LSI Industries soars 9% as Q4 earnings smash expectations

Investing.com -- LSI Industries Inc . (NASDAQ:LYTS) shares surged 9.2% on Thursday after the commercial lighting and display solutions manufacturer reported fiscal fourth-quarter results that significantly exceeded analyst expectations, driven by strong performance across both its business segments.

The company reported adjusted earnings per share of $0.34 for the quarter ended June 30, 2025, handily beating the analyst consensus of $0.22.

Revenue jumped 20% YoY to $155.1 million, well above the $138.89 million analysts had expected. Excluding acquisitions, organic sales growth was 11% compared to the same period last year.

"LSI finished fiscal 2025 with a strong fourth quarter, increasing sales and earnings both sequentially and on a year-over-year basis," stated James A. Clark, President and CEO of LSI.

"We are particularly encouraged by the balanced performance across our two segments, with both Lighting and Display Solutions realizing double-digit sales growth versus prior year, along with improved profitability."

The Display Solutions segment delivered 29% YoY growth, while the Lighting segment grew 12%. Adjusted EBITDA reached $17.0 million or 11.0% of sales, with margins improving 250 basis points compared to the fiscal third quarter.

For the full fiscal year 2025, LSI achieved record sales of $573.4 million, a 22% increase from the previous year, and generated $34.7 million in free cash flow.

The company maintained a strong balance sheet with a net debt to adjusted EBITDA ratio of 0.8x.

Order activity in the fourth quarter increased 11% versus the prior year, resulting in a book-to-bill ratio of 1.0.

The company enters fiscal 2026 with a backlog 13% higher than the previous year, suggesting continued momentum.

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