LSI Industries Inc (LYTS) 2025 Q4 法說會逐字稿

Greetings, and welcome to the LSI Industries fourth-quarter and fiscal year 2025 results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 LSI Industries 第四季和 2025 財年業績電話會議。（操作員指示）提醒一下，本次會議正在錄音。

I would now like to turn the call over to your host, Mr. Jim Galeese, Chief Financial Officer. Thank you. You may begin.

現在我想將電話轉給主持人、財務長 Jim Galeese 先生。謝謝。你可以開始了。

Welcome, everyone, and thank you for joining today's call. We issued a press release before the market opened this morning, detailing our fiscal '25 fourth-quarter and full-year results. In addition to this release, we also posted a conference call presentation in the Investor Relations section of our corporate website.

歡迎大家，感謝大家參加今天的電話會議。我們在今天早上開市前發布了一份新聞稿，詳細介紹了我們 25 財年第四季和全年的業績。除了此新聞稿之外，我們還在公司網站的投資者關係部分發布了電話會議簡報。

Information contained in this presentation will be referenced throughout today's conference call, including our certain non-GAAP measures, for improved transparency of our operating results. A complete reconciliation of GAAP and non-GAAP results is contained in our press release and 10-K.

本簡報中包含的資訊將在今天的電話會議中引用，包括我們的某些非公認會計準則指標，以提高我們經營績效的透明度。我們的新聞稿和 10-K 中包含了 GAAP 和非 GAAP 結果的完整對帳。

Please note that management's commentary and responses to questions on today's conference call may include forward-looking statements about our business outlook. Such statements involve risks and opportunities and actual results could differ materially. I refer you to our Safe Harbor statement, which appears in this morning's press release, for more details.

請注意，管理層在今天的電話會議上的評論和對問題的回答可能包括關於我們業務前景的前瞻性陳述。此類聲明涉及風險和機遇，實際結果可能存在重大差異。如欲了解更多詳情，請參閱我們今天上午的新聞稿中的安全港聲明。

Today's call will begin with remarks summarizing our fiscal fourth-quarter and full-year results. At the conclusion of these prepared remarks, we will open the line with questions.

今天的電話會議將以總結我們第四季和全年的業績開始。在這些準備好的發言結束後，我們將開始提問。

With that, I'll turn the call over to LSI President and Chief Executive Officer, Jim Clark.

說完這些，我會把電話轉給 LSI 總裁兼執行長 Jim Clark。

Thank you, Jim, and good morning, all. I appreciate you taking the time to join us today. This morning, we'll be discussing our fourth-quarter and full-year fiscal 2025 results.

謝謝你，吉姆，大家早安。感謝您今天抽出時間參加我們的活動。今天上午，我們將討論 2025 財年第四季和全年業績。

As many of you likely saw in our earnings release this morning, we closed the year with a strong fourth quarter, marked by a sales increase of just over 20%, driven by solid performance in both our Lighting and Display Solutions segments. For the full year, we reported total sales just over $573 million, representing a 22% increase over the prior year. Adjusted EBITDA came in at $55 million, or nearly 10% of sales, reflecting consistent execution and a strong operating model.

正如你們許多人可能在我們今天早上發布的收益報告中看到的那樣，我們以強勁的第四季度結束了這一財年，銷售額增長了 20% 多一點，這得益於我們照明和顯示解決方案部門的穩健表現。全年來看，我們的總銷售額略高於 5.73 億美元，比前一年增長 22%。調整後的 EBITDA 達到 5,500 萬美元，佔銷售額的近 10%，反映了持續的執行力和強大的營運模式。

Importantly, free cash flow remained robust throughout the fourth quarter and the full year, resulting in a net debt leverage ratio of 0.8 times. This strong financial position provides us with flexibility to continue investing in growth, innovation, and operational efficiency.

重要的是，第四季和全年的自由現金流保持強勁，導致淨債務槓桿率為 0.8 倍。強勁的財務狀況為我們提供了靈活性，可以繼續投資於成長、創新和營運效率。

I'm extremely pleased with our performance in both fourth quarter and the full year fiscal year. The high level of execution across our teams was evident, and I'm proud of our company's ability to adapt in the face of various challenges and deliver strong results for our customers and our shareholders alike.

我對我們第四季和全年財年的表現感到非常滿意。我們團隊的高執行力顯而易見，我為我們公司在面對各種挑戰時能夠適應並為我們的客戶和股東帶來強勁的業績而感到自豪。

In 2025, we made substantial progress across multiple areas of our business. One of our key areas of focus was product innovation, particularly in our Lighting segment, where we successfully launched over 25 new products. A particular note was the launch of V-LOCITY Lighting product last year, which has been a resounding success. This product has effectively built on the momentum from our Auto line without cannibalizing it or materially impacting existing sales, a strong indicator of healthy product vitality and of our customer demand.

2025年，我們在多個業務領域取得了實質進展。我們關注的重點領域之一是產品創新，特別是在照明領域，我們成功推出了 25 多種新產品。特別值得注意的是去年推出的 V-LOCITY 照明產品，取得了巨大的成功。該產品有效地利用了我們汽車產品線的勢頭，既沒有蠶食它，也沒有對現有銷售產生實質影響，這是產品活力和客戶需求的有力指標。

In our Display Solutions group, they also delivered an exceptional year, and the team remains busy with a robust pipeline of projects that will continue to roll into 2026. In our grocery segment, we saw a meaningful recovery and expanded presence within new areas of the store. Notably, we've engaged in several sizable projects within the bakery section, and we're seeing growing interest in the checkout area, categories where we've historically been limited. It's encouraging to see our customers placing their confidence in LSI to deliver in these growing spaces. And we anticipate continued momentum in this segment as the order and project environment becomes more stable moving forward.

