Lsi Industries (LS2) Q1 2027 Earnings Report
DE:LS2 Q1 2027 EPS Results
- Actual EPS
- EUR 0.28
- Consensus EPS
- EUR 0.28
- Beat/Miss
- Met expectations
- One Year Ago EPS
- EUR 0.28
DE:LS2 Q1 2027 Revenue Results
- Actual Revenue
- EUR 201.47M
- Expected Revenue
- EUR 200.71M
- Beat/Miss
- Beat by +EUR 760.92K
- YoY Revenue Growth
- +43.63%
Earnings Announcement Details
- Quarter
- Q1 2027
- Date
- 11/05/2026
- Time
- Before Open
- Conference Call
- Thursday, November 5, 2026
Lsi Industries's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q1 2027 Earnings Call Audio
Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
The call was positive overall. LSI reported strong revenue, adjusted EBITDA and free cash flow growth, made progress integrating Royston, expanded customer programs and reduced leverage. These positives were tempered by continued softness in Lighting and QSR, delayed project schedules, inflation-related customer budget constraints and an early-stage Carter partnership.
Management expects the 2,500-site renovation program to build through fiscal '27 and into fiscal 2028; the approved 3,000-store QSR interior renovation program is expected to begin late in the third quarter fiscal 2027 and continue over approximately 3 years, with the call also describing it as running through late third quarter, early Q4 of '27 and into 2028 and over the next 3-plus years. SignResource is targeting a 200-plus basis point increase for fiscal Q2 over Q1, while the Collingwood consolidation is expected to be completed by the end of the fiscal year and generate over $1 million of annual cost savings, alongside $1 million of incremental procurement savings. LSI expects leverage of 2x and lower within the next 12 to 18 months, remains focused on reaching its 12.5% EBITDA goal, and plans to roll out an updated Fast Forward plan in mid-December, let's say, 12, 15, 16, somewhere in that bracket, extending the 2028 plan to 2032.
- Strong First-Quarter Financial PerformanceRevenue was approximately $226 million, up 44% year over year, reflecting the addition of Royston. Adjusted EBITDA increased 41% to $22.2 million, and free cash flow was nearly $14 million, or $13.8 million.
- Royston Integration and Performance ProgressRoyston delivered sequential sales growth of 8% and a 100 basis point improvement in adjusted EBITDA margin. All three Royston businesses achieved pro forma sales growth versus the prior-year quarter, and the company said initiatives to improve operating efficiency and commercial execution are beginning to deliver benefits.
- Positive Customer Response to Category of One InitiativeLSI formally introduced its Category of One initiative at the NACS Convention. Management said the response from large convenience-store and refueling customers was extremely positive, with customer discussions becoming broader and more strategic.
- Refueling and Convenience-Store GrowthRefueling and convenience-store sales increased approximately 5% during the quarter, supported by activity across several large customers. The 2,500-site renovation program is progressing as planned, with activity expected to build through fiscal 2027 and into fiscal 2028.
- Additional Convenience-Store OpportunitiesLSI is working with another major convenience-store chain on a potentially significant renovation program, currently in the store-concept development phase. Management also said the company began renovation work for the 2,500-site award and added signage through an early Royston cross-selling win.
- Grocery Order Growth and Additional Share AwardGrocery order activity increased 12% during the quarter, led by large chains. The nation's largest retailer completed its line reviews for the next calendar year, and LSI expects to be awarded additional product share.
- Display Solutions Orders and Backlog IncreasedAcross Display Solutions, overall orders and pro forma backlog increased 4% compared with the prior-year quarter, as project-release activity continued in the company's two largest verticals.
- Large QSR Renovation AwardA large QSR customer approved a 3,000-store interior renovation program and selected LSI as one of three providers. The program is expected to begin late in fiscal third quarter 2027 or early in fiscal fourth quarter and continue for approximately three years. LSI will provide project-management resources.
- Lighting Gross-Margin ImprovementDespite lower Lighting volume, gross margin improved through pricing and cost-management discipline. Year-over-year Lighting gross margin increased 10 basis points as selling prices were aligned with current costs.
- Operational Efficiency and Facility ConsolidationLSI is consolidating its Collingwood, Ontario manufacturing operation into its Canada's Best facility near Toronto. The transition is expected to be completed by the end of the fiscal year and generate more than $1 million in annual savings.
- Procurement Savings InitiativeThe company has identified and begun implementing $1 million in incremental procurement savings across key commodity areas, with management stating that this is only a start.
- SignResource Margin ImprovementAll three Royston brands, including SignResource, realized improved margins. LSI is targeting a 200-plus basis point increase in SignResource margin for fiscal second quarter compared with fiscal first quarter.
- Debt Reduction and Improved LeverageFirst-quarter free cash flow reduced net debt by $14 million. In the six months since the Royston acquisition, LSI has reduced net debt by over $23 million, resulting in net debt to pro forma trailing-twelve-month adjusted EBITDA of 2.6x. Management continues to expect leverage of 2x or lower within the next 12 to 18 months.
- ADAPT Services Business ExpansionADAPT Services has grown from a $10 million business three years ago to a more than $30 million business today. The service provides project management, permitting, insurance coordination and scheduling, and LSI has begun integrating its capabilities with Royston's similar service offering.
- Continued New-Product DevelopmentManagement said product development remains a vital part of the strategy. LSI continues to release more than 20 new Lighting products per year, develop new materials and processes in Display Solutions, and implement technology upgrades and efficiency improvements in refrigerated products.
- Updated Long-Term Strategic PlanLSI plans to present an updated Fast Forward strategic plan in mid-December. Management said the update will extend the 2028 plan to 2032 rather than abandon it, with a continued focus on operational efficiency, customer share of wallet and long-term shareholder value.
- Focus on 12.5% EBITDA Margin ObjectiveManagement said facility consolidation, better asset utilization, bringing work in-house and other operational initiatives are intended to support the company's objective of reaching a 12.5% EBITDA margin under the Fast Forward plan.
DE:LS2 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2027 (Q2) | 0.24- | 0.23 | ― | ― |
| Nov 05, 2026 | 2027 (Q1) | 0.280.28 | 0.28 | 0.00% (+0.00) | |
| Aug 20, 2026 | 2026 (Q4) | 0.310.34 | 0.3 | 11.76% (+0.04) | |
| Apr 23, 2026 | 2026 (Q3) | 0.160.25 | 0.18 | 40.00% (+0.07) | |
| Jan 22, 2026 | 2026 (Q2) | 0.180.23 | 0.23 | 0.00% (+0.00) | |
| Nov 06, 2025 | 2026 (Q1) | 0.250.28 | 0.23 | 19.23% (+0.04) | |
| Aug 21, 2025 | 2025 (Q4) | 0.190.30 | 0.21 | 41.67% (+0.09) | |
| Apr 24, 2025 | 2025 (Q3) | 0.160.18 | 0.19 | -4.76% (-0.01) | |
| Jan 23, 2025 | 2025 (Q2) | 0.180.23 | 0.19 | 23.81% (+0.04) | |
| Nov 07, 2024 | 2025 (Q1) | 0.190.23 | 0.26 | -10.34% (-0.03) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
