting noted project-timing softness in Q4.

Royston acquisition and growth opportunities

• Acquired Royston on March 24, 2026, for $325M: $320M cash and $5M in shares; funded through debt and a public stock offering, and expected to be immediately accretive to margin rate and EPS before synergies.

• Royston generated TTM September 2025 revenue of $271.9M and adjusted EBITDA of $38.0M; combined pro forma revenue was $864.4M and adjusted EBITDA $95.3M.

• The deal expands grocery, refueling and convenience offerings with cabinetry, fixtures, refrigeration, signage and services; five Royston U.S. facilities add manufacturing capacity.

• Cross-selling, manufacturing optimization, procurement leverage and lower duplicate SG&A are identified as multi-year synergy opportunities; 90% of Royston customers bought only one or two solutions.