我們的顯示解決方案團隊也度過了出色的一年，團隊仍然忙於大量的項目，這些項目將持續到 2026 年。在我們的食品雜貨領域，我們看到了顯著的復甦，並在商店的新區域擴大了業務範圍。值得注意的是，我們已經在烘焙領域參與了幾個大型項目，我們看到人們對結帳區的興趣日益濃厚，而這些類別過去一直是我們業務有限的。看到我們的客戶對 LSI 在這些不斷發展的領域中的表現充滿信心，我們感到很受鼓舞。隨著訂單和項目環境變得更加穩定，我們預計該領域將繼續保持成長勢頭。

From an integration standpoint, I'm very pleased with the progress we've made with both EMI and Canada's Best Store Fixtures, two companies that are proving to be excellent additions to the LSI family. EMI, which has now been part of LSI for just over a year, delivered record sales and profits in 2025 despite experiencing some project delays with one of their larger customers.

從整合的角度來看，我對我們與 EMI 和加拿大最佳商店設備公司合作所取得的進展感到非常滿意，這兩家公司已被證明是 LSI 家族的優秀補充。EMI 成為 LSI 旗下公司僅一年多時間，儘管與一家較大客戶的專案出現延誤，但仍在 2025 年實現了創紀錄的銷售額和利潤。

EMI has quickly become a key driver of cross-selling activity across the organization. The integration process has been smooth and highly complementary to EMI's strong internal culture. I want to take a moment to commend the EMI leadership team for their excellent work in steering the company in these new levels of performance.

EMI 已迅速成為整個組織交叉銷售活動的主要驅動力。整合過程十分順利，並且與 EMI 強大的內部文化高度互補。我想藉此機會讚揚 EMI 領導團隊在帶領公司達到新的績效水準方面所做的出色工作。

Similarly, Canada's Best Store Fixtures, which joined us less than six months ago, has also shown impressive results early. Both of these businesses are currently performing above our original expectations, and we're thrilled how they've seamlessly integrated into our operations.

同樣，加入我們不到六個月的加拿大最佳商店設備公司 (Canada's Best Store Fixtures) 也早早取得了令人印象深刻的成績。這兩項業務目前的表現都超出了我們最初的預期，我們很高興它們能夠無縫地融入我們的營運。

At the heart of LSI's success is our culture, a culture built on maintaining a high say-do ratio. Quite simply, we strive to deliver on commitments we make. This focus extends not only to our customers and our shareholders, but also to our coworkers, suppliers, partners, agents, and many others who contribute to our shared successes. This culture of accountability and adaptability continues to be the key driver of our growth and execution excellence. And I want to extend my sincere thanks to the entire LSI team for embracing this mindset and making 2025 a truly outstanding year.

LSI 成功的核心是我們的文化，這種文化建立在維持高發言權率的基礎上。很簡單，我們努力兌現我們所做的承諾。這種關注不僅延伸到我們的客戶和股東，也延伸到我們的同事、供應商、合作夥伴、代理商以及為我們共同的成功做出貢獻的許多其他人。這種責任感和適應性的文化繼續成為我們成長和卓越執行的關鍵驅動力。我要向整個 LSI 團隊表達誠摯的感謝，感謝他們秉持著這種理念，讓 2025 年成為真正傑出的一年。

Looking ahead to fiscal '26, we remain focused on advancing our Fast Forward strategic plan. Internally, this will be a year of deep focus on our people, developing talent from within, optimizing internal business processes, and continuing to find ways to improve our day-to-day business. Our operations group has consistently set ambitious goals, and their embrace of continuous improvement continues to push us forward. There are still many opportunities ahead, and I'm eager to see what the team will accomplish in the coming year.

展望 26 財年，我們將繼續專注於推動我們的快速前進策略計畫。從內部來看，今年我們將深入關注員工，從內部培養人才，優化內部業務流程，並繼續尋找改善日常業務的方法。我們的營運團隊始終如一地設定雄心勃勃的目標，他們對持續改善的追求不斷推動著我們前進。未來仍有許多機會，我渴望看到球隊在未來一年會取得什麼成就。

On the sales front, our cross-selling initiative continues to gain traction. Our goal is to offer customers a broader, more integrated set of solutions, products, and services that meet their evolving needs. In many cases, the value proposition of sourcing multiple solutions from single supplier like LSI is very compelling, helping our customers reduce both cost and project complexity.

在銷售方面，我們的交叉銷售計劃繼續獲得支援。我們的目標是為客戶提供更廣泛、更整合的解決方案、產品和服務，以滿足他們不斷變化的需求。在許多情況下，從 LSI 等單一供應商採購多種解決方案的價值主張非常引人注目，可以幫助我們的客戶降低成本和專案複雜性。

By strengthening our cross-selling capabilities, we aim to deepen our customer relationships, increase our share of wallet, and drive sustainable incremental growth. This will remain a core element of our strategy in 2026 and beyond, and we're excited about the long-term opportunities it presents.

透過加強我們的交叉銷售能力，我們的目標是加深我們的客戶關係，增加我們的錢包份額，並推動可持續的增量成長。這仍將是我們的 2026 年及以後策略的核心要素，我們對它帶來的長期機會感到興奮。

In closing, I want to reiterate my sincere appreciation for the hard work, resilience, and dedication of the entire LSI team. Your efforts have made 2025 a very successful year. I'm confident we are well positioned to build on the momentum that we had in 2025 as we head into 2026 and continue advancing our Fast Forward objectives. Thank you again for your commitment and your focus on delivering excellence each and every day.

最後，我要再次對整個 LSI 團隊的辛勤工作、堅韌和奉獻精神表示誠摯的感謝。你們的努力使2025年成為非常成功的一年。我相信，在邁向 2026 年之際，我們已做好準備，以 2025 年的勢頭為基礎，繼續推進我們的「快速前進」目標。再次感謝您的承諾以及您每天致力於提供卓越服務的重點。

With that, I'll turn the call back over to Jim Galeese for a more detailed review of our financial performance.

說完這些，我將把電話轉回給 Jim Galeese，讓他更詳細地審查我們的財務表現。

Thank you, Jim.

謝謝你，吉姆。

We delivered a solid fiscal fourth quarter, capping a successful year for LSI. In summary, fourth-quarter sales increased 20% to $155 million, adjusted EBITDA increased to $17 million or 11% of sales, and adjusted earnings per share were $0.34. Organic growth, excluding the impact of acquisitions, increased 11% for the quarter.

