LSI Industries Inc.

Greetings. Welcome to LSI Industries Fiscal 2026 Third Quarter Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Jim Gilles, Chief Financial Officer. Thank you. You may begin.

Welcome, everyone. and thank you for joining today's call. We issued a press release before the market opened this morning detailing our fiscal 26 third quarter results. In addition to this release, we also posted a conference call presentation in the investor relations section of our corporate website. Information contained in this presentation will be referenced throughout today's conference call, included are 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-Q. 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. Today's call will begin with remarks summarized in our fiscal third quarter results. At the conclusion of these prepared remarks, we will open the line for questions. With that, I'll turn the call over to LSI President and Chief Executive Officer Jim Clark.

Thank you, Jim. Good morning, everyone, and thank you for joining us today. Before Jim Gilles walks through the numbers for Q3, I wanted to take a few minutes to step back and frame what you're seeing this quarter in the context of the journey we've been on. When I joined LSI in late 2018, we were a company doing just under $300 million in revenue, but even our margins in the low single digits and a stock trading around $2.50. We were fundamentally a lighting company, a good one, but just a lighting company. The question at that point was whether we could build something more durable, more differentiated, and ultimately more valuable. In 2019, we introduced our 2025 plan with a goal of reaching $500 million in revenue and 10% of EBITDA by 2025. We achieved that plan early in fiscal 2023, and that gave us the confidence to move forward with our fast-forward plan, targeting $800 million in revenue and $100 million in EBITDA by 2028. But the more important change was not just in the numbers. It was in how we thought about the business. We made a deliberate decision to organize around vertical markets instead of products. That changes how you operate, how you invest, and how you grow. It also changes how you show up with the customers. We chose markets where there is a sustained need to reinvest in the physical environment driven by the consumer experience. When one brand raises the bar, the competitors have to respond. That creates an ongoing cycle of investment, and that dynamic continues to work in our favor. As we've discussed before, we grow in two ways. First, by adding new vertical markets. And second, by expanding what we provide within the markets we already serve. When we can provide lighting, display, millworks, graphics, and program management as a single integrated solution, we become more relevant to the customer. We participate in more of the projects, and we build deeper relationships over time. That is where we create real value for our customers and for our shareholders. Over the last five years, we've deployed more than $500 million across four acquisitions, including Royston. Each one has added the capability and strengthened our position in the verticals we serve. Just as important, we have done this in a disciplined way, supported by the cash flow of the business. We've been very intentional about what we buy, how we integrate it, and how it fits into our broader platform. Today, with roughly 3,000 people in LSI and 23 U.S.-based manufacturing locations and a pro forma revenue run rate approaching $900 million, the platform we set out to build is taking shape. It's broader. It's more capable. It's more resilient than the business we started with. The focus is now on execution and continuing to scale what we have built. One of the things I'm most proud of is our high safety ratio this team has built over time. We set our expectation carefully. We deliver against them. And that consistency has been a key part of building credibility with our customer and and our investors, and it's something we work hard to protect. The acquisition and integration of Royston is a significant opportunity. It expands our capabilities and strengthens our position across multiple vertical markets. Our approach will be disciplined and consistent with how we manage prior acquisitions. We will take the time to integrate it the right way, align it with our operating model, and make sure we're capturing the value we expect. As we move through that process, we will evaluate the business through the lens of our vertical market strategy and our focus on margin quality. Where there is strong alignment, we will invest and grow. Where there is less alignment, we will be thoughtful about how we serve those areas going forward. That is the part of how we built this business, and it will not change. That discipline has been a defining characteristic of the company, and it will continue to guide us. We believe the platform we built is the right one. The markets are there, the capabilities are in place, and the team is strong. The opportunity now is to execute and to continue to build on that foundation. Now, before I turn things over to Jim Gilles, I wanted to make a few brief comments on the quarter. We delivered solid quarter results with growth across both segments and continued strong cash generation. The performance reflects ongoing momentum in our key vertical markets and the operational discipline of the team. We are seeing the benefit of the model we've been building with more consistent activity across our core customers and improved execution across the business. Looking ahead, we expect a solid fourth quarter. We feel good about how the business is positioned as we move into the next year. While there will always be moving pieces in the near term, The underlying demand drivers in our vertical markets remain intact, and we believe we are well positioned to continue to build on the progress we have made. It's an exciting time for LSI. We have a lot of opportunity in front of us, supported by a stronger and more capable platform than we've had at any point in our history. I still feel like we're in the third inning of a nine-inning game, and our job is to stay focused, stay disciplined, and continue to execute. With that, I'll turn it over to Jim for more detailed walkthrough of our Q3 financials.