Acuity Brands(AYI) - 2025 Q2 - Quarterly Results

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].