我們第四季的財務表現穩健，為 LSI 成功的一年畫上了圓滿的句號。整體而言，第四季銷售額成長20%，達到1.55億美元，調整後EBITDA增至1,700萬美元，佔銷售額的11%，調整後每股盈餘為0.34美元。剔除收購影響後，本季有機成長率為11%。

Fourth-quarter performance improved both year over year and sequentially to Q3. At the end of Q3, we discussed the surge in store release activity following the resolution of the proposed merger in the grocery vertical and the resulting disruption and unfavorable productivity related to the ramp-up. Working closely with our customers, we have managed through the spike and demand planning has stabilized. Improved throughput and productivity, combined with increased volume across our business, was responsible for the overall quarter-over-quarter 250-basis-point improvement to adjusted EBITDA.

第四季業績年比和季比均有所改善。在第三季末，我們討論了雜貨業擬議合併案解決後門市開店活動的激增，以及由此造成的與產能提升相關的混亂和不利的生產力。透過與客戶密切合作，我們成功度過了高峰期，需求計劃也穩定下來。吞吐量和生產力的提高，加上我們整個業務量的增加，使得調整後的 EBITDA 環比整體提高了 250 個基點。

The fourth quarter was accentuated by the balanced performance achieved across our two segments: Lighting and Display Solutions. Both generated double-digit organic growth in the quarter, with Lighting sales increasing 12% and Display Solutions increasing 10% on a comparable basis. This is the highest quarter of consistent performance across the two segments in fiscal '25.

第四季度，我們的兩個部門——照明和顯示器解決方案——實現了均衡的業績。本季度，兩大業務均實現了兩大有機成長，其中照明業務銷售額年增 12%，顯示解決方案的業務銷售額年增 10%。這是 25 財年兩個部門表現最穩定的季度。

Improved order activity continued in the fourth quarter, with total orders increasing 11% versus prior year, with a book-to-bill ratio of 1, as orders matched a strong sales quarter. We exit the fiscal year with a backlog of 13% above prior year.

第四季訂單活動持續改善，訂單總額較上年同期成長 11%，訂單出貨比為 1，訂單量與強勁的銷售季度相符。本財政年度結束時，我們的積壓訂單量比前一年高出 13%。

Looking at each segment individually, we're encouraged with the improved demand levels in the Lighting segment, particularly the increase in larger project activity, as this section of the market has been down the last 12-plus months. Marked improvement was realized in the warehousing vertical, but upturns were realized in other markets, including automotive and outdoor applications. While project quote and order levels continue to fluctuate, overall Q4 orders increased 12% over prior year. And as a result, we exit the fourth quarter with a Lighting backlog approximately 20% above last year.

單獨來看每個細分市場，我們對照明細分市場需求水準的提高感到鼓舞，特別是大型專案活動的增加，因為這一市場領域在過去 12 個多月裡一直處於低迷狀態。倉儲垂直領域取得了顯著改善，但其他市場（包括汽車和戶外應用）也出現了改善。儘管項目報價和訂單水準持續波動，但第四季度整體訂單比去年同期增長了 12%。因此，我們在第四季結束時的照明積壓訂單比去年同期高出約 20%。

Operating income increased 32% in the quarter, driven by volume and consistent gross margin performance, a combination of effective price and cost management. Lighting incurred minimal tariff activity in the fourth quarter, as existing inventories were utilized in manufacturing. The impact will increase in fiscal Q1 as we consume components which were procured during the highest tariff period. The tariff is limited to just several component categories, and we expect to offset most incremental costs with previously implemented price adjustments and other cost reduction efforts.

本季營業收入成長 32%，這得益於銷量和穩定的毛利率表現以及有效的價格和成本管理。由於現有庫存已用於製造，因此第四季度照明行業的關稅活動極少。由於我們消耗的是關稅最高期間採購的零件，因此第一財季的影響將會增加。該關稅僅限於幾個零件類別，我們預計透過先前實施的價格調整和其他成本削減措施來抵消大部分增量成本。

Shifting to the Display Solutions segment. Fourth-quarter sales increased 28%, including the impact of acquisitions. Organic growth, excluding the impact of acquisitions, was 10%. Growth was realized across multiple market verticals. Comparable refueling c-store sales increased 23% in the quarter, concluding a record year for this vertical. Site release activity for several large ongoing programs continues, coupled with smaller customer projects.

轉向顯示解決方案領域。包括收購的影響，第四季銷售額成長了 28%。排除收購的影響後，有機成長率為 10%。多個垂直市場均實現了成長。本季度，可比加油便利商店銷售額成長了 23%，創下了該垂直產業的歷史新高。幾個正在進行的大型專案的現場發布活動仍在繼續，同時還有較小的客戶專案。

Our revenue per site continues to increase, driven by the significant growth in sites where we provide both product and installation services. Our service revenue increased 65% in fiscal '25 as more customers recognize the value of LSI's project management capabilities. Grocery sales increased 31% in the quarter as grocers resume investments to in-store renovations. Production and store scheduling have stabilized, contributing to improved margin performance. We enter fiscal '26 with a healthy grocery backlog.

由於我們提供產品和安裝服務的站點數量顯著增長，我們的每個站點的收入持續增加。隨著越來越多的客戶認識到 LSI 專案管理能力的價值，我們的服務收入在 25 財年增長了 65%。由於雜貨商恢復對店內裝修的投資，本季雜貨銷售額成長了 31%。生產和門市調度已經穩定，有助於提高利潤率。我們進入 26 財年時，食品雜貨積壓情況良好。

For the full year fiscal '25, LSI sales increased to a record $574 million or 22% year-over-year growth. Full-year adjusted EBITDA increased to $55 million, driven by our team's efforts throughout the year to effectively manage the interval business, while operating in a dynamic market environment. Adjusted EPS for the year finished at $1.07.

25 財年全年，LSI 銷售額增至創紀錄的 5.74 億美元，年增 22%。全年調整後的 EBITDA 增加至 5,500 萬美元，這得益於我們團隊全年努力在動態的市場環境中有效管理間隔業務。全年調整後每股收益為 1.07 美元。

Improved earnings and working capital efficiency generated another year of solid free cash flow totaling $34.6 million, our third consecutive year of cash flow exceeding $30 million. We utilize cash to support organic growth initiatives, invest in inorganic growth, acquiring Canada's Best Holdings in March of 2025, and debt reduction.

