ATLANTA, May 29, 2025 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI) (the “Company”) will release fiscal 2025 third quarter results on Thursday, June 26, 2025 at 6:00 a.m. ET, followed by a conference call at 8:00 a.m. ET. Neil Ashe, Chief Executive Officer of Acuity Inc., will lead the call. The webcast, earnings release, and supplemental presentation can be accessed via the Investor Relations section of the Company's website at investors.acuityinc.com on Thursday, June 26, 2025. The online replay will remain ...

Core Insights - Acuity Brands reported revenue of $1.01 billion for the quarter ended February 2025, marking an 11.1% year-over-year increase, with EPS of $3.73 compared to $3.38 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by 1.60%, while the EPS exceeded the consensus estimate by 1.91% [1] Financial Performance Metrics - Acuity Intelligent Spaces net sales reached $171.50 million, surpassing the average estimate of $170.15 million, reflecting a year-over-year increase of 151.8% [4] - Acuity Brands Lighting (ABL) net sales were $840.60 million, slightly below the average estimate of $859.87 million, showing a year-over-year decline of 0.3% [4] - Adjusted operating profit for Acuity Intelligent Spaces was $32 million, exceeding the average estimate of $25.60 million [4] - Adjusted operating profit for Acuity Brands Lighting was $141.30 million, below the average estimate of $148.14 million [4] Stock Performance - Acuity Brands shares have returned -3.8% over the past month, compared to a -4.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

BMS Software Suite NYSE: AYI 2 NON-GAAP FINANCIAL MEASURES We disclose the following non-generally accepted accounting principles ("GAAP") financial measures: "adjusted operating profit" and "adjusted operating profit margin" for total company and by segment; for total company only we additionally include: "adjusted gross profit", "adjusted gross profit margin", "adjusted net income;" "adjusted diluted EPS;" "earnings before interest, taxes, depreciation and amortization ("EBITDA");" "EBITDA margin;" "adjus ...

Core Viewpoint - Acuity Brands reported quarterly earnings of $3.73 per share, exceeding the Zacks Consensus Estimate of $3.66 per share, and showing an increase from $3.38 per share a year ago, indicating a positive earnings surprise of 1.91% [1] Financial Performance - The company posted revenues of $1.01 billion for the quarter ended February 2025, which was below the Zacks Consensus Estimate by 1.60%, compared to $905.9 million in the same quarter last year [2] - Over the last four quarters, Acuity Brands has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] Stock Performance - Acuity Brands shares have declined approximately 8.8% since the beginning of the year, while the S&P 500 has decreased by 3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.56 on revenues of $1.16 billion, and for the current fiscal year, it is $17.19 on revenues of $4.38 billion [7] - The trend of estimate revisions for Acuity Brands is mixed, which could change following the recent earnings report [6] Industry Context - The Technology Services industry, to which Acuity Brands belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Acuity reported net sales of $1.0 billion in Q2 FY2025, an increase of $100.4 million, or 11.1% year-over-year[1]. - Operating profit was $110.2 million, a decrease of $7.9 million, or 6.7% compared to the prior year, with an operating profit margin of 11.0%[3]. - Adjusted operating profit increased to $162.9 million, up $22.8 million, or 16.3% year-over-year, with a margin of 16.2%[3]. - Diluted earnings per share (EPS) was $2.45, down $0.39, or 13.7% year-over-year, while adjusted diluted EPS rose to $3.73, an increase of $0.35, or 10.4%[4]. - Net income for the six months ended February 28, 2025, was $184.2 million, down from $189.8 million in the prior year[28]. - The diluted earnings per share (GAAP) decreased by 4.1% to $5.80 for the six months ended February 28, 2025, compared to $6.05 in the same period in 2024[35]. Segment Performance - Acuity Brands Lighting (ABL) generated net sales of $840.6 million, a decrease of $2.9 million, or 0.3% year-over-year[6]. - Acuity Intelligent Spaces (AIS) reported net sales of $171.5 million, an increase of $103.4 million, or 151.8% year-over-year, including $95.1 million from QSC performance[8]. - Acuity Intelligent Spaces segment saw a significant increase in net sales, up 151.8% to $171.5 million for the three months ended February 28, 2025[30]. - Net sales for Acuity Brands Lighting decreased by 0.3% to $840.6 million for the three months ended February 28, 2025, compared to $843.5 million for the same period in 2024[34]. - Adjusted operating profit (Non-GAAP) for Acuity Brands Lighting increased by 3.6% to $141.3 million, while Acuity Intelligent Spaces saw a 123.8% increase to $32.0 million for the three months ended February 28, 2025[34]. - Acuity Intelligent Spaces achieved an operating profit (GAAP) of $20.7 million for the six months ended February 28, 2025, reflecting a 43.8% increase from $14.4 million in the same period in 2024[36]. Cash Flow and Investments - Net cash from operating activities was $191.6 million for the first six months of FY2025, with a 13% increase in dividends to $0.17 per share[10]. - Cash flows from operating activities for the six months ended February 28, 2025, were $191.6 million, down from $292.6 million in the prior year[28]. - The company reported a net cash used for investing activities of $1,190.4 million, primarily due to the acquisition of a business[28]. - Total cash and cash equivalents at the end of the period were $397.9 million, down from $578.9 million at the end of the prior year[28]. - Free cash flow (Non-GAAP) decreased by 38.2% to $163.0 million for the six months ended February 28, 2025, down from $263.6 million in the previous year[36]. Acquisition and Debt - Acuity closed the acquisition of QSC during the quarter, contributing to the financial results[2]. - Long-term debt rose to $996.5 million, up from $496.2 million, reflecting the impact of the acquisition[24]. Assets and Growth - Total assets increased to $4.58 billion as of February 28, 2025, compared to $3.81 billion as of August 31, 2024[24]. - For the six months ended February 28, 2025, net sales increased by 6.4% to $1,957.9 million compared to $1,840.6 million in the same period in 2024[35]. - Gross profit for the same period rose by 13.5% to $468.0 million, with a gross margin of 46.5%[33].

