Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q2 2026 Earnings Presentation
16 slides from Lsi Industries's earnings presentation, Jan 22, 2026
Slide 1: Fiscal Second Quarter 2026 Results Conference Call
Fiscal Second Quarter 2026 Results Conference Call January 22, 2026
Slide 2: Disclaimer
DISCLAIMER This presentation contains “forward-looking statements”—that is, statements related to future events within the meaning of the Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Forw
Slide 3: Key Messages
KEY MESSAGES Q2FY26 sales and profitability successfully offset non- Lighting Segment: +15% organic revenue growth versus PY recurring demand surge in Q2FY25 on market share gains, increased large project activity Q2FY26 performance was noteworthy in view of an elevated Large project shipments withi
Slide 4: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Demonstrated Value of Diversified Model Total Net Sales ($M) Operating Income ($M) Successful in offsetting elevated PY 7.9% 8.0% sales comps with growth in Lighting and continued large C-Store $147.7 $147.0 $11.7 $11.7 projects in Display $8.5 $8.9 Stable Margin Reali
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Strong Organic Growth, Margin Expansion Lighting Segment Sales ($M) Lighting Segment Adj. Gross Margin ($M) Delivered 15% y/y organic sales 34.6% growth, represents the third $66.7 consecutive quarter of double-digit $58.2 32.7% growth. Adj. Gross Margin increased $23.0 190 b
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Strong Project Execution Across Multi- Year Programs Display Solutions Segment Sales ($M) Display Solutions Segment Adj. Gross Margin ($M) 18.0% Sales impacted by event driven, $89.5 17.7% elevated PY levels. Gross margin $80.3 $15.9 rate improved despite lower sales
Slide 7: Working Capital Update
WORKING CAPITAL UPDATE Working Capital Declined 11% Total Working Capital ($M) Sequentially in Q2FY26 $112.4 $96.3 $96.8 $100.1 Cash conversion on expected AR $84.9 reduction, disciplined inventory management contributed to $12.2 million sequential decline in total working capital Margin MarginRate
Slide 8: Balance Sheet Update
BALANCE SHEET UPDATE Significant Liquidity to Support Growth Available Liquidity ($M) TTM Free Cash Flow ($M)(1) More than $103 million of cash and available liquidity under our $125 $103.4 million credit facility maturing in $41.4 2031 $37.7 $35.0 $34.6 $66.5 $22.9 Strong Free Cash Flow Generation
Slide 9: Appendix
APPENDIX
Slide 10: Statement on Non-GAAP Financial Measures
STATEMENT ON NON-GAAP FINANCIAL MEASURES This presentation includes adjustments to GAAP gross margin, operating income, net income, and earnings per share for the periods ending December 31, 2024, and December 31, 2025. Gross Margin, operating income, net income, and earnings per share, which exclud
Slide 11: Non-GAAP Reconciliation
NON-GAAP RECONCOLIATION LSI Industries Q2 2005 Q2 2026 Net Sales 147,734 147,002 Gross Margin 34,861 37,434 Lease expense on the step-up basis of acquired leases 69 68 Severance costs/Restructuring costs - 5 Adjusted Gross Margin 34,930 37,507 Adjusted Gross Margin % 23.6% 25.5% Lighting Segment Q2
Slide 12: Non-GAAP Reconciliation
NON-GAAP RECONCOLIATION LSI Industries Q2 2025 Q2 2026 Lighting Segment Q2 2025 Q2 2026 Net Sales 147,734 147,002 Net Sales 58,210 66,672 Operating Income 8,459 8,865 Operating Income 5,972 7,547 Acquisition Costs 81 200 Amortization expense of acquired intangible assets 603 603 Amortization expense
Slide 13: Non-GAAP Reconciliation
NON-GAAP RECONCOLIATION LSI Industries Q2 2025 Q2 2026 Net Income Reported $ 5,647 $ 6,348 Income tax 1,702 2,047 Interest expense, net 728 573 Other expense (income) 382 (103) Operating Income as Reported 8,459 8,865 Depreciation and amortization 3,018 3,227 EBITDA $ 11,477 $ 12,092 Consulting expe
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCOLIATION Free Cash Flow Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Cash flow from operations $ 9,891 $ 6,882 $ 9,499 $ 675 $ 24,984 Less: Capital expenditures $ (1,066) $ (690) $ (950) $ (967) $ (1,684) Free cash flow $ 8,825 $ 6,192 $ 8,549 $ (292) $ 23,300 Net Debt Outstanding and Leve
Slide 15: Non-GAAP Reconciliation
NON-GAAP RECONCOLIATION Second Quarter Organic compared to Inorganic Sales Q2 2025 Q2 2026 % Variance Lighting Segment $ 58,210 $ 66,672 15% Display Solutions Segment - Comparable Display Solutions Sales 89,524 74,001 -17% - Canada's Best - 6,329 Total Diplay Solutions Sales $ 89,524 $ 80,330 -10% T
Slide 16: For Additional Questions, Please Contact
For Additional Questions, Please Contact 720.778.2415 Thank You, LSI Investor Relations