獲利和營運資本效率的提高使我們又產生​​了一年穩定的自由現金流，總額達到 3,460 萬美元，這是我們連續第三年現金流超過 3,000 萬美元。我們利用現金支持有機成長計畫、投資無機成長、於 2025 年 3 月收購加拿大 Best Holdings 以及減少債務。

LSI exits fiscal '25 with a healthy balance sheet, including a ratio of net debt to adjusted EBITDA of 0.8 times. We expect favorable cash generation to continue in fiscal '26, positioning the business for further investments in both sales growth initiatives, as well as strengthening our operational capabilities. A regular cash dividend of $0.05 per share was declared payable September 10 for shareholders of record on September 2.

LSI 在 25 財年結束時擁有健康的資產負債表，其中淨債務與調整後 EBITDA 的比率為 0.8 倍。我們預計 26 財年將繼續保持良好的現金產生勢頭，這將為公司進一步投資於銷售成長計​​劃以及加強我們的營運能力做好準備。宣布將於 9 月 10 日向 9 月 2 日登記在冊的股東派發每股 0.05 美元的定期現金股利。

I will now turn the call back to the moderator for the question-and-answer session.

現在我將把電話轉回給主持人，進行問答環節。

(Operator Instructions) Aaron Spychalla, Craig-Hallum Capital Group.

（操作員指示）Aaron Spychalla，Craig-Hallum Capital Group。

Yeah. Good morning, Jim and Jim. Thanks for taking the questions. First for me, on c-store and refueling, you mentioned your largest program getting 18 months of additional site release activity. Can you just talk about what that opportunity looks like for you, whether number of stations or dollar size? And then just more broadly, as we see more organic expansions and M&A in that space, how do you see overall growth in that vertical for the next year or two?

是的。早上好，吉姆和吉姆。感謝您回答這些問題。首先，對於 c-store 和加油，您提到您最大的專案獲得了 18 個月的額外網站發布活動。您能否談談這個機會對您來說意味著什麼，無論是站點數量還是資金規模？更廣泛地說，隨著我們看到該領域更多的有機擴張和併購，您如何看待未來一兩年該垂直領域的整體成長？

Yeah. Aaron, thanks for calling. Thanks for the question. Jim Clark here.

是的。亞倫，謝謝你的來電。謝謝你的提問。這裡是吉姆·克拉克。

I can't tell you the dollar size, but I can tell you it's in the thousands of site locations. We're probably halfway to two-thirds of the way through the project at this point. When we start any of these large projects like this, there's some -- there's a learning curve that goes through both for the customer and for us as we become more efficient in the deployment, become more efficient in the manufacturing, and we become more committed to the direction that we had decided to go in, where the customer decided to go in in terms of branding and the look and the feel.

我無法告訴你金額大小，但我可以告訴你它有數千個站點位置。目前，我們可能已經完成了專案的一半到三分之二。當我們開始任何這樣的大型專案時，客戶和我們都會經歷一個學習曲線，因為我們在部署方面變得更加高效，在製造方面變得更加高效，我們更加致力於我們決定進入的方向，客戶決定在品牌、外觀和感覺方面進入的方向。

So we're in the mature phase of that project right now. I expect that it will continue well into 2026. And as we've talked on our prior call and on even the call before that, we have others that are in the hopper. The gestation on these type of projects is usually 12 to 18 to sometimes 24 months. So in a perfect world, we're kind of rolling into one -- rolling off of one and rolling into another. And right now, there's no commitment on another large project like this, but a lot in terms of possibility and projects that we're working on. So we feel very encouraged.

所以我們現在正處於該專案的成熟階段。我預計這種情況將持續到 2026 年。正如我們在之前的電話會議甚至更早之前的電話會議中談到的那樣，我們還有其他候選人。此類項目的孕育期通常為 12 至 18 個月，有時甚至為 24 個月。因此，在一個完美的世界中，我們就像是進入了一個世界——從一個世界進入了另一個世界。目前，我們還沒有承諾開展另一個類似的大型項目，但就可能性和我們正在進行的項目而言，有很多。因此我們感到非常鼓舞。

All right. Great. Thanks for that. And then in grocery, good to hear that release and schedule activity stabilizing there. You noted a healthy backlog and strong production outlook. Has that market fully recovered after the merger fallout? Or is there still more recovery to go? And same thing, how do you kind of see growth there looking out for the next year plus?

好的。偉大的。謝謝。然後在雜貨店，很高興聽到那裡的發布和計劃活動穩定下來。您注意到積壓訂單狀況良好且生產前景強勁。合併事件過後，該市場是否已完全恢復？或者說還需要進一步復甦嗎？同樣，您如何看待未來一年及以後的成長？

Yeah. I'd still say there's some turmoil relative to the market being completely recovered, but we're very happy with the place it is right now. The word I would use is kind of stable order process and a much more stable kind of inquiry and project management.

是的。我仍然認為，相對於市場完全復甦而言，還存在一些動盪，但我們對目前的狀況感到非常滿意。我會使用的字是一種穩定的訂單流程和一種更穩定的查詢和專案管理。

I think that us, along with the customers as we go back to Q2, which would have been August -- it would have been September, October, November timeframe last year, it was a big surge. There was a lot of deferred programs. There was a lot of deferred maintenance, and there was a big surge from a number of our customers. I think all of that has kind of stabilized now.

我認為，當我們回到第二季時，也就是去年的 8 月、9 月、10 月、11 月期間，我們和客戶一起經歷了一次大幅度的成長。有很多項目被推遲了。有很多維護工作被推遲，而且我們的許多客戶數量激增。我認為現在一切都已經穩定下來了。

Our workforce has stabilized to handle the current order rate and demand rate. And I wouldn't say that the market had fully recovered yet. I think there's some potential upside there that still hasn't been fully released, but I would say the operative word would be stable at this point, and we're very happy with that.

