LSI Industries Reports 14% Net Sales Increase to $150.5 Million for Q3 2026

LSI Industries Inc. reported a net sales increase of 14% for the three months ended March 31, 2026, reaching $150.5 million, compared to $132.5 million for the same period in 2025. The growth was driven by a 23% increase in the Display Solutions segment, which benefited from strong demand in the grocery and refueling sectors, and included $6.6 million in sales from the recently acquired Royston Group. The Lighting segment saw a modest 2% increase in sales, reflecting ongoing market challenges. For the nine months ended March 31, 2026, net sales totaled $454.8 million, a 9% increase from $418.3 million in the prior year.

Despite the sales growth, LSI Industries experienced a 35% decline in operating income for the third quarter, which fell to $4.1 million from $6.2 million in the previous year. This decrease was largely attributed to $6.5 million in acquisition-related costs associated with the Royston acquisition. Adjusted operating income, excluding these costs, rose 39% to $13.4 million, indicating improved productivity and pricing strategies. For the nine-month period, operating income was slightly up at $23.9 million compared to $23.8 million in the prior year, with adjusted operating income increasing to $39.1 million from $33.2 million.

The company has made significant strategic moves, including the acquisition of Canada’s Best Holdings (CBH) for $28.8 million in March 2025 and the Royston Group for $336.8 million in March 2026. These acquisitions are expected to enhance LSI's capabilities in the retail and display solutions markets. The Royston acquisition, finalized on March 24, 2026, is anticipated to contribute positively to future revenues, as evidenced by its initial sales figures.

Operationally, LSI Industries reported a notable increase in its cash and cash equivalents, which rose to $10.3 million as of March 31, 2026, from $3.5 million at the end of June 2025. The company’s total assets surged to $800.5 million, up from $396.4 million, primarily due to the acquisitions. The company’s workforce also expanded, with the weighted average shares outstanding increasing to 33.9 million from 30.0 million year-over-year, reflecting the impact of equity raises related to the acquisitions.

Looking ahead, LSI Industries anticipates continued growth driven by strong demand in its core markets and the integration of its recent acquisitions. The company remains focused on enhancing operational efficiencies and leveraging its expanded product offerings to capture a larger market share. The management expressed confidence in the company’s ability to navigate market challenges and capitalize on emerging opportunities, supported by a solid financial foundation and strategic investments in growth initiatives.