LSI Industries Inc. (LYTS): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect exactly how LSI Industries Inc. (LYTS) pulled off a strong fiscal year 2025, netting $573.4 million in sales split between its Display Solutions and Lighting segments, which generated $34.7 million in Free Cash Flow. Honestly, seeing those numbers is one thing, but understanding the engine behind it-the strategic blueprint-is what matters for your analysis. I've mapped out their entire operation using the Business Model Canvas, showing you everything from their 19 manufacturing plants and R&D spend of $3.3 million to their key partnerships and the integration of acquisitions like CBH. Dive in below to see the precise structure that drives their turnkey solutions for everyone from C-stores to national banks, and figure out if this model is built for the next cycle.

LSI Industries Inc. (LYTS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships LSI Industries Inc. relies on to deliver its lighting and display solutions, especially as they integrate recent strategic moves. These aren't just vendors; they are critical to hitting those growth targets we saw in fiscal 2025.

For strategic suppliers of raw materials and components, specific partner names and their 2025 contract values aren't public, but the financial results show the environment they operate in. For instance, in fiscal 2025, LSI Industries Inc. reported record Net Sales of $573.4 million.

The company's commitment to brand visibility through sports marketing is clear with the renewal of its relationship with USA Pickleball. LSI Industries Inc. renewed its role as an Official Lighting Sponsor of USA Pickleball in May 2025, continuing a collaboration that helps promote their advanced lighting technologies designed for pickleball courts.

Technology partners for smart lighting and digital signage are crucial, though specific partnership agreements aren't detailed. The company's overall diversification shows where these technologies are being deployed. In fiscal 2025, the Display Solutions segment, which heavily involves digital signage, generated net sales of $325.0 million, a significant 57% increase year-over-year, while the Lighting Segment generated $248.4 million in net sales.

The acquisition of Canada's Best Holdings (CBH) is a prime example of a key partnership/inorganic growth move to gain market access. LSI Industries Inc. completed the acquisition of CBH on March 11, 2025. The transaction involved an all-cash purchase price of USD $24.0 million, with a $7.0 million performance-based earnout potential, though another filing noted a total consideration of $32.9 million.

Here's a quick look at the financial scale of that strategic bolt-on acquisition:

CBH became part of LSI's Display Solutions segment starting in fiscal third quarter 2025. To be fair, this acquisition, along with EMI Industries (acquired April 2024), helped drive the Display Solutions segment's sales to $325.0 million in fiscal 2025.

For the lighting segment sales, LSI Industries Inc. leverages a network of independent representatives and distribution partners to serve national retail chains and industrial accounts. While the exact revenue percentage flowing through wholesale distributors for the lighting segment in fiscal 2025 isn't explicitly broken out, the overall Lighting Segment net sales for the full fiscal year 2025 were $248.4 million.

• Lighting Segment Net Sales (FY 2025): $248.4 million.
• Lighting Segment Net Sales (Q4 FY 2025): $72.7 million, an increase of 12% year-over-year.
• LSI Industries Inc. employs approximately 2,000 people at 19 manufacturing plants in the U.S. and Canada.

Finance: draft 13-week cash view by Friday.

LSI Industries Inc. (LYTS) - Canvas Business Model: Key Activities

You're looking at how LSI Industries Inc. (LYTS) actually makes its money and keeps the engine running, which, as of late 2025, is heavily weighted toward custom display solutions alongside its traditional lighting business. The core activity is definitely the design and manufacturing of LED lighting and display solutions for national brands across key verticals like refueling/c-store, grocery, and retail chains.

For product innovation, LSI Industries Inc. dedicates resources to staying ahead in LED technology and digital graphics. You must account for the investment here; for fiscal year 2025 (FY25), the company allocated $3.3 million toward Research and Development (R&D). This spend supports expanding their LED and digital product portfolios, which is crucial for maintaining that technology-forward position. Honestly, in this space, if you aren't innovating, you're falling behind fast.

A major recent activity has been the integration of acquisitions to unlock cross-selling. LSI Industries Inc. has been methodically consolidating the display market, adding Canada's Best Holdings (CBH) in March 2025 and EMI Industries in April 2024. The goal here is to create a leading retail display solutions platform across North America capable of serving multi-national clientele with cross-border operations. The strategy is to apply the LSI playbook to these new entities, driving efficiencies and creating value through shared resources.

