LSI INDUSTRIES REPORTS FISCAL 2026 FOURTH QUARTER AND FULL-YEAR RESULTS AND DECLARES QUARTERLY CASH DIVIDEND (Form 8-K)

LSI INDUSTRIES REPORTS FISCAL 2026 FOURTH QUARTER AND FULL-YEAR RESULTS

AND DECLARES QUARTERLY CASH DIVIDEND

CINCINNATI, August 20, 2026 - LSI Industries Inc. (Nasdaq: LYTS, "LSI" or the "Company") a leading U.S. based manufacturer of commercial lighting and display solutions, today reported financial results for its fiscal 2026 fourth quarter and full year ended June 30, 2026.

FISCAL 2026 FOURTH QUARTER RESULTS

FISCAL 2026 FULL YEAR RESULTS

LSI reported net sales of $234.6 million in the fourth quarter, an increase of 51% versus the prior year period, led by sustained growth in key vertical markets and the first full-quarter contributions from the acquisition of Royston Group ("Royston") on March 24, 2026. Excluding acquisition-related contributions, net sales increased 8% in the fourth quarter when compared to the year-ago period.

LSI reported fourth quarter net income of $6.9 million, or $0.18 per diluted share, including $3.0 million of acquisition-related expenses, while adjusted net income was $14.4 million, or $0.38 per diluted share.

The Company generated adjusted EBITDA of $25.7 million in the fourth quarter, an increase of 50% when compared to $17.1 million in the prior year quarter. Fourth quarter adjusted EBITDA margin rate increased 90 basis points sequentially versus the fiscal third quarter, driven by sustained operational discipline and a favorable margin contribution from the Royston acquisition.

For the twelve-month period ended June 30, 2026, LSI reported net sales of $689.4 million with adjusted earnings per diluted share of $1.25 compared to $1.07 in fiscal 2025. Fiscal 2026 sales include the partial year impact from the strategic acquisition of Royston.

For full-year fiscal 2026, LSI delivered margin expansion across adjusted operating income, adjusted net income, and adjusted EBITDA, driven by volume growth, strategic price actions, and productivity initiatives.

LSI generated Adjusted EBITDA of $69.7 million in fiscal year 2026, an increase of 27% versus the prior year, inclusive of an adjusted EBITDA margin rate of 10.1%, or 50 basis points above fiscal year 2025. A reconciliation of GAAP and non-GAAP financial results is included in this press release.

LSI generated free cash flow of $9.7 and $39.0 million for the fourth quarter and full year fiscal 2026, respectively. As of June 30, 2026, the Company had a ratio of net debt to proforma trailing twelve month adjusted EBITDA of 2.7x, and approximately $95 million of availability under its $350 million senior secured credit facility.

The Company declared a regular cash dividend of $0.05 per share payable on September 8, 2026, to shareholders of record on August 31, 2026.

MANAGEMENT COMMENTARY

"Fiscal 2026 was a transformational year for LSI, one in which we delivered record sales and profitability within our core business, while completing our largest acquisition to-date, with the purchase of Royston Group," stated James A. Clark, President and CEO of LSI. "Over the past year, we continued to expand our differentiated portfolio of integrated retail branding solutions across a growing roster of leading brands, while reinforcing our market-leading positions in key consumer environments, including refueling, grocery and quick-service restaurants, through a collaborative approach focused on elevating the consumer experience.

"Fiscal fourth quarter net sales increased materially versus the prior-year period, supported by a combination of organic growth and contributions from the Royston acquisition," stated Clark. "The addition of Royston has taken our vertical market strategy to a new level, creating unprecedented opportunities for commercial synergies that, over time, are expected to further demonstrate the power and durability of our value-compounding business model. To that end, adjusted net income increased nearly 40% versus the prior-year period in the fourth quarter, driven by a combination of volume growth, price discipline, and improved operational efficiency, consistent with our strategic focus.

"Our acquisition of Royston has further strengthened our differentiated value proposition across our vertical markets, creating a one-of-one platform that is generating strong enthusiasm among customers and partners for its ability to elevate the consumer experience and strengthen their brands in the marketplace," continued Clark. "We are well positioned to capitalize on incremental growth opportunities by expanding our share of business with existing customers while attracting new customers that recognize the many benefits of partnering with our integrated, one-of-one, solutions-based platform.

"Within our Display Solutions segment, net sales doubled from the previous year period, including 18% organic growth, when compared to the fiscal fourth quarter 2025. Display segment adjusted EBITDA margin rate increased to 12.4%, the highest level reached in nearly three years, and an increase of 180 basis points versus the year-ago period," stated Clark.

