Track market-moving stories before they get noisy

Key Takeaways AYI said lighting demand is firming after winter softness, with project flow normalizing into Q4.AIS sales rose 14.9% to $303.5 million, driven by Distech, QSC and open-architecture wins.Acuity cited AIS product launches, data center momentum and organic growth in controllers. Acuity Inc. (AYI - Free Report) used its third-quarter fiscal 2026 earnings call to press a forward-looking message: lighting demand is stabilizing, while Acuity Intelligent Spaces continues to supply the company’s faster-growth engine. Management emphasized execution more than headline beat metrics.

That framing mattered because the quarter again showed a split business. Lighting remained pressured on sales, but AIS expanded at a double-digit rate, and management sounded increasingly confident about growth avenues in controls, OEM channels and data centers.

AYI Sees a Better Setup in LightingChairman, president and CEO Neil Ashe said Acuity Brands Lighting is seeing firmer demand after a softer stretch in the winter months, when conversion rates from quoting to releases ran longer than normal. He said activity is starting to normalize and described project flow as more typical heading into the fourth quarter.

Chief financial officer Karen Holcom added that fourth-quarter sales should rise sequentially from the third quarter, though not necessarily at the same pace as the recent step-up. That outlook stopped short of a broad rebound call, but it marked a more constructive tone than earlier commentary around a tepid market.

The quarter itself still reflected pressure. ABL sales fell 1.9% to $905.2 million, though adjusted operating margin remained a healthy 18.2%. Management tied the sales decline partly to a tough comparison against last year’s tariff-related order pull-forward rather than to a new deterioration in demand.

Acuity Leans Harder on AIS GrowthIf the call had a central growth theme, it was AIS. Sales in the segment climbed 14.9% to $303.5 million, with adjusted operating profit up 22.5% and adjusted operating margin reaching 25.1%, driven by Distech and QSC.

Ashe spent much of his prepared remarks on Distech, arguing that Acuity’s open-architecture strategy is translating into share gains. He cited wins at universities, sports venues, enterprise campuses and data centers while also pointing to OEM manufacturers adopting the Eclipse portfolio for next-generation applications.

Management also highlighted new product cadence inside AIS, including Eclipse Resilience for mission-critical cooling and a preloaded dashboard tied to occupancy and space utilization. The message was that AIS is broadening from controls into a platform story built around edge control, cloud intelligence and occupant experience.

AYI Protects Margins While InvestingThe company’s financial backdrop supported that strategy. Adjusted earnings per share increased to $5.31 from $5.12 a year earlier. The figure topped the Zacks Consensus Estimate of $5.20 by 2.1%. Net sales rose 1.6% to $1.2 billion, which modestly beat the $1.19 billion estimate by 1.1%.

Gross margin remained a notable talking point. Adjusted gross profit margin improved 10 basis points to 50.1%, helped by a richer AIS mix, even as ABL adjusted gross margin slipped 50 basis points to 46.1%.

Ashe said inflation remains present across materials and SG&A, with medical costs one example, but he stressed that recent spending has been concentrated in technology and AI capabilities rather than undisciplined overhead growth. He argued that those investments are already helping gross margin and should create stronger operating leverage when volume improves.

Acuity Keeps Capital Deployment FlexibleHolcom said Acuity’s capital allocation priorities have not changed: invest for growth, raise the dividend, pursue acquisitions and repurchase stock opportunistically. That framework was visible in the quarter’s actions.

For the first nine months of fiscal 2026, Acuity generated $520.2 million in operating cash flow and $461.7 million in free cash flow. It also repaid $200 million of term debt year to date, repurchased about 766,000 shares for $230 million and refinanced its revolver with a new five-year $800 million unsecured facility.

Ashe made clear that acquisitions remain a priority, especially in AIS. But he also underscored selectivity, pointing to QSC as the model for buying quality assets that can perform better inside Acuity’s broader platform.

