Acuity (NYSE: AYI) reported fiscal fourth-quarter 2025 results on Wednesday.
The company reported quarterly net sales growth of 17.1% year-over-year to $1.21 billion, missing the analyst consensus estimate of $1.23 billion.
It clocked an adjusted EPS of $5.20, beating the analyst consensus estimate of $4.84.
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Breaking down Acuity’s sales by segment shows strong growth in Acuity Intelligent Spaces (AIS), which surged to $255.2 million, a remarkable 204.2% increase from the previous year. Meanwhile, Acuity Brands Lighting (ABL) contributed $962.4 million, marking a 0.8% year-over-year rise.
Operating margin declined by 30 bps to 14.9%, despite operating profit growth of 15.0%.
The consolidated adjusted operating margin grew by 130 bps to 18.6%. ABL’s adjusted operating margin improved by 210 bps to 20.1%. AIS’ margin decreased by 420 bps to 21.4%.
The company generated $202.5 million in operating cash flow for the quarter.
Acuity held cash and equivalents of $422.5 million as of August 31, 2025, compared to $845.8 million as of August 31, 2024.
Adjusted EBITDA was $240.7 million, up from $191.3 million a year ago. The margin expanded by 140 bps to 19.9%.
During fiscal 2025, the company completed the acquisition of QSC and M3 Innovation, increased its dividend by 13% to 17 cents per share, repurchased approximately 436,000 shares of common stock for a total of $118.5 million, and repaid $200 million of term-loan borrowings.
“Our fiscal 2025 fourth quarter performance was strong. We grew net sales, expanded our adjusted operating profit and adjusted operating profit margin, and increased our adjusted diluted earnings per share,” stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity.
Acuity stock has gained 18% year-to-date, outperforming the S&P 500 index’s 14% returns, driven by its AIS segment, which saw significant sales growth following the successful integration of its QSC acquisition.
However, the stock failed to reach the topline analyst consensus in at least three out of the last four quarters.
Price Action: AYI shares ended Tuesday trading 1.56% higher at $344.39.
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