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AYI

Acuity Inc. (AYI) Reports 1.6% Sales Increase and 38.3% Profit Growth

Acuity Inc. reported third-quarter fiscal 2026 net sales of $1.2 billion, up $19.4 million, or 1.6%, from the prior year.

Operating profit rose to $193.3 million, a gain of $53.5 million, or 38.3%, while operating margin widened to 16.1% from the prior-year level, an increase of 420 basis points.

Adjusted operating profit increased to $223.5 million, up $1.8 million, or 0.8%, though adjusted operating margin slipped 10 basis points to 18.7%.

Diluted earnings per share climbed to $4.56 from $3.12 a year earlier, an increase of $1.44, or 46.2%. Adjusted diluted earnings per share rose to $5.31 from $5.12, up $0.19, or 3.7%.

By segment, Acuity Brands Lighting posted net sales of $905.2 million, down $18.0 million, or 1.9%, from the prior year. Segment operating profit increased to $160.6 million from $134.0 million, up $26.6 million, or 19.9%, and operating margin expanded 320 basis points to 17.7%.

Adjusted operating profit at Acuity Brands Lighting fell to $164.6 million from $173.9 million, down $9.3 million, or 5.3%, and adjusted operating margin narrowed 60 basis points to 18.2%.

Acuity Intelligent Spaces generated net sales of $303.5 million, up $39.4 million, or 14.9%, from the prior year. Operating profit more than doubled to $56.5 million from $27.4 million, a rise of $29.1 million, or 106.2%, and operating margin increased 820 basis points to 18.6%.

Adjusted operating profit for Acuity Intelligent Spaces rose to $76.3 million from $62.3 million, up $14.0 million, or 22.5%, with adjusted operating margin improving 150 basis points to 25.1%.

For the first nine months of fiscal 2026, net cash from operating activities totaled $520.2 million. The company repurchased about 766,000 shares of common stock for $230 million year to date. The market has reacted to these announcements by moving the company's shares 19.67% to a price of $365.615. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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