AYI Uses Q&A to Expand the Data Center StoryAnalyst questions pushed management to define how durable AIS growth is and whether data centers are becoming a more material opportunity. Ashe responded by tying recent momentum to a mix of product innovation, market share gains and expansion into adjacencies such as refrigeration and OEM channels.

On data centers, management sounded more explicit than in prior calls. Ashe said Distech now has both direct digital controllers and PLC controllers, which broadens its ability to serve hyperscalers, while the lighting side is also seeing rapid percentage growth off a smaller base.

The answer that stood out most was management’s insistence that this push is currently organic. Ashe said the company’s entry into the data center market is being driven by internal product development, not by a need to buy its way in.

Acuity Leaves the Call With a Clearer ToneThe call ended with a more confident posture than the raw ABL sales number alone would imply. Management’s emphasis was on normalization in lighting, continued margin discipline and a wider runway for AIS.

Ashe also pointed to internal priorities that framed Acuity’s next phase: deploying AI inside the business, accelerating product velocity, improving digital manufacturing and pursuing targeted AIS expansion. Those comments reinforced a company trying to compound operational discipline with higher-value technology exposure.

Zacks Signals Still Call for SelectivityAYI currently carries a Zacks Rank #3 (Hold), alongside Value and Growth Scores of B, a Momentum Score of F and a VGM Score of C. Under the Zacks framework, a Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks paired with Style Scores of A or B offer the strongest near-term setup, while a Rank #3 is generally more neutral. You can see the complete list of today’s Zacks #1 Rank stocks here.

That mix points to a stock with some supportive value and growth characteristics, but weaker momentum. The Zacks methodology also treats estimate revisions as the primary driver, which means the current rank can change after analysts update forecasts following the quarter.

Solid Execution Delivers Sales Growth, EPS Improvement and Strong Cash Flow

Delivered Net Sales of $1.2B, an Increase of 2% Compared to the Prior YearDelivered Operating Profit of $193M, Up 38% Compared to the Prior Year; Grew Adjusted Operating Profit to $224M, Up 1% Compared to the Prior YearDelivered Diluted EPS of $4.56, Up 46% Compared to the Prior Year; Grew Adjusted Diluted EPS to $5.31, Up 4% Compared to the Prior Year ATLANTA, June 25, 2026 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI), ("Acuity"), a market-leading industrial technology company, delivered net sales of $1.2 billion in the third quarter, ended May 31, 2026, an increase of $19.4 million, or 1.6 percent, compared to the prior year.

"We demonstrated solid execution in our third quarter of fiscal 2026," stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc. "We grew net sales, we expanded our adjusted operating profit and we increased our adjusted diluted earnings per share. We generated strong cash flow and allocated capital effectively."

During the third quarter of fiscal 2026, we received $6.4 million in tariff refunds in Acuity Brands Lighting, which are reflected as a non-GAAP adjustment in our results.

Operating profit was $193.3 million in the third quarter of fiscal 2026, an increase of $53.5 million, or 38.3 percent, compared to the prior year. Operating profit as a percent of net sales was 16.1 percent in the third quarter of fiscal 2026, an increase of 420 basis points compared to the prior year. Adjusted operating profit was $223.5 million in the third quarter of fiscal 2026, an increase of $1.8 million, or 0.8 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 18.7 percent in the third quarter of fiscal 2026, a decrease of 10 basis points compared to the prior year.

Diluted earnings per share was $4.56 in the third quarter of fiscal 2026, an increase of $1.44, or 46.2 percent, compared to the prior year. Adjusted diluted earnings per share was $5.31 in the third quarter of fiscal 2026, an increase of $0.19, or 3.7 percent.

Segment Performance

Acuity Brands Lighting ("ABL")

ABL generated net sales of $905.2 million in the third quarter of fiscal 2026, a decrease of $18.0 million, or 1.9 percent, compared to the prior year.

