Acuity Inc. (NYSE: AYI) is a market-leading industrial technology company specializing in lighting and building management solutions. The company operates two principal segments: Acuity Brands Lighting (ABL) and Acuity Intelligent Spaces (AIS).

For the third quarter of fiscal 2025, Acuity reported a significant rise in net sales, which reached $1.2 billion—a $211 million or 22% increase compared to the prior year. Adjusted operating profit also increased to $222 million, up $55 million or 33%. Additionally, adjusted diluted earnings per share rose to $5.12, reflecting a $0.97 or 23% increase year-over-year. ABL net sales were $923 million, up $25 million or 3% compared to the prior year, while AIS net sales were $264 million, representing a substantial $188 million or 248.9% increase, bolstered by the inclusion of QSC’s sales performance.

Acuity’s adjusted operating profit margin improved to 18.8%, an increase of 150 basis points, driven by enhanced performance in both ABL and AIS. ABL’s adjusted operating profit stood at $174 million, with an adjusted profit margin of 18.8%, while AIS recorded adjusted operating profit of $62 million, yielding an adjusted margin of 23.6%.

Despite overall strong financial performance, Acuity’s operating profit declined slightly to $140 million, a decrease of 4% compared to the prior year. The company also reported an operating profit margin of 11.9%, a decrease of 310 basis points year-over-year.

Regarding cash flow, Acuity generated approximately $400 million from operating activities year-to-date, with a strong focus on capital allocation. This included the closing of the QSC acquisition, a 13% increase in dividends, and the repurchase of about 344,000 shares for approximately $91 million.

The company anticipates ongoing challenges due to shifting tariff policies, with expectations that price adjustments will positively impact margins in future quarters. However, Acuity reported minimal price realization in the third quarter, suggesting that upcoming results may reflect a more normalized performance as it adjusts to changing market conditions.

Overall, Acuity Inc. demonstrated robust sales growth and operational efficiency across its segments amid challenging market conditions.