LSI Industries Inc. (NASDAQ: LYTS) has reported its financial results for the fiscal 2025 second quarter ended December 31, 2024. The company's net sales for this quarter were $147.7 million, representing a significant increase of 36% year-over-year (Y/Y). Organic net sales also saw a healthy growth of 14% Y/Y.
The net income for the second quarter was reported at $5.6 million, or $0.18 per diluted share. Adjusted net income stood at $8.0 million, or $0.26 per diluted share. The company's EBITDA was $11.5 million, with adjusted EBITDA reaching $13.3 million, reflecting an increase of more than 20% versus the year-ago period.
LSI Industries also achieved a free cash flow of $8.8 million in the second quarter, translating to nearly $41.4 million on a trailing twelve-month basis. Notably, the ratio of net debt to trailing twelve-month adjusted EBITDA was reduced to 0.6x, down from 1.3x at the time of the EMI acquisition in April 2024.
The company declared a regular cash dividend of $0.05 per share, payable on February 11, 2025, to shareholders of record on February 3, 2025.
James A. Clark, President and CEO of LSI, noted that the company delivered 14% organic sales growth in the fiscal second quarter, supported by strong demand across core verticals. He highlighted that the integrated, solutions-based model is gaining significant traction in the marketplace, positioning LSI for a solid start to the fiscal third quarter.
The Display Solutions segment saw a significant organic sales growth of 50% in the second quarter, driven by increased sales across product categories and vertical markets. Additionally, sales to refueling/c-store customers increased by more than 60% compared to the year-ago period.
On the lighting segment, although overall sales were lower year-over-year, the segment's project quote activity remains above prior-year levels, contributing to a segment book-to-bill of 1.1 exiting the second quarter.
LSI Industries remains well-positioned to drive continued, profitable growth entering the second half of fiscal year 2025, with strong order rates and backlog and robust demand conditions across most end-markets.
The company's fiscal 2025 second quarter conference call will be held to review the financial results and conduct a question-and-answer session. A webcast of the conference call and accompanying presentation materials will be available in the investor relations section of LSI Industries’ website.
LSI Industries specializes in the creation of advanced lighting, graphics, and display solutions, with American-made products engineered to elevate brands in competitive markets. The company has a workforce of approximately 1,900 employees and 16 facilities throughout North America. As a result of these announcements, the company's shares have moved 24.3% on the market, and are now trading at a price of $24.58. For more information, read the company's full 8-K submission here.