Operating profit was $160.6 million in the third quarter of fiscal 2026, an increase of $26.6 million, or 19.9 percent, compared to the prior year. Operating profit as a percent of ABL net sales was 17.7 percent in the third quarter of fiscal 2026, an increase of 320 basis points compared to the prior year. Adjusted operating profit was $164.6 million in the third quarter of fiscal 2026, a decrease of $9.3 million, or 5.3 percent, compared to the prior year. Adjusted operating profit as a percent of ABL net sales was 18.2 percent in the third quarter of fiscal 2026, a decrease of 60 basis points compared to the prior year.

Acuity Intelligent Spaces ("AIS")

AIS generated net sales of $303.5 million in the third quarter of fiscal 2026, an increase of $39.4 million, or 14.9 percent, compared to the prior year.

Operating profit was $56.5 million in the third quarter of fiscal 2026, an increase of $29.1 million, or 106.2 percent, compared to the prior year. Operating profit as a percent of AIS net sales was 18.6 percent in the third quarter of fiscal 2026, an increase of 820 basis points compared to the prior year. Adjusted operating profit was $76.3 million in the third quarter of fiscal 2026, an increase of $14.0 million, or 22.5 percent, compared to the prior year. Adjusted operating profit as a percent of AIS net sales was 25.1 percent in the third quarter of fiscal 2026, an increase of 150 basis points compared to the prior year.

Cash Flow and Capital Allocation

Net cash from operating activities was $520.2 million for the first nine months of fiscal 2026. Year to date, we repurchased approximately 766,000 shares of common stock for a total of $230 million.

Call Details

We will host a conference call at 8:00 a.m. ET today, Thursday, June 25, 2026. Neil Ashe, Chief Executive Officer of Acuity Inc. will lead the call. The conference call and earnings release can be accessed via our Investor Relations section of our website at www.investors.acuityinc.com. A replay of the call will also be posted to the Investor Relations website within two hours of the completion of the conference call and will be available on the website for a limited time.

About Acuity

Acuity Inc. (NYSE: AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces, light and more things to come. Through our two business segments, Acuity Brands Lighting (ABL) and Acuity Intelligent Spaces (AIS), we design, manufacture, and bring to market products and services that make a valuable difference in people’s lives.

We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and an audio, video and control platform. We focus on customer outcomes and drive growth and productivity to increase market share and deliver superior returns. We look to aggressively deploy capital to grow the business and to enter attractive new verticals.

Acuity Inc. is based in Atlanta, Georgia, with operations across North America, Europe and Asia. The Company is powered by approximately 13,000 dedicated and talented associates. Visit us at www.acuityinc.com. 

Non-GAAP Financial Measures

This news release includes the following non-generally accepted accounting principles (“GAAP”) financial measures: "adjusted gross profit", "adjusted gross profit margin", “adjusted operating profit” and “adjusted operating profit margin” for total company and by segment; for total company only we additionally include: “adjusted net income;” “adjusted diluted EPS;” “earnings before interest, taxes, depreciation and amortization (“EBITDA”);" "EBITDA margin;" “adjusted EBITDA;” and "adjusted EBITDA margin". These non-GAAP financial measures are provided to enhance the reader's overall understanding of our current financial performance and prospects for the future. Specifically, management believes that these non-GAAP measures provide useful information to investors by excluding or adjusting items for amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related items, and special charges.

We also provide “free cash flow” (“FCF”) to enhance the reader’s understanding of our ability to generate additional cash from its business.

Management typically adjusts for these items for internal reviews of performance and uses the above non-GAAP measures for baseline comparative operational analysis, decision making and other activities. Management believes these non-GAAP measures provide greater comparability and enhanced visibility into our results of operations as well as comparability with many of its peers, especially those companies focused more on technology and software. Non-GAAP financial measures included in this news release should be considered in addition to, and not as a substitute for or superior to, results prepared in accordance with GAAP.