Core Insights - Acuity Inc. reported net sales of $1.0 billion for Q2 fiscal 2025, marking an increase of $100.4 million or 11.1% year-over-year [1][10] - The company successfully closed the acquisition of QSC, contributing to its financial results for the quarter [2] Financial Performance - Operating profit for Q2 fiscal 2025 was $110.2 million, a decrease of $7.9 million or 6.7% compared to the previous year [3][10] - Adjusted operating profit increased to $162.9 million, up $22.8 million or 16.3% year-over-year [3][10] - Diluted earnings per share (EPS) was $2.45, down $0.39 or 13.7% from the prior year, while adjusted diluted EPS rose to $3.73, an increase of $0.35 or 10.4% [4][10] Segment Performance - Acuity Brands Lighting (ABL) generated net sales of $840.6 million, a slight decrease of $2.9 million or 0.3% compared to the prior year [5][30] - Operating profit for ABL was $130.3 million, an increase of $4.3 million or 3.4% year-over-year [6][34] - Acuity Intelligent Spaces (AIS) saw net sales of $171.5 million, a significant increase of $103.4 million or 151.8% year-over-year, largely due to the acquisition of QSC [7][30] Cash Flow and Capital Allocation - Net cash from operating activities for the first six months of fiscal 2025 was $191.6 million [11] - The company increased its dividend by 13% to $0.17 per share and repurchased approximately 68,000 shares for a total of $22.6 million [11] Company Overview - Acuity Inc. is a market-leading industrial technology company focused on innovative solutions in lighting and building management [13][14] - The company operates across North America, Europe, and Asia, employing approximately 13,000 associates [15]