Here's a quick look at the recent acquisition activity that drives this integration effort:

The company also focuses heavily on comprehensive project management and installation services. This is key for their large custom projects, where they manage everything from concept to installation for multi-site rollouts. This turnkey approach is a major differentiator, especially when dealing with national chains that need consistency across hundreds of locations. For the full fiscal year 2025, LSI Industries Inc. closed with record sales of $573 million, showing the scale at which these projects are being executed.

Finally, LSI Industries Inc. is constantly managing a complex, North American supply chain. With approximately 2,000 employees spread across 19 manufacturing plants in the U.S. and Canada, maintaining continuity is a daily activity. The teams showed resilience in FY25 by proactively planning through global supply chain and tariff challenges to ensure customer continuity. This operational agility helps support the strong organic growth seen, such as the 14% organic net sales increase in Q2 FY25.

The operational focus involves several critical execution elements:

• Delivering on the integrated solutions strategy across Lighting and Display segments.
• Maintaining a healthy balance sheet, exiting FY25 with a net debt to TTM Adjusted EBITDA ratio of 1.0x.
• Ensuring product quality, which is valued by architects, engineers, distributors, and contractors.
• Accelerating the realization of cross-selling opportunities between legacy LSI and acquired businesses like EMI and CBH.

Finance: draft 13-week cash view by Friday.

LSI Industries Inc. (LYTS) - Canvas Business Model: Key Resources

You're looking at the core assets LSI Industries Inc. (LYTS) relies on to deliver its lighting and display solutions. These aren't just line items; they are the physical and human capital underpinning their operations as of late 2025.

The foundation of LSI Industries Inc. (LYTS)'s production capability rests on a significant physical footprint, which includes 19 manufacturing plants spread across the U.S. and Canada. This network supports the production of their integrated lighting and display solutions. Furthermore, the company maintains an intellectual property portfolio specifically covering their lighting and display technology, which is crucial for maintaining a competitive edge in product differentiation.

The human element is substantial, with a workforce of approximately 2,000 skilled employees dedicated to engineering, manufacturing, and service delivery across their segments. This team is supported by strong financial health, evidenced by the generation of $34.7 million in Free Cash Flow for the full fiscal year 2025.

Here's a quick look at the hard numbers defining these key resources:

• Manufacturing Footprint: 19 facilities across the U.S. and Canada.
• Workforce Size: Approximately 2,000 skilled employees.
• Financial Strength Indicator: $34.7 million in Free Cash Flow for FY25.

To be fair, the balance sheet strength is a resource in itself, allowing for capital allocation flexibility. Here's how the key operational and financial metrics stack up:

The $34.7 million in Free Cash Flow for fiscal 2025 indicates LSI Industries Inc. (LYTS) has the internal capacity to fund operations and strategic investments without heavy reliance on external financing, which is a defintely valuable resource for any manufacturer.

LSI Industries Inc. (LYTS) - Canvas Business Model: Value Propositions

You're looking at the core reasons why national brands choose LSI Industries Inc. for their physical locations. It's about bundling complex needs-lighting and displays-into one managed package, which simplifies execution for multi-site rollouts.

The value proposition centers on providing integrated, turnkey lighting and display solutions for national brands. This approach is supported by the company's structure, where the Display Solutions Segment represented 57% of the fiscal 2025 net sales, totaling $325.020 million out of total net sales of $573.4 million. The Lighting Segment, which includes American-made fixtures, accounted for the remaining 43%.

Energy efficiency is a major selling point, especially with LED products. If we compare the average efficacy of every LED fixture sold by LSI Industries in 2024 against older bulb systems, the products helped customers reduce their energy consumption for lighting by up to 67%. Furthermore, their current outdoor and indoor lighting products reduce energy usage by 44 to 90 percent compared to traditional systems. Adding lighting control systems, like the AirLink Blue wireless outdoor lighting control system, provides an additional 12% reduction in energy consumption.

For retail environments, the offering includes custom, American-made retail fixtures and refrigerated displays. The company has deepened its display capabilities through strategic acquisitions, such as the purchase of Canada's Best Holdings (CBH) for an all-cash price of $24.0 million, plus a potential $7.0 million earnout. This builds upon prior acquisitions like JSI Store Fixtures in 2021 and EMI Industries in 2024.