我們的勞動力已經穩定下來，可以處理目前的訂單率和需求率。我不會說市場已經完全復甦。我認為那裡還有一些潛在的優勢尚未完全釋放，但我想說，目前的關鍵字是穩定，我們對此感到非常高興。

All right. Yeah, good to hear. And then maybe last for me on EMI. Can you just talk about some of the cross-selling initiatives? Still sounds like it's early there. And then on margins, you noted the margin expansion. So our EBITDA margins there kind of high-single digits, around 8%. And just can you speak to confidence in getting to that 10%-plus level over the next year? And just talk about some of the drivers to get there.

好的。是的，很高興聽到這個消息。然後也許對我來說這是最後一次 EMI 了。您能談談一些交叉銷售措施嗎？聽起來好像還很早。然後在利潤率方面，您注意到利潤率擴大了。因此我們的 EBITDA 利潤率處於較高的個位數，約為 8%。能否說說您對明年達到 10% 以上的水平有信心嗎？並討論實現這一目標的一些因素。

Yeah. So EMI has been with us just over a year. We've made better than 200 basis points improvement from our starting location. I think that we have a great plan for this fiscal year 2026, which will get us another 200 or 200-plus basis points. So I think that the overall journey to get them performing like LSI is very well established and in motion and feel very good about it.

是的。EMI 與我們合作已經一年多了。我們從起始位置取得了超過 200 個基點的改進。我認為我們對 2026 財年有一個很好的計劃，這將使我們再獲得 200 個或 200 多個基點。因此，我認為讓它們像 LSI 一樣運作的整個過程已經非常完善並且正在推進中，我對此感到非常滿意。

EMI has done a phenomenal job of integrating with us. The senior leadership team there, Alan and David, fit very well. They see things the same way we see them, and we see things through their eyes, and it's just been a great fit along with the rest of the team there. And I do think that they've come in with a level of momentum and excitement and their own team there to really help in the cross-selling initiative.

EMI 在與我們整合方面做得非常出色。那裡的高階領導團隊，艾倫和大衛，配合得非常好。他們看待事物的方式和我們一樣，我們也透過他們的眼睛看待事物，這與那裡的其他團隊非常契合。我確實認為他們帶著一定的動力和熱情來到這裡，並且他們自己的團隊確實為交叉銷售計劃提供了幫助。

We just had our Board meeting yesterday and had a review on our cross-selling progress. And I have to say I'm very happy about it. There's a lot of work to do. It requires a lot of education internally. And then that education requires external communication to our customers and create the awareness of the additional solutions and products and opportunities that we can work with in terms of our customer base. And all of it's in motion. None of this happens overnight, but I'm very excited and I'm happy with the progress we're making.

我們昨天剛召開了董事會會議，並審查了交叉銷售的進展。我必須說我對此感到非常高興。還有很多工作要做。這需要大量的內部教育。然後，這種教育需要與我們的客戶進行外部溝通，並提高我們對客戶群可以採用的其他解決方案、產品和機會的認識。一切都在運動中。這一切都不是一朝一夕就能實現的，但我感到非常興奮，並且對我們所取得的進展感到高興。

Great. Thanks for taking the questions. I'll turn it over.

偉大的。感謝您回答這些問題。我把它翻過來。

Alex Rygiel, Texas Capital Securities.

德州資本證券公司的 Alex Rygiel。

Thanks. Good morning, Jim and Jim, and thanks for taking my questions. First off here, EBITDA margins were nicely back above 10% in the quarter. What's your comfort level with margins sort of staying at this level or going higher?

謝謝。早安，吉姆和吉姆，感謝你們回答我的問題。首先，本季 EBITDA 利潤率順利回升至 10% 以上。您對利潤率保持在這個水平或提高的預期如何？

Yeah. I mean, as we've talked before, we've made some decisions from everything, from working capital to acquisitions to manufacturing processes to what we spend in capital, and all those type of things that have our eye on the ball for our Fast Forward 2028 plan. I think that what we've been able to demonstrate consistently quarter over quarter is our ability to be in the EBITDA margin ranges of 11%-plus, and we have a plan to get there.

是的。我的意思是，正如我們之前談到的，我們在各個方面都做出了一些決定，從營運資本到收購、從製造流程到資本支出，所有這些事情都與我們 2028 年快速前進計劃密切相關。我認為，我們能夠逐季持續證明我們有能力將 EBITDA 利潤率保持在 11% 以上，並且我們有計劃實現這一目標。

With that said, we also make decisions that temporarily impact that EBITDA margin. EMI is a good example. We knew that they were an underperformer from a margin standpoint, but we also felt that working with them and then working with us, we had an opportunity to move that up. So I think there's variation. You're going to see variations in the margin, and some of those are activities that we're executing in the background. But I also think that the 11% becomes more normal -- 11%-plus becomes more normal than 9% and we continue that track up to 12.5% in 2028.

話雖如此，我們也會做出暫時影響 EBITDA 利潤率的決定。EMI 就是一個很好的例子。我們知道從利潤率的角度來看，他們的表現不佳，但我們也認為與他們合作，然後與我們合作，我們有機會提高這個水平。所以我認為存在差異。您會看到利潤率的變化，其中一些是我們在後台執行的活動。但我還認為 11% 會變得更加正常——11% 以上比 9% 更加正常，我們將繼續保持這一趨勢，到 2028 年達到 12.5%。

That's great. And then how should we think about the total addressable market for bakery and checkout in the grocery channel relative to some of the other departments?

那太棒了。那麼，我們該如何看待食品雜貨通路中麵包店和結帳店相對於其他部門的整體潛在市場呢？

The thing I would say is beyond our current ability to serve. I mean, the market is massive. We have always been a small player in that section -- in that segment, but we've gotten larger project awards and larger project activity. In exchange for that, we become more efficient. We've developed the processes and have the equipment to respond to our customers' needs. We have the design expertise in-house that gives us the opportunity to meet the current design goals of our customers and reflects the current market trends.

我想說的是，這件事超出了我們目前的服務能力。我的意思是，這個市場非常巨大。在該領域，我們一直只是一個小角色，但我們獲得了更大的專案獎項，並參與了更大的專案活動。作為回報，我們變得更有效率。我們已經開發了流程並擁有了設備來滿足客戶的需求。我們擁有內部設計專業知識，這使我們能夠滿足客戶當前的設計目標並反映當前的市場趨勢。

So we feel very good about it. It's pick-and-shovel work, but there's a lot of it out there. I think that we've certainly made a mark over the last couple of years in our ability to deliver and offer complementary products to our customers, whether they're newer projects or whether we become the mainstream supplier for them. And I expect that there's a lot more room there for us.

