LSI Industries' Sales Soar 22% on Display Solutions Acquisitions

TL;DR

**LYTS is a buy; their strategic acquisitions are paying off big, driving massive sales growth in display solutions and setting them up for continued market expansion.**

AI Summary

LSI Industries Inc. (LYTS) reported a significant increase in total net sales for fiscal year 2025, reaching $573.377 million, up 22.09% from $469.638 million in fiscal year 2024. This growth was primarily driven by the Display Solutions Segment, which saw its net sales surge by 56.84% to $325.020 million in 2025 from $207.225 million in 2024. The Lighting Segment experienced a slight decline, with net sales decreasing by 5.36% to $248.357 million from $262.413 million. Key business changes include the acquisitions of Canada's Best Holdings (CBH) in Q3 2025 and EMI Industries, LLC (EMI) in Q4 2024, both integrated into the Display Solutions Segment, enhancing retail fixture and custom store design offerings. Risks include competition from companies with greater financial resources and supply chain disruptions, though LSI mitigates this by increasing safety stock and diversifying suppliers. The strategic outlook emphasizes cross-selling opportunities between segments to become a single-source provider for existing and new customers, leveraging its expanded product and service portfolio.

Why It Matters

LSI Industries' robust 22.09% sales growth, largely fueled by strategic acquisitions in its Display Solutions segment, signals a successful pivot and expansion beyond its traditional lighting business. For investors, this demonstrates effective capital deployment and potential for increased market share in the competitive retail display and visual imaging sectors. Employees benefit from a growing company with expanded product lines and market reach, potentially leading to more opportunities. Customers gain from LSI's enhanced ability to offer comprehensive, single-source solutions for both lighting and display needs, streamlining project management. This strategic diversification positions LSI more competitively against specialized rivals in both lighting and display markets, reducing reliance on any single segment.

Risk Assessment

Risk Level: medium — The company faces medium risk due to intense competition from both national and international players, some with greater financial resources, across both its Lighting and Display Solutions segments. While LSI states it's not dependent on any single supplier, supply chain interruptions for critical raw materials like steel, aluminum, and LEDs could still disrupt operations, despite efforts to increase safety stock.

Analyst Insight

Investors should consider LYTS for its strong growth trajectory, particularly in the Display Solutions segment, driven by successful acquisitions. Monitor future integration efforts and cross-selling effectiveness, as these will be key to sustaining momentum and realizing the full value of recent expansions.

Financial Highlights

revenue

$573.377M

revenue Growth

+22.09%

Revenue Breakdown

Key Numbers

• $573.377M — Total Net Sales (FY2025) (Increased 22.09% from $469.638 million in FY2024)
• $325.020M — Display Solutions Segment Net Sales (FY2025) (Increased 56.84% from $207.225 million in FY2024, driving overall growth)
• $248.357M — Lighting Segment Net Sales (FY2025) (Decreased 5.36% from $262.413 million in FY2024)
• 22.09% — Year-over-year Net Sales Growth (Reflects significant overall revenue increase from FY2024 to FY2025)
• 56.84% — Display Solutions Segment Sales Growth (Primary driver of the company's total net sales increase)
• $3.3M — Research and Development Costs (FY2025) (Slight decrease from $3.5 million in FY2024, indicating continued investment in innovation)
• $580.496M — Market Value of Common Stock Held by Non-Affiliates (As of December 31, 2024, based on $19.42 per share)
• 30,512,222 — Shares of Common Stock Outstanding (As of August 29, 2025)
• 2,000 — Full-time and Part-time Employees (As of June 30, 2025, indicating a substantial workforce)
• 43% — Lighting Segment Contribution to Net Sales (Represents the proportion of total net sales from the Lighting Segment in fiscal 2025)

Key Players & Entities

• LSI Industries Inc. (company) — Registrant
• Canada's Best Holdings (company) — Acquired in Q3 fiscal 2025
• EMI Industries, LLC (company) — Acquired in Q4 fiscal 2024
• The NASDAQ Stock Market LLC (regulator) — Exchange where LYTS is registered
• Securities and Exchange Commission (regulator) — Regulatory body for filings
• UL Solutions (company) — Certifying body for lighting products
• Design Lights Consortium (company) — Certifying body for lighting products
• International Dark-Sky Association (company) — Certifying body for lighting products
• Norma Official Mexicana (regulator) — Certifying body for lighting products
• Institute for Printed Circuits (company) — Certifying body for lighting products

