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]

Core Insights - Acuity Brands (AYI) is expected to report quarterly earnings of $3.67 per share, reflecting a year-over-year increase of 8.6% [1] - Anticipated revenues for the quarter are projected to be $1.03 billion, representing a 13.4% increase compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] Revenue Estimates - Analysts forecast that revenues from the Intelligent Spaces Group (ISG) will reach $172.15 million, marking a significant year-over-year increase of 152.8% [4] - The consensus estimate for revenues from Acuity Brands Lighting (ABL) is $861.87 million, indicating a modest year-over-year change of 2.2% [4] Profit Estimates - The consensus estimate for adjusted operating profit from the Intelligent Spaces Group is $25.60 million, up from $14.30 million reported in the same quarter last year [5] - Analysts predict that adjusted operating profit for Acuity Brands Lighting will be $148.14 million, compared to $136.40 million in the previous year [5] Stock Performance - Acuity Brands shares have decreased by 11.8% over the past month, contrasting with a 6.2% decline in the Zacks S&P 500 composite [5] - The company holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5]