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- **Record Q4 Performance**: $1.2B net sales (+17% YoY), $5.20 EPS (+21%), with ABL and AIS both exceeding expectations.
- **Tariff Resilience**: ABL maintained 20.1% margin despite $177M tariff impact, driven by supply chain diversification and cost control.
- **AIS Breakthrough**: QSC integration added $171M sales, with margin expansion from 13% to 21.4% in 8 months.
- **FY2026 Guidance**: $4.7-4.9B sales, $19-20.50 EPS, reflecting confidence in margin expansion and $100M+ annualized tariff mitigation.

**【CEO Summary Section】**
- **Q4 2025 Performance**: Acuity delivered strong results with net sales of $1.2B (+17% YoY), driven by growth in both Acuity Brands Lighting (ABL) and Acuity Intelligence Spaces (AIS). ABL sales grew 1% YoY to $962M, while AIS sales surged 15% YoY to $255M.
- **Tariff Mitigation**: ABL absorbed $177M in tariff costs through supply chain diversification (e.g., moving production out of China) and strategic pricing adjustments, maintaining 20.1% adjusted operating profit margin.
- **New Product Launches**: Introduced Nightingale healthcare lighting solutions (Respond and Observe) and TLS occupancy sensors, winning industry awards for innovation.
- **AIS Integration**: QSC acquisition added $171M to AIS sales, with margin expansion from 13% to 21.4% through operational synergies and adoption of Acuity's "better, smarter, faster" framework.
- **FY2026 Outlook**: Guided for $4.7-4.9B net sales (+low single-digit ABL growth, low-mid teens AIS growth) and $19-20.50 EPS, reflecting confidence in margin expansion and cash flow generation.

**【CFO Financial Commentary】**
- **Q4 Financials**: Adjusted EPS of $5.20 (+21% YoY), driven by $225M adjusted operating profit. Generated $601M cash flow from operations, despite $18M decline vs. prior year due to tariff-related inventory purchases.
- **Capital Allocation**: Returned $129M to shareholders via $119M buybacks and 13% dividend increase. Repurchased 10M shares since Q4 2020 at $150 average price.
- **Non-GAAP Adjustments**: $31M non-cash pension charge offset by $8M tax benefit. FY2026 expects $10M additional pension charge.
- **Balance Sheet**: Repaid $200M term loan, reducing net debt by 25%.

**【Q&A Highlights】**
- **M&A Strategy**: Actively evaluating acquisitions to expand AIS's smart building ecosystem, with focus on data-driven solutions.
- **ABL Resilience**: Despite 1% YoY sales growth, 20.1% margin reflects superior supply chain management vs. peers. Outperformed market through productivity initiatives (e.g., $22M OpEx savings).
- **AIS Growth**: QSC margins expanded 500bps in 8 months, now aligned with legacy AIS margins. Focus on low-mid teens revenue growth with incremental margin expansion.
- **Tariff Impact**: FY2026 expects $100M+ annualized tariff cost, partially offset by pricing and productivity. Long-term goal to return ABL gross margin to 50% through automation.
- **Economic Sensitivity**: ABL growth algorithm focuses on share gain (e.g., 4% ind. sales network growth) rather than market-dependent corporate accounts. FY2026 guidance assumes flat to down market.

Acuity Brands (AYI)-1 Oct 25-2025 Q4 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

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