My previous investment thoughts on Acuity Brands Inc. (NYSE: AYI ) were a buy rating because of the strong demand outlook across both its operating segments. I reiterate a buy rating for AYI as the growth engines remain strongI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long- ...

Core Insights - Acuity Inc. (AYI) reported strong third-quarter results for fiscal 2025, with adjusted earnings and net sales exceeding expectations and showing year-over-year growth [1][3][9] Financial Performance - Adjusted earnings per share (EPS) reached $5.12, surpassing the Zacks Consensus Estimate of $4.42 by 15.8% and increasing 23% from the previous year's EPS of $4.15 [3][9] - Net sales totaled $1.18 billion, exceeding the consensus estimate of $1.14 billion by 3% and improving 21.7% from the prior-year quarter [3][9] Segment Performance - The Acuity Brands Lighting segment, which accounts for the majority of sales, saw a 2.7% increase in quarterly sales to $923.2 million, above the estimate of $912.6 million [3] - Acuity Intelligent Spaces generated net sales of $264.1 million, a significant increase of 248.9% year over year, exceeding the estimate of $233.5 million [5][9] - Adjusted operating profit for Acuity Intelligent Spaces was $62.3 million, up 260.1% from the year-ago period [6] Operating Highlights - Adjusted operating profit increased 32.7% year over year to $221.7 million, with an adjusted operating margin of 18.8%, up 150 basis points [7] - Adjusted EBITDA rose 31.3% to $236.3 million, with an adjusted EBITDA margin expanding 140 basis points to 20% [7] Cash Flow and Shareholder Returns - As of the fiscal third quarter, cash and cash equivalents were $371.8 million, down from $845.8 million at the end of fiscal 2024 [10] - The company repurchased nearly 0.3 million shares for $90 million during the first nine months of fiscal 2025, with 3.4 million shares remaining in the repurchase program [11] - The quarterly dividend was increased by 13% to 17 cents per share, equating to 68 cents annually [11] Guidance - Acuity reaffirmed its fiscal 2025 guidance, expecting net sales between $4.3 billion and $4.5 billion and adjusted EPS in the range of $16.50-$18.00, indicating growth from fiscal 2024 [12]

Core Insights - Acuity reported revenue of $1.18 billion for the quarter ended May 2025, reflecting a year-over-year increase of 21.7% and surpassing the Zacks Consensus Estimate by 3.02% [1] - Earnings per share (EPS) for the quarter was $5.12, up from $4.15 in the same quarter last year, resulting in an EPS surprise of 15.84% compared to the consensus estimate of $4.42 [1] Financial Performance Metrics - Acuity Intelligent Spaces net sales reached $264.10 million, exceeding the average analyst estimate of $240.34 million, and showing a significant year-over-year increase of 248.9% [4] - Acuity Brands Lighting (ABL) net sales were reported at $923.20 million, slightly above the average estimate of $910.77 million, with a year-over-year growth of 2.8% [4] - Adjusted operating profit for Acuity Intelligent Spaces was $62.30 million, surpassing the average estimate of $44.69 million [4] - Adjusted operating profit for Acuity Brands Lighting was $173.90 million, compared to the average estimate of $164.07 million [4] Stock Performance - Acuity's shares have returned +9.9% over the past month, outperforming the Zacks S&P 500 composite's +5.1% change [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 This presentation and related conference call and webcast contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include, but are not limited to, statements that describe or relate to the Company's plans, initiatives, projections, ...

Financial Data and Key Metrics Changes - The company reported net sales of $1.2 billion for the third quarter, an increase of $211 million or 22% year-over-year [20] - Adjusted operating profit rose to $222 million, up $55 million or 33% from the previous year, with an adjusted operating profit margin of 18.8%, an increase of 150 basis points [21] - Adjusted diluted earnings per share increased to $5.12, up $0.97 or 23% compared to the prior year [21] Business Line Data and Key Metrics Changes - ABL (Acuity Brands Lighting) generated sales of $923 million, a $25 million or 3% increase year-over-year, driven by growth in independent sales and direct sales networks [21] - Acuity Intelligent Spaces (AIS) reported sales of $264 million, an increase of $188 million, with Atrius and Distech combined growing 21% and QSC growing over 20% year-over-year [25] Market Data and Key Metrics Changes - The company experienced accelerated orders in the third quarter, attributed to strategic pricing actions in response to evolving tariff policies [5][22] - The independent sales network and direct sales showed strong growth, while corporate accounts faced declines due to timing issues with a large retailer's renovations [21] Company Strategy and Development Direction - The company is focused on product vitality, service enhancement, and technology improvements to drive productivity and market share growth [18] - Acuity is entering new verticals, including refuel and healthcare, and is making strategic acquisitions to enhance its product offerings [110][111] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage outcomes amid uncertainties from tariff policies and geopolitical instability [17] - The expectation is that the combination of third and fourth quarter performance will meet the anticipated results for the second half of fiscal 2025 [62] Other Important Information - The company generated approximately $400 million in cash flow from operations year-to-date and has effectively allocated capital, including a 13% increase in dividends and share repurchases [27][28] - A special charge of $30 million was taken this quarter related to productivity efforts, which will yield benefits in future quarters [29][96] Q&A Session Summary Question: QSC margin performance - Management noted that QSC's margin improved significantly due to strong top-line growth and the adoption of productivity tools, with no deal accounting affecting the results [34][92] Question: Impact of accelerated orders and pricing actions - Management confirmed that there was evidence of order acceleration in both ABL and AIS, with expectations for normalized performance in the upcoming quarters [40][41] Question: Gross margin expectations for Q4 - Management indicated that while Q3 had minimal impact from tariffs, Q4 is expected to see some margin dilution due to tariff costs and pricing actions [58][60] Question: Demand environment and customer behavior - Management observed rational behavior from customers in response to pricing actions and tariff uncertainties, indicating a conservative approach to future expectations [97][99] Question: Progress on new verticals - Management highlighted strong traction in new markets such as refuel and healthcare, with ongoing efforts to enhance product offerings in these areas [110][111]