The most directly comparable GAAP measures for adjusted gross profit and adjusted gross profit margin for total company are “gross profit” and “gross profit margin,” respectively, which include the impact of acquired profit in inventory and tariff refunds. Adjusted gross profit margin is adjusted gross profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted operating profit and adjusted operating profit margin for total company and by segment are “operating profit” and “operating profit margin,” respectively, which include the impact of amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related costs, special charges, and tariff refunds. Adjusted operating profit margin is adjusted operating profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted net income and adjusted diluted EPS are “net income” and “diluted EPS,” respectively, which include the impact of amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related costs, special charges, and tariff refunds. Adjusted diluted EPS is adjusted net income divided by diluted weighted average shares outstanding. The most directly comparable GAAP measure for EBITDA is “net income”, which includes the impact of net interest expense, income taxes, depreciation and amortization of acquired intangible assets. EBITDA margin is EBITDA divided by net sales for total company. The most directly comparable GAAP measure for adjusted EBITDA is “net income”, which includes the impact of net interest expense, income taxes, depreciation, amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related items, special charges, miscellaneous (income) expense, net, and tariff refunds. Adjusted EBITDA margin is adjusted EBITDA divided by net sales for total company. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release.

We define FCF as net cash provided by operating activities less purchases of property, plant and equipment. A calculation of this measure is available in this news release.

Our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures used by other companies, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for GAAP financial measures. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items.

Forward-Looking Information

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include, but are not limited to, statements that describe or relate to our plans, initiatives, projections, vision, goals, targets, commitments, expectations, objectives, prospects, strategies, or financial outlook, and the assumptions underlying or relating thereto. In some cases, we may use words such as “expect,” “believe,” “intend,” “anticipate,” “estimate,” “forecast,” “indicate,” “project,” “predict,” “plan,” “may,” “will,” “could,” “should,” “would,” “potential,” and words of similar meaning, as well as other words or expressions referencing future events, conditions, or circumstances, to identify forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Forward-looking statements are not guarantees of future performance. Our forward-looking statements are based on our current beliefs, expectations, and assumptions, which may not prove to be accurate, and are subject to known and unknown risks and uncertainties, assumptions, and other important factors, many of which are outside of our control and any of which could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties are discussed in our filings with the U.S. Securities and Exchange Commission, including our most recent annual report on Form 10-K (including, but not limited to, the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), quarterly reports on Form 10-Q, and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. This press release is not comprehensive, and for that reason, should be read in conjunction with such filings. You are cautioned not to place undue reliance on any forward-looking statements. Except as required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, or otherwise.

ACUITY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per-share data)
  May 31, 2026 August 31, 2025 (unaudited)  ASSETS   Current assets:   Cash and cash equivalents$411.9  $422.5 Accounts receivable, less reserve for doubtful accounts of $7.0 and $4.3, respectively 610.9   593.9 Inventories 458.3   526.7 Prepayments and other current assets 137.4   108.4 Total current assets 1,618.5   1,651.5 Property, plant, and equipment, net 345.9   343.2 Operating lease right-of-use assets 96.8   97.4 Goodwill 1,494.6   1,495.5 Intangible assets, net 1,028.9   1,099.0 Deferred income taxes 4.8   23.4 Other long-term assets 45.9   45.2 Total assets$4,635.4  $4,755.2 LIABILITIES AND STOCKHOLDERS’ EQUITY   Current liabilities:   Accounts payable$363.9  $454.5 Current operating lease liabilities 27.0   23.3 Accrued compensation 126.4   110.0 Other current liabilities 271.0   258.0 Total current liabilities 788.3   845.8 Long-term debt 697.3   896.8 Long-term operating lease liabilities 80.0   84.3 Accrued pension liabilities 40.1   39.2 Deferred income taxes 40.2   24.9 Other long-term liabilities 138.0   139.3 Total liabilities 1,783.9   2,030.3 Stockholders’ equity:   Preferred stock, $0.01 par value per share; 50.0 shares authorized; none issued —   — Common stock, $0.01 par value per share; 500.0 shares authorized; 55.0 and 54.9 issued, respectively 0.6   0.5 Paid-in capital 1,178.4   1,164.7 Retained earnings 4,626.4   4,285.8 Accumulated other comprehensive loss (71.6)  (76.5)Treasury stock, at cost, of 24.9 and 24.2 shares, respectively (2,882.3)  (2,649.6)Total stockholders’ equity 2,851.5   2,724.9 Total liabilities and stockholders’ equity$4,635.4  $4,755.2  ACUITY INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per-share data)
  Three Months Ended Nine Months Ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025Net sales$1,198.0 $1,178.6 $3,397.4 $3,136.5Cost of products sold 591.6  608.4  1,716.8  1,649.0Gross profit 606.4  570.2  1,680.6  1,487.5Selling, distribution, and administrative expenses 413.1  400.7  1,188.0  1,074.5Special charges —  29.7  5.9  29.7Operating profit 193.3  139.8  486.7  383.3Other expense (income):       Interest expense, net 6.1  12.1  21.5  15.0Miscellaneous expense, net 2.0  2.3  4.5  5.8Total other expense 8.1  14.4  26.0  20.8Income before income taxes 185.2  125.4  460.7  362.5Income tax expense 44.2  27.0  102.4  79.9Net income$141.0 $98.4 $358.3 $282.6        Earnings per share(1):       Basic earnings per share$4.66 $3.19 $11.74 $9.14Basic weighted average number of shares outstanding 30.268  30.851  30.520  30.912Diluted earnings per share$4.56 $3.12 $11.45 $8.92Diluted weighted average number of shares outstanding 30.954  31.565  31.278  31.673Dividends declared per share$0.20 $0.17 $0.57 $0.49 (1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding.

