Acuity Brands, Inc.

Total net sales were $1.2 billion, up $19 million or 2% year over year. Adjusted gross profit margin improved to 50.1%, up 10 basis points, adjusted operating profit was $224 million, up $2 million or 1%, and adjusted diluted EPS was $5.31, up $0.19 or 4%. ABL sales were $905 million, down $18 million or 2%, with adjusted gross margin of 46.1% and adjusted operating margin of 18.2%; AIS sales were $304 million, up $39 million or 15%, with adjusted gross margin of 60.3% and adjusted operating margin of 25.1%. For cash flow, operating cash flow was $520 million for the first nine months, up $121 million year over year. Guidance was qualitative rather than numeric: management said Q4 should rise sequentially from Q3, lighting demand is firming, and proprietary models indicate demand firming over the next four quarters.

Neil Ashe emphasized that Acuity’s strategy is working through product vitality, higher service levels, technology, and productivity, particularly in lighting. He highlighted new product launches, design wins, and awards in lighting, while describing AIS as a platform business gaining share through open architecture, AI-enabled tools, and expansion into adjacencies like refrigeration, OEMs, and data centers. His tone was confident and constructive, especially on AIS and on the idea that lighting demand is beginning to normalize and firm.

Karen Holcom said the quarter featured solid execution across profitability and cash generation. She pointed to adjusted gross margin of 50.1%, ABL gross margin of 46.1%, AIS gross margin of 60.3%, and operating cash flow of $520 million in the first nine months, up $121 million versus last year. She also noted a new five-year, $800 million unsecured revolver, $200 million of term-loan repayment year to date, an 18% quarterly dividend increase, and repurchases of over 766,000 shares for $230 million; she added that the company bought nearly 500,000 shares this quarter at an average price of $281.

Analysts pressed on whether AIS growth is driven mainly by innovation and share gains or by entry into faster-growing verticals; management said both are true, citing share gains in core Eclipse controls, new PLC offerings for hyperscalers, and adjacency expansion through KE2 Therm and OEM exposure. Questions on capital deployment drew a response that Acuity remains disciplined, with priorities of investing in growth, increasing the dividend, evaluating acquisitions, and repurchasing shares, while Neil Ashe said AIS acquisitions remain the first priority. On lighting demand, management said backlog normalization and delayed project conversion are helping, with order rates firming and Q4 expected to improve sequentially; they also said ABI remains difficult to interpret and may be flawed.