LSI Industries

To be the premier partner for advanced lighting and display solutions by creating intelligent, immersive visual environments.

LSI Industries SWOT Analysis

Updated: October 5, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for LSI Industries was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The LSI Industries SWOT analysis reveals a company at a strategic inflection point. Its dominant position in key verticals and North American manufacturing are formidable strengths, providing a stable foundation. However, margin pressure and the cyclical nature of its markets present clear weaknesses. The primary path forward involves aggressively capitalizing on high-growth opportunities like the EV infrastructure build-out and the digital transformation in QSR. Fully integrating the JSI acquisition to unlock cross-selling synergies is not just an opportunity but a necessity. The core challenge for LSI is to transition from a hardware provider to an integrated solutions leader, which requires innovation in software and controls. Mitigating macroeconomic threats through operational excellence will be crucial for funding this evolution and achieving its vision of creating intelligent visual environments.

Acuity Brands Hubbell Incorporated Signify Daktronics GE Current

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the premier partner for advanced lighting and display solutions by creating intelligent, immersive visual environments.

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Strengths

VERTICALS: Dominant position in QSR, Automotive, and Grocery verticals
MANUFACTURING: North American plants offer supply chain resilience/speed
PORTFOLIO: Broad offering of lighting & displays, boosted by JSI
BACKLOG: Strong project backlog of $135M provides revenue visibility
RELATIONSHIPS: Long-standing, deep ties with major national brands

Weaknesses

MARGINS: Gross margin pressure seen in Q3'24, down to 26.5% from 27.2%
CYCLICALITY: Revenue is sensitive to construction and remodel cycles
INTEGRATION: Realizing full cross-sell synergy between LSI & JSI is slow
DEBT: Net debt of $79.8M limits flexibility and increases interest costs
SOFTWARE: Lagging competitors in advanced, integrated control software

Opportunities

EV: National Electric Vehicle Infrastructure (NEVI) program funding
DIGITAL: Rapid QSR transition to digital menu boards and advertisements
CROSS-SELL: Untapped potential to sell lighting to JSI's grocery clients
RETROFIT: Aging infrastructure creates large market for LED upgrades
INFRASTRUCTURE: Government spending on public projects benefits lighting

Threats

COMPETITION: Intense price/feature competition from Acuity, Hubbell
MACRO: High interest rates delaying customer capital expenditure projects
SUPPLY: Potential volatility in electronic component pricing and supply
LABOR: Rising labor costs in US manufacturing impacting gross margins
SUBSTITUTION: Lower-cost overseas manufacturers eroding market share

Key Priorities

ACCELERATE: Drive growth in high-margin digital solutions & EV verticals
INTEGRATE: Fully realize JSI cross-sell synergies in grocery market
OPTIMIZE: Enhance operational efficiency to combat margin pressures
INNOVATE: Launch next-gen integrated lighting & display control platform

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LSI Industries OKR

Updated: October 5, 2025 • 2025-Q4 Analysis

The LSI Industries OKR plan is a focused and powerful framework for execution. It correctly translates the strategic priorities from the SWOT analysis into clear, ambitious objectives. The plan's strength lies in its balance between aggressive growth ('VERTICAL DOMINANCE') and essential operational discipline ('PEAK EFFICIENCY'). The 'SYNERGY UNLEASHED' objective directly tackles the critical task of integrating JSI, while 'SMART VISUALS' addresses the necessary innovation to secure long-term relevance. The key results are largely outcome-driven and measurable, providing clarity for the teams. This LSI OKR plan provides a clear, actionable blueprint to drive the company toward its vision of leading in intelligent visual environments.

Acuity Brands Hubbell Incorporated Signify Daktronics GE Current

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the premier partner for advanced lighting and display solutions by creating intelligent, immersive visual environments.

VERTICAL DOMINANCE

Lead in QSR, Auto, Grocery, and EV charging markets.

EV CHARGING: Secure lighting and/or display contracts for 50 new multi-station charging developments by YE
QSR DRIVE-THRU: Increase our digital menu board market share by 3 points within the top 10 national chains
AUTO ROW: Win the lighting specification for the national redesign program of two top-5 automotive brands
GROCERY EXPANSION: Convert 20 key grocery accounts from JSI-only to integrated LSI lighting solutions

SYNERGY UNLEASHED

Maximize cross-selling and integrated solution sales.

PIPELINE: Generate $25M in new, qualified pipeline from targeted cross-sell initiatives between divisions
WINS: Secure 15 major new project wins that feature a fully integrated package of LSI and JSI products
TRAINING: Certify 100% of the LSI and JSI sales teams on the core value proposition of the full portfolio
BUNDLES: Launch 3 new pre-packaged, integrated solutions for the grocery and convenience store verticals

PEAK EFFICIENCY

Achieve industry-leading margins and operational agility.