ACUITY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
  Nine Months Ended May 31, 2026 May 31, 2025Cash flows from operating activities:   Net income$358.3  $282.6 Adjustments to reconcile net income to cash flows from operating activities:   Depreciation and amortization 117.8   86.7 Share-based payment expense 39.2   34.0 Asset impairments —   16.7 Changes in operating assets and liabilities, net of acquisitions   Accounts receivable (16.6)  10.4 Inventories 66.9   5.1 Accounts payable (82.5)  38.1 Other operating activities 37.1   (74.7)Net cash provided by operating activities 520.2   398.9 Cash flows from investing activities:   Purchases of property, plant, and equipment (58.5)  (43.6)Acquisition of business, net of cash acquired —   (1,189.4)Other investing activities 0.3   (16.3)Net cash used for investing activities (58.2)  (1,249.3)Cash flows from financing activities:   Borrowings on credit agreement 200.0   — Borrowings from term loan —   600.0 Repayments of term loan borrowings (400.0)  (100.0)Repurchases of common stock (229.9)  (91.3)Proceeds from stock option exercises and other 2.9   17.5 Payments of taxes withheld on net settlement of equity awards (28.4)  (24.0)Dividends paid (17.7)  (15.3)Other financing activities (3.6)  (9.3)Net cash (used for) provided by financing activities (476.7)  377.6 Effect of exchange rate changes on cash and cash equivalents 4.1   (1.2)Net change in cash and cash equivalents (10.6)  (474.0)Cash and cash equivalents at beginning of period 422.5   845.8 Cash and cash equivalents at end of period$411.9  $371.8  ACUITY INC.
DISAGGREGATED NET SALES
(In millions) The following tables show net sales by channel for the periods presented:
  Three Months Ended   May 31, 2026 May 31, 2025 Increase
(Decrease) Percent ChangeAcuity Brands Lighting:       Independent sales network$690.5  $685.3  $5.2  0.8%Direct sales network 73.4   101.5   (28.1) (27.7)%Retail sales 40.4   41.4   (1.0) (2.4)%Corporate accounts 46.3   35.5   10.8  30.4%Original equipment manufacturer and other 54.6   59.5   (4.9) (8.2)%Total Acuity Brands Lighting 905.2   923.2   (18.0) (1.9)%Acuity Intelligent Spaces 303.5   264.1   39.4  14.9%Eliminations (10.7)  (8.7)  (2.0) 23.0%Total$1,198.0  $1,178.6  $19.4  1.6%  Nine Months Ended   May 31, 2026 May 31, 2025 Increase
(Decrease) Percent ChangeAcuity Brands Lighting:       Independent sales network$1,973.5  $1,944.4  $29.1  1.5%Direct sales network 234.4   306.1   (71.7) (23.4)%Retail sales 127.5   127.3   0.2  0.2%Corporate accounts 126.9   103.8   23.1  22.3%Original equipment manufacturer and other 155.4   168.2   (12.8) (7.6)%Total Acuity Brands Lighting 2,617.7   2,649.8   (32.1) (1.2)%Acuity Intelligent Spaces 809.0   509.1   299.9  58.9%Eliminations (29.3)  (22.4)  (6.9) 30.8%Total$3,397.4  $3,136.5  $260.9  8.3% ACUITY INC.