Acuity (AYI) Q3 2025 Earnings Call June 26, 2025 08:00 AM ET Speaker0 Good morning, and welcome to the Acuity Fiscal twenty twenty five Third Quarter Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, the company will conduct a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Charlotte McLaughlin, Vice President of Investor Relations. Charlotte, please go ahead. Sp ...

Company Performance - Acuity (AYI) reported quarterly earnings of $5.12 per share, exceeding the Zacks Consensus Estimate of $4.42 per share, and up from $4.15 per share a year ago, representing an earnings surprise of +15.84% [1] - The company posted revenues of $1.18 billion for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 3.02%, compared to year-ago revenues of $968.1 million [2] - Over the last four quarters, Acuity has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Future Outlook - The sustainability of Acuity's stock price movement will depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the coming quarter is $4.94 on revenues of $1.22 billion, and for the current fiscal year, it is $17.02 on revenues of $4.33 billion [7] - The estimate revisions trend for Acuity was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Technology Services industry, to which Acuity belongs, is currently in the top 16% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Acuity's stock performance [5]

Media Contact: April Appling Senior Vice President, Corporate Marketing and Communications corporatecommunications@acuityinc.com Investor Contact: Charlotte McLaughlin Vice President, Investor Relations (404) 853-1456 investorrelations@acuityinc.com Strong Performance Delivers Sales Growth in Both Lighting and Intelligent Spaces ATLANTA, June 26, 2025 - Acuity Inc. (NYSE: AYI), ("Acuity"), a market-leading industrial technology company, delivered net sales of $1.2 billion in the third quarter of fiscal 2025 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ Form 10-Q _____________________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2025. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-16583. __________ ...

Core Insights - Acuity Inc. reported net sales of $1.2 billion for Q3 fiscal 2025, marking a 21.7% increase year-over-year, driven by strong performance across its segments [1][9][36] - The company experienced a decrease in operating profit to $139.8 million, down 3.8% from the previous year, while adjusted operating profit rose to $221.7 million, an increase of 32.7% [3][9][36] - Diluted earnings per share (EPS) decreased to $3.12, a 13.8% decline, while adjusted diluted EPS increased to $5.12, up 23.4% from the prior year [4][9][36] Financial Performance - Net sales for Acuity Brands Lighting (ABL) reached $923.2 million, a 2.7% increase compared to the prior year [5][36] - Acuity Intelligent Spaces (AIS) saw significant growth, with net sales of $264.1 million, representing a 248.9% increase year-over-year [7][36] - Operating profit for ABL was $134.0 million, down 11.6%, while adjusted operating profit increased to $173.9 million, up 7.3% [6][36] Earnings and Cash Flow - The company generated strong cash flow with net cash from operating activities amounting to $398.9 million for the first nine months of fiscal 2025 [10] - Acuity increased its dividend by 13% to $0.17 per share and repurchased approximately 344,000 shares for a total of $91.3 million [10] Segment Analysis - ABL's operating profit margin decreased to 14.5%, down 240 basis points, while AIS's operating profit margin was 10.4%, a decrease of 610 basis points [6][8][36] - Adjusted operating profit margin for ABL improved to 18.8%, an increase of 80 basis points, while AIS's adjusted operating profit margin rose to 23.6%, up 70 basis points [6][8][36] Market Position and Strategy - Acuity Inc. continues to focus on innovative product development and effective capital allocation to drive growth and enhance market share [12][13] - The company aims to enter attractive new verticals and leverage technology to solve industry challenges [12][13]