Financial Data and Key Metrics Changes - The company generated net sales of $1 billion in Q2 2025, an increase of $100 million or 11% year-over-year, driven by growth in intelligent spaces and the inclusion of QSC sales [27] - Adjusted operating profit was $163 million, up $23 million or 16% from the previous year, with an adjusted operating profit margin of 16.2%, an increase of 70 basis points [28] - Adjusted diluted earnings per share increased by 35 cents or 10% to $3.73 [28] Business Line Data and Key Metrics Changes - Acuity Brands Lighting (ABL) reported sales of $841 million, a decrease of $3 million from the prior year, primarily due to declines in retail and corporate accounts [29] - Adjusted operating profit for ABL increased by $5 million to $141 million, with an adjusted operating profit margin of 16.8%, up 60 basis points [30] - Acuity Intelligent Spaces (AIS) achieved sales of $172 million, an increase of $103 million, with an adjusted operating profit of $32 million and an adjusted operating profit margin of 18.7% [31] Market Data and Key Metrics Changes - The company noted uncertainty in the market affecting order volumes, particularly in the lighting segment, which experienced some project freezing due to cost uncertainty [45][46] - The company has a diversified global supply chain, with approximately 18% of products sourced from Asia and about half from Mexico, which is largely USMCA compliant [40][55] Company Strategy and Development Direction - The company aims to grow through strategic pricing, product vitality, and expanding its addressable market while managing the impact of tariffs [23][22] - The integration of QSC is expected to enhance the company's intelligent spaces strategy, focusing on smarter, safer, and greener solutions [18][92] - The company is positioned to react to market changes and continue executing its strategy effectively [25][106] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the marketplace due to tariffs and indicated that pricing actions have been taken to manage the financial impact [21][22] - The company remains confident in its ability to execute its strategy and deliver value despite market challenges [25][130] - Management emphasized the importance of maintaining a high-performing supply chain to navigate the evolving tariff landscape [40][44] Other Important Information - The company closed the acquisition of QSC during Q2 2025, financing it with $600 million of additional debt and cash on hand [26][33] - The company increased its dividend by 13% to 17 cents per share and allocated $23 million for share repurchases [33] Q&A Session Summary Question: Impact of tariffs on the company - Management views tariffs as a supply shock and is focused on managing the dollar and margin impacts while maintaining a strong supply chain [38][39] Question: Market conditions and project activity - Management noted that there was some market uncertainty affecting order volumes, particularly in the lighting segment, but they expect to see a clearer demand picture as the year progresses [47][49] Question: Competitive positioning regarding tariffs - Management believes the company is advantaged compared to competitors due to its diversified supply chain and USMCA compliance [52][55] Question: Pricing strategy in response to tariffs - The company employs strategic pricing to cover cost increases due to tariffs, evaluating pricing across different product lines [76][77] Question: Integration progress of QSC - Management expressed enthusiasm about the integration of QSC, noting that it aligns well with the company's strategy and has already shown positive marketplace performance [92][93] Question: Future acquisition plans - Management confirmed that while there are no immediate large-scale acquisitions planned, they remain open to attractive opportunities in the future [111][112] Question: Customer behavior regarding orders - Management indicated that customers often accelerate orders in response to price increases, but the overall impact of tariffs on demand remains uncertain [85][88]

Core Viewpoint - Acuity Brands, Inc. is expected to report strong year-over-year growth in earnings and revenues for the second quarter of fiscal 2025, driven by product innovations and market expansion efforts [4][10]. Financial Performance - In the last reported quarter, adjusted earnings exceeded the Zacks Consensus Estimate by 2.1% and increased by 6.7% year over year, while net sales fell short of expectations by 0.04% but rose by 1.8% from the previous year [2]. - The Zacks Consensus Estimate for the upcoming quarter's earnings per share (EPS) is $3.66, reflecting an 8.3% increase from $3.38 reported in the same quarter last year [3]. - The consensus for net sales is projected at $1.02 billion, indicating a 12.9% increase compared to the prior year [3]. Growth Drivers - The anticipated growth in earnings and revenues is attributed to improvements in product vitality, service levels, technological advancements, and new product innovations [4]. - The acquisition of QSC has expanded Acuity Brands' Intelligent Spaces portfolio, positioning the company for long-term revenue and earnings growth [5]. - The ISG segment is expected to see a significant revenue increase of 157.8% year over year to $175.6 million due to the QSC acquisition [7]. Segment Performance - Total ABL segment revenues are predicted to rise by 1.9% year over year to $859.3 million [5]. - Within the ABL segment, revenues from Independent Sales Network, Direct Sales Network, and Corporate Accounts are expected to increase by 1.9%, 4%, and 3.6%, respectively, while Retail and Other revenues are projected to decline by 6.1% [6]. Operational Efficiency - The company's segmentation strategy is enhancing operational efficiency and aligning products with customer needs, which is expected to improve margins [9]. - Adjusted EBITDA margin is anticipated to improve by 50 basis points to 17.4% in the fiscal second quarter compared to 16.9% a year ago [9]. Earnings Prediction - The model indicates a strong likelihood of an earnings beat for Acuity Brands, supported by a positive Earnings ESP of +0.68% and a Zacks Rank of 3 [10].

Group 1 - Acuity Brands (NYSE: AYI) is a company that is being considered for an upgrade due to its potential [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, which leads to value and growth prospects [1] - The service offers a stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2] Group 2 - Subscribers can take advantage of a two-week free trial to explore opportunities in the oil and gas sector [3]

Core Insights - Acuity Brands (NYSE: AYI) is gaining market attention due to improved margins despite unimpressive topline sales growth [1] - The company is focusing on capital allocation strategies to enhance its financial performance [1] Group 1: Company Performance - Acuity Brands has shown significant improvement in margins, indicating effective management and operational efficiency [1] - The topline sales growth has not been remarkable, suggesting potential challenges in revenue generation [1] Group 2: Investment Opportunities - The investment group "Value In Corporate Events" identifies opportunities in major corporate events such as IPOs, mergers & acquisitions, and earnings reports [1] - The group covers approximately 10 major events monthly, aiming to find the best investment opportunities for its members [1]