所以我們對此感覺非常好。這是一項艱苦的工作，但這樣的工作還有很多。我認為，過去幾年我們在向客戶交付和提供補充產品的能力方面確實取得了顯著的進步，無論他們是新項目還是我們成為他們的主流供應商。我希望那裡有更多可供我們利用的空間。

Great. Thank you.

偉大的。謝謝。

Amit Dayal, H.C. Wainwright.

阿米特·達亞爾、H.C. 溫賴特。

Thank you. Good morning, everyone. Appreciate you taking my questions, and congrats on another solid quarter. Jim, has any -- have any cross-selling benefits started to kick in yet? Or do you expect these to come down the line maybe in the next few quarters?

謝謝。大家早安。感謝您回答我的問題，並祝賀您又一個季度取得了穩健的業績。吉姆，交叉銷售的好處已經開始顯現了嗎？或者您預計這些可能會在未來幾季內實現？

Absolutely. We've had success in our cross-selling initiatives. We are in the double-digit millions relative to those efforts. And we still feel as though we're on the early side of that. As I mentioned a minute ago, Amit, that it's creating awareness internally, making sure we educate all our folks creating the message that we can bring externally. We bring that message. It creates awareness to our customers. Our customers start to engage us in one, two, three, four, five segments of solutions within their businesses.

絕對地。我們的交叉銷售計劃取得了成功。相對於這些努力，我們的數字已經達到了數千萬。我們仍然感覺我們處於這一階段的早期階段。正如我剛才提到的，阿米特，這是在內部創造意識，確保我們教育所有員工，創造我們可以向外部傳達的訊息。我們傳達了這個訊息。它提高了我們客戶的認知度。我們的客戶開始在我們的業務範圍內提供一、二、三、四、五個領域的解決方案。

So this is a journey. I expect that it takes years for some customers to fully recognize and engage us in all of the products and solutions that we offer, from refrigerated solutions to dimensional graphics to standalone displays to installation, the checkout counters to -- it is becoming a basket of solutions. And I think our job right now is really about creating that awareness with our customer base, and I'm proud of the work the sales and marketing team is doing.

所以這是一趟旅程。我預計，一些客戶需要花費數年時間才能完全認識並接受我們提供的所有產品和解決方案，從冷藏解決方案到立體圖形到獨立顯示器到安裝、收銀櫃檯——它正在成為一攬子解決方案。我認為我們現在的工作實際上是在我們的客戶群中建立這種意識，我為銷售和行銷團隊所做的工作感到自豪。

But it takes a while. It takes time for the customer to become aware. It takes some type of disruption from their current supplier. We need to continue to execute and demonstrate our ability to do it. So we're on that path. I'm very happy with the progress we're making, and I think that we have years of opportunity in front of us even with our current solution set, never mind what we add to it as we move forward.

但這需要一段時間。顧客需要時間來意識到這一點。這需要他們目前的供應商做出某種形式的干擾。我們需要繼續執行並展示我們的能力。所以我們就走在這條路上。我對我們所取得的進展感到非常高興，我認為即使我們目前的解決方案還未完善，我們面前仍有許多機會，更不用說我們在前進的過程中會添加什麼了。

Understood. Thank you. And then just at a more sort of a higher level, the story seems to be getting more closely associated with the retail side of things. What are the risks? You've had some good growth this year, partly helped by acquisitions. But going forward, if the consumer slows down and some of these spending-related initiatives slowdown, how should investors think about your exposure and whether you may still have other retail opportunities or opportunities closer to the consumer that haven't been explored? Just trying to get a sense of how the company's position is relative to some of the macro themes in which it is playing.

明白了。謝謝。然後，從更高的層面來看，這個故事似乎與零售方面聯繫得更加緊密。有哪些風險？今年你們取得了一些良好的成長，部分得益於收購。但展望未來，如果消費放緩，並且一些與支出相關的舉措也放緩，投資者應該如何看待您的投資機會，以及您是否還有其他尚未探索的零售機會或更接近消費者的機會？只是想了解該公司的地位與其所涉及的一些宏觀主題的關係。

We've talked about this since we put together our first version of our Fast Forward plan, picking key verticals that we think have long-term growth potential. And we don't see any disruption in the verticals we're in. And our original thesis still shows many years, maybe even up to a decade of growth, we feel they'll outperform many of the markets that we're tangently in or that we've historically been in.

自從我們制定「快轉」計畫的第一個版本以來，我們就一直在討論這個問題，選擇我們認為具有長期成長潛力的關鍵垂直產業。我們沒有看到我們所處的垂直行業出現任何中斷。我們最初的論點仍然表明，經過多年，甚至長達十年的成長，我們認為它們的表現將超過我們現在或歷史上曾經進入的許多市場。

And we also feel like we have pretty good diversification even though, as you mentioned, there's a lot of retail exposure. It's fairly diversified. The customer and the customer activity that's in the QSR, quick serve food side of things, is the same customer that goes into the grocery market, and it's the same customer that goes into the refueling and same customer that goes into automotive. But the buying catalysts and the engagement and are all kind of different.

而且我們也覺得，儘管如您所說，零售業務風險敞口很大，但我們的多元化經營狀況相當不錯。它相當多樣化。速食店、速食業的顧客和顧客活動與進入食品雜貨市場、加油站和汽車業的顧客和顧客是同一個。但購買催化劑和參與度都是不同的。

So we don't really feel a threat that one type of activity, one type of market reaction would have a broad effect over all of them. Where one goes down -- we feel in many cases where one goes down, it drives another one up. So we have a fairly good balance even though we're in that retail sector, if you will. I think diversification and balance are key elements that have been ingrained in our plan and continue to remain as we kind of viewed them a few years ago.

因此，我們並不真正感受到一種活動、一種市場反應會對所有這些產生廣泛影響的威脅。我們感覺，在許多情況下，一個國家的衰落會帶動另一個國家的崛起。因此，儘管我們處於零售業，但我們仍保持著相當良好的平衡。我認為多樣化和平衡是我們計劃中根深蒂固的關鍵要素，並且仍然保持著我們幾年前對它們的看法。

Understood. That's great. Yeah, that's all I have, guys. I'll take one of the questions offline. Thank you.

