LSI (LYTS) Q3 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 23, 2026 astatine 12:47 PM CDT 30 min read

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Thursday, April 23, 2026 astatine 11 a.m. ET

• Chief Executive Officer — James Clark

• Executive Vice President & Chief Financial Officer — James Galeese

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James Clark: Thank you, Jim. Good morning, everyone, and convey you for joining america today. Before Jim Galeese walked done the numbers for Q3, I wanted to instrumentality a fewer minutes to measurement backmost and framework what you're seeing this 4th successful the discourse of the travel we've been on. When I joined LSI successful precocious 2018. We were a institution doing conscionable nether $300 cardinal successful gross with EBITDA margins successful the debased azygous digits and a banal trading astir $2.5. We were fundamentally a lighting company. A bully one, but conscionable a lighting company. The question astatine that constituent was whether we could physique thing much durable, much differentiated and yet much valuable. .

In 2019, we introduced our 2025 program with a extremity of reaching $500 cardinal successful gross and 10% of EBITDA by 2025. We achieved that program aboriginal successful fiscal 2023, and that gave america the assurance to determination guardant with our Fast Forward plan, targeting $800 cardinal successful gross and $100 cardinal successful EBITDA by 2028. But the much important alteration was not conscionable successful the numbers. It was successful however we thought astir the business. We made a deliberate determination to signifier astir vertical markets alternatively of products. That changes however you operate. however you put and however you grow. It besides changes however you amusement up with the customers.

We chose markets wherever determination is simply a sustained request to reinvest successful the carnal situation driven by the user experience. When 1 marque raises the bar, the competitors person to respond. That creates an ongoing rhythm of investment, and that dynamic continues to enactment successful our favor. As we've discussed before, we turn successful 2 ways: first, by adding caller vertical markets; and second, by expanding what we supply wrong the markets we already serve. When we tin supply lighting, display, mill works, graphics, and programme absorption arsenic a azygous integrated solution, we go much applicable to the customer. We enactment successful much of the projects, and we physique deeper relationships implicit time.

That is wherever we make existent worth for our customers and for our shareholders. Over the past 5 years, we've deployed much than $500 cardinal crossed 4 acquisitions, including Royston. Each 1 has added the capableness and strengthened our presumption successful the verticals we serve. Just arsenic important, we person done this successful a disciplined way, supported by the currency travel of the business. We've been precise intentional astir what we buy, however we integrate it and however it fits into our broader platform. Today, with astir 3,000 radical successful LSI and 23 U.S.-based manufacturing locations and a pro forma gross tally complaint approaching $900 million, the level we acceptable retired to physique is taking shape.