LSI Industries posted a sharp jump in fourth-quarter and full-year fiscal 2026 results, with the Royston acquisition giving a major lift to sales and profitability.
For the quarter ended June 30, net sales rose 51% from a year earlier to $234.6 million. Excluding acquisition-related contributions, sales still increased 8%. Full-year revenue climbed 20% to a record $689.4 million.
Fourth-quarter net income was $6.9 million, or $0.18 per diluted share, compared with adjusted net income of $14.4 million, or $0.38 per diluted share. Adjusted net income was nearly 40% higher than the year-ago quarter, according to the company.
Adjusted EBITDA in the quarter increased 50% to $25.7 million from $17.1 million a year ago. The adjusted EBITDA margin reached 10.9% of sales, up 90 basis points sequentially from the fiscal third quarter. Free cash flow was $9.7 million.
For the full year, net income was $22.6 million and adjusted net income was $42.2 million. Diluted earnings per share came to $0.67, while adjusted EPS was $1.25, up from $1.07 in fiscal 2025.
Full-year adjusted EBITDA rose 27% to $69.7 million from the prior year’s level, with margin improving to 10.1% from 9.6%. Free cash flow for the year was $39.0 million.
LSI ended the year with net debt equal to 2.7 times pro forma trailing 12-month adjusted EBITDA and about $95 million of availability under its $350 million credit facility.
The company also declared a quarterly cash dividend of $0.05 per share, payable September 8 to shareholders of record August 31.
By segment, display solutions sales doubled in the quarter, including 18% organic growth. Display segment adjusted EBITDA margin rose to 12.4%, up 180 basis points from a year earlier. Within that segment, grocery-related refrigerated and non-refrigerated display case sales increased 21%, while refueling and convenience-store sales rose 16%.
In lighting, fourth-quarter sales increased 17% from the fiscal third quarter but were down 3% from the same quarter last year. For the full year, lighting segment sales rose 7%, driven by national account penetration and stronger outdoor area lighting demand.
Orders remained solid heading into fiscal 2027. Display solutions posted a book-to-bill of about 1.0x, while lighting orders were 5% above last year with a book-to-bill above 1.0. As a result of these announcements, the company's shares have moved -14.46% on the market, and are now trading at a price of $20.58. Check out the company's full 8-K submission here.
