LSI Industries Inc. (NASDAQ: LYTS) shares were up about 2.5 percent near $19.80 in early trading on Thursday, after the lighting and display solutions maker reported second-quarter fiscal 2026 results that broadly met expectations. The stock has traded in a 52-week range of roughly $13.77 to $25.50, and has shown modest resilience after a range contraction from earlier highs.
Quarterly Results
LSI reported net sales of $147.0 million for the quarter ended Dec. 31, 2025, essentially flat from $147.7 million in the same period a year earlier. Gross revenue performance reflected 15 percent growth in the Lighting segment offset by a 10 percent decline in Display Solutions sales as demand normalized in certain vertical markets.
The company posted net income of $6.3 million, or $0.20 per diluted share, compared with $5.6 million, or $0.18 per share in Q2 2025. Adjusted earnings per share were $0.26, slightly below some analyst estimates of around $0.27. Adjusted EBITDA was $13.4 million, or 9.1 percent of sales, and free cash flow was $23.3 million, supporting the company’s ongoing debt reduction.
Segment and Margin Trends
Lighting segment performance drove the overall revenue result, with double-digit unit growth and modest margin expansion. Display Solutions results reflected normalized activity following elevated prior-year seasonal demand. Operating margins and adjusted EBITDA margins were largely in line with recent trends, with slight sequential improvement.
Year-Over-Year and Six-Month Context
For the six months ended Dec. 31, 2025, LSI posted net sales of $304.3 million, up about 6 percent from the prior year period, and net income of $13.6 million, compared with $12.3 million a year earlier. The results reflected continued year-over-year improvement in the first half of fiscal 2026, driven in part by Lighting segment strength.
Capital Return and Dividend
LSI declared a quarterly cash dividend of $0.05 per share, payable Feb. 10, 2026 to holders of record on Feb. 2. The company also reduced total debt by approximately $22.7 million during the quarter, lowering leverage.
Analyst Actions
At the time of reporting there were no widely reported analyst upgrades or downgrades tied directly to today’s earnings release. Prior to the release, some analysts had maintained Buy ratings with longer-term price targets above current levels.
