Acuity Brands(AYI) - 2025 Q3 - Quarterly Results

Financial Performance - Acuity reported net sales of $1.2 billion for Q3 fiscal 2025, an increase of $210.5 million, or 21.7% year-over-year[1]. - Operating profit was $139.8 million, a decrease of $5.5 million, or 3.8% compared to the prior year, with an operating profit margin of 11.9%[3]. - Adjusted operating profit increased to $221.7 million, up $54.6 million, or 32.7% year-over-year, with an adjusted operating profit margin of 18.8%[3]. - Diluted earnings per share (EPS) was $3.12, down $0.50, or 13.8% year-over-year, while adjusted diluted EPS rose to $5.12, an increase of $0.97, or 23.4%[4]. - The company reported a net income of $98.4 million for the three months ended May 31, 2025, down from $113.9 million in the same period last year, reflecting a decrease of 13.8%[26]. - Adjusted net income (Non-GAAP) rose to $161.5 million, reflecting a 23.6% increase from $130.7 million year-over-year[32]. - The company reported a decrease in net income (GAAP) to $98.4 million for the three months ended May 31, 2025, down 13.6% from $113.9 million[32]. Segment Performance - Acuity Brands Lighting (ABL) segment generated net sales of $923.2 million, an increase of $24.7 million, or 2.7% year-over-year[6]. - Acuity Intelligent Spaces (AIS) segment saw net sales of $264.1 million, a significant increase of $188.4 million, or 248.9% year-over-year[8]. - Acuity Intelligent Spaces reported a significant increase in net sales of 248.9% for the three months ended May 31, 2025, totaling $264.1 million compared to $75.7 million in the prior year[30]. - Net sales for Acuity Brands Lighting increased to $2,649.8 million, a 1.2% rise from $2,618.4 million in the previous year[35]. - Acuity Intelligent Spaces reported a significant net sales increase to $509.1 million, up 144.8% from $208.0 million[35]. Cash Flow and Dividends - Net cash from operating activities for the first nine months of fiscal 2025 was $398.9 million, with a 13% increase in dividends to $0.17 per share[10]. - Net cash provided by operating activities for the nine months ended May 31, 2025, was $398.9 million, down from $445.1 million in the prior year[28]. - Total cash and cash equivalents at the end of the period were $371.8 million, a decrease from $699.0 million at the end of the same period last year[28]. - The company declared a dividend of $0.17 per share for the three months ended May 31, 2025, compared to $0.15 per share in the same period last year, representing a 13.3% increase[26]. - Free cash flow decreased to $355.3 million, down 12.1% from $404.1 million[35]. Acquisitions and Strategic Initiatives - The company completed the acquisition of QSC and M3 Innovation, indicating a strategy for market expansion and innovation[10]. - Acuity aims to aggressively deploy capital to grow the business and enter attractive new verticals, focusing on innovative product development[13]. Asset and Profitability Metrics - Total assets increased to $4.646 billion as of May 31, 2025, compared to $3.815 billion as of August 31, 2024[24]. - Gross profit for the nine months ended May 31, 2025, was $1,487.5 million, up from $1,293.0 million in the prior year, reflecting a year-over-year increase of 15.0%[26]. - Adjusted EBITDA (Non-GAAP) for the nine months ended May 31, 2025, was $584.5 million, an increase of 17.0% from $499.7 million[34]. - Operating profit margin (GAAP) for the nine months ended May 31, 2025, was 12.2%, a decrease of 190 basis points from 14.1%[34]. - Adjusted operating profit for Acuity Brands Lighting reached $468.7 million, reflecting a 3.6% increase from $452.3 million[35]. - Adjusted operating profit for Acuity Intelligent Spaces surged to $109.7 million, a 161.8% increase compared to $41.9 million[35]. - Operating profit for the three months ended May 31, 2025, was $139.8 million, a decrease of 3.8% from $145.3 million in the same period last year[26]. - Adjusted operating profit (Non-GAAP) reached $221.7 million, a 32.7% increase compared to $167.1 million in the prior year[32]. - Operating profit margin for Acuity Brands Lighting decreased to 15.4%, down 70 basis points from 16.1%[35]. - Adjusted operating profit margin for Acuity Intelligent Spaces improved to 21.5%, an increase of 140 basis points from 20.1%[35].