Acuity Inc. (NYSE:AYI) reported mixed fiscal second-quarter 2026 results on Thursday, as a revenue miss offset an earnings beat.
Quarterly net sales rose 4.9% year over year to $1.06 billion, falling short of the $1.09 billion consensus estimate. Adjusted earnings came in at $4.14 per share, ahead of expectations of $4.06.
Segment Performance
Acuity continues to operate through two core segments: Acuity Brands Lighting & Controls (ABL) and Acuity Intelligent Spaces (AIS).
Growth was driven primarily by AIS, where revenue surged 44.7% year over year to $248.1 million. In contrast, ABL generated $817.4 million in revenue, down 2.8% from the prior year, reflecting ongoing softness in the core lighting business.
Margins and Cash Flow
Profitability improved across the board. Operating margin expanded 160 basis points to 12.6%, with operating profit rising 20.7%. Consolidated adjusted operating margin increased 50 basis points to 16.7%.
At the segment level, ABL adjusted operating margin improved 50 basis points to 17.3%, while AIS margin rose 60 basis points to 19.3%.
Adjusted EBITDA climbed to $190.8 million from $176.6 million a year earlier, with margin expanding 60 basis points to 18.1%. Operating cash flow totaled $89.1 million for the quarter.
The company raised its quarterly dividend by 18% to 20 cents per share and repurchased approximately 318,000 shares year to date for $106 million.
Acuity ended the quarter with $272.5 million in cash and equivalents as of Feb. 28, 2026, down from $422.5 million as of Aug. 31, 2025.
CEO Neil Ashe said the company implemented productivity actions in the ABL segment during the quarter, resulting in $6 million in special charges, primarily tied to labor cost reductions.
AYI Price Action: Acuity shares traded lower by 0.65% at $285.13 in premarket trading on Thursday, according to Benzinga Pro data.
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