LSI Industries Targets 2x Leverage Within 12 to 18 Months

LSI Industries Inc. aims to bring its net debt-to-adjusted EBITDA ratio down to 2x within 12 to 18 months, after reporting a 2.6x ratio for fiscal first-quarter 2027. The company also plans to present an updated Fast Forward plan covering through 2032 in mid-December.

Net debt declined $14 million during the quarter. Revenue was approximately $226 million, adjusted EBITDA rose 41% to $22.2 million, and free cash flow was nearly $14 million.

Lighting sales fell 6% as the quick-service restaurant (QSR) business remained challenging and customers pushed back schedules. SignResource is targeting a fiscal second-quarter margin increase of more than 200 basis points compared with the first quarter.

LSI also wants to increase the number of solutions it provides to customers from two or three to five or six. Management cited a 3,000-store QSR award expected to extend into 2028.