- LSI Industries Inc. (LYTS, Financial) reports a 22% increase in third-quarter net sales to $132.5 million for fiscal 2025.
- Adjusted diluted EPS stood at $0.20, despite net income falling to $3.9 million.
- Company acquired Canada's Best Holdings and declared a $0.05 quarterly dividend per share.
LSI Industries Inc. (LYTS), a major player in the U.S. market for lighting and display solutions, has announced its financial results for the third quarter of fiscal 2025, showcasing a robust performance despite volatile market conditions. The company reported a 22% year-over-year increase in net sales, totaling $132.5 million for the quarter ending March 31, 2025.
The company achieved an adjusted diluted earnings per share (EPS) of $0.20. However, net income was reported at $3.9 million, translating to $0.13 per diluted share. LSI also delivered an adjusted EBITDA of $11.3 million, equivalent to 8.5% of net sales for the quarter.
One of the significant developments for LSI in the third quarter was the strategic acquisition of Canada's Best Holdings for $24 million, which enhances its footprint and capabilities in the growing Canadian market. This acquisition is part of LSI's ongoing efforts to expand its geographical reach and vertical market penetration, key tenets of the company's Fast Forward 2028 growth plan.
In terms of liquidity, LSI generated $4.7 million in free cash flow, maintaining a healthy balance sheet with a net debt to trailing twelve-month adjusted EBITDA ratio of 1.0x. This financial health allows the company to pursue further expansion and capital allocation strategies.
Additionally, LSI has declared a quarterly cash dividend of $0.05 per share, payable on May 13, 2025, to shareholders of record on May 5, 2025, underscoring the company's commitment to returning value to shareholders.
According to James A. Clark, President and CEO, the robust sales growth was driven largely by the Display Solutions segment, which saw a 70% year-over-year increase, buoyed by organic growth and the acquisition of EMI in April 2024. Looking ahead, LSI remains focused on aligning its supply chain strategies in response to new tariff developments, ensuring continuity in customer deliveries.
