We delivered strong performance in the third quarter of fiscal 2025. We grew net sales, expanded our adjusted operating profit and adjusted operating profit margin, and we increased our adjusted diluted earnings per share.
— Neil M. Ashe
03Detailed Report
AYI
Company AYI
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 30, 2026
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Executive Summary
Acuity Brands delivered a solid Q3 2025 with revenue of $1.1786 billion, up 21.7% year over year and 17.1% quarter over quarter, supported by strength in both Acuity Brands Lighting (ABL) and Intelligent Spaces (AIS), including three months of QSC sales. GAAP gross margin stood at 48.38% (management commentary pointed to a roughly 50% level in practice), and adjusted operating profit rose to $222 million with an 18.8% adjusted operating margin, driven by ABL gross profit gains, AIS strength, and the early benefits of the QSC integration. Net income of $98.4 million declined year over year by 13.6%, while GAAP diluted EPS was $3.12 and unadjusted EPS was $3.19, reflecting growth initiatives and one-time effects being managed through the period. Free cash flow yielded $192.3 million for the quarter as operating cash flow reached $207.3 million, underpinning a strong balance sheet and disciplined capital allocation (dividends up 13% and ~344k shares repurchased YoY).
Key Performance Indicators
Revenue
Increasing
1.18B
QoQ: 17.12% | YoY: 21.74%
Gross Profit
Increasing
570.20M
48.38% margin
QoQ: 21.84% | YoY: 28.95%
Operating Income
Decreasing
139.80M
QoQ: 26.86% | YoY: -3.79%
Net Income
Decreasing
98.40M
QoQ: 26.97% | YoY: -13.61%
EPS
Decreasing
3.19
QoQ: 27.60% | YoY: -13.55%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $1.1786B (+21.74% YoY; +17.12% QoQ). Gross Profit: $570.2M; Gross Margin: 48.38%. Operating Income: $139.8M; Operating Margin: 11.86%. EBITDA: $174.6M; EBITDARatio: 14.81%. Net Income: $98.4M; Net Margin: 8.35%. EPS: $3.19 (GAAP); Diluted EPS: $3.12. Weighted Avg Shares: 30.85M (GAAP); 31.57M (diluted). Cash Flow: Operating cash flow $207.3M; Free Cash Flow $192.3M. Cash Balance: $371.8M; Total Debt: $1.0856B; Net Debt: $713.8M. Capital Allocation: Dividends +13%; Share repurchases ~$90M (~344k shares); Acquisitions: QSC closed; M3 Innovation assets acquired; Pension de-risking with ~$35M noncash charge to be recognized in Q4. Backlog: Accelerated orders in Q3 with shipments starting in Q3 and continuing into Q4 amid tariff-driven pricing actions.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.18B
21.74%
17.12%
Gross Profit
570.20M
28.95%
21.84%
Operating Income
139.80M
-3.79%
26.86%
Net Income
98.40M
-13.61%
26.97%
EPS
3.19
-13.55%
27.60%
Key Financial Ratios
Management Insights Available for Members
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