CGN Power 1H EBITDA margin 52.3%

CGN Power 1H EBITDA margin 52.3%

CGN Power, a leading provider of clean energy solutions, has reported a robust first half of the year, with a significant EBITDA margin of 52.3%. This performance underscores the company's strong operational efficiency and strategic positioning in the renewable energy sector.

The company's CEO, James A. Clark, highlighted the company's solid financial performance during the earnings call. He noted that sales increased by over 20% in the fourth quarter of 2025, driven by strong performance in both the Lighting and Display Solutions segments. Clark emphasized the company's focus on developing internal talent, optimizing processes, and expanding cross-selling initiatives as core priorities for fiscal 2026. These efforts have contributed to a 22% increase in total sales for the full year, reaching just over $573 million.

CFO James E. Galeese reported that adjusted EBITDA for the fourth quarter was $17 million, representing an 11% margin of sales. He attributed the quarter-over-quarter improvement in adjusted EBITDA to improved throughput, productivity, and increased volume. Looking ahead, the company aims to continue its Fast Forward strategic plan, emphasizing talent development, operational optimization, and the expansion of cross-selling initiatives.

The company's strong performance in the Lighting and Display Solutions segments is evident in the double-digit organic growth reported for the quarter. Lighting sales increased by 12%, while Display Solutions increased by 10% on a comparable basis. Service revenue also saw a significant increase of 65% in fiscal 2025, indicating the company's ability to diversify its revenue streams.

CGN Power's success is further highlighted by the successful integration of recent acquisitions. The company reported that both EMI and Canada’s Best Store Fixtures performed "above our original expectations." Clark emphasized the company's commitment to its Fast Forward strategic plan, targeting further margin expansion, operational excellence, and strong cash generation into fiscal 2026 and beyond.

The company's strong performance in the first half of the year is a testament to its strategic focus on operational efficiency and growth. With a diversified revenue base and a robust pipeline of projects, CGN Power is well-positioned to continue its growth trajectory in the renewable energy sector.

References:
[1] https://seekingalpha.com/news/4488031-lsi-industries-outlines-cross-selling-strategy-and-targets-12_5-percent-ebitda-margin-by-2028