LSI Industries (LYTS) Q3 2026 earnings summary

Executive summary

• Net sales reached $150.5 million in Q3, up 14% year-over-year, with 9% growth excluding the Royston acquisition; adjusted EBITDA rose 34% and adjusted EPS increased to $0.28, driven by strong Display Solutions and customer project activity.

• The Royston Group acquisition was completed, contributing to sales, supporting the multi-year value creation plan, and advancing the vertical market strategy, with six days of results included in Q3.

• Strong cash generation, disciplined operational execution, and ample liquidity with $100 million in cash and available credit as of March 31, 2026.

• Declared a quarterly cash dividend of $0.05 per share, payable May 12, 2026.

Financial highlights

• Adjusted EBITDA was $15.0 million (10% of sales), up from $11.3 million (8.5% of sales) in the prior year; margin improved by up to 160 basis points year-over-year.

• Adjusted net income rose 52% year-over-year to $9.6 million, or $0.28 per adjusted diluted share.

• Free cash flow, excluding acquisition-related items, was $11.8 million for the quarter.

• Net debt to trailing twelve-month pro forma adjusted EBITDA was 2.7x at quarter-end.

• Cash and credit facility availability totaled approximately $100 million as of March 31, 2026.

Outlook and guidance

• Q4 consolidated net sales expected to grow low- to mid-single digits year-over-year, with Display Solutions (including Royston) projected for mid- to high-single-digit growth and Lighting segment sales expected to decline mid-single digits.

• Management expects the Royston acquisition to accelerate growth in targeted verticals and expand higher-margin product offerings.

• Focus remains on organic growth, operational excellence, and disciplined capital allocation to drive above-market growth.