Acuity (AYI) Q4 2025 earnings summary

Executive summary

• Fiscal Q4 2025 net sales rose 17% year-over-year to $1.209B, with adjusted operating profit up 26% and adjusted diluted EPS up 21%.

• Strong full-year cash flow generation and effective capital allocation, including a major acquisition, increased dividends, and share repurchases.

• Transformation from a luminaires-focused business to a technology-driven company with data, controls, and software offerings, expanding into new verticals like healthcare.

• Integration of QSC and M3 Innovation acquisitions contributed to sales and margin improvement in AIS.

• Adjusted diluted EPS increased 21% in Q4 and 16% for the year, while reported diluted EPS declined due to non-cash and one-time items.

Financial highlights

• Q4 adjusted operating profit reached $225M, up from $179M in Q4 2024; adjusted operating profit margin expanded to 18.6%, up 130 bps.

• Q4 adjusted diluted EPS was $5.20, up 21% year-over-year.

• Q4 adjusted gross profit margin was 48.9%, up from 47.3% in Q4 2024.

• Full-year net sales were $4.3B, up 13%; adjusted operating profit was $768.6M, up $129M.

• Free cash flow for the year was $533M.

Outlook and guidance

• Fiscal 2026 net sales expected between $4.7B and $4.9B.

• Adjusted diluted EPS guidance for 2026 is $19–$20.50.

• ABL segment projected to deliver low single-digit sales growth; AIS segment to achieve low to mid-teens organic growth.

• Assumptions include net interest expense of $25M–$30M, effective GAAP tax rate of ~23.5%, and capital expenditures of $85M–$90M.

• Guidance assumes no significant market improvement.