LSI Industries Inc. (NASDAQ: LYTS), a leading provider of lighting and display solutions, reported impressive fiscal second-quarter results, with its stock surging 10.97% in pre-market trading on Thursday.

The Cincinnati-based company's quarterly revenue soared 35.5% year-over-year to $147.7 million, surpassing analysts' expectations of $129.2 million. This growth was fueled by robust demand across its core refueling, convenience store, and grocery verticals.

Particularly notable was the company's performance in the grocery vertical, which "generated sales growth over 50% in the quarter driven by the resurgence in refrigerated and non-refrigerated display case demand." This surge in demand was driven by the termination of a proposed merger between two major grocery industry players, which had previously led to deferred maintenance and investment across the industry.

LSI Industries' adjusted earnings per share (EPS) of $0.26 also outperformed analysts' estimates of $0.20, representing a 30% beat. The company's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) came in at $13.3 million, exceeding expectations of $12.04 million and marking a 20% year-over-year increase.

The strong results were driven by LSI Industries' integrated, solutions-based model, which is gaining traction in the market. The company's order rates increased by 12% year-over-year, resulting in a solid backlog entering the fiscal third quarter.