LSI Industries Inc. (NASDAQ: LYTS) priced a new public offering of 4,600,000 shares of its common stock at $19.75 per share on February 27, 2026, targeting gross proceeds of roughly $90 million. The offering is part of the company’s strategy to fund its ongoing growth initiatives, including the integration of recent acquisitions and the expansion of its domestic manufacturing footprint.
The proceeds will be used to support the purchase price of the proposed Royston Group acquisition, which is expected to close in the third quarter of LSI’s fiscal year 2026. The acquisition, valued at $325 million, will be financed in part by the stock offering and a senior secured credit facility, and will also help LSI repay borrowings related to the deal. In addition, the offering will provide liquidity for future capital expenditures and potential share repurchases, reinforcing the company’s balance‑sheet flexibility.
LSI’s Q4 fiscal 2025 results, released August 21, 2025, showed net sales of $155.1 million, up 20% year‑over‑year, and adjusted earnings per share of $0.34, a $0.12 beat over the $0.22 consensus estimate. The revenue growth was driven by double‑digit sales increases in both the Lighting and Display Solutions segments, reflecting strong demand from automotive dealerships, petroleum stations, quick‑service restaurants, grocery stores, and retail establishments. The company’s net debt to trailing‑12‑month adjusted EBITDA ratio of 0.8x at fiscal year‑end 2025 indicates a healthy debt position that supports the financing of the Royston acquisition.
Management highlighted its “Fast Forward 2028” strategic plan, targeting EBITDA margins of 11‑12.5% and emphasizing continued investment in product launches, including more than 25 new lighting products. The company’s focus on M&A, organic growth, and manufacturing expansion is designed to create a larger, integrated retail branding solutions platform. The stock offering aligns with this strategy by providing the capital needed to accelerate the acquisition and expand production capacity.
The pricing of the offering at $19.75 per share reflects LSI’s current valuation and provides additional liquidity to support its growth agenda. The move signals management’s confidence in the company’s ability to execute on its expansion plans while maintaining a solid balance sheet. Investors and analysts will likely view the offering as a positive step toward achieving the company’s long‑term strategic objectives.
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