LSI Industries (LYTS) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 marked a transformational year with record sales and profitability, driven by strong organic growth and the acquisition of Royston Group, the largest in company history.

• Q4 net sales rose 51% year-over-year to $234.6 million, with organic growth of 8%, and adjusted EBITDA increased 50% to $25.7 million.

• Full-year net sales reached $689.4 million, up 20% year-over-year, with adjusted EPS of $1.25 and adjusted EBITDA of $69.7 million, up 27%.

• The Royston integration is progressing well, with cross-selling and operational synergies expected to drive future growth.

• Significant wins in grocery and refueling/c-store markets include a multi-year, 2,500-site renovation program with a major oil retailer.

Financial highlights

• Q4FY26 net sales were $234.6M, up 51% from Q4FY25; full-year net sales were $689.4M, up from $573.4M.

• Q4 adjusted EBITDA was $25.7M (10.9% margin), and full-year adjusted EBITDA was $69.7M (10.1% margin).

• Q4 adjusted EPS was $0.38; full-year adjusted EPS was $1.25.

• Free cash flow was $9.7M for Q4 and $39M for the year, converting over 50% of adjusted EBITDA.

• Net leverage at Q4FY26 was 2.7x, with a target to reduce below 2.0x in 12–18 months.

Outlook and guidance

• Margin headwinds in Display Solutions due to inherited low-margin Royston backlog are expected to persist through Q2 FY27, with improvement in the back half.

• Maintain 12.5% adjusted EBITDA margin target as part of the Fast Forward strategy.

• Demand in grocery and refueling/c-store verticals expected to remain strong, with new multi-year contracts secured and backlog slightly above prior year.

• Lighting segment Q1 sales expected to be below prior year comp, but gross margin performance to be maintained.

• FY30 financial targets to be introduced in early December 2026.