LSI Industries (NASDAQ:LYTS) reported fiscal second-quarter results that surpassed Wall Street estimates, underpinned by a surge in demand for its lighting solutions and a significant strengthening of its balance sheet.
For the quarter ended Dec. 31, 2025, the Cincinnati-based manufacturer posted net sales of $147 million.
While revenue remained essentially flat compared to the previous year, the company successfully navigated a "challenging prior-year comparison" by offsetting a 10% decline in its Display Solutions segment with a 15% jump in Lighting sales.
The decline in display revenue was attributed to the grocery vertical returning to seasonal demand levels following a period of elevated, event-driven spending.
Profitability also remained resilient, with net income reaching $6.3 million, or $0.20 per diluted share.
On an adjusted basis, net income was $8.4 million, or $0.26 per share, ahead of the $0.22 consensus estimate.
The company’s Lighting segment was a primary engine of this performance, reporting improved adjusted EBITDA margins alongside its 15% revenue growth.
LSI also demonstrated high capital efficiency during the period, generating $23.3 million in free cash flow.