MARGINS: Increase consolidated gross margin by 150 basis points through strategic pricing and cost reduction
LEAD TIME: Reduce average product lead times by 20% by optimizing North American manufacturing processes
PROCUREMENT: Realize $5M in annualized cost savings through strategic sourcing and supply chain optimization
SG&A: Maintain selling, general, and administrative expenses below 18% of total annual revenue

SMART VISUALS

Launch a unified platform for intelligent lighting & displays.

PLATFORM: Launch Minimum Viable Product (MVP) of unified control platform to 10 beta customers for feedback
ROADMAP: Finalize and fund the 18-month product roadmap for next-generation smart controls and software
REVENUE: Generate $2M in initial revenue from new software-enabled services and recurring subscriptions
ADOPTION: Achieve a 25% attach rate of new smart controls on all eligible new lighting project proposals

METRICS

Adjusted EBITDA: $40M
Net Sales Growth: 8%
Gross Margin: 28.5%

VALUES

Customer First
Integrity
Innovation
Teamwork
Accountability

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LSI Industries Retrospective

AI-Powered Insights

Claude

Gemini

GPT

LSI Industries Q3 FY2024 Earnings Report & Press Release (May 2, 2024)
LSI Industries Investor Relations Website
LSI Industries 2023 10-K Annual Report
Yahoo Finance & Public Financial Data for LYTS
Competitor websites and annual reports (Acuity Brands, Hubbell)

Acuity Brands Hubbell Incorporated Signify Daktronics GE Current

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the premier partner for advanced lighting and display solutions by creating intelligent, immersive visual environments.

Toggle Theme

What Went Well

DISPLAY: Strong sales growth in the Display Solutions vertical
JSI: JSI acquisition continues to perform well, especially in grocery
BACKLOG: Maintained a solid backlog, providing future revenue visibility
OPERATIONS: Effective management of operations amid market fluctuations
CASHFLOW: Generated positive operating cash flow during the quarter

Not So Well

LIGHTING: Softness in the Lighting Solutions segment sales
MARGINS: Gross profit margin declined slightly year-over-year
PROJECTS: Delays in customer project decisions due to economic climate
VOLUME: Lower sales volume in some areas compared to the prior year
OUTLOOK: Cautious short-term outlook due to macroeconomic uncertainty

Learnings

DIVERSIFICATION: Vertical market strategy helps offset segment weakness
COSTS: Persistent cost control is essential to protect profitability
LEAD-TIMES: Project-based business requires navigating long sales cycles
INTEGRATION: Cross-selling is a long-term effort that requires focus
MACRO: External economic factors have a direct impact on project timing

Action Items

SALES: Intensify focus on cross-selling JSI solutions to LSI clients
PRICING: Implement disciplined pricing strategies to protect margins
EFFICIENCY: Continue to identify and execute cost-saving initiatives
INVENTORY: Actively manage inventory levels to align with demand
MARKETING: Target marketing efforts on high-growth areas like EV & QSR

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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LSI Industries Market

AI-Powered Insights

Claude

Gemini

GPT

LSI Industries Q3 FY2024 Earnings Report & Press Release (May 2, 2024)
LSI Industries Investor Relations Website
LSI Industries 2023 10-K Annual Report
Yahoo Finance & Public Financial Data for LYTS
Competitor websites and annual reports (Acuity Brands, Hubbell)

Founded: 1976
Market Share: Leading share in QSR & gas station verticals
Customer Base: QSR, Automotive, Grocery, C-Stores, Industrial
Category:
Commercial Lighting, Displays
SIC Code: 3646
NAICS Code: 335122
Location: Cincinnati, Ohio
Zip Code: 45242
Congressional District: OH-1 CINCINNATI
Employees: 1400

Competitors

Acuity Brands Request Analysis

Hubbell Incorporated Request Analysis

Signify Request Analysis

Daktronics View Analysis

GE Current Request Analysis

Products & Services

No products or services data available

Distribution Channels

LSI Industries Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

LSI Industries Q3 FY2024 Earnings Report & Press Release (May 2, 2024)
LSI Industries Investor Relations Website
LSI Industries 2023 10-K Annual Report
Yahoo Finance & Public Financial Data for LYTS
Competitor websites and annual reports (Acuity Brands, Hubbell)

Problem

High energy/maintenance costs of old tech
Inconsistent brand image across locations
Poor customer engagement from static media
Complex vendor management for visual tech

