Acuity Brands(US:AYI) ZACKS·2025-06-27 14:46Core 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]