Acuity Inc. (NYSE: AYI), ("Acuity"), a market-leading industrial technology company, delivered net sales of $1.0 billion in the second quarter of fiscal 2025 ended February 28, 2025, an increase of $100.4 million, or 11.1 percent, compared to the prior year.

"We delivered steady performance in the second quarter of fiscal 2025," stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc. "We grew net sales, expanded our adjusted operating profit and adjusted operating profit margin, and we increased our adjusted diluted earnings per share."

We closed the acquisition of QSC during the second quarter of fiscal 2025, and two months of its performance are included in our results. The financials also include certain purchase accounting adjustments resulting from the acquisition.

Operating profit was $110.2 million in the second quarter of fiscal 2025, a decrease of $7.9 million, or 6.7 percent, compared to the prior year. Operating profit as a percent of net sales was 11.0 percent in the second quarter of fiscal 2025, a decrease of 200 basis points compared to the prior year. Adjusted operating profit was $162.9 million in the second quarter of fiscal 2025, an increase of $22.8 million, or 16.3 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 16.2 percent in the second quarter of fiscal 2025, an increase of 70 basis points compared to the prior year.

Diluted earnings per share was $2.45 in the second quarter of fiscal 2025, a decrease of $0.39, or 13.7 percent, compared to the prior year. Adjusted diluted earnings per share was $3.73 in the second quarter of fiscal 2025, an increase of $0.35, or 10.4 percent, from $3.38 in the prior year.

Segment Performance

Acuity Brands Lighting ("ABL")

ABL generated net sales of $840.6 million in the second quarter of fiscal 2025, a decrease of $2.9 million, or 0.3 percent, compared to the prior year.

Operating profit was $130.3 million in the second quarter of fiscal 2025, an increase of $4.3 million, or 3.4 percent, compared to the prior year. Operating profit as a percent of ABL net sales was 15.5 percent in the second quarter of fiscal 2025, an increase of 60 basis points compared to the prior year. Adjusted operating profit was $141.3 million in the second quarter of fiscal 2025, an increase of $4.9 million, or 3.6 percent, compared to the prior year. Adjusted operating profit as a percent of ABL net sales was 16.8 percent in the second quarter of fiscal 2025, an increase of 60 basis points compared to the prior year.

Acuity Intelligent Spaces ("AIS")

AIS generated net sales of $171.5 million in the second quarter of fiscal 2025, an increase of $103.4 million, or 151.8 percent, compared to the prior year. Included in net sales are $95.1 million from two months of QSC performance.

Operating profit was $9.9 million in the second quarter of fiscal 2025, an increase of $0.8 million compared to the prior year. Operating profit as a percent of AIS net sales was 5.8 percent in the second quarter of fiscal 2025, a decrease of 760 basis points compared to the prior year. Adjusted operating profit was $32.0 million in the second quarter of fiscal 2025, an increase of $17.7 million compared to the prior year. Adjusted operating profit as a percent of AIS net sales was 18.7 percent in the second quarter of fiscal 2025, a decrease of 230 basis points compared to the prior year.

Cash Flow and Capital Allocation

Net cash from operating activities was $191.6 million for the first six months of fiscal 2025. We increased our dividend by 13 percent to 17 cents per share and year to date we repurchased approximately 68,000 shares of common stock for a total of $22.6 million.

Call Details

We will host a conference call at 8:00 a.m. ET today, Thursday, April 3, 2025. Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc. will lead the call. The conference call and earnings release can be accessed via our Investor Relations section of our website at www.investors.acuityinc.com. A replay of the call will also be posted to the Investor Relations website within two hours of the completion of the conference call and will be available on the website for a limited time.