Acuity Inc. (NYSE:AYI) exceeded analyst expectations for fourth-quarter adjusted earnings, even as its revenue came in slightly below projections. The industrial technology firm reported adjusted earnings per share of $5.20, beating the consensus of $4.84, while revenue reached $1.21 billion, just below the anticipated $1.23 billion.
Year-on-year, fourth-quarter revenue rose 17.1%, driven by robust performance across Acuity’s business segments. Adjusted operating profit climbed to $225.3 million from $178.5 million in the prior year, with the adjusted operating margin expanding roughly 130 basis points to 18.6%.
Following the earnings release, Acuity shares dipped 1.8%, reflecting mixed investor reactions to the results.
“Our fiscal 2025 fourth quarter performance was strong. We grew net sales, expanded our adjusted operating profit and adjusted operating profit margin, and increased our adjusted diluted earnings per share,” said Neil Ashe, Chairman, President and CEO of Acuity Inc.
Breaking down segment performance, Acuity Brands Lighting generated $962.4 million in revenue, a modest 0.8% increase year-over-year, while the Acuity Intelligent Spaces segment posted substantial growth with revenue of $255.2 million, significantly above last year’s results.
For the full fiscal year 2025, Acuity reported net sales of $4.3 billion, up 13.1% from 2024. Annual adjusted earnings per share rose 15.7% to $18.01 from $15.56 in the previous year.
During Q4, the company recorded a non-cash pension-settlement charge of $30.9 million related to the de-risking of pension plans in the United States and Mexico, impacting reported earnings.
Acuity generated $601.4 million in operating cash flow for fiscal 2025 and continued its capital allocation strategy, including repurchasing approximately 436,000 shares totaling $118.5 million.
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