LSI Industries (LYTS) 7 Nov 24 2025 Q1 Earnings call transcript

LSI Industries, a leading provider of innovative and sustainable solutions for the lighting and energy management industries, recently reported solid fiscal first quarter results for 2025. The company's sales grew by 12% year-over-year, driven by robust project activity in refueling C-stores and grocery markets, as well as strong sales from the recently acquired EMI.

In the earnings call, President and CEO, Jim Clark, highlighted the company's impressive performance, with EBITDA exceeding $13 million and free cash flow over $11 million. LSI's net debt stands at a healthy 0.8x, showcasing a strong financial position. Clark emphasized the company's focus on vertical market orientation, which has proven to be an attractive strategy, with significant growth opportunities on the horizon.

Strong Sales and Operational Performance

Sales for the first quarter were $138 million, reflecting a robust performance across multiple verticals. The refueling C-store space, grocery market, and parking sectors saw significant growth, driven by increased project activity and strong demand. The acquisition of EMI in April 2024 has proven to be a strategic move, with the segment reporting record performance levels in its first quarter as part of LSI.

The company's Lighting segment, a key area of strength for LSI, experienced some headwinds due to project timing delays. However, the release of the new Velocity outdoor lighting product, showcasing advanced features and reduced installation time, is expected to generate significant returns for the company. This investment underscores LSI's commitment to innovation and expanding its product offerings.

Financial Highlights and Strategic Acquisitions

CFO, Jim Galeese, provided a detailed financial overview, highlighting strong cash flow and a healthy balance sheet. Adjusted net income for the quarter was $8 million, resulting in earnings per share of $0.26. The acquisition of EMI and its integration into LSI's operations have been progressing at an accelerated pace, with synergies expected to be harvested in the coming years.

Looking Ahead

Despite some challenges in project timing and market uncertainty, LSI Industries remains optimistic about its future prospects. The company's strategic acquisitions, focus on vertical market orientation, and commitment to innovation position it well for sustainable growth. With a robust pipeline of projects and a strong financial position, LSI Industries is poised to continue delivering profitable growth in line with its strategic objectives.

In conclusion, LSI Industries' fiscal first quarter results for 2025 demonstrate a solid foundation for future growth, driven by strategic acquisitions, operational excellence, and a commitment to innovation. The company's financial health and positive market outlook bode well for investors and stakeholders, as LSI Industries continues to build a stronger, more capable business for the future.