Acuity (AYI) Q2 2026 earnings summary

Executive summary

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

• 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, $106 million in share repurchases, and an 18% dividend increase.

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

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 in H1 FY26: $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 growth guidance unchanged at low- to mid-teens percent for the year.

• Adjusted diluted EPS guidance is $19.00 to $20.50 for the full year.

• Focus remains on margin expansion and long-term growth in both lighting and spaces businesses.

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