Reconciliation of Non-U.S. GAAP MeasuresThe tables below reconcile certain GAAP financial measures to the corresponding non-GAAP measures for total Company as well as our reportable operating segments (in millions except per share data):
        Three Months Ended      May 31, 2026   May 31, 2025  Increase
(Decrease) Percent
ChangeNet sales$1,198.0    $1,178.6   $19.4  1.6%           Gross profit (GAAP)$606.4    $570.2   $36.2  6.3%Percent of net sales  50.6%   48.4% 220  bpsAdd-back: Acquired profit in inventory —     19.2      Less: Tariff refunds (6.4)    —      Adjusted gross profit (Non-GAAP)$600.0    $589.4   $10.6  1.8%Percent of net sales  50.1%   50.0% 10  bps           Operating profit (GAAP)$193.3    $139.8   $53.5  38.3%Percent of net sales (GAAP)  16.1%   11.9% 420  bpsAdd-back: Amortization of acquired intangible assets 23.0     20.0      Add-back: Share-based payment expense 13.6     10.5      Add-back: Acquisition-related costs(1) —     2.5      Add-back: Acquired profit in inventory —     19.2      Add-back: Special charges —     29.7      Less: Tariff refunds (6.4)    —      Adjusted operating profit (Non-GAAP)$223.5    $221.7   $1.8  0.8%Percent of net sales (Non-GAAP)  18.7%   18.8% (10) bps           Net income (GAAP)$141.0    $98.4   $42.6  43.3%Add-back: Amortization of acquired intangible assets 23.0     20.0      Add-back: Share-based payment expense 13.6     10.5      Add-back: Acquisition-related costs(1) —     2.5      Add-back: Acquired profit in inventory —     19.2      Add-back: Special charges —     29.7      Less: Tariff refunds (6.4)    —      Total pre-tax adjustments to net income 30.2     81.9      Income tax effects (6.9)    (18.8)     Adjusted net income (Non-GAAP)$164.3    $161.5   $2.8  1.7%           Diluted earnings per share (GAAP)$4.56    $3.12   $1.44  46.2%Adjusted diluted earnings per share (Non-GAAP)$5.31    $5.12   $0.19  3.7%           Net income (GAAP)$141.0    $98.4   $42.6  43.3%Percent of net sales (GAAP)  11.8%   8.3% 350  bpsInterest expense, net 6.1     12.1      Income tax expense 44.2     27.0      Depreciation 17.7     14.6      Amortization of acquired intangible assets 23.0     20.0      EBITDA (Non-GAAP) 232.0     172.1    59.9  34.8%Percent of net sales (Non-GAAP)  19.4%   14.6% 480  bpsShare-based payment expense 13.6     10.5      Acquisition-related costs(1) —     2.5      Acquired profit in inventory —     19.2      Miscellaneous expense, net 2.0     2.3      Special charges —     29.7      Tariff refunds (6.4)    —      Adjusted EBITDA (Non-GAAP)$241.2    $236.3   $4.9  2.1%Percent of net sales (Non-GAAP)  20.1%   20.0% 10  bps (1) Acquisition-related items include professional fees.

