LSI Industries Announces Q4 & FY2025 Results with Dividend
LSI Industries Inc. , a leading U.S.-based manufacturer of commercial lighting and display solutions, announced its financial results for the fourth quarter and full fiscal year ended June 30, 2025. The results underscore the company’s momentum in both its lighting and display markets, fueled by strategic acquisitions, operational improvements, and disciplined financial management.
Fiscal 2025 Fourth Quarter Results: Strong Finish to the Year
LSI reported net sales of $155.1 million for the fiscal fourth quarter, representing a 20% year-over-year increase. This impressive growth was driven by robust demand across both its lighting and display solutions segments. Importantly, when excluding the impact of acquisition-related contributions, sales still advanced by 11%, reflecting healthy organic growth within the company’s core business.
Net income for the quarter came in at $8.2 million, or $0.26 per diluted share. On an adjusted basis, which excludes certain non-recurring items, net income reached $10.6 million, or $0.34 per diluted share. This highlights LSI’s ability to not only grow top-line revenue but also convert that growth into improved profitability for shareholders.
Adjusted EBITDA, a key measure of operating performance, was reported at $17.0 million for the quarter, translating to 11.0% of sales. This compares favorably to prior periods, with margins expanding by 250 basis points compared to the fiscal third quarter. The improvement was attributed to stronger sales volumes, favorable pricing dynamics aligned with input costs, and enhanced productivity across operations.
In addition, the company generated free cash flow of $8.5 million during the fourth quarter, reflecting efficient working capital management and disciplined capital spending.
Fiscal 2025 Full-Year Results: Record Sales and Earnings
For the full fiscal year 2025, LSI achieved record net sales of $573.4 million, a 22% increase compared to fiscal 2024. This growth was fueled by a combination of organic expansion and contributions from recent acquisitions. The performance reflects both healthy end-market demand and the successful execution of LSI’s vertical market strategy.
The company reported net income of $24.4 million, or $0.79 per diluted share, compared to $18.8 million, or $0.62 per diluted share, in the prior year. On an adjusted basis, net income increased to $32.9 million, or $1.07 per diluted share, underscoring significant year-over-year improvement in profitability.
EBITDA for the year totaled $48.3 million, while adjusted EBITDA was $55.0 million, or 9.6% of sales. This compares to $51.4 million of adjusted EBITDA in fiscal 2024, highlighting the company’s ability to sustain operating leverage and improve efficiency even as it invests in growth initiatives.
From a cash flow perspective, LSI generated $34.7 million in free cash flow for the year, providing the flexibility to invest in strategic acquisitions, reduce debt, and support ongoing organic growth. As a result, the company ended the fiscal year with a net debt-to-adjusted EBITDA ratio of just 0.8x, reflecting a strong balance sheet and significant financial capacity for future initiatives.
Strategic Growth and Acquisitions
Fiscal 2025 was marked by continued execution of LSI’s vertical market strategy, including the successful integration of two key acquisitions.
- EMI Industries Acquisition (April 2024): This acquisition broadened LSI’s reach in display solutions and complemented its existing product portfolio. The integration contributed meaningfully to both top-line growth and operational synergies.
- Canada’s Best Holdings Acquisition (March 2025): More recently, the company expanded its presence in the Canadian market with this acquisition, strengthening its geographic footprint and enhancing customer relationships.
Both acquisitions not only provided immediate revenue contributions but also aligned with LSI’s long-term growth objectives. By targeting strategic additions that complement its core lighting and display businesses, LSI continues to build a more diversified and resilient enterprise.
Operational Improvements and Market Momentum
The company’s fourth-quarter and full-year performance highlight several operational achievements:
- Margin Expansion: By carefully managing input costs and aligning pricing strategies, LSI successfully improved profitability even in the face of fluctuating raw material expenses. Productivity gains across manufacturing and supply chain operations further supported this outcome.
- Vertical Market Strategy: LSI’s focus on targeted verticals—such as retail, petroleum, and quick-service restaurants—continues to drive growth. By providing integrated lighting and display solutions tailored to specific industries, the company differentiates itself in the marketplace and deepens customer relationships.
- Acquisition Synergies: The integration of recent acquisitions enhanced both sales opportunities and operational efficiency. The company has demonstrated a disciplined approach to capital allocation, ensuring that acquisitions are accretive to earnings and strategically aligned.
Balance Sheet Strength and Capital Allocation
LSI exited fiscal 2025 with a healthy balance sheet and ample liquidity. The company reported approximately $42 million of availability under its credit facility as of June 30, 2025, providing financial flexibility for future investment and operational needs.
Capital allocation during the year prioritized three areas:
- Organic Expansion: Investments in product development, sales channels, and operational capacity supported underlying growth across both core business segments.
- Strategic Acquisitions: The company deployed capital toward the acquisitions of EMI Industries and Canada’s Best Holdings, both of which enhance LSI’s long-term strategic positioning.
- Debt Reduction: Strong cash generation allowed LSI to lower leverage, exiting the year with a conservative debt profile and the ability to pursue further growth initiatives.
Positioning for Sustainable Growth
With fiscal 2025 marking a record year across multiple metrics, LSI Industries enters fiscal 2026 with strong momentum. The company’s vertical market strategy, operational discipline, and balanced capital allocation framework provide a solid foundation for continued success.
Management emphasized its commitment to sustaining profitable growth while maintaining a strong balance sheet. With end markets showing resilience and the integration of recent acquisitions progressing well, LSI is positioned to further capitalize on industry trends and customer demand.
The company also reiterated its focus on innovation within both lighting and display solutions, areas where it has historically differentiated itself. As customers increasingly demand energy-efficient, aesthetically advanced, and integrated solutions, LSI’s product portfolio remains well-suited to address evolving market needs.
Fiscal 2025 was a transformative year for LSI Industries. The company achieved record revenue of $573.4 million, delivered adjusted EBITDA of $55.0 million, and generated $34.7 million of free cash flow. Earnings per share improved significantly, both on a GAAP and adjusted basis, while leverage declined to less than one turn of adjusted EBITDA.
Through a combination of strong organic performance and strategic acquisitions, LSI continues to strengthen its competitive position in the commercial lighting and display solutions markets. With a disciplined approach to operations and capital allocation, the company is well-positioned to drive long-term shareholder value.
As fiscal 2026 begins, LSI Industries remains focused on advancing its growth strategy, enhancing profitability, and delivering innovative solutions to its diverse customer base.