The service model emphasizes full-service project management, covering the entire process from design to installation. The acquisition of CBH specifically reinforces a vertically integrated, built-to-order solution that spans the full project lifecycle, including fabrication and installation, for customers ranging from regional chains to national brands with thousands of sites.

A key differentiator in the display solutions is the commitment to eco-friendly technology. LSI Industries introduced the eco-friendly R-290 refrigerant across its JSI and EMI product lines in fiscal 2025. R-290 has an ultra-low Global Warming Potential (GWP) of just 3, which is a significant improvement over traditional HFC refrigerants that can have GWPs over 4,000. Studies suggest that using R-290 refrigerants can result in up to 15% energy savings compared to traditional refrigerants, directly lowering operational costs for retailers.

Here's a quick look at the quantitative value LSI Industries delivers across these key areas:

The company's focus on American-made lighting fixtures in the Lighting Segment, combined with the custom millwork and fixture expertise gained through acquisitions like CBH, means you get tailored products designed for specific brand experiences.

• Integrated, turnkey solutions for national brands.
• LED energy reduction up to 67% based on 2024 sales comparison.
• Custom, American-made retail fixtures and refrigerated displays.
• Full-cycle project management from design to installation.
• Eco-friendly R-290 refrigerant with GWP of 3 in display solutions.

The Display Solutions segment saw sales of $325.020 million in fiscal 2025, a significant increase from $207.225 million in fiscal 2024, showing the immediate value added by integrated display capabilities.

LSI Industries Inc. (LYTS) - Canvas Business Model: Customer Relationships

You're looking at how LSI Industries Inc. keeps its major clients locked in, which is key since their whole model relies on serving national brands across verticals like petroleum/convenience stores (c-store), quick-service restaurants (QSR), and automotive.

For those big, complex jobs, LSI Industries Inc. deploys an integrated, solutions-based model that acts like a dedicated partnership. They provide comprehensive project management services specifically to support those large-scale product rollouts for their clients. This isn't just selling lights or signs; it's managing the whole execution for national brands. For instance, in the Display Solutions Segment, they execute on a significant backlog of multi-year contracts with large national and international refueling/c-store customer programs. That focus on execution is what keeps the revenue flowing.

The depth of engagement comes from their vertically integrated approach, which they continue to build upon through strategic buys. When LSI Industries Inc. acquired Canada's Best Holdings (CBH) in March 2025, they specifically noted that CBH had well-established, long-term customer relationships. CBH itself serves customers ranging from small regional chains to national and international brands with thousands of sites. This acquisition immediately expanded LSI Industries Inc.'s capability to attract new customers and provided significant commercial synergy potential through cross-selling, deepening that full-service partner feel.

The reliance on long-term commitments from major players is clear in their segment performance. Take the refueling/c-store market, a core area for their Display Solutions Segment; sales to these customers increased by more than 60% year-over-year in the second quarter of fiscal 2025. This suggests those national chain contracts are translating directly into substantial, near-term sales activity. The company's overall performance reflects this customer focus, closing fiscal year 2025 with record sales of $573.4 million, up 22% year-over-year.

Here's a quick look at the financial scale supporting these relationships as of late 2025:

Finally, for installed systems, LSI Industries Inc. designs its products, like their energy-efficient LED lighting, for ease of installation and service. While specific service revenue isn't broken out, the emphasis on product design that simplifies maintenance is a direct way to support the customer relationship post-sale, reducing their operational headaches. This commitment to the entire lifecycle helps them stay a trusted partner as they push toward their goal of $800 million in net sales by fiscal year 2028.

LSI Industries Inc. (LYTS) - Canvas Business Model: Channels

You're looking at how LSI Industries Inc. gets its products-lighting and display solutions-into the hands of its national brand customers as of late 2025. The structure relies on a mix of direct engagement and a physical footprint across North America.

The overall scale of the business flowing through these channels for the full fiscal year ended June 30, 2025, was significant, hitting a record total net sales of $573.4 million. For context on the most recent quarter, Q1 Fiscal 2026 (ended September 30, 2025), total net sales were $157.3 million.

