Acuity Brands(US:AYI) ZACKS·2025-10-31 17:06Core Insights - Acuity Brands reported mixed Q4 fiscal 2025 results, with earnings exceeding estimates while revenues fell short, although both metrics improved year-over-year [2][4]. Financial Performance - Adjusted EPS was $5.20, surpassing the Zacks Consensus Estimate of $4.70 by 10.6%, and increased 21% from $4.30 in the prior year [4]. - Net sales reached $1.209 billion, missing the consensus mark of $1.212 billion by 0.3%, but showing a 17.1% increase from the previous year [4]. Segment Performance - The Acuity Brands Lighting segment saw a 0.8% increase in quarterly sales to $962.4 million, while the Independent Sales Network sales rose 3.7% to $702.4 million [5]. - Acuity Intelligent Spaces generated net sales of $255.2 million, a significant increase of 204.2% year-over-year, with adjusted operating profit rising 154% to $54.6 million [7]. Operating Highlights - Adjusted operating profit increased 26.2% year-over-year to $225.3 million, with an adjusted operating margin of 18.6%, up 130 basis points [8]. - Adjusted EBITDA rose 25.8% to $240.7 million, with an adjusted EBITDA margin expanding 140 basis points to 19.9% [8]. Financial Position - As of the end of Q4, cash and cash equivalents were $422.5 million, down from $845.8 million at the end of fiscal 2024, while long-term debt increased to $896.8 million from $496.2 million [10]. - For fiscal 2025, cash provided by operating activities totaled $601.4 million, down from $619.2 million in the prior year [10]. Shareholder Returns - The company repurchased nearly 0.44 million shares for $118.5 million and repaid $200 million of term-loan borrowings, while also increasing its quarterly dividend by 13% to 17 cents per share [11]. Future Guidance - For fiscal 2026, Acuity expects net sales between $4.7 billion and $4.9 billion, indicating growth from $3.84 billion in fiscal 2024, with adjusted EPS projected in the range of $19-$20.50 [12].