LSI Industries reported record net sales of $573.4 million for the full fiscal year 2025, a 22% increase over fiscal 2024's $469.6 million. This growth was driven by a combination of organic expansion and contributions from the EMI Industries and Canada's Best Holdings acquisitions. The Display Solutions segment was a significant growth engine, with sales soaring 57% to $325.0 million, including 17% organic growth.
For the fiscal fourth quarter, LSI reported net sales of $155.1 million, a 20% increase year-over-year, with organic sales up 11%. Both the Lighting and Display Solutions segments realized double-digit sales growth, with Display Solutions up 29% and Lighting up 12%. Adjusted EBITDA for the quarter reached $17.0 million, and the adjusted EBITDA margin improved by 250 basis points sequentially.
Full-year adjusted EBITDA increased to $55.0 million, compared to $51.4 million in fiscal 2024. The company generated $34.7 million in free cash flow for the full year, marking its third consecutive year of free cash flow exceeding $30 million. LSI exited fiscal 2025 with a healthy balance sheet, including a net debt to adjusted EBITDA ratio of 0.8x, down from 0.97x in the prior year.
Net income for the full year was $24.4 million, or $0.79 per diluted share, compared to $25.0 million, or $0.83 per diluted share in fiscal 2024. Adjusted net income for the full year was $32.9 million, or $1.07 per diluted share. The Lighting Segment experienced a 5% decline in full-year sales to $248.4 million, but its Q4 sales increased 12% and backlog was up 20% over the prior year.
Management anticipates continued favorable cash generation in fiscal 2026, supporting investments in sales growth and operational capabilities. The company expects to monetize $3.885 million of its capitalized R&D deferred tax asset in the next fiscal year due to the One Big Beautiful Bill Act (OBBBA). LSI remains active in M&A, indicating a high likelihood of another acquisition in calendar year 2025.
LSI declared a regular cash dividend of $0.05 per share, payable September 10, 2025, to shareholders of record September 2, 2025. The company's proactive domestic sourcing strategy is expected to provide a competitive advantage against potential tariff impacts in fiscal 2026.
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