LSI Industries Reports 36% Increase in Q2 Fiscal 2025 Net Sales

LSI Industries Inc. reported a significant increase in financial performance for the second quarter of fiscal 2025, with net sales reaching $147.7 million, a 36% rise from $109.0 million in the same period last year. The Display Solutions Segment was a major contributor to this growth, achieving a 103% increase in sales, which included $23.4 million from the recent acquisition of EMI Industries. In contrast, the Lighting Segment experienced a 10% decline in sales, attributed to the absence of large projects that had boosted sales in the previous fiscal year.

For the six months ending December 31, 2024, LSI Industries reported net sales of $285.8 million, up 23% from $232.4 million in the prior year. The Display Solutions Segment saw a 69% increase in sales, while the Lighting Segment's sales decreased by 12%. The overall operating income for the second quarter was $8.5 million, an 8% increase from $7.8 million in the previous year, although the six-month operating income decreased by 7% to $17.6 million compared to $18.8 million in the same period last year.

The company’s acquisition of EMI Industries, completed in April 2024 for $50 million, is expected to enhance LSI's market presence in the grocery, quick-service restaurant, and convenience store sectors. This strategic move is anticipated to expand the company’s addressable market significantly. The acquisition-related costs were reflected in the selling and administrative expenses, which increased to $26.4 million for the quarter, up from $23.7 million a year earlier.

Operationally, LSI Industries reported a slight increase in employee headcount, with 29,891 shares outstanding as of December 31, 2024, compared to 29,222 shares at the end of June 2024. The company maintained a current ratio of 2.1, indicating strong liquidity, and generated $21.7 million in cash from operating activities during the first half of the fiscal year, compared to $19.9 million in the same period last year. The company’s cash and cash equivalents increased to $4.7 million, up from $4.1 million at the end of June 2024.

Looking ahead, LSI Industries anticipates continued growth driven by the integration of EMI and ongoing investments in its Display Solutions Segment. The company plans to leverage its enhanced capabilities to capture additional market share and improve profitability. However, it also acknowledges potential challenges in the Lighting Segment due to the cyclical nature of large project sales. The company remains committed to managing its operational costs and maintaining a strong balance sheet to support its growth initiatives.