Acuity Brands reported a solid Q3 2024 with total net sales of $968.1 million, down 3.2% year-over-year but up 6.9% quarter-over-quarter, driven by a robust contribution from the Intelligent Spaces (ISG) segment and a challenging year-over-year comparison in Lighting & Lighting Controls. The company continues to expand margins through product vitality, pricing discipline, cost management, and productivity gains, producing adjusted operating profit of $162 million in ABL and an adjusted operating margin of 18.0% despite a 5% year-over-year decline in Lighting-led net sales. Management highlighted backlog creation as orders exceeded shipments, setting up a favorable cadence for the balance of the year as production targets are normalized. Management reiterated a multi-year strategy to return the Lighting business to growth while expanding margins and free cash flow, supported by ongoing investments in high-value product platforms and differentiated offerings (Made-to-Order, Design Select, Contractor Select). Spaces growth remains a meaningful contributor to overall profitability, with ISG delivering a 22.9% adjusted operating margin in Q3, up 340 basis points YoY. The company also signaled disciplined capital allocation, including a 15% dividend increase and share repurchases, while stressing a robust M&A pipeline focused on expanding addressable markets within Spaces and adjacent lighting adjacencies. Overall, AYI demonstrates resilience in a mixed macro environment, supported by a diversified portfolio, strong balance sheet (net cash position), and a clear path to sustainable free cash flow generation and margin expansion.