  Three Months Ended    Acuity Brands Lighting May 31, 2026 May 31, 2025 Increase
(Decrease) Percent
ChangeNet sales $905.2  $923.2  $(18.0) (1.9)%         Gross profit (GAAP) $423.4  $430.4  $(7.0) (1.6)%Less: Tariff refunds  (6.4)  —     Adjusted gross profit (Non-GAAP) $417.0  $430.4  $(13.4) (3.1)%         Gross profit margin (GAAP)  46.8%  46.6%  20  bpsAdjusted gross profit margin (Non-GAAP)  46.1%  46.6%  (50) bps         Operating profit (GAAP) $160.6  $134.0  $26.6  19.9%Add-back: Amortization of acquired intangible assets  6.1   6.3     Add-back: Share-based payment expense  4.3   3.9     Add-back: Special charges  —   29.7     Less: Tariff refunds  (6.4)  —     Adjusted operating profit (Non-GAAP) $164.6  $173.9  $(9.3) (5.3)%         Operating profit margin (GAAP)  17.7%  14.5%  320  bpsAdjusted operating profit margin (Non-GAAP)  18.2%  18.8%  (60) bps   Three Months Ended    Acuity Intelligent Spaces May 31, 2026 May 31, 2025 Increase
(Decrease) Percent
ChangeNet sales $303.5  $264.1  $39.4 14.9%         Gross profit (GAAP) $183.0  $139.8  $43.2 30.9%Add-back: Acquired profit in inventory  —   19.2     Adjusted gross profit (Non-GAAP) $183.0  $159.0  $24.0 15.1%         Gross profit margin (GAAP)  60.3%  52.9%  740 bpsAdjusted gross profit margin (Non-GAAP)  60.3%  60.2%  10 bps         Operating profit (GAAP) $56.5  $27.4  $29.1 106.2%Add-back: Amortization of acquired intangible assets  16.9   13.7     Add-back: Share-based payment expense  2.9   2.0     Add-back: Acquired profit in inventory  —   19.2     Adjusted operating profit (Non-GAAP) $76.3  $62.3  $14.0 22.5%         Operating profit margin (GAAP)  18.6%  10.4%  820 bpsAdjusted operating profit margin (Non-GAAP)  25.1%  23.6%  150 bps (In millions, except per share data)Nine Months Ended      May 31, 2026   May 31, 2025   Increase
(Decrease)Percent
ChangeNet sales$3,397.4    $3,136.5    $260.98.3%           Gross profit (GAAP)$1,680.6    $1,487.5    $193.113.0%Percent of net sales (GAAP)  49.5%   47.4%  210bpsAdd-back: Acquired profit in inventory —     29.6      Less: Tariff refunds (6.4)    —      Adjusted gross profit (Non-GAAP)$1,674.2    $1,517.1    $157.110.4%Percent of net sales (Non-GAAP)  49.3%   48.4%  90bps           Operating profit (GAAP)$486.7    $383.3    $103.427.0%Percent of net sales (GAAP)  14.3%   12.2%  210bpsAdd-back: Amortization of acquired intangible assets 70.4     45.5      Add-back: Share-based payment expense 39.2     34.0      Add-back: Acquisition-related costs(1) —     21.2      Add-back: Acquired profit in inventory —     29.6      Add-back: Special charges 5.9     29.7      Less: Tariff refunds (6.4)    —      Adjusted operating profit (Non-GAAP)$595.8    $543.3    $52.59.7%Percent of net sales (Non-GAAP)  17.5%   17.3%  20bps           Net income (GAAP)$358.3    $282.6    $75.726.8%Add-back: Amortization of acquired intangible asset 70.4     45.5      Add-back: Share-based payment expense 39.2     34.0      Add-back: Acquisition-related costs(1) —     21.2      Add-back: Acquired profit in inventory —     29.6      Add-back: Special charges 5.9     29.7      Less: Tariff refunds (6.4)    —      Total pre-tax adjustments to net income 109.1     160.0      Income tax effect (25.1)    (36.8)     Adjusted net income (Non-GAAP)$442.3    $405.8    $36.59.0%           Diluted earnings per share (GAAP)$11.45    $8.92    $2.5328.4%Adjusted diluted earnings per share (Non-GAAP)$14.14    $12.81    $1.3310.4%           Net income (GAAP)$358.3    $282.6    $75.726.8%Percent of net sales (GAAP)  10.5%   9.0%  150bpsInterest expense, net 21.5     15.0      Income tax expense 102.4     79.9      Depreciation 47.4     41.2      Amortization 70.4     45.5      EBITDA (Non-GAAP) 600.0     464.2     135.829.3%Percent of net sales (Non-GAAP)  17.7%   14.8%  290bpsShare-based payment expense 39.2     34.0      Miscellaneous expense, net 4.5     5.8      Special charges 5.9     29.7      Acquisition-related costs(1) —     21.2      Acquired profit in inventory —     29.6      Tariff refunds (6.4)    —      Adjusted EBITDA (Non-GAAP)$643.2    $584.5    $58.710.0%Percent of net sales (Non-GAAP)  18.9%   18.6%  30bps (1) Acquisition-related items include professional fees.

