“We achieved sales growth of 22% through some very choppy customer demand schedules. Although our margin was impacted by manufacturing and logistics inefficiencies created by these choppy schedules, our team has been able to serve our customers well and I'm confident we will regain this margin as things stabilize.”
— James Clark
03Detailed Report
LYTS
Company LYTS
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 23, 2026
Swipe to view all report sections
Executive Summary
LSI Industries delivered a solid Q3 2025 with 22% year-over-year revenue growth to $132.5 million, led by Display Solutions, which surged 70% year over year ( organic 15% ) and supported by ongoing EMI integration. However, margins were pressured by manufacturing and logistics inefficiencies driven by choppy schedules and a higher EMI mix, resulting in EBITDA of $11.3 million and net income of $3.88 million (EPS $0.13). The quarter showcased a notable acceleration in large-project activity in Lighting and a backlog that was 15% above the prior year. Management reaffirmed a plan to stabilize scheduling, complete Canada Best Store Fixtures integration, and leverage onshoring and tariff management to mitigate external headwinds under the Fast Forward strategy. The company also highlighted robust cross-selling opportunities between Lighting and Display Solutions and continued M&A activity oriented toward both incremental and transformational acquisitions.
Key Performance Indicators
Revenue
Increasing
132.48M
QoQ: -10.32% | YoY: 22.46%
Gross Profit
Increasing
32.84M
24.79% margin
QoQ: -5.79% | YoY: 4.80%
Operating Income
Decreasing
6.24M
QoQ: -26.29% | YoY: -20.08%
Net Income
Decreasing
3.88M
QoQ: -31.24% | YoY: -27.76%
EPS
Decreasing
0.13
QoQ: -31.58% | YoY: -27.78%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $132.481 million, up 22.46% YoY; QoQ change not directly disclosed in quarterly core table but quarterly data shows a sequential decline from Q2 to Q3 in the press materials and 4-quarter metrics reflect seasonality. - Gross profit: $32.843 million; gross margin 24.79% (0.2479). - EBITDA: $9.319 million; adjusted EBITDA reported as $11.3 million in the call. - Operating income: $6.235 million; operating margin 4.71%. - Net income: $3.883 million; net margin 2.93%. - EPS: $0.13 (diluted $0.13); weighted average shares ~30.0 million. - Backlog: lighting backlog 18% above prior year; overall backlog 15% above last year. - Cash flow: operating cash flow $6.882 million; free cash flow $6.192 million; net debt to trailing-12-month adjusted EBITDA ~1.0x; cash balance $4.301 million. - Balance sheet: total assets $380.9 million; total liabilities $159.2 million; stockholders’ equity $221.7 million. - Liquidity and leverage: total debt $74.6 million; net debt $70.3 million; current ratio 2.08; quick ratio 1.245; interest coverage 9.43x.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
132.48M
22.46%
-10.32%
Gross Profit
32.84M
4.80%
-5.79%
Operating Income
6.24M
-20.08%
-26.29%
Net Income
3.88M
-27.76%
-31.24%
EPS
0.13
-27.78%
-31.58%
Key Financial Ratios
Gross Profit Margin
Fair
24.80%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
4.71%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.93%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
1.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.75%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.08
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.34
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
32.84x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Fair Value
2.30x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.