FAQ

Risk Factors

• Intense Competition [high — market]: LSI operates in highly competitive markets, facing rivals with greater sales, assets, and financial resources, particularly in the Lighting Segment. Aggressive pricing by competitors can negatively impact selling prices and demand for LSI's products, potentially harming operating results.
• Supply Chain Disruptions [medium — operational]: While not explicitly detailed with numbers in this section, the context implies that supply chain disruptions are a potential risk. LSI mitigates this by increasing safety stock and diversifying suppliers, suggesting an awareness of the potential impact on operations and product availability.
• Currency Fluctuations [medium — market]: Competitors based in foreign countries may have cost structures and prices in foreign currencies. Currency fluctuations can make LSI's U.S. dollar-priced products less competitive compared to those priced in other currencies.
• Strategy Execution Challenges [medium — operational]: The company faces uncertainties in executing its business strategies, including new product development and market penetration. Risks include diversion of management attention, difficulty attracting employees, negative customer impacts, product obsolescence, and challenges in producing products that meet quality and cost standards compared to competitors.

Industry Context

LSI operates in the non-residential lighting and retail display solutions markets. The lighting sector is characterized by competition based on price, quality, and service, with some larger international competitors having cost advantages. The retail display market is evolving with a focus on enhancing customer experience and brand image, an area LSI is strengthening through strategic acquisitions. The company's strategy to offer integrated lighting and display solutions positions it to compete as a single-source provider.

Regulatory Implications

The provided text does not detail specific regulatory implications or compliance issues. The primary risks mentioned are market-driven and operational, rather than regulatory.

What Investors Should Do

1. Monitor Display Solutions Segment growth post-acquisition.
2. Assess the impact of Lighting Segment decline.
3. Evaluate competitive pressures and pricing strategies.
4. Track cross-selling initiatives.

Key Dates

• 2025-06-30: As of June 30, 2025 — Indicates the workforce size of 2,000 full-time and part-time employees.
• 2025-08-29: As of August 29, 2025 — Reports 30,512,222 shares of common stock outstanding.
• 2024-12-31: As of December 31, 2024 — Market value of common stock held by non-affiliates was $580.496 million, based on $19.42 per share.
• 2025-03-31: Q3 2025 — Acquisition of Canada's Best Holdings (CBH) integrated into the Display Solutions Segment.
• 2024-10-01: Q4 2024 — Acquisition of EMI Industries, LLC (EMI) integrated into the Display Solutions Segment.

Glossary

Non-residential lighting

Lighting fixtures and services for commercial and industrial applications, as opposed to residential homes. (This is a core product category for LSI's Lighting Segment, serving various vertical markets like retail, parking, and quick-service restaurants.)

Retail display solutions

Custom products and services designed to enhance a retailer's brand image and improve the customer shopping experience. (This is a core product category for LSI's Display Solutions Segment, with recent growth driven by acquisitions.)

Package solution set

Offering a combination of both lighting and display solutions to customers, allowing them to work with a single partner for multiple needs. (This strategy aims to provide value to customers and leverage LSI's expanded product portfolio across segments.)

Vertical markets

Specific industry sectors or customer groups that a company targets with its products and services. (LSI focuses on specific vertical markets within its Lighting Segment, such as refueling/convenience stores and quick-service restaurants, to deliver unique product solutions.)

Luminaires

A complete lighting unit, consisting of a light source (lamp) and all other components (such as a reflector, diffuser, ballast, socket, and housing) that are needed to support and protect the lamp and produce the light. (LSI designs and manufactures luminaires for energy efficiency and specific application requirements within its Lighting Segment.)

Year-Over-Year Comparison

LSI Industries Inc. has demonstrated robust top-line growth, with total net sales increasing by 22.09% to $573.377 million in fiscal year 2025, up from $469.638 million in fiscal year 2024. This significant expansion was primarily fueled by the Display Solutions Segment, which saw its sales surge by 56.84%, bolstered by strategic acquisitions. Conversely, the Lighting Segment experienced a modest decline of 5.36% in net sales. While R&D costs saw a slight decrease, the overall financial picture suggests a company actively pursuing growth through strategic M&A and segment integration.

Key Financial Figures

• $19.42 — ,057 based upon a closing sale price of $19.42 per share as reported on The NASDAQ Glo
• $3.3 million — roduct and software development totaled $3.3 million and $3.5 million for the fiscal years e
• $3.5 million — re development totaled $3.3 million and $3.5 million for the fiscal years ended June 30, 202