  Nine Months Ended    Acuity Brands Lighting May 31, 2026 May 31, 2025 Increase
(Decrease) Percent
ChangeNet sales $2,617.7  $2,649.8  $(32.1) (1.2)%         Gross profit (GAAP) $1,197.8  $1,214.8  $(17.0) (1.4)%Less: Tariff refunds  (6.4)  —     Adjusted gross profit (Non-GAAP) $1,191.4  $1,214.8  $(23.4) (1.9)%         Gross profit margin (GAAP)  45.8%  45.8%  —  bpsAdjusted Gross profit margin (Non-GAAP)  45.5%  45.8%  (30) bps         Operating profit (GAAP) $434.7  $407.6  $27.1  6.6%Add-back: Amortization of acquired intangible assets  19.2   19.0     Add-back: Share-based payment expense  12.8   12.4     Add-back: Special charges  5.9   29.7     Less: Tariff refunds  (6.4)  —     Adjusted operating profit (Non-GAAP) $466.2  $468.7  $(2.5) (0.5)%         Operating profit margin (GAAP)  16.6%  15.4%  120  bpsAdjusted operating profit margin (Non-GAAP)  17.8%  17.7%  10  bps   Nine Months Ended    Acuity Intelligent Spaces May 31, 2026 May 31, 2025 Increase
(Decrease) Percent
ChangeNet sales $809.0  $509.1  $299.9 58.9%         Gross profit (GAAP) $482.8  $272.7  $210.1 77.0%Add-back: Acquired profit in inventory  —   29.6     Adjusted gross profit (Non-GAAP) $482.8  $302.3  $180.5 59.7%         Gross profit margin (GAAP)  59.7%  53.6%  610 bpsAdjusted gross profit margin (Non-GAAP)  59.7%  59.4%  30 bps         Operating profit (GAAP) $121.8  $48.1  $73.7 153.2%Add-back: Amortization of acquired intangible assets  51.2   26.5     Add-back: Share-based payment expense  7.9   5.5     Add-back: Acquired profit in inventory  —   29.6     Adjusted operating profit (Non-GAAP) $180.9  $109.7  $71.2 64.9%         Operating profit margin (GAAP)  15.1%  9.4%  570 bpsAdjusted operating profit margin (Non-GAAP)  22.4%  21.5%  90 bps  Nine Months Ended     May 31, 2026 May 31, 2025 Increase
(Decrease) Percent
ChangeNet cash provided by operating activities (GAAP)$520.2  $398.9  $121.3 30.4%Less: Purchases of property, plant, and equipment (58.5)  (43.6)    Free cash flow (Non-GAAP)$461.7  $355.3  $106.4 29.9% Investor Contact:
Charlotte McLaughlin
Vice President, Investor Relations
(404) 853-1456
[email protected] 

Media Contact:
April Appling
Senior Vice President, Corporate Marketing and Communications
[email protected]