LSI Industries (NASDAQ:LYTS) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

LSI Industries (NASDAQ:LYTS) issued its quarterly earnings data on Thursday. The construction company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.03, FiscalAI reports. LSI Industries had a return on equity of 8.90% and a net margin of 3.91%.The business had revenue of $234.62 million for the quarter, compared to analysts’ expectations of $222.78 million.

Here are the key takeaways from LSI Industries’ conference call:

• Fiscal 2026 delivered record results, with sales up 20% to $689 million, adjusted EPS rising to $1.25, adjusted EBITDA increasing 28% to nearly $70 million, and $39 million of free cash flow.
• Display Solutions posted 18% organic growth in the fourth quarter, led by grocery and petroleum/convenience-store demand. LSI also won a multi-year program to renovate approximately 2,500 sites for a new large oil-retailer customer, with potential follow-on interior work.
• Management sees substantial Royston integration upside through cross-selling, procurement, and operational improvements; it cited on-time delivery at Southern CaseArts improving from the 70% range to above 90% and believes SignResource revenue could potentially double or triple within its existing customer base.
• Fourth-quarter adjusted EBITDA margin was 10.9%, below expectations, as SignResource works through lower-margin backlog priced before higher petroleum-based material costs. Management expects a 50-to-100-basis-point headwind over the next one or two quarters, potentially lasting through the first half of fiscal 2027.
• CFO Jim Galeese plans to retire at the end of October 2027 after nearly a decade with LSI. The company has begun a formal internal and external search and expects an orderly transition with Galeese’s continued support.

LSI Industries Stock Down 14.3%

NASDAQ LYTS opened at $20.62 on Friday. The stock has a market capitalization of $756.96 million, a PE ratio of 27.49 and a beta of 0.56. LSI Industries has a 1 year low of $17.20 and a 1 year high of $27.36. The business’s 50-day moving average is $24.70 and its 200 day moving average is $22.71. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.48 and a quick ratio of 0.86.

LSI Industries Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Monday, August 31st will be issued a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Monday, August 31st. LSI Industries’s dividend payout ratio is currently 26.67%.

Insider Buying and Selling at LSI Industries

In other LSI Industries news, Director Wilfred T. Ogara sold 10,369 shares of LSI Industries stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $24.09, for a total transaction of $249,789.21. Following the sale, the director directly owned 103,686 shares of the company’s stock, valued at approximately $2,497,795.74. The trade was a 9.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Thomas A. Caneris sold 109,226 shares of the company’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $24.29, for a total value of $2,653,099.54. Following the transaction, the executive vice president owned 64,790 shares in the company, valued at $1,573,749.10. This trade represents a 62.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 256,173 shares of company stock valued at $6,220,368. 7.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On LSI Industries

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LYTS. Mercer Global Advisors Inc. ADV purchased a new stake in LSI Industries in the fourth quarter worth about $214,000. Wellington Management Group LLP lifted its position in LSI Industries by 4.6% in the 4th quarter. Wellington Management Group LLP now owns 649,378 shares of the construction company’s stock valued at $11,897,000 after acquiring an additional 28,700 shares in the last quarter. Man Group plc boosted its stake in LSI Industries by 36.7% during the 4th quarter. Man Group plc now owns 12,829 shares of the construction company’s stock valued at $235,000 after purchasing an additional 3,444 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of LSI Industries by 12.4% in the 4th quarter. AQR Capital Management LLC now owns 42,917 shares of the construction company’s stock worth $786,000 after purchasing an additional 4,733 shares in the last quarter. Finally, Lazard Asset Management LLC raised its stake in shares of LSI Industries by 4.5% in the fourth quarter. Lazard Asset Management LLC now owns 98,731 shares of the construction company’s stock worth $1,809,000 after purchasing an additional 4,211 shares during the last quarter. 73.91% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on LYTS shares. Oppenheimer initiated coverage on LSI Industries in a research note on Tuesday, June 9th. They set an “outperform” rating and a $30.00 price objective for the company. Weiss Ratings cut shares of LSI Industries from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday. Finally, Wall Street Zen lowered shares of LSI Industries from a “buy” rating to a “hold” rating in a report on Saturday, May 16th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $28.75.

About LSI Industries

LSI Industries, Inc (NASDAQ: LYTS) is a diversified manufacturer and distributor of lighting, graphics and building technology products. Headquartered in Cincinnati, Ohio, the company develops energy-efficient LED lighting systems, branded and digital graphic displays, and integrated building technology solutions. Serving customers in the retail, quick-service and convenience store, industrial, hospitality and transportation markets, LSI combines design, engineering and manufacturing capabilities to address both aesthetic and functional needs.

In its lighting segment, LSI offers interior and exterior LED fixtures, canopy lights, high-bay and low-bay systems, and specialized horticultural grow lights.