"Organic growth in Display Solutions for the fourth quarter was supported by strengthening demand across the grocery and refueling/c-store vertical markets. Within the grocery vertical, refrigerated and non-refrigerated display cases sales increased 21% year-over-year, as grocery customers continued to invest in store décor and an enhanced consumer shopping experience. Activity within this vertical has steadily improved over the past two years following the industry-wide pause related to the proposed merger of two large grocery chains, and we expect demand to remain elevated entering fiscal 2027.

"Across the refueling/c-store vertical, fourth quarter sales increased 16% versus the prior year quarter. Both outdoor print graphics and EMI store interior products produced double-digit growth. Project activity remains healthy across our multi-brand customer base, including both new store and renovation activity. In the quarter, LSI was awarded a multi-year program with a large oil company to renovate approximately 2,500 sites. The program includes renovation of all exterior branding elements and includes both products and services. This represents a new customer win for our business, with the breadth of our integrated One LSI solution set serving as a key differentiator in displacing long-standing incumbent suppliers.

"The integration of Royston continues to advance at an accelerated pace as we refine and deploy a unified customer-facing value proposition and go-to-market model. Royston fourth quarter sales declined modestly on a year-over-year basis, consistent with our expectations, as we narrow our strategic focus around a higher-value product/project mix. Importantly, several of Royston's largest c-store customers are in the initial phase of a multi-year renovation and new construction cycle, with project activity that is expected to ramp beginning in fiscal 2027 and continue throughout the next several years," stated Clark.

"Entering fiscal 2027, we anticipate a sustained, elevated pace of project activity within the Display Solutions segment. As has been the case in recent years, we also expect the timing of project activity will not be linear, as customers navigate site scheduling, permitting, and procurement requirements. Given a dynamic operating environment, we will continue to adapt and respond accordingly, while providing our customers with an integrated, on-stop solution that solves for the complexities of large-scale site construction and remodeling project management.

"Within Display Solutions, project activity remains elevated and order rates remain strong, with a book-to-bill of approximately 1.0x on strong sales," continued Clark. "Importantly, order rates do not include the $30 million refueling/c-store program award we received during the fourth quarter 2026.

"For our Lighting segment, fourth quarter sales increased 17% versus the fiscal third quarter but declined 3% when compared to the fiscal fourth quarter 2025, the result of a soft quarter for the automotive and QSR verticals, where project activity can be uneven throughout the fiscal year.

"For fiscal year 2026, Lighting segment sales increased 7%, with growth driven by increased penetration of national accounts, together with improved demand for outdoor area lighting," continued Clark. "Our recently launched V-LOCITY family of outdoor area lighting continues to gain market acceptance, with customers recognizing the industry leading specifications and performance afforded by the new product line. In addition, we are in the final development phase of our new Velocity Flood light fixture line, with initial sizes to be launched in the calendar year fourth quarter. The new Flood range expands our high performing Velocity series of products, further strengthening our outdoor range of products. Lighting fourth quarter orders were 5% above last year with a book-to-bill above 1.0."

Clark concluded, "During fiscal 2026, we built upon a strong foundation for profitable growth as we meaningfully expanded our capabilities, significantly increased our market share in key verticals, and continued to focus on driving a unique-to-market value proposition that has fundamentally redefined the retail branding solution category. With the addition of Royston, we're focused on realizing the benefits of scale, while leveraging a proven playbook that prioritizes on-plan execution. Our long-standing customer relationships, together with the trust and confidence customers place in the combined LSI and Royston brands, position us to become an even more valuable strategic partner and capture a greater share of wallet, over time. We're confident in the outlook for our business and look forward to continuing to create value with our customers, employees and shareholders in the years ahead."

FISCAL 2026 FOURTH QUARTER CONFERENCE CALL

A conference call will be held today at 11:00 A.M. ET to review the Company's financial results and conduct a question-and-answer session.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of LSI Industries' website at www.lsicorp.com. Individuals can also participate by teleconference dial-in. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software.

Details of the conference call are as follows:

Domestic Live: 877-407-4018

International Live: 201-689-8471

To listen to a replay of the teleconference, which subsequently will be available through September 3, 2026:

Domestic Replay: 844-512-2921

International Replay: 412-317-6671

Conference ID: 13761791

ABOUT LSI INDUSTRIES

Headquartered in Cincinnati, LSI is a publicly held company traded over the NASDAQ Stock Exchange under the symbol LYTS. The company manufactures advanced lighting, graphics, and display solutions across strategic vertical markets. The company's American-made products, which include non-residential indoor and outdoor lighting, print graphics, digital graphics, refrigerated and custom displays, help create value for customer brands and enhance the consumer experience. LSI also provides comprehensive project management services in support of large-scale product rollouts. The company employs approximately 3,000 people at 23 manufacturing plants in the U.S. and Canada. Additional information about LSI is available at www.lsicorp.com