LSI Industries Net Sales Hit $234.6 Million In Fourth Quarter
The commercial lighting and display manufacturer reported record full-year net sales of $689.4 million for fiscal 2026
LSI Industries (LYTS) reported a 51% increase in net sales for the fourth quarter of fiscal 2026, as the company integrated its largest acquisition to date and saw a doubling of revenue in its display business.
Net sales for the three months ended June 30 reached $234.6 million, compared with $155.1 million in the prior-year period. Growth was led by sustained demand in key vertical markets and the first full-quarter contribution from the Royston Group, which LSI acquired on March 24, 2026. Excluding the impact of the acquisition, organic growth for the fourth quarter was 8%.
Performance was driven largely by the Display Solutions segment, where net sales doubled year over year. This growth included 18% organic growth and was supported by strengthening demand in the refueling, convenience store, and grocery vertical markets. Within the grocery vertical, sales of refrigerated and non-refrigerated display cases rose 21% year over year.
Profitability in the display business also improved, with the segment's adjusted EBITDA margin rate increasing 180 basis points year over year to 12.4%.
In contrast, the Lighting segment experienced a mixed quarter. Sales for the segment increased 17% sequentially compared with the third quarter but declined 3% compared with the fourth quarter of fiscal 2025. The year-over-year decline was attributable to a soft quarter for the quick-service restaurant and automotive verticals.
Overall fourth-quarter adjusted EBITDA rose 50% year over year to $25.7 million, up from $17.1 million in the prior-year quarter. The adjusted EBITDA margin rate increased 90 basis points sequentially versus the third quarter, reflecting operational discipline and a favorable margin contribution from Royston.
For the full fiscal year 2026, LSI reported record net sales of $689.4 million, a 20% increase over fiscal 2025. Full-year adjusted EBITDA rose 27% to $69.7 million, and the adjusted EBITDA margin rate expanded 50 basis points to 10.1%. Adjusted earnings per diluted share for the year were $1.25, compared with $1.07 in fiscal 2025.
LSI generated $9.7 million in free cash flow for the fourth quarter and $39.0 million for the full year. As of June 30, 2026, the company reported a ratio of net debt to pro forma trailing twelve-month adjusted EBITDA of 2.7x.
The company also disclosed a new multi-year program award from a large oil company to renovate approximately 2,500 sites. The program, which includes both products and services for exterior branding elements, represents a $30 million award received during the fourth quarter.
Looking ahead to fiscal 2027, LSI expects a sustained, elevated pace of project activity within the Display Solutions segment. Project activity from several of Royston’s largest convenience store customers is expected to ramp up beginning in fiscal 2027 and continue for several years.