Here's a brief analogy for LSI Industries (LYTS):

• They're like a combination of 'Acuity Brands' (a leading commercial lighting company) and 'Fastsigns' (a well-known sign company), but with national rollout capabilities and custom manufacturing for businesses like fast-food restaurants and gas stations.

• Non-residential Lighting Solutions: Manufactures and sells a variety of outdoor and indoor lighting fixtures for commercial, industrial, and institutional markets.
• Lighting Control Products: Provides integrated control systems such as sensors, photocontrols, dimmers, and Bluetooth systems to enhance lighting fixture functionality.
• Electronic Circuit Boards: Designs, engineers, and manufactures electronic circuit boards, assemblies, and sub-assemblies.
• Retail Display Solutions: Produces and installs a wide array of visual image and display elements, including printed graphics, digital signage, menu boards, display fixtures, and refrigerated displays.
• Program Management and Installation Services: Offers comprehensive services for display and signage rollouts, encompassing installation management, site surveys, permitting, and content management.

James A. Clark, President and Chief Executive Officer

James A. Clark has served as President and Chief Executive Officer of LSI Industries Inc. since November 2018. Prior to joining LSI, he was President & CEO of Alliance Tire Americas, Inc. from 2014 to 2018. During his tenure, Alliance Tire Americas, Inc., a KKR portfolio company, achieved significant organic growth, which contributed to KKR's sale of Alliance Tire Group to Yokohama Rubber Company for $1.2 billion. He also served as Managing Director of Dunes Point Capital, LLC from 2010 to 2013, and held roles at Rexel Holdings USA, United Technologies Corporation, and GE Company.

James E. Galeese, Executive Vice President and Chief Financial Officer

James E. Galeese was appointed Executive Vice President and Chief Financial Officer of LSI Industries Inc. in June 2017. Previously, he served as Vice President, Chief Financial Officer, and a Director of Universal Trailer Holding Corporation from 2014 to 2017. Universal Trailer was a Corporate Partners Private Equity portfolio company. Before that, he spent 16 years with Philips Electronics NV, where his roles included CFO of the North America Consumer Electronics business and the North America Lighting business. He also held financial leadership positions at Square D Company / Schneider Electric.

Thomas A. Caneris, Executive Vice President of Human Resources and General Counsel

Thomas A. Caneris joined LSI Industries in August 2019. He is responsible for the company's Human Resources and Legal functions. Mr. Caneris brings over 30 years of experience as a practicing attorney and senior advisor in both public and private company settings, and previously served as Senior Vice President at PharMerica Corporation.

Michael A. Prachar, Chief Marketing Officer

Michael A. Prachar joined LSI Industries in March 2019 as Vice President, Lighting Products, and was named Chief Marketing Officer in December 2019. He oversees Commercial Marketing, Product Management, Technical Design Services, and Communications and Public Relations functions. Prior to LSI, he was Senior Director, Global Offering Management for Honeywell, and held marketing leadership roles with Milacron, Rexnord Industries, Emerson, and Ingersoll Rand.

Ronald S. Stowell, Chief Financial Officer Emeritus and Treasurer

Ronald S. Stowell transitioned to Chief Financial Officer Emeritus and Treasurer in June 2017, after serving as LSI Industries' Chief Financial Officer for nearly twenty-five years. He joined LSI Industries in 1992 as VP, CFO & Treasurer. Prior to his time at LSI, he was a Corporate Controller at Essef Corporation from 1985 to 1992.

Key Risks to LSI Industries (LYTS)

1. Sensitivity to Economic Cycles and Capital Expenditure Trends: LSI Industries' business is heavily reliant on capital expenditures by its customers in non-residential sectors such as petroleum/convenience, quick-service restaurants, retail, and commercial facilities. Demand for new lighting installations, display solutions, and renovation projects is discretionary and highly sensitive to overall economic conditions, business confidence, and the availability of capital for investment. An economic downturn, recession, or reduced capital spending by customers could significantly decrease demand for LSI's products and services, negatively impacting its revenue and profitability.

