Start here if you're new
what it is
LSI sells the lights, signs, and display pieces that make gas stations, retailers, and commercial sites look finished.
how it gets paid
Last year Lsi Industries made $573M in revenue.
why it's growing
Revenue grew 269.8% last year. Revenue rose 20% vs. prior year, while EPS climbed 115%.
what just happened
LSI put up a strong quarter, with revenue at $155M and EPS jumping to $0.43.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
23.8x trailing p/e — priced about right
1.0% dividend yield — cash in your pocket every quarter
9.0% return on capital — nothing to write home about
xvary composite: 56/100 — below average
What they do
LSI sells the lights, signs, and display pieces that make gas stations, retailers, and commercial sites look finished.
LSI wins when your customer wants one vendor for lighting, signage, and visual merchandising instead of juggling three. That matters because LSI already does $573 million in annual revenue and employs 1,900 people, which gives it enough scale to bundle projects and keep your rollout moving. Switching costs (pain of changing suppliers) → replacing one part means reworking the whole install plan → so your customer usually sticks with the company that can handle the package.
How they make money
$573M
annual revenue · their business grew +269.8% last year
total revenue
$573M
+269.8%
The products that matter
commercial and industrial lighting
Lighting Solutions
$430M · about 75% of the revenue shown here
it's the larger business at $430M, so when construction, retrofit, or project timing softens, you feel it here first.
core revenue driver
retail displays and branded environments
Display Solutions
$143M · about 25% of the revenue shown here
this $143M segment serves restaurants and retail chains, which means customer capex timing can move quarterly results faster than you might like.
customer-spend sensitive
acquired scale and customer reach
Royston Group
$325M acquisition
this isn't a side note. the $325M deal is the bridge between a $573M operating base on this page and a $2B revenue estimate next year.
integration decides the story
Key numbers
8.7%
operating margin
This is the whole knife edge. LSI is profitable, but not by enough to shrug off a messy quarter.
$573M
ttm revenue
That tells you LSI is real scale for a small cap, not a story stock pretending to be a business.
$51M
long-term debt
Debt is only 7% of capital today, which keeps the current balance sheet from being the problem.
23.8x
trailing p/e
You are paying a market-like multiple for a business with single-digit operating margins and average risk.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $51M (7% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for LYTS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
LSI put up a strong quarter, with revenue at $155M and EPS jumping to $0.43.
Revenue rose 20% vs. prior year, while EPS climbed 115%. Gross margin hit 50.1%, which tells you mix and execution were both working.
$155M
revenue
$0.43
eps
50.1%
gross margin
the number that mattered
Gross margin at 50.1% mattered most because this company only posts an 8.7% operating margin over time, so mix improvement does real work.
source: company earnings report, 2026
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What could go wrong
the top risk is making the $325M Royston acquisition earn its keep.
high
acquisition integration
the $325M Royston purchase now sits at the center of the story. when you compare it with the $573M operating revenue shown on this page, you can see how much execution is embedded in the outlook.
if integration slips, the $2B revenue narrative gets revised down fast.
med
organic demand may stay muted
the latest quarter came in at $147M in sales, flat from last year. that means the base business is not giving management much margin for error while the deal work is happening.
another flat or weaker quarter would make the multiple harder to defend.
med
margin pressure
an 8.7% operating margin is respectable, but not luxurious. input costs, freight, project delays, or pricing pressure can eat into that buffer quickly.
with return on capital at 9.0%, even modest compression matters.
low
small-cap volatility
price stability is only 30 / 100. small names do not need a catastrophe to swing hard — one estimate cut or one soft quarter can do the job.
you should expect the stock to react harder than the business changes in real time.
the risk stack is pretty clear: a $325M integration, a business that just posted $147M in flat quarterly sales, and only an 8.7% operating margin to absorb mistakes.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
q3 fy2026 earnings report
estimated for april 23, 2026. this is the next real checkpoint for the revenue story.
revenue bridge
how management explains the jump from $573M to $2B
that gap is the whole page in one sentence. you want a clean bridge, not hand-waving.
integration
Royston retention and margin commentary
new scale is useful only if customers stay and the combined margin does not slip below the current 8.7% operating level.
end markets
restaurant and retail project timing
display demand can move with customer remodel cycles. if those budgets pause, the smaller segment still leaves a mark.
Analyst rankings
earnings predictability
40 / 100
low visibility. in human-speak, analysts do not think this is a clean, easy-to-model story.
risk rank
3
middle-tier safety. safer than the truly fragile names, but not the kind of stock you forget about for a year.
price stability
30 / 100
the chart can get jumpy. small caps with changing estimates tend to do that.
source: institutional data
Institutional activity
institutional ownership data for LYTS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$20
current price
n/a
target midpoint · n/a from current
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