Acuity Inc. (NYSE: AYI) (the "Company"), a market-leading industrial technology company, delivered net sales of $1.2 billion in the fourth quarter of fiscal 2025 ended August 31, 2025, an increase of $176.8 million, or 17.1 percent, compared to the prior year.

“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 Inc. “Throughout fiscal 2025 we have demonstrated our ability to deliver growth and consistent operating performance that created stakeholder value and compounded shareholder wealth.”

Operating profit was $180.6 million in the fourth quarter of fiscal 2025, an increase of $23.6 million, compared to the prior year. Operating profit as a percent of net sales was 14.9 percent in the fourth quarter of fiscal 2025, a decrease of approximately 30 basis points compared to the prior year. Adjusted operating profit was $225.3 million in the fourth quarter of fiscal 2025, an increase of $46.8 million compared to the prior year. Adjusted operating profit as a percent of net sales was 18.6 percent in the fourth quarter of fiscal 2025, an increase of approximately 130 basis points compared to the prior year.

During the fourth quarter of fiscal 2025, we incurred a non-cash pension-settlement charge of $30.9 million resulting from the de-risking of our qualified pension plans in the United States and Mexico. Additionally, we recognized a one-time tax benefit of $8.2 million.

Diluted earnings per share was $3.61 in the fourth quarter of fiscal 2025, a decrease of $0.16, or 4.2 percent, compared to the prior year. Adjusted diluted earnings per share was $5.20 in the fourth quarter of fiscal 2025, an increase of $0.90, or 20.9 percent from $4.30 in the prior year.

Full-Year 2025 Summary

Net sales of $4.3 billion for the full year of fiscal 2025 increased $504.6 million, or 13.1 percent, from $3.8 billion in the full year of fiscal 2024.

Operating profit was $563.9 million for the full year of fiscal 2025, an increase of $10.6 million compared to the prior year. Operating profit as a percent of net sales was 13.0 percent for the full year of fiscal 2025, a decrease of approximately 140 basis points compared to the prior year. Adjusted operating profit was $768.6 million for the full year of fiscal 2025, an increase of $129.0 million compared to the prior year. Adjusted operating profit as a percent of net sales was 17.7 percent for the full year of fiscal 2025, an increase of approximately 100 basis points compared to the prior year.

Diluted earnings per share was $12.53 for the full year of fiscal 2025, a decrease of $0.91 or 6.8 percent, compared to the prior year. Adjusted diluted earnings per share was $18.01, an increase of $2.45, or 15.7 percent, from $15.56 in the prior year.

Segment Performance

Acuity Brands Lighting ("ABL")

Fourth-Quarter Results

ABL generated net sales of $962.4 million in the fourth quarter of fiscal 2025, an increase of $7.4 million, or 0.8 percent, compared to the prior year.

ABL operating profit was $183.0 million in the fourth quarter of fiscal 2025, an increase of $21.5 million compared to the prior year. ABL operating profit as a percent of ABL net sales was 19.0 percent in the fourth quarter of fiscal 2025, an increase of approximately 210 basis points compared to the prior year. ABL adjusted operating profit was $193.6 million in the fourth quarter of fiscal 2025, an increase of $21.7 million compared to the prior year. ABL adjusted operating profit as a percent of ABL net sales was 20.1 percent in the fourth quarter of fiscal 2025, an increase of approximately 210 basis points compared to the prior year.

Full-Year Results

ABL generated net sales of $3.6 billion for the full year of fiscal 2025, an increase of $38.8 million, or 1.1 percent, as compared to the prior year.

ABL operating profit was $590.6 million for the full year of fiscal 2025, an increase of $7.8 million, or 1.3 percent, compared to the prior year. ABL operating profit as a percent of ABL net sales was 16.4 percent for the full year of fiscal 2025, an increase of approximately 10 basis points compared to the prior year. ABL adjusted operating profit was $662.3 million for the full year of fiscal 2025, an increase of $38.1 million, or 6.1 percent, from the same period of fiscal 2025. ABL adjusted operating profit as a percent of ABL net sales was 18.3 percent for the full year of fiscal 2025, an increase of approximately 80 basis points compared to the prior year.

Acuity Intelligent Spaces ("AIS")

Fourth-Quarter Results

AIS generated net sales of $255.2 million in the fourth quarter of fiscal 2025, an increase of $171.3 million compared to the prior year.

AIS operating profit was $28.0 million in the fourth quarter of fiscal 2025, an increase of $11.3 million compared to the prior year. AIS operating profit as a percent of AIS net sales was 11.0 percent in the fourth quarter of fiscal 2025. AIS adjusted operating profit was $54.6 million in the fourth quarter of fiscal 2025, an increase of $33.1 million compared to the prior year. AIS adjusted operating profit as a percent of AIS net sales was 21.4 percent in the fourth quarter of fiscal 2025.

Full-Year Results

AIS generated net sales of $764.3 million for the full year of fiscal 2025, an increase of $472.4 million compared to the prior year.

AIS operating profit was $76.1 million for the full year of fiscal 2025, an increase of $32.5 million compared to the prior year. AIS operating profit as a percent of AIS net sales was 10.0 percent for the full year of fiscal 2025. AIS adjusted operating profit was $164.3 million for the full year of fiscal 2025, an increase of $100.9 million as compared to the prior year. AIS adjusted operating profit as a percent of AIS net sales was 21.5 percent for the full year of fiscal 2025.

Cash Flow and Capital Allocation

Net cash from operating activities was $601.4 million for the full year of fiscal 2025, a decrease of $17.8 million compared to the prior year.

During fiscal 2025, we closed the QSC acquisition and acquired M3 Innovation, increased our dividend by 13 percent to 17 cents per share, repurchased approximately 436,000 shares of common stock for a total of approximately $118.5 million, and repaid $200.0 million of term-loan borrowings.

Form 10-K Filing

The independent registered public accounting firm’s audit report with respect to the Company’s fiscal year-end financial statements will not be issued until the Company files its annual report on Form 10-K, including its evaluation of the effectiveness of internal controls over financial reporting. Accordingly, the financial results reported in this earnings release are preliminary pending completion of the audit.

Today's Call Details

The Company will host a conference call at 8:00 a.m. (ET) today, Wednesday, October 1, 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 the Investor Relations section of the Company's 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.