Acuity (AYI) investor relations material

Executive summary

• Net sales grew 4.9%–5% year-over-year to $1.1 billion in Q2 FY26, driven by strong AIS growth, QSC acquisition, and an extra month of QSC sales, while ABL sales declined slightly.

• Adjusted operating profit rose 8% to $176 million, with margin improvements in both ABL and AIS; operating profit margin improved to 12.6%.

• Adjusted diluted EPS increased 11% to $4.14, while GAAP diluted EPS rose 26% to $3.09; net income increased 24.9% to $96.8 million.

• Strong cash flow enabled $200 million in debt repayment and $106 million in share repurchases year-to-date.

• Strategic focus remains on product vitality, technology-driven differentiation, and productivity gains.

Financial highlights

• Net sales: $1.1 billion, up 4.9%–5% year-over-year.

• Adjusted operating profit: $176 million, up 8% year-over-year.

• Adjusted operating profit margin: 16.7%, up 50 bps year-over-year.

• Gross profit margin: 49.3%, up 280 bps year-over-year.

• Cash flow from operations (first half): $230 million, up 20% year-over-year.

Outlook and guidance

• Full-year ABL sales expected to be flat to down low single digits year-over-year.

• AIS revenue guidance unchanged: low- to mid-teens percentage growth.

• Adjusted diluted EPS guidance for FY26 is $19.00 to $20.50.

• Management expects liquidity needs to be met through cash, operations, and credit.