LSI Industries Q2 2025: Contradictions Unveiled on Margins, Product Launches, and Supply Chain Dynamics

Strong Financial Performance:
- LSI Industries reported fiscal second quarter sales above $147 million, with adjusted EBITDA above $13 million, and free cash flow of almost $9 million.
- This was driven by growth in the Display Solutions segment, resurgent demand in Grocery, and continued site implementations in refueling projects.

Display Solutions Segment Growth:
- The Display Solutions segment doubled total sales and achieved 50% organic growth, contributing significantly to the overall sales increase.
- This growth was due to strong contributions from specific customer programs in Mexico and Central America, and increased demand in the grocery vertical.

Refrigeration Business Transition:
- LSI successfully transitioned its refrigeration business from R448 to R290 products, meeting the EPA ruling changes.
- This transition aims to capitalize on a more sustainable and cost-effective solution for both LSI and its customers.

Integration of Recently Acquired EMI:
- The EMI acquisition has enhanced LSI's position with key customers, contributing to increased momentum and revenue growth.
- The integration has identified cross-selling opportunities, leading to improved performance and customer recognition of LSI's comprehensive solutions.