Solution

Turnkey lighting & digital display projects
Energy-efficient, long-life LED products
Centralized control & content management
In-house design, manufacturing, install

Key Metrics

Net Sales & Adjusted EBITDA Growth
Gross Profit Margin Percentage
New Project Wins and Backlog Value
Cross-sell revenue between divisions

Unique

Single source for lighting, display, install
Deep expertise in QSR/Auto/Grocery needs
Agile North American manufacturing base
JSI's unique food-focused display systems

Advantage

Long-term, embedded national account deals
Proprietary product designs and optics
Turnkey project management capability
Brand reputation for quality and reliability

Channels

Direct sales force for national accounts
Independent sales agent network
Specification through architects/engineers
Electrical and sign distributors

Customer Segments

Quick Service Restaurants (QSR)
Automotive Dealerships
Grocery and Supermarket Chains
Convenience Stores / Petroleum Stations

Costs

Raw materials (aluminum, steel, LEDs)
Manufacturing labor and overhead
Sales and marketing expenses
R&D for new product development

LSI Industries Product Market Fit Analysis

Updated: October 5, 2025

LSI Industries creates intelligent visual environments for leading commercial brands. It combines advanced lighting and digital displays to reduce energy costs, elevate the customer experience, and drive sales. This is accomplished through a single-source, turnkey solution, simplifying complex nationwide rollouts for clients in fast-food, automotive, and grocery, ensuring brand consistency and operational excellence.

Reduce total cost of ownership via energy savings and durable products.

Elevate brand image and customer experience with superior visual quality.

Simplify execution with a single, reliable partner for complex rollouts.

Before State

Fragmented vendors for lighting & displays
Inefficient, high-energy legacy lighting
Static, unengaging customer signage

After State

A unified, intelligent visual environment
Energy-efficient, smart LED lighting
Dynamic, data-driven digital displays

Negative Impacts

Inconsistent brand image across locations
High operational and energy expenditures
Missed sales from poor visual merchandising

Positive Outcomes

Strengthened brand and customer experience
Reduced energy consumption and OpEx by >50%
Increased sales and customer engagement

Key Metrics

Customer Retention Rates

Est. >90% in key accounts

Net Promoter Score (NPS)

Not publicly disclosed, est. 40-50

User Growth Rate

Measured by new project wins and backlog growth

Customer Feedback/Reviews

Limited public reviews; B2B focus

Repeat Purchase Rates

High within project-based verticals

Requirements

Single-source partner for visual solutions
Deep understanding of vertical markets
Reliable, high-quality product portfolio

Why LSI Industries

Provide turnkey project management
Leverage North American manufacturing
Offer integrated lighting & display packages

LSI Industries Competitive Advantage

Combined lighting & display expertise
Decades of trust in target verticals
Agile North American operations

Proof Points

Thousands of QSR digital menu board installs
Nationwide lighting rollouts for top brands
JSI's dominance in grocery store displays

LSI Industries Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

LSI Industries Q3 FY2024 Earnings Report & Press Release (May 2, 2024)
LSI Industries Investor Relations Website
LSI Industries 2023 10-K Annual Report
Yahoo Finance & Public Financial Data for LYTS
Competitor websites and annual reports (Acuity Brands, Hubbell)

Strategic pillars derived from our vision-focused SWOT analysis

Win in QSR, Auto, Grocery & EV verticals.

Unify lighting & display sales/tech.

Drive margin through efficiency.

Develop next-gen smart platforms.

What You Do

We provide integrated, high-performance lighting and display solutions.

Target Market

For multi-site commercial and industrial businesses in defined verticals.

Differentiation

Turnkey solutions provider (lighting, display, controls, installation)
Deep vertical market expertise (QSR, Automotive, Grocery)
North American manufacturing base for speed and quality control

Revenue Streams

Project-based product sales
Installation & project management services
Recurring software/support revenue (growing)

LSI Industries Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

LSI Industries Q3 FY2024 Earnings Report & Press Release (May 2, 2024)
LSI Industries Investor Relations Website
LSI Industries 2023 10-K Annual Report
Yahoo Finance & Public Financial Data for LYTS
Competitor websites and annual reports (Acuity Brands, Hubbell)

Company Operations

Organizational Structure: Divisional (Lighting, Displays, JSI) with centralized corporate functions.
Supply Chain: Primarily North American manufacturing and assembly with global components.
Tech Patents: Portfolio of patents in LED optics, thermal management, and controls.
Website: https://www.lsi-industries.com/

Top Clients

Board Members

LSI Industries Competitive Forces

Threat of New Entry

Moderate: Manufacturing requires significant capital, but foreign competitors can enter the market with low-cost products.

