LSI Industries (LYTS) Q2 Non-GAAP EPS Beats Expectations with $0.26
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Source: seekingalpha
- Earnings Beat: LSI Industries reported a Q2 Non-GAAP EPS of $0.26, exceeding expectations by $0.05, indicating ongoing improvement in profitability and boosting investor confidence.
- Slight Revenue Decline: Revenue decreased by 0.5% year-over-year to $147 million but surpassed market expectations by $6.89 million, demonstrating the company's resilience in a competitive market.
- Strong Cash Flow: The company generated free cash flow of $23.3 million, showcasing effective cash management that supports future investments and shareholder returns, thereby reinforcing financial stability.
- Dividend Announcement: LSI declared a regular cash dividend of $0.05 per share, payable on February 10, 2026, reflecting the company's commitment to shareholders and its stable cash flow situation.
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Analyst Views on LYTS
Wall Street analysts forecast LYTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LYTS is 27.50 USD with a low forecast of 25.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 21.530
Low
25.00
Averages
27.50
High
30.00
Current: 21.530
Low
25.00
Averages
27.50
High
30.00
About LYTS
LSI Industries Inc. is a producer of non-residential lighting and retail display solutions. The Company operates through two segments: Lighting and Display Solutions. The Lighting Segment manufactures, markets, and sells outdoor and indoor lighting fixtures and control solutions in the vertical markets: refueling and convenience store, parking lot and garage, quick-service restaurant, retail, grocery and pharmacy, automotive dealership, sports court and field, and warehouse. It services these markets through multiple channels: project business sold through electrical distributors and agents and shipped directly to the customer; standard products sold to and stocked by distributors, and direct to end-use customers. The Display Solutions Segment also manufactures, sells and installs exterior and interior visual image and display elements, including printed graphics, structural graphics, digital signage, menu board systems, refrigerated displays, and custom display elements.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
LSI Industries (LYTS) Reports Q2 Net Income Rise to $8.4M, Shares Surge 14.08%
- Sales Stability: LSI's net sales for Q2 ended December 31 reached $147 million, declining less than 1% year-over-year, demonstrating resilience in its diversified solutions model despite the normalization of event-driven grocery sales from the previous year.
- Lighting Business Growth: The lighting segment saw a notable 15% increase in sales, serving as a key growth driver for the company and indicating strong potential in a competitive market.
- Profitability Improvement: LSI's adjusted net income rose slightly to $8.4 million, or $0.26 per share, surpassing Wall Street's estimate of $0.22, reflecting enhanced profitability amid cost inflation pressures due to disciplined pricing and expense controls.
- Cash Flow and Investment: The company generated $23.3 million in free cash flow during the quarter, which was utilized for debt repayment and will support organic growth investments and potential value-creating acquisitions, highlighting its strategic growth plans for the future.
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LSI Industries (LYTS) Reports Flat Revenue of $147 Million in Q2 2026 with Improved Profitability
- Revenue and Profitability: LSI Industries reported flat revenue of $147 million in Q2, with adjusted earnings per share at $0.26, indicating improved profitability and cash flow despite no year-over-year growth.
- Lighting Segment Growth: The Lighting segment achieved a 15% year-over-year sales increase, driven by large project shipments and new product introductions, with orders up approximately 10% year-over-year, signaling strong market demand and potential for continued performance growth.
- Display Solutions Performance: Although revenues in Display Solutions declined slightly, orders improved both sequentially and year-over-year, particularly in casual dining and premium food services, showcasing strong market potential and a growing backlog.
- Financial Health: Free cash flow exceeded $23 million, with debt reduced by $22.7 million, resulting in a net leverage ratio of 0.4, enhancing the company's capital allocation flexibility and supporting future investments and growth.
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