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Fiscal 2027 First Quarter Results Conference Call NOVEMBER 5, 2026
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Disclaimer This presentation contains “forward-looking statements”—that is, statements related to future events within the meaning of the Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Forward-looking statements often address our expected future business, financial performance, financial condition and results of operations, often contain words such as “estimates,” “targets,” “anticipates,” “hopes,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “may,” “will,” “see,” “should” and similar expressions and the negative versions of those words, and may be identified by the context in which they are used. Such statements, whether expressed or implied, are based upon current expectations of LSI and speak only as of the date made. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied. Forward-looking statements include statements that address activities, events or developments that LSI expects, believes or anticipates will or may occur in the future, such as earnings estimates (including projections and guidance) and other predictions of financial performance. Forward-looking statements are based on LSI’s experience and perception of current conditions, trends, expected future developments and other factors it believes are appropriate under the circumstances and are subject to numerous risks and uncertainties, many of which are beyond LSI’s control. These risks and uncertainties include, but are not limited, to the following: the impact of competitive products and services; product and pricing demands, and market acceptance risks; LSI’s reliance on third-party manufacturers and suppliers; substantial changes to the refueling and convenience store and grocery markets; LSI’s stock price volatility; potential costs associated with litigation, other proceedings and regulatory compliance; LSI’s ability to develop, produce and market quality products that meet customers’ needs; LSI’s ability to adequately protect intellectual property; information technology security threats and computer crime; reliance on customers and partner relationships; financial difficulties experienced by customers; the cyclical and seasonal nature of our business; the adequacy of reserves and allowances for doubtful accounts; the failure of investments, acquisitions or acquired companies to achieve their plans or objectives generally; unexpected difficulties in integrating acquired businesses; the inability to effectively execute our business strategies; the ability to retain key employees, including key employees of acquired businesses; labor shortages or an increase in labor costs; changes in product mix; unfavorable economic, political, and market conditions, including interest rate fluctuations and inflation; changes in U.S. trade policy; the results of asset impairment assessments; risks related to disruptions or reductions in business operations or prospects due to international conflicts and wars, pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases; price increases of materials; significant shortages of materials; shortages in transportation; increases in fuel prices; sudden or unexpected changes in customer creditworthiness; not recognizing all revenue or not receiving all customer payments; write-offs or impairment of capitalized costs or intangible assets in the future or restructuring costs;; and the other risk factors LSI describes from time to time in SEC filings. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. You are cautioned to not place undue reliance on these forward-looking statements. LSI does not guarantee any forward-looking statement, and actual results may differ materially from those projected. LSI undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, circumstances or otherwise. Additional descriptions of risks, uncertainties and other matters can be found in our annual reports on Form 10-K and quarterly reports on Form 10-Q that we file with the SEC and are incorporated herein by reference. Our public communications and other reports may contain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. 2© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL FORWARD-LOOKING STATEMENTS
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Key Messages 3© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL FISCAL 2027 FIRST QUARTER RESULTS Leveraging Commercial, Operational, and Capital Allocation Priorities, Executing on Value Compounding Strategy Resilient customer demand, in increasingly difficult operating environment LSI continues to deploy a “Category of One” retail branding solutions platform; positioned to capture market share and unlock meaningful cross-selling opportunities. Net sales +44% y/y in Q1FY27, including contributions from Royston Group acquisition completed March 24, 2026; Display Solutions segment demand remains consistent at a high level, offset by continued softness within Lighting segment; operating environment remains challenged by cost inflation, rising interest rates. Royston delivered a solid first quarter highlighted by bothsales growth and margin expansion Royston net sales increased +8% sequentially versus Q4FY26, while adjusted EBITDA margin expanded 100 bps compared to the prior quarter. This reflects early gains from recently launched initiatives to accelerate growth and enhance operating efficiency. Volatile performance by vertical market; Growth realized in largest two vertical markets; offset by declines in other verticals Refueling/C-Store sales increased 5% in Q1, growth realized with largest customers, reflecting ongoing activity in both new and existing projects. Grocery also increased mid-single digits led by large customers. QSR down double-digits as key chains respond to lower consumer traffic driven by inflation. Display Solutions Segment: Order rates remain positive, consolidating Canadian manufacturing operations Q1FY27 segment sales increased more than 80% versus the prior year, while on an organic basis, excluding Royston, sales increased 1%; pro-forma segment order rates in the fiscal first quarter increased 4% versus the prior year, backlog also +4%. Announced closure of Collingwood, Ontario facility, while consolidating production into nearby Toronto operations. Lighting Segment: Continued softness across non-residential markets, with lengthening quote-to-order conversion period Q1FY27 segment sales declined -6% versus prior year due to broad-based softness in the commercial and industrial markets. Focused on aligning project pricing with raw material input costs; quote-to-order conversion lengthening; project quote activity remained stable both sequentially and year over year, and orders increased 1% from the prior-year period. Strong free cash flow conversion, continued reduction in net debt; focused on a disciplined, return-centric capital allocation strategy Generated strong free cash flow of $13.8 million in the fiscal first quarter, driven by sustained profitability and working capital discipline; Reduced total net debt outstanding by more than $14 million in Q1FY27 on a sequential basis, resulting in a ratio of net debt to pro-forma trailing twelve-month adjusted EBITDA of 2.6x as of September 30, 2026.