Supplier Power

Moderate: Key components like LED chips and drivers have specialized suppliers, but LSI's scale provides some negotiation leverage.

Buyer Power

High: Large, multi-site customers (e.g., McDonald's) are sophisticated buyers who demand competitive pricing and high service levels.

Threat of Substitution

Moderate: While direct substitution is low, clients can choose to delay projects or opt for lower-cost, lower-quality imports.

Competitive Rivalry

High: Dominated by large players like Acuity, Hubbell, and Signify, plus numerous smaller niche competitors creating price pressure.

Analysis of AI Strategy

Updated: October 5, 2025 • 2025-Q4 Analysis

The LSI Industries AI SWOT Analysis underscores a significant, untapped opportunity. LSI's core strength is its proprietary data from key verticals, a valuable asset for training targeted AI models. However, this is offset by critical weaknesses in talent, infrastructure, and a cohesive strategy. The immediate imperative is to build a foundational data platform that unifies information across its divisions. The most promising applications are practical: using AI for operational efficiency in manufacturing and offering predictive maintenance as a value-added service. While competitors may be further ahead, LSI's deep domain expertise allows it to focus AI development on solving high-value customer problems, such as dynamic content for digital displays. A focused, incremental approach to AI will yield the best results, transforming data from a byproduct into a core strategic asset for growth.

Acuity Brands Hubbell Incorporated Signify Daktronics GE Current

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the premier partner for advanced lighting and display solutions by creating intelligent, immersive visual environments.

Strengths

DATA: Rich, proprietary data from vertical-specific deployments (QSR)
ACCESS: Installed base of connected devices provides real-world data
PROCESS: Decades of manufacturing data for process optimization AI
PARTNERS: Strong customer relationships for piloting new AI features
EXPERTISE: Deep domain knowledge to guide relevant AI model development

Weaknesses

TALENT: Lack of a dedicated internal AI/ML engineering team
INFRASTRUCTURE: Limited cloud and data processing infrastructure at scale
SILOS: Data is fragmented across lighting, display, and JSI divisions
STRATEGY: No clearly articulated, board-level AI vision or roadmap
MONETIZATION: Unclear how to package and sell AI-driven features

Opportunities

OPERATIONS: AI-driven predictive maintenance for lighting and displays
SALES: AI models to predict cross-sell opportunities in customer base
PRODUCT: Dynamic pricing on digital menu boards using real-time data
EFFICIENCY: Generative AI to accelerate custom lighting layout designs
MANUFACTURING: AI for quality control and supply chain optimization

Threats

COMPETITORS: Acuity and others investing heavily in AI-powered platforms
STARTUPS: Agile startups developing niche AI solutions for LSI's clients
SECURITY: Increased cybersecurity risks from AI-enabled connected systems
COST: High cost of developing and maintaining sophisticated AI models
ADOPTION: Customer reluctance to pay a premium for AI-driven features

Key Priorities

OPTIMIZE: Use AI to improve manufacturing efficiency and reduce costs
PERSONALIZE: Develop AI for dynamic content on digital display solutions
PREDICT: Implement AI for predictive maintenance services on hardware
INTEGRATE: Build foundational data infrastructure to unify business units

Create professional SWOT analyses in minutes with our AI template. Get insights that drive real results.

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LSI Industries Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

LSI Industries Q3 FY2024 Earnings Report & Press Release (May 2, 2024)
LSI Industries Investor Relations Website
LSI Industries 2023 10-K Annual Report
Yahoo Finance & Public Financial Data for LYTS
Competitor websites and annual reports (Acuity Brands, Hubbell)

Profit: TTM Net Income $15.7M (as of Q3 FY24)

Market Cap: $310 Million (May 2024)

Stock Performance

Annual Report: Available on LSI Investor Relations site

Debt: Net Debt of $79.8 million (Q3 FY24)

ROI Impact: Margin pressure may impact short-term ROI

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

LSI is a solid Market Leader with a defensible niche. Its ambition is category-focused, not world-changing. The OKRs and strategy are well-aligned to address key weaknesses (integration) and seize major opportunities (EV, digital). Growth is constrained by market cyclicality and intense competition, reflected in a moderate SWOT score and growth multiplier. The primary path to increasing its iconic score is through successful software innovation and realizing full acquisition synergies.

SWOT Factors

Upside: 76.7 Risk: 70.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Fully integrate JSI to unlock cross-sell revenue in grocery.

Aggressively capture market share in EV charging infrastructure.

Launch a unified smart platform to shift to recurring revenue.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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