LSI Industries (LYTS) Q2 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, January 22, 2026 astatine 11:44 AM CST 35 min read

Image source: The Motley Fool.

Thursday, January 22, 2026 astatine 11:00 a.m. ET

• President and Chief Executive Officer — James Clark

• Executive Vice President and Chief Financial Officer — James Galeese

Need a punctuation from a Motley Fool analyst? Email [email protected]

James Clark: Thank you, Jim, and bully morning, everyone. I admit you joining america today. This morning, we'll beryllium reviewing our 2nd 4th results for fiscal 2026. As you apt saw successful our net release, we delivered coagulated second-quarter results that were successful enactment with our expectations. Revenue was fundamentally level twelvemonth implicit twelvemonth astatine $147 cardinal portion profitability and escaped currency travel improved. Given the spot of the anterior twelvemonth comparisons, peculiarly wrong Display Solutions, I'm pleased however this 4th performed and however our teams executed passim the quarter.

Jim Galeese volition locomotion done the fiscal details successful a fewer minutes, but I privation to walk immoderate clip connected a fewer areas that I deliberation were important arsenic we determination into the 2nd fractional of the year.

As we've discussed previously, the 2nd 4th of past twelvemonth benefited from unusually beardown event-driven demand, astir notably successful the market vertical, pursuing the solution of a failed merger betwixt 2 ample market chains. The merchandise of pent-up request drove exceptional maturation of 100% successful our Display Solutions segments, with 50% of that being integrated maturation successful Q2 of past year. This request signifier successful groceries has returned to a much normalized level. And against that backdrop, level consolidated income and improved borderline represents coagulated execution. More importantly, we proceed to spot steadfast lawsuit engagement, progressive readying discussions, and expanding bid trends arsenic we exit the quarter.

Lighting delivered different beardown 4th with income maturation of 15% twelvemonth implicit twelvemonth and meaningful borderline expansion. This follows 18% maturation successful the archetypal quarter, and we're encouraged by the consistency of show crossed aggregate extremity markets. Several factors person contributed to the spot successful lighting, including the summation of aluminum poles to our alloy rod merchandise line, an summation successful ample task shipments, continued momentum successful our nationalist relationship strategy, and coagulated traction from caller merchandise introductions arsenic we stay focused connected merchandise vitality. As we exit the 2nd quarter, lighting orders were up astir 10% twelvemonth implicit year, resulting successful a publication to measure supra one. This gives america continued assurance arsenic we look ahead.

In Display Solutions, we maintained a precocious level of execution crossed respective ample multiyear lawsuit programs. Particularly successful the refueling area, convenience store, quick-serve retail, and casual eating edifice verticals. While revenues declined somewhat twelvemonth implicit twelvemonth owed to the anterior twelvemonth comparisons, orders improved sequentially and were up twelvemonth implicit twelvemonth supporting an improved backlog entering into the 3rd quarter. What's peculiarly encouraging is however the accidental acceptable wrong show solutions continues to evolve. Historically, overmuch of our maturation successful nutrient services has travel from quick-serve edifice customers. These programs often impact ample numbers of sites, sometimes hundreds astatine a time, with idiosyncratic merchandise values ranging from $20,000 to $40,000 per location.