Acuity Brands Q1 Earnings: Revenue Miss, Smart Spaces Revenue Soars 14.5%, Expands Into Cloud Tech With $1.2 Billion Deal

Benzinga01-08 21:08

Acuity Brands, Inc (NYSE: AYI) reported fiscal first-quarter 2025 net sales growth of 1.8% year over year to $951.6 million, missing the analyst consensus estimate of $956.2 million. 

It clocked an adjusted EPS of $3.97, beating the analyst consensus estimate of $3.89.

Sales by segments: Acuity Brands Lighting (ABL) and Lighting Controls revenue hit $886.0 million (+1.1% Y/Y), and Intelligent Spaces Group (ISG) clocked $73.5 million (+14.5% Y/Y).

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The consolidated adjusted operating margin grew by 20 bps to 16.7%. ABL’s adjusted operating margin declined by 20 bps to 17.3%. ISG’s margin increased by 500 bps to 21.0%.

The company generated $132.2 million in operating cash flow for the quarter, compared to $190.0 million a year ago. Free cash flow was $113.3 million.

Acuity held cash and equivalents of $935.6 million, compared to $845.8 million last year.

Adjusted EBITDA was $171.6 million, up from $166.7 million a year ago. The margin expanded by 20 bps to 18.0%.

Effective January 1, 2025, the company completed the acquisition of QSC, LLC for $1.215 billion, expanding Acuity’s Intelligent Spaces into cloud-manageable audio, video, and control.

Acuity Brands stock surged 49% in the last 12 months. Investors can gain exposure to the stock through First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN) and Invesco S&P MidCap Quality ETF (NYSE:XMHQ).

Price Action: AYI stock is down 0.82% at $301.38 premarket at the last check on Wednesday.

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