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Consolidated Financial Results 4© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL “Category-of-One” Retail Branding Solutions Positions LSI to Increase Share of Wallet Our in-house design, engineering, manufacturing, installation, and service capabilities provide customers with greater speed, program control, and execution certainty, positioning us to displace single-product vendors; cross-selling remains chief focus post Royton acquisition Lower Sales of Lighting and Vertical Mix Impacted Margin Realization Lighting segment sales declined -6% y/y in Q1FY27, while comparable Display Solutions segment sales increased 1%; less favorable sales mix and cycling lower margin backlog resulted in 20 bps y/y decline in Adj. EBITDA margin in Q1FY27 Royston Performed Well in Q1FY27, Integration Remains On-Track Pricing, cross-selling, procurement, process, and cost actions gaining momentum; demand momentum within Refueling/C-Store and Grocery remain healthy at Royston TOTAL NET SALES ($M) OPERATING INCOME ($M) NET INCOME ($M) NON-GAAP ADJ. EBITDA ($M) Reported Operating Income Adj. Operating Income % Sales % SalesReported Net Income Adj. Net Income % Sales $157.2 $225.9 Q1FY26 Q1FY27 $11.0 $14.2$14.0 $19.4 Q1FY26 Q1FY27 $15.7 $22.2 Q1FY26 Q1FY27 $7.3 $7.1 $9.7 $11.6 Q1FY26 Q1FY27 10.0 % 9.8 % 8.6 %8.9 % +44 % 5.1 % 6.2 %
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$17.0 $30.5 Q1FY26 Q1FY27 Display Solutions Segment Update 5© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL Royston Acquisition and Strength in Target Verticals Drove Growth vs. PY Largest Refueling/C-Store and Grocery customers continue to advance releases on large programs. Largest customer generateddouble digit proforma growth in Q1 Solid Project Execution Supports Multi- Year Demand The 2,500 Refueling/C-Store site refresh announced last quarter continues to proceed as planned, activity expected to steadily ramp throughout fiscal 2027-2028; separately a large QSR customer recently approved a 3,000-store interior renovation program and selected LSI as a key solutions provider. The program is scheduled to begin late in the third quarter of fiscal 2027 and is expected to continue through fiscal 2029. Closure of Collingwood Reflects Ongoing Cost Reduction Focus Consolidating operations at the leased Collingwood, Ontario facility into existing Toronto operations by the end of Q4FY27; expect the consolidation to generate over $1 million in annual cost savings $10.6 $18.5 Q1FY26 Q1FY27 DISPLAY SOLUTIONS SEGMENT SALES ($M) DISPLAY: ADJ. EBITDA ($M) % Sales $9.8 $16.5 Q1FY26 Q1FY27 DISPLAY: ADJ. GROSS MARGIN ($M) % Sales DISPLAY: ADJ. OPERATING INCOME ($M) % Sales $88.2 $161.0 Q1FY26 Q1FY27 12.0 % 11.5% 19.3% 19.0 % 11.1 % 10.2 % +83%
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$23.2 $21.9 Q1FY26 Q1FY27 Lighting Segment Update 6© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL Broad-Based Softness in Non-Residential Lighting Demand Targeting above-market growth in what remains a challenging near-term demand environment for commercial lighting; both large and small projects seeing longer quote-to-conversion cycles Gross Margin Improves 10 bps Y/Y as Pricing Aligned with Cost EBITDA margin impacted byoperating expenses flat to PY, reflectingcontinuedcommercial investments for new products and other customer initiatives Stable Order Rates Entering Q2FY27 Lighting segment order +1% above PY; segment book-to-bill above 1.0x as of Sept. 30, 2026 $9.9 $8.9 Q1FY26 Q1FY27 LIGHTING SEGMENT SALES ($M) LIGHTING: ADJ. EBITDA ($M) % Sales $9.3 $8.2 Q1FY26 Q1FY27 33.6 % 33.7 % LIGHTING: ADJ. GROSS MARGIN ($M) % Sales LIGHTING: ADJ. OPERATING INCOME ($M) % Sales $69.1 $64.8 Q1FY26 Q1FY27 14.4 % 13.7 % 12.7 %13.4 % (6 %)