2. Rapid Technological Advancements and Product Obsolescence: Both the non-residential lighting and display solutions markets are subject to continuous and rapid technological innovation. In the lighting segment, this includes advancements in LED efficiency, smart lighting controls, and integrated systems. In display solutions, technology evolves in areas such as digital signage resolution, interactivity, and material science. Failure by LSI Industries to keep pace with these technological changes, invest sufficiently in research and development, or adapt its product offerings to evolving industry standards and customer preferences could lead to its products becoming obsolete or less competitive, thereby affecting market share and financial performance.

LSI Industries (LYTS) is poised for future revenue growth over the next 2-3 years, driven by several key factors across its Lighting and Display Solutions segments, as well as strategic acquisitions.

One significant driver is the **continued growth within its Lighting segment**, fueled by national accounts and new product introductions. The Lighting segment has demonstrated strong performance, with a 15% increase in Q2 2026, marking its third consecutive quarter of double-digit growth. This trend is further supported by an 18% increase in sales during Q1 2026 compared to the prior year.

Another key growth driver stems from **increased demand and a strengthening backlog in the Display Solutions segment**, particularly within the refueling/convenience store and grocery verticals. In Q2 2026, Display Solutions orders experienced year-over-year growth, resulting in a book-to-bill ratio of 1.2 and building a stronger backlog for the subsequent quarter. The company has also noted meaningful traction in the casual dining and premium food services markets, with substantial project values per site. Furthermore, strengthened demand in international markets such as Mexico and island regions is expected to persist into 2027.

**Strategic acquisitions and their successful integration** are also anticipated to drive considerable revenue growth. The acquisition of Canada's Best Holdings in March 2025 delivered an exceptional Q1 2026, opening up opportunities within the expanding Canadian market across various verticals, including banking and financial institutions. More recently, LSI Industries announced the transformational acquisition of Royston Group in February 2026. This acquisition, valued at $325 million, is expected to accelerate LSI in achieving its fiscal 2028 revenue and margin targets two years ahead of schedule, projecting approximately $864 million in pro forma revenue and $95 million in Adjusted EBITDA for the combined entity.

Lastly, LSI Industries' **vertical market approach and a robust pipeline of new construction and remodel opportunities** contribute to its growth prospects. The company's focus on priority verticals has led to outperformance compared to broader non-residential construction indices, indicating a larger accessible market. This strategic focus, coupled with a healthy pipeline for new construction and remodel projects, positions LSI for sustained expansion.

Share Repurchases

• LSI Industries announced a $15 million share repurchase program.

Share Issuance

• In February 2026, LSI Industries priced a public offering of 4,600,000 shares of common stock at $19.75 per share, with underwriters exercising an option for an additional 690,000 shares.
• The net proceeds from this offering, approximately $98.1 million, are intended to fund a portion of the Royston Group acquisition, repay related borrowings, and for general working capital.
• As part of the $325 million acquisition of Royston Group, $5 million of the purchase price is to be paid in LSI common stock.

Outbound Investments

• In May 2021, LSI Industries acquired JSI Store Fixtures for $90 million in an all-cash transaction, expanding its product offerings in the grocery, convenience, and specialty store verticals.
• LSI Industries acquired EMI Industries for $50 million in cash in April 2024, broadening its retail fixture and food equipment capabilities.
• In March 2025, LSI Industries acquired Canada's Best Holdings (Canada's Best Store Fixtures) for an all-cash purchase price of $24.0 million, with a potential $7.0 million performance earnout, expanding its turnkey retail fixtures and custom display solutions in Canada.
• LSI Industries entered into a definitive agreement in February 2026 to acquire the privately held Royston Group for $325 million, comprising $320 million in cash and $5 million in LSI common stock, expected to close in the third quarter of fiscal year 2026.

Capital Expenditures

• Capital expenditures were approximately $2.0 million in both fiscal years 2021 and 2022.
• For fiscal year 2025, capital expenditures were $3.465 million, and for fiscal year 2024, they were $5.388 million.
• LSI Industries prioritizes capital allocation toward organic expansion, acquisition-related investments, and debt reduction, with a focus on innovation, operational excellence, and employee development.