Filing Documents

• lyts20250630_10k.htm (10-K) — 2350KB
• ex_860253.htm (EX-14) — 89KB
• ex_859535.htm (EX-21) — 29KB
• ex_859536.htm (EX-23.1) — 3KB
• ex_859537.htm (EX-31.1) — 12KB
• ex_859538.htm (EX-31.2) — 12KB
• ex_859539.htm (EX-32.1) — 5KB
• ex_859540.htm (EX-32.2) — 5KB
• 0001437749-25-028862.txt ( ) — 12981KB
• lyts-20250630.xsd (EX-101.SCH) — 96KB
• lyts-20250630_def.xml (EX-101.DEF) — 704KB
• lyts-20250630_lab.xml (EX-101.LAB) — 594KB
• lyts-20250630_pre.xml (EX-101.PRE) — 762KB
• lyts-20250630_cal.xml (EX-101.CAL) — 102KB
• lyts20250630_10k_htm.xml (XML) — 2595KB

RISK FACTORS

ITEM 1A. RISK FACTORS 8

UNRESOLVED STAFF COMMENTS

ITEM 1B UNRESOLVED STAFF COMMENTS 13

CYBERSECURITY

ITEM 1C. CYBERSECURITY 13

PROPERTIES

ITEM 2. PROPERTIES 15

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 16

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 16 PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 16

[RESERVED]

ITEM 6. [RESERVED] 16

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 16

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 16

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 17

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 17

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 18

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 18

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 18 PART III

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 18

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 18

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 18

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 19

PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 19 PART IV

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 19

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 21

SIGNATURES

SIGNATURES 22 3 Note About Forward-Looking Statements This report includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may appear throughout this report, including the following sections: "Business" (Part I, Item 1 of this Form 10-K), "Risk Factors" (Part I, Item 1A of this Form 10-K), "Management's Discussion and Analysis of Financial Condition and Results of Operations" (Part II, Item 7 of this Form 10-K) and "Quantitative and Qualitative Disclosures about Market Risk" (Part II, Item 7A of this Form 10-K). These forward-looking statements generally are identified by the words "encourage," "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially. We describe risks and uncertainties that could cause actual results and events to differ materially in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosures about Market Risk." Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise. Website and Social Media Disclosure We use our website (www.lsicorp.com) and our corporate Facebook, YouTube, LinkedIn, Vimeo, X and Insta

BUSINESS

ITEM 1. BUSINESS Overview LSI Industries Inc. (LSI) is a leading producer of non-residential lighting and retail display solutions. Non-residential lighting consists of American-made fixtures and services for both indoor and outdoor applications satisfying the specific performance requirements of our customers. Retail display solutions consist of multiple custom products and services which enhance our customer's brand image and improve the customer shopping experience. We offer customers in target vertical markets a package solution set of both lighting and display solutions, providing value for the customer by working with one partner to manage their regional and national location programs, versus multiple suppliers. Our business is organized as follows: the Lighting Segment, which represented 43% of our fiscal 2025 net sales and the Display Solutions Segment, which represented 57% of our fiscal 2025 net sales. See Note 4 of Notes to Consolidated Financial Statements beginning on page 48 of this Form 10-K for additional information on business segments. Net sales by segment are as follows (in thousands): 2025 2024 Lighting Segment $ 248,357 $ 262,413 Display Solutions Segment 325,020 207,225 Total Net Sales $ 573,377 $ 469,638 Lighting Segment Our Lighting Segment manufactures, markets, and sells outdoor and indoor lighting fixture and controls solutions in several vertical markets such as but not limited to the following: refueling and convenience store, parking lot and garage, quick-service restaurant, retail, grocery and pharmacy, automotive dealership, sports court and field, and warehouse. We service these markets through multiple channels: project business sold through electrical distributors and agents and shipped directly to the customer; standard products sold to and stocked by distributors; and direct to end-use customers. Our products are designed and manufactured to provide maximum customer value and meet the high-quality, co

RISK FACTORS

ITEM 1A. RISK FACTORS In addition to the other information set forth in this report, you should carefully consider the following factors which could materially affect our business, financial condition, cash flows or future results. Anyone of these factors could cause the Company's actual results to vary materially from recent results or from anticipated future results. The risks described below are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. RISKS RELATED TO OUR STRATEGY The inability to effectively execute our business strategies could adversely affect our financial condition and results of operations. Various uncertainties and risks are associated with our approach to strategically penetrate existing and new market verticals, including but not limited to, the development, marketing and selling of new products and solutions, new product development, and the overall development, marketing, and selling of lighting and display solutions. Those uncertainties and risks include but are not limited to diversion of management's attention; difficulty in retaining or attracting employees; negative impact on business relationships and customers; obsolescence of current products and slow new product development; inability to produce products with quality, performance, and cost attributes equal to or better than provided by our competitors; and unforeseen difficulties in the implementation of the management operating structure. Problems with strategy execution could offset anticipated benefits, disrupt service to customers, and impact product quality as well as adversely affect our business. With the addition of new products and solutions, we may encounter new and different competitors that may have more experience with respect to such products and solutions. The markets in whic

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