The channels support two primary revenue streams, which you can track:

• The Lighting Segment generated $248.4 million in net sales for the full fiscal year 2025.
• The Display Solutions Segment generated $325.0 million in net sales for the full fiscal year 2025.

Here's a quick look at the most recent quarterly revenue split, which shows the current relative weight of the end markets these channels serve:

The direct sales force targeting vertical market executives is the primary interface for securing the large, integrated contracts across sectors like QSR restaurants, gas stations, retail & grocery outlets, parking, and sports complexes. The success of this approach is reflected in the backlog growth; LSI Industries ended FY2025 with a 13% increase in company-wide backlog.

For the Lighting Segment, the use of wholesale distributors is a key component, though the exact revenue split between direct sales and wholesale isn't explicitly detailed in the latest reports. What is clear is the segment's rebound: Lighting Segment net sales in Q4 Fiscal 2025 were $72.7 million, an increase of 12% year-over-year, and Q1 Fiscal 2026 saw lighting sales climb to $69.1 million, an 18% increase over the prior year period.

The North American manufacturing and distribution network provides the physical backbone for these sales. LSI Industries employs approximately 2,000 people across 19 manufacturing plants situated in the U.S. and Canada. For example, the Houston operations alone account for 260 local team members and utilize over 230,000 square feet of production, assembly, and distribution space.

The ADAPT professional services group for delivery and installation is part of LSI's vertically integrated model, which includes design, production, and installation of solutions. While specific revenue for a group named ADAPT isn't itemized, the company does provide 'comprehensive project management services in support of large-scale product rollouts.' This service capability supports the total net sales achieved, which was $573.4 million for the full year 2025.

Finance: draft 13-week cash view by Friday.

LSI Industries Inc. (LYTS) - Canvas Business Model: Customer Segments

LSI Industries Inc. serves national brands across several key vertical markets, a strategy that has evolved from its origins as a niche manufacturer of gas station canopy lighting in 1976. The company's customer base is served through its Lighting Segment and Display Solutions Segment, with the latter heavily influenced by recent acquisitions like EMI Industries (April 2024) and Canada's Best Holdings (CBSF) (March 2025). For the twelve months ended June 30, 2025, LSI Industries reported record net sales of $573.4 million.

The revenue mix as of the first quarter of fiscal 2026 (ended September 30, 2025) shows the Display Solutions segment contributing a larger portion of sales, reflecting the success of the vertical market strategy.

The full fiscal year 2025 sales breakdown showed the Display Solutions segment at 57% of total sales ($325.0 million) compared to the Lighting Segment at 43% ($248.4 million).

Here's a look at the specific customer segments LSI Industries Inc. targets:

• Petroleum/Convenience Stores (C-store)
• Grocery and Pharmacy Chains
• Quick-Service Restaurants (QSR)
• Commercial Banking and Specialty Retail
• General Commercial and Industrial clients

Petroleum/Convenience Stores (C-store)

This vertical represents LSI Industries Inc.'s historical core market, primarily served by the Lighting Segment, but also significantly by Display Solutions, which includes brand imaging and signage. The refueling C-Store vertical demonstrated robust activity in fiscal 2025. For the fiscal 2025 first quarter (ended September 30, 2024), comparable sales in the refueling C-Store vertical increased by 16%. This growth was supported by high levels of new store and store renovation market activity.

Grocery and Pharmacy Chains

Grocery chains are a key focus area, particularly for the Display Solutions Segment, which provides custom fixtures and displays. Demand in this vertical has been strong, evidenced by a 90% uptick in order rates reported for the grocery vertical during the fiscal 2025 first quarter. The acquisition of CBSF in March 2025 further strengthened relationships in the grocery sector.

Quick-Service Restaurants (QSR)

QSR is another vertical where LSI Industries Inc. provides integrated lighting and display solutions. This segment experienced comparable sales growth during the fiscal 2025 first quarter. The CBSF acquisition also brought established relationships within the QSR industry.

Commercial Banking and Specialty Retail

These segments are targeted through the Display Solutions offerings, including custom store design solutions and millwork, especially following the integration of CBSF. The company is focused on deepening its presence in these vertical markets as part of its Fast Forward strategic plan.

