LSI Industries shares surge 11.63% premarket after Q2 results show improved profitability, $23.3M free cash flow, and debt reduction.

LSI Industries (NASDAQ: LYTS) surged 11.63% in premarket trading following the release of its fiscal 2026 second-quarter results, which highlighted improved profitability, robust free cash flow, and positive guidance. The company reported adjusted earnings per share of $0.26, exceeding prior estimates, and generated $23.3 million in free cash flow, reducing debt by $22.7 million. The Lighting segment drove growth with 15% sales increases and margin expansion, while management signaled continued momentum in the second half of 2026. Strong order growth, a resilient balance sheet, and disciplined cost management further bolstered investor confidence. The premarket surge reflects optimism over LSI’s operational execution and strategic positioning for organic growth and potential acquisitions.