明白了。那太棒了。是的，夥計們，這就是我所擁有的一切。我將把其中一個問題轉至線下。謝謝。

Thank you, Amit.

謝謝你，阿米特。

Leanne Hayden, Canaccord Genuity.

Leanne Hayden，Canaccord Genuity。

Morning, Jim and Jim. Thanks so much for taking my question. I'll just start off with a brief follow-up on the previous response. I believe on last quarter's earnings call, you mentioned a decent opportunity in the automotive vertical. Just wondering if you could provide any update on that and whether or not you've noticed any thematic changes in automotive representative discussions.

早上好，吉姆和吉姆。非常感謝您回答我的問題。我將首先對先前的回覆進行簡要的跟進。我相信在上個季度的財報電話會議上，您提到了汽車垂直領域的一個不錯的機會。只是想知道您是否可以提供任何最新消息，以及您是否注意到汽車代表討論的主題發生了任何變化。

I've talked about this over a few years. Automotive continues to be a market that has -- that we do very well in and has done very well for us. Our customer base is very diversified. The customers that are buying from us usually see -- they're looking kind of ahead and they're looking at their products. And some of those influences are right from the auto manufacturers themselves where they understand that the right light over their product and consistency and uniformity are very important to them.

我已經談論這個問題好幾年了。汽車市場仍然是我們表現非常出色並且為我們帶來豐厚回報的市場。我們的客戶群非常多樣化。從我們這裡購買產品的客戶通常會向前看，並查看他們的產品。其中一些影響直接來自汽車製造商本身，他們明白，產品的正確照明以及一致性和統一性對他們來說非常重要。

And I've mentioned it, they put hundreds of thousands, if not millions of dollars, into color combinations and interiors and things like that. When you see a new dynamic red color that a manufacturer is -- spent a lot of money, it feels like it's an engaging proposition to their customers. They want to make sure that's displayed right. And if there's uniformity, it looks the same in one showroom as it does in the other, and it looks the same inside as it does outside.

我提到過，他們在顏色組合、內裝等方面投入了數十萬甚至數百萬美元。當你看到製造商花費大量金錢推出的全新動態紅色時，你會感覺到這對他們的客戶來說是一個有吸引力的提議。他們想確保顯示正確。如果具有統一性，那麼在一個展廳裡看起來就和在另一個展廳裡看起來一樣，而且裡面看起來和外面看起來也一樣。

When I was younger, when I was in college, I worked at a car dealership. And I'll tell you, you could look at that exceptional red in the showroom and you walked outside at night and it was a washed out pink. We deliver that consistency and uniformity. And much to our whole vertical market profile, we understand what's driving the customers' request. We're not providing a light that can fit auto applications. We're designing a light that's specified for auto applications.

我年輕的時候，上大學的時候，在一家汽車經銷店工作。我告訴你，你可以在陳列室裡看到那種獨特的紅色，但當你晚上走到外面時，它就變成了褪色的粉紅色。我們實現了一致性和統一性。就我們整個垂直市場概況而言，我們了解推動客戶需求的因素。我們不提供適合汽車應用的燈。我們正在設計一種專門用於汽車應用的燈。

So we feel very good about the automotive market. Many people have written a death of it from COVID right through e-commerce and you're going to buy your cars pretty much off of your iPhone. We're finding that many of our customers really embrace the customer experience aspect of it. They're bringing the customers in, and we're helping them make sure that their showrooms are demonstrating their product in a way that's creating uniformity that's accentuating and highlighting the aspects that they're building into it.

因此我們對汽車市場非常看好。許多人已經透過電子商務寫下了因 COVID 而導致的死亡，而你幾乎可以透過 iPhone 購買汽車。我們發現許多客戶確實非常重視客戶體驗。他們正在吸引客戶，我們正在幫助他們確保他們的展廳以統一的方式展示他們的產品，突出和強調他們在產品中構建的各個方面。

And that starts in the parking lot. It moves into the showroom. It moves into the customer service area with great signage and digital graphics. It moves into the service area. If you look at service base now, they're -- in some cases, they're as clean as kitchens. I mean, they are well lit. The people in the service areas -- it's a key area of revenue for these dealerships. So our full continuum in that and our ability to provide and service that market, we feel very good about it.

一切從停車場開始。它進入了陳列室。它進入了帶有精美標牌和數位圖形的客戶服務區。它進入服務區。如果你現在看看服務基地，它們——在某些情況下，它們就像廚房一樣乾淨。我的意思是，它們的燈光很好。服務區內的人員－這是這些經銷商的主要收入來源。因此，我們對此的全面連續性以及我們為該市場提供和服務的能力感到非常滿意。

And I'll tell you another one that has picked up some steam a little bit lately is parking. We've always been in and out of parking. Obviously, coming out of COVID, parking has taken a backseat. But there is technology in parking. There is consumer experiences in parking. Lighting makes a difference. Display, signage, and all of those type of elements make a difference. And we're very encouraged about the momentum we're getting in some parking activities. So all of -- everything auto related for us right now is doing well.

我要告訴你，最近另一個有點熱門的問題是停車。我們總是進出停車場。顯然，疫情過後，停車問題不再那麼重要。但停車也需要技術。停車有消費者體驗。照明有所不同。展示、標牌以及所有這些類型的元素都會產生影響。我們對一些停車活動所取得的進展感到非常鼓舞。因此，目前與我們汽車相關的一切都進展順利。

Got it. That's very helpful. Thank you so much. On a completely different note, I know you mentioned pending tariff impact, specifically in the first quarter of fiscal '26. I'm curious about how you expect this to take shape throughout the coming quarters and how we can think about this tariff-driven margin impact on fiscal full year '26.