General Commercial and Industrial clients

This group is primarily served by the Lighting Segment, which provides performance-based, energy-efficient lighting solutions for non-residential indoor and outdoor applications. Performance in this broader category can be cyclical; for instance, in the first nine months of fiscal 2025, the Lighting Segment experienced softness due to reduced large project activity, particularly within the warehouse construction sector, leading to a full-year fiscal 2025 lighting sales decline of 5% to $248.4 million. However, the Lighting Segment rebounded strongly in the fourth quarter of fiscal 2025 with 12% revenue growth, suggesting a release of delayed projects in these commercial and industrial areas.

LSI Industries Inc. (LYTS) - Canvas Business Model: Cost Structure

You're looking at the core expenses LSI Industries Inc. incurs to run its lighting and display solutions business as of late 2025. Honestly, for a manufacturer, the cost structure is dominated by what it takes to physically make and deliver the product.

The company's operational footprint is significant, requiring substantial fixed costs to maintain. LSI Industries Inc. operates throughout its 19 facilities across the US and Canada.

The cost of growth and innovation is explicitly tracked. Research and Development (R&D) spending for the fiscal year ended June 30, 2025, was $3.3 million.

Inorganic growth also drives costs, particularly upfront capital deployment. The acquisition of Canada's Best Holdings (CBH) involved an all-cash purchase price of $24.0 million.

To give you a clearer picture of the overall cost base relative to the top line for Fiscal Year 2025, here's how the major expense categories stack up against the record net sales of $573.4 million.

The COGS figure of $431.615 million directly encompasses your required line items for manufacturing and materials, though LSI Industries Inc. doesn't break those down separately in the top-line reporting. What this estimate hides is the split between direct labor, raw material and component procurement costs, and the fixed manufacturing and production overhead across those 19 sites.

We do know that LSI Industries Inc. manages raw material risk proactively. Management noted that for the Lighting Segment, most components are sourced domestically, which limits the impact of tariffs to several component categories.

The SG&A expenses, at $30.78 million for the full year, cover all the non-production costs. This includes the selling efforts, corporate overhead, and administrative functions supporting the entire operation. That's a big chunk of the operating cost base.

The structure of costs is clearly shifting as the Display Solutions segment grows faster than Lighting; this means the mix of raw materials and associated overhead is changing, too. The integration of CBH is intended to leverage shared resources, which should help drive efficiencies and potentially lower the per-unit cost structure over time.

Finance: draft 13-week cash view by Friday.

LSI Industries Inc. (LYTS) - Canvas Business Model: Revenue Streams

You're looking at the core ways LSI Industries Inc. brought in money for the fiscal year ending June 30, 2025. Honestly, the story here is the massive shift toward their Display Solutions segment.

The revenue streams are clearly segmented by their two main operating divisions, with the total sales reflecting a strong year of growth.

• Sales of Display Solutions (Custom fixtures, graphics): $325.0 million (57% of sales)
• Sales of Lighting Products (LED, outdoor/indoor): $248.4 million (43% of sales)
• Fees from project management and professional services

The Total Net Sales for Fiscal Year 2025 hit a record $573.4 million. That's a 22% increase year-over-year, which is quite a jump.

Here's the quick math on how those two primary revenue drivers stacked up for the full fiscal year 2025:

The Display Solutions segment was the primary growth engine, with its sales soaring 57% for the full year, partly fueled by the acquisition of Canada's Best Store Fixtures in March 2025. This segment's revenue for the year was $325.0 million.

The Lighting Segment, while showing a rebound in the fourth quarter, saw its full-year net sales decline by 5% compared to fiscal 2024, landing at $248.4 million for fiscal 2025. Still, the fourth quarter for Lighting was its strongest in two years, bringing in $72.7 million, up 12% year-over-year.

LSI Industries Inc. also generates revenue through services supporting large-scale product rollouts, which includes project management. While the exact dollar amount for these fees isn't broken out separately from the segment sales in the primary filings, it is an embedded part of the value proposition, especially within the Display Solutions segment where integrated solutions are emphasized.

You should note that the sales transacted in Canadian dollars and pesos from subsidiaries represented only about 3% of the total fiscal 2025 consolidated net sales.

Finance: draft 13-week cash view by Friday.