LSI Industries: Production schedules, supply chain issues impacted Lighting

“Within the Lighting segment, we experienced generally stable demand conditions across most of our vertical markets in the fourth quarter,” stated Clark. “In fiscal 2024, sales were 4% below prior year, with LSI outperforming the broader market, capturing share in select vertical markets. Operating income for the year increased 5% driven by the 200-basis point increase in gross margin. Recent trends continue as project quotation levels remain steady; however, the quote-to-order conversion period remains extended, particularly for larger project activity. Construction schedule changes persist due to non-lighting supply chain issues together with availability of skilled labor. With lighting installation occurring in the late-cycle phase of construction, we continue to incur high levels of production schedule changes to our backlog, given changes in project timing. Pricing for project quotations remains stable and we expect that trend to continue in the first quarter of fiscal 2025.