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Working Capital Update 7© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL Working Capital Working Capital remains in tight bandwidth of performance Total days of Working Capital remains within 61-65 days or 18% of TTM sales Total Inventory DIO remains at 60-62 days. Project schedule changes (push-outs)have caused inventory levels to fluctuate somewhat; we will continue to manage closely TOTAL INVENTORY ($M) $114.8 $90.6 $135.8 $151.2 $143.5 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 NET ACCOUNTS RECEIVABLE ($M) $78.9 $82.0 $116.6 $112.3 $114.4 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 $112.8 $100.1 $148.9 $146.0 $144.0 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 TOTAL WORKING CAPITAL ($M) Net Accounts Receivable No structure changes; terms or past-due levels remain consistentwith twelve-month trends
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Balance Sheet Update (1) Free cash flow (FCF) defined as cash flow from operating activities less capital expenditures (2) Net leverage defined as net debt divided by trailing 12 -month Adjusted EBITDA (3) Reflects proforma for the Royston acquisition 8© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL Significant Liquidity to Support Growth More than $122 million of cash and available liquidity under our $350 million credit facility Strong Free Cash Flow Generation Nearly $14 million of free cash flow generated in Q1FY27, representing 62% free cash flow conversion as % of Adj. EBITDA; TTM free cash flow through Sept. 30, 2026, equates to more than $53 million TTM FREE CASH FLOW ($M)(1) $56.5 $122.6 Q1FY26 Q1FY27 CREDIT FACILITY AVAILABILITY ($M) $23.3 $37.8 $37.9 $39.0 $53.1 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 NET DEBT OUTSTANDING ($M)(2) $43.5 $21.5 $250.7 $241.7 $227.4 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Net Leverage 0.4x Net Leverage 2.6x (3) Net Leverage 0.8x Net Leverage 2.7x (3) Net Leverage 2.7x (3) Focused on Net Leverage Reduction Below 2.0x Reduced net leverage to 2.6x at the end of Q1FY27; anticipate continued, strong free cash generation to support ratable deleveraging, with net leverage expected to be below 2.0x at or before year-end fiscal 2028
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© 2026 LSI INDUSTRIES 9 Appendix
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Statement on Non-GAAP Financial Measures This presentation includes adjustments to GAAP gross margin, operating income, net income, and earnings per share for the periods ending September 30, 2026, and September 30, 2025. Gross Margin, operating income, net income, and earnings per share, which exclude the impact of long-term performance-based compensation, severance costs, restructuring costs, lease expense on the step-up basis of acquired leases, the amortization expense of acquired intangible assets, consulting expenses supporting commercial growth initiatives, and acquisition costs are non-GAAP financial measures. We believe these non-GAAP measures will provide increased transparency to our core operating performance of the business. Also included in this presentation are non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA and Adjusted EBITDA), Free Cash Flow, Organic Sales Growth, and Net Debt to Adjusted EBITDA. We believe that these are useful as supplemental measures in assessing the operating performance of our business. These measures are used by our management, including our chief operating decision maker, to evaluate business resul ts and are frequently referenced by those who follow the Company. These non-GAAP measures may be different from non-GAAP measures used by other companies. In addition, the non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all amounts associated with our results as determined in accordance with U.S. GAAP. Therefore, these measures should be used only to evaluate our results in conjunction with corresponding GAAP measures. Below is a reconciliation of these non-GAAP measures to the net income and earnings per share reported for the periods indicated, along with the calculation of EBITDA, Adjusted EBITDA, Free Cash Flow, Organic Sales Growth, and Net Debt to Adjusted EBITDA. 10© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL
