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Acuity's Smart Play Pays Off As Intelligent Spaces Revenue Skyrockets
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Acuity Inc. (NYSE: AYI) reported fiscal third-quarter 2025 results on Thursday. The company reported quarterly net sales growth of 21.7% year-over-year to $1.18 billion, topping the analyst consensus estimate of $1.15 billion. 

It clocked an adjusted EPS of $5.12, beating the analyst consensus estimate of $4.43.

Breaking down Acuity’s sales by segment shows strong growth in Acuity Intelligent Spaces (AIS), which surged to $264.1 million, a remarkable 248.9% increase from the previous year. Meanwhile, Acuity Brands Lighting (ABL) contributed $923.2 million, marking a 2.7% year-over-year rise.

Also Read: Acuity Brands Q2 Earnings: Tops EPS Estimates, Intelligent Spaces Sales Surge Over 150%, Grows Margins, EBITDA Despite Cash Flow Decline And Sales Miss

Operating margin declined by 310 bps to 11.9%, while profit declined by 3.8%. During the quarter, the company accelerated productivity actions in its ABL segment, which resulted in $29.7 million of special charges. 

The consolidated adjusted operating margin grew by 150 bps to 18.8%. ABL’s adjusted operating margin improved by 80 bps to 18.8%. AIS’ margin increased by 70 bps to 23.6%.

The company generated $207.3 million in operating cash flow for the first six months of fiscal year 2025, compared to $152.5 million a year ago. Free cash flow was $192.3 million.

Acuity held cash and equivalents of $371.8 million as of May 31, 2025, compared to $845.8 million as of August 31, 2024.

Adjusted EBITDA was $236.3 million, up from $180.0 million a year ago. The margin expanded by 140 bps to 20.0%.

Price Action: AYI stock closed higher by 1.35% at $291.38 premarket at last check Thursday.

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