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Oct 1, 2026, 7:20 AM ETIndustrials

Acuity Inc. — Fiscal 2026 Earnings Summary

AYIACUITY INC (DE)
Source

Financial Performance

  • Fiscal 2026 net sales reached $4.6 billion, a 6.8% increase year-over-year; Q4 2026 net sales were $1.2 billion, up 2.9%.
  • Full-year 2026 diluted EPS was $17.05, up 36.1% year-over-year; Q4 2026 diluted EPS was $5.63, up 56.0%.
  • Full-year 2026 adjusted diluted EPS was $19.90, up 10.5% year-over-year; Q4 2026 adjusted diluted EPS was $5.77, up 11.0%.
  • Full-year 2026 operating profit was $713.7 million, up 26.6%; Q4 2026 operating profit was $227.0 million, up 25.7%.
  • Full-year 2026 adjusted operating profit was $828.7 million, up 7.8%; Q4 2026 adjusted operating profit was $232.9 million, up 3.4%.
  • Full-year 2026 operating profit margin was 15.4% (up 240 basis points); Q4 2026 operating profit margin was 18.2% (up 330 basis points).
  • Full-year 2026 adjusted operating profit margin was 17.9% (up 20 basis points); Q4 2026 adjusted operating profit margin was 18.7% (up 10 basis points).
  • Net cash provided by operating activities for full-year 2026 was $825.6 million.
  • Full-year 2026 free cash flow was $747.9 million, up 40.3% year-over-year.
  • Total assets were $4.87 billion as of August 31, 2026, compared to $4.76 billion in the prior year.
  • Long-term debt decreased to $497.4 million from $896.8 million in the prior year.
  • Cash and cash equivalents increased to $636.3 million from $422.5 million in the prior year.

Guidance and Future Outlook

  • Management stated the company is building operating and financial capacity to compound growth and value over time.
  • The company intends to aggressively deploy capital to grow the business and enter attractive new verticals.
  • No specific forward-looking numerical guidance or revenue targets were provided in the press release.

Business Segments and Product Lines

  • Acuity Brands Lighting (ABL):
    • Full-year 2026 net sales were $3.6 billion, down 1.0% year-over-year.
    • Q4 2026 net sales were $958.7 million, down 0.4% year-over-year.
    • Full-year 2026 operating profit was $623.5 million, up 5.6%; Q4 2026 operating profit was $188.8 million, up 3.2%.
    • Full-year 2026 adjusted operating profit was $646.0 million, down 2.5%; Q4 2026 adjusted operating profit was $179.8 million, down 7.1%.
    • ABL operating profit margin increased to 17.4% for the full year (up 100 basis points) and 19.7% for Q4 (up 70 basis points).
  • Acuity Intelligent Spaces (AIS):
    • Full-year 2026 net sales were $1.1 billion, up 44.8% year-over-year.
    • Q4 2026 net sales were $297.6 million, up 16.6% year-over-year.
    • Full-year 2026 operating profit was $186.5 million, up 145.1%; Q4 2026 operating profit was $64.7 million, up 131.1%.
    • Full-year 2026 adjusted operating profit was $255.0 million, up 55.2%; Q4 2026 adjusted operating profit was $74.1 million, up 35.7%.
    • AIS operating profit margin increased to 16.9% for the full year (up 690 basis points) and 21.7% for Q4 (up 1,070 basis points).
  • Special charges of $17.8 million were recorded in Q4 2026, including $14.7 million for ABL initiatives (product portfolio, supply chain, operating footprint) and $3.1 million for an AIS facility impairment.
  • The company received $44.9 million in tariff refunds in Q4 2026, treated as a non-GAAP adjustment.

Market and Competitive Landscape

  • The company describes itself as a market-leading industrial technology company.
  • Growth is driven by innovative new products and services including lighting, lighting controls, building management solutions, and an audio, video, and control platform.
  • The company focuses on customer outcomes to increase market share.
  • No specific market share percentages or competitor names were disclosed.

Risks and Challenges

  • Financial results are preliminary pending the completion of the independent registered public accounting firm's audit and evaluation of internal controls over financial reporting.
  • Forward-looking statements are subject to known and unknown risks, uncertainties, and assumptions that could cause actual results to differ materially.
  • Risks include factors outside of management's control discussed in SEC filings (Form 10-K, 10-Q, 8-K).
  • Specific challenges included facility impairment in AIS and portfolio/supply chain initiatives in ABL resulting in special charges.

Management Commentary and Tone

  • Neil Ashe, Chairman, President and CEO, stated the company demonstrated "solid execution" in Q4 2026.
  • Management highlighted growth in sales, expansion of adjusted operating profit and margins, increased adjusted diluted EPS, strong cash flow generation, and effective capital allocation.
  • The tone was confident, emphasizing the strengthening of Acuity Brands Lighting and the scaling of Acuity Intelligent Spaces.

Other Key Points

  • The company repaid $200 million of its term loan during fiscal 2026.
  • The dividend was increased by 18% in fiscal 2026.
  • The company repurchased over 940,000 shares of common stock for $287.2 million in fiscal 2026.
  • The company has approximately 13,000 associates.
  • Operations span North America, Europe, and Asia.
  • The company hosts a conference call for investors and media.