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Non-GAAP Reconciliation 11© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL RECONCILIATION OF REPORTED GROSS MARGIN TO ADJUSTED GROSS MARGIN LSI INDUSTRIES LIGHTING SEGMENT DISPLAY SOLUTIONS SEGMENT Q1FY26 Q1FY27 Q1FY26 Q1FY27 Q1FY26 Q1FY27 Net Sales 157,249 225,855 69,054 64,823 88,195 161,032 Gross Margin 40,277 52,231 23,182 21,855 17,095 30,374 Lease expense on the step-up basis of acquired leases 68 152 - - 68 152 Severance costs / Restructuring costs (135) - 1 - (137) - Adjusted Gross Margin 40,210 52,383 23,183 21,855 17,026 30,526 Adjusted Gross Margin % 25.6% 23.2% 33.6% 33.7% 19.3% 19.0%
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Non-GAAP Reconciliation 12© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL RECONCILIATION OF REPORTED OPERATING INCOME TO ADJUSTED OPERATING INCOME LSI INDUSTRIES LIGHTING SEGMENT DISPLAY SOLUTIONS SEGMENT Q1FY26 Q1FY27 Q1FY26 Q1FY27 Q1FY26 Q1FY27 Net Sales 157,249 225,855 69,054 64,823 88,195 161,032 Operating Income 10,972 14,161 8,549 7,548 8,591 12,996 Acquisition Costs 220 252 - - - - Amortization expense of acquired intangible assets 1,554 3,779 603 613 951 3,183 Lease expense on the step-up basis of acquired leases 68 152 - - 68 152 Severance costs / Restructuring costs (71) 13 1 - (90) - Long-term performance-based compensation 1,282 1,049 126 69 275 169 Adjusted Operating Income 14,025 19,406 9,279 8,230 9,795 16,500 Adjusted Operating % 8.9% 8.6% 13.4% 12.7% 11.1% 10.2% Depreciation expense 1,646 2,761 658 640 832 2,019 Adjusted EBITDA 15,671 22,167 9,937 8,870 10,627 18,519 Adjusted EBITDA % 10.0% 9.8% 14.4% 13.7% 12.0% 11.5%
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Non-GAAP Reconciliation . 13© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL RECONCILIATION OF REPORTED NET INCOME TO ADJUSTED NET INCOME LSI INDUSTRIES Q1FY26 Q1FY27 Net Income Reported 7,264 7,127 Income tax 2,431 3,059 Interest expense, net 747 3,862 Other expense (income) 530 113 Operating Income as Reported 10,972 14,161 Depreciation and amortization 3,200 6,540 EBITDA 14,172 20,701 Acquisition costs 220 252 Lease expense on the step-up basis of acquired leases 68 152 Severance costs / Restructuring costs (71) 13 Long-term performance based compensation 1,282 1,049 Adjusted EBITDA 15,671 22,167 Adjusted EBITDA as a percentage of Sales 10.0% 9.8%
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Non-GAAP Reconciliation 14© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL RECONCILIATION OF CASH FLOW FROM OPERATIONS TO FREE CASH FLOW FREE CASH FLOW Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Cash Flow from Operations 675 24,984 6,930 11,559 15,231 Less: Capital Expenditures (967) (1,684) (591) (1,900) (1,444) Free Cash Flow (292) 23,300 6,339 9,659 13,787 NET DEBT OUTSTANDING AND LEVERAGE RATIO Q1FY26 Q2FY26 Q3FY26(1) Q4FY26(1) Q1FY27(1) Total Debt 50,676 27,939 261,006 255,931 240,195 Less: Cash (7,143) (6,407) (10,333) (14,249) (12,805) Net Debt 43,533 21,532 250,673 241,682 227,390 Adjusted EBITDA – Trailing 12 Months 57,308 57,286 92,970 89,027 87,640 Net Leverage Ratio 0.8 0.4 2.7 2.7 2.6 (3) Reflects proforma for the Royston acquisition
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Non-GAAP Reconciliation 15© 2026 LSI INDUSTRIES Q1FY27 RESULTS CONFERENCE CALL ORGANIC VS. INORGANIC SALES GROWTH ORGANIC COMPARED TO INORGANIC SALES FIRST QUARTER Q1FY26 Q1FY27 % Variance Lighting Segment 69,053 64,823 (6%) Display Solutions Segment Comparable Display Solutions Sales 88,196 88,620 1% Royston - 72,412 n/m Total Display Solutions Sales 88,196 161,032 83% Total Net Sales 157,249 225,855 44% Less: Royston - 72,412 - Total organic net sales 157,249 153,443 (2%)
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© 2026 LSI INDUSTRIES 16 For Additional Questions, Please Contact 513 372 3021 Thank you, LSI Investor Relations