知道了。這非常有幫助。太感謝了。換個角度來說，我知道您提到了即將產生的關稅影響，特別是在 26 財年第一季。我很好奇您預計這種情況在未來幾季會如何發展，以及我們如何看待關稅驅動的利潤率對 26 財年全年的影響。

I wish I had a crystal ball to tell you how it was going to happen. I think that I mentioned before that it's probably the most challenging thing to deal with is the on-off, high-low scenarios. With all of that said, our Display Solutions group as a whole will be minimally impacted by any tariffs. That's where you really see the made in America, built in America, sourced in America aspects really come to bear for us. I think it provides us -- what could provide us a great opportunity.

我希望我有一個水晶球來告訴你事情會如何發生。我想我之前提到過，最具挑戰性的事情可能是處理的開關、高低場景。綜上所述，我們的顯示解決方案集團整體上將受到關稅的最小影響。在那裡，你真正看到了「美國製造」、「美國建造」、「美國採購」等方面對我們的影響。我認為它為我們提供了一個很好的機會。

Now, with that said, we're not (technical difficulty) the total sales cost. On the lighting side, same type of formula, maybe a little bit more exposure in terms of electronic components, casted materials that are made overseas and that type of thing, but still far below what we see our competitors exposed to.

現在，話雖如此，我們並不是（技術難度）總銷售成本。在照明方面，採用相同類型的配方，可能在電子元件、海外製造的鑄造材料等方面的曝光度會更高一些，但仍然遠低於我們的競爭對手。

I think on par, if you look at the company, we've been around that 50-50 mark Lighting and Display Solutions. Minimal impact in Display, almost negligible. Minimal impact in Lighting, maybe a little bit more than Display, but a lot less than many of our key competitors. I think net-net for us, it's an opportunity.

我認為，如果你看一下公司，你會發現我們在照明和顯示解決方案方面的份額一直保持在 50-50 左右。對顯示的影響極小，幾乎可以忽略不計。對照明的影響最小，可能比顯示器稍微大一點，但比我們的許多主要競爭對手小得多。我認為對我們來說，這是一個機會。

Got you. That's very helpful. I'll just sneak in one more quick one if you both don't mind. This is a little bit more of a broad question about the competitive environment. Over the last decade or so, you've really carved out this categorical niche in Lighting and Display segments. I'm just curious how you view your market share relative to competitors and your positioning and what you expect going forward from a competitive environment perspective.

明白了。這非常有幫助。如果你們不介意的話，我就再偷偷地快速說一遍。這是一個關於競爭環境的更廣泛的問題。在過去十年左右的時間裡，你們確實在照明和顯示領域開闢了這個細分市場。我只是好奇您如何看待您相對於競爭對手的市場份額和定位，以及從競爭環境的角度您對未來的期望。

I think it shifts depending on the market you're in. We're very strong in the c-store market, particularly from an image branding perspective. Our Lighting sales are very strong in that market. We're creating great awareness of our other solutions, which are internal graphics and dimensional signage, refrigerated, open air, refrigerated products, as well as closed case products, beverage centers, all of those type of things, I think we're on that awareness journey in that segment.

我認為它會根據你所在的市場而改變。我們在便利商店市場非常強大，特別是從形象品牌的角度來看。我們的照明產品在該市場的銷售非常強勁。我們正在大力宣傳我們的其他解決方案，包括內部圖形和立體標誌、冷藏、露天、冷藏產品以及封閉式產品、飲料中心，所有這些類型的東西，我認為我們正處於這一領域的認知之旅中。

You flip over to some of the others like grocery, grocery is continuing, expanding market for us. We just talked about some very large project activity in bakery and some other areas in the store, developing awareness in checkout counters. I mean, I would sum it up in saying that we have a lot of opportunity. I think that in some of these markets, we almost always have a seat at the opportunity. We don't always win every one. We win pieces of some and lose pieces of others.

您可以轉到其他一些領域，例如食品雜貨，食品雜貨市場仍在持續擴大。我們剛剛討論了在麵包店和商店其他一些區域開展的一些非常大的項目活動，以提高收銀台的意識。我的意思是，總結一下，我們有很多機會。我認為，在某些市場中，我們幾乎總是有機會。我們並不總是能贏得每場比賽。我們贏了一些，也失去了一些。

But I think we have 10-plus years of growth opportunity in these segments. And I believe overall, these segments remain very healthy. And I believe we're still a single-digit share player in many pieces of them.

但我認為我們在這些領域有 10 多年的成長機會。我相信總體而言，這些領域仍然非常健康。我相信，在許多領域，我們的市佔率仍然只有個位數。

Got it. That's very helpful. Thank you, both. I'll take the rest offline.

知道了。這非常有幫助。謝謝你們兩位。我將把其餘部分下線。

We have reached the end of the question-and-answer session. I'd now like to turn the call back over to Jim Clark for closing comments.

問答環節已經結束。現在我想將電話轉回給吉姆克拉克，請他發表最後評論。

I think that our opening comments, Jim's review of the financial performance, and some of the market performance, these questions have really kind of ferreted out everything. We're very encouraged with the quarter we had. We feel we have momentum coming into our Q1 here. We're solidly entering 2026. And I think our Fast Forward plan is well established a pathway for us to get there, both internally and externally, and we remain very excited about the future here.

我認為我們的開場白、吉姆對財務表現的回顧以及一些市場表現，這些問題確實已經揭示了一切。我們對本季的業績感到非常鼓舞。我們感覺我們在第一季有良好的發展勢頭。我們正穩步邁入2026年。我認為我們的快速前進計劃已經為我們實現目標建立了一條良好的途徑，無論是內部還是外部，我們對未來仍然感到非常興奮。

I just want to say thank you. I said it in my notes, but I always take the opportunity this time of the year to say thank you to our customers, say thank you to our partners, our suppliers, our agents, and most importantly, to our people, the whole team at LSI. Great job. We're looking forward to a very solid 2026, and thank you to our shareholders who have continued confidence in us.

我只是想說聲謝謝。我在筆記中說過，但我總是利用每年這個時候的機會向我們的客戶、我們的合作夥伴、我們的供應商、我們的代理商，最重要的是，向我們的員工、LSI 的整個團隊表示感謝。幹得好。我們期待 2026 年能取得非常穩健的成績，並感謝股東對我們持續的信任。

With that, I'll turn the call back over to the moderator.

說完這些，我會把電話轉回給主持人。

Thank you. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開線路了，感謝您的參與。