Acuity Brands Inc (AYI)
NYSE:AYI
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Acuity Brands
(NYSE:AYI)
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Rating:74Outperform
Price Target:
$323.00
â–²(10.38% Upside)
Action:Reiterated
Date:05/14/26
AYI scores well primarily on strong financial quality (profitability, conservative leverage, and robust free cash flow) and a generally positive earnings update (profit/margin expansion and shareholder returns). The score is held back by mixed technical positioning (still below longer-term moving averages) and a valuation that offers limited income support with a relatively higher P/E and low yield.
Positive Factors
Free Cash Flow Conversion
Acuity converts a large share of earnings into cash (TTM FCF ~0.88x of net income), a durable sign of earnings quality. Strong cash generation supports dividends, buybacks, debt repayment and reinvestment, giving the company flexibility through construction cycles and funding optionality for strategic initiatives.
Negative Factors
Lighting (ABL) Demand Weakness
The lighting segment (ABL) remains the largest revenue contributor and is showing persistent softness with a downward sales revision. As new construction and renovation timing elongates, prolonged weakness in ABL reduces consolidated revenue visibility and can erode operating leverage and cash generation over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Conversion
Acuity converts a large share of earnings into cash (TTM FCF ~0.88x of net income), a durable sign of earnings quality. Strong cash generation supports dividends, buybacks, debt repayment and reinvestment, giving the company flexibility through construction cycles and funding optionality for strategic initiatives.
Read all positive factors
Acuity Brands Key Performance Indicators (KPIs)
Any
Revenue by Segment
Reveals how different parts of the business contribute to total sales, highlighting strengths and potential growth areas within the company’s operations.
Reveals how different parts of the business contribute to total sales, highlighting strengths and potential growth areas within the company’s operations.
Data provided by:
The Fly
The FlyAcuity Brands (AYI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.72B
Dividend Yield0.18%
Average Volume (3M)337.75K
Price to Earnings (P/E)23.9
Beta (1Y)1.17
Revenue Growth15.89%
EPS Growth3.60%
CountryUS
Employees13,200
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)13.98
Shares Outstanding30,315,168
10 Day Avg. Volume287,782
30 Day Avg. Volume337,747
Financial Highlights & Ratios
PEG Ratio-4.19
Price to Book (P/B)3.70
Price to Sales (P/S)2.32
P/FCF Ratio18.90
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue2.02
Enterprise Value/Gross Profit4.14
Enterprise Value/Ebitda13.28
Forecast
1Y Price Target
$331.00Price Target Upside13.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)19.57
Revenue Forecast (FY)$4.62B
Acuity Brands Business Overview & Revenue Model
Company Description
Acuity Brands, Inc. provides lighting and building management solutions in North America and internationally. The company operates through two segments, Acuity Brands Lighting and Lighting Controls (ABL); and the Intelligent Spaces Group (ISG). Th...
How the Company Makes Money
Acuity Brands makes money primarily by selling lighting and building-automation offerings through its operating segments. Its largest revenue stream is the sale of lighting products—such as indoor and outdoor luminaires, architectural and specialt...
Acuity Brands Earnings Call Summary
Earnings Call Date:Apr 02, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 25, 2026
Earnings Call Sentiment Positive
The call portrayed solid execution and financial strength: consolidated revenue up 5%, operating profit and margins expanded, EPS rose 11%, strong cash flow, active capital returns (dividend increase and $106M buybacks), and robust AIS growth and product momentum. Offsetting this were a modest decline in ABL sales (-3%), a revised ABL outlook (flat to down low single digits), supply-chain/memory pressures, longer project release timing, and a $6M special charge tied to labor reductions. Overall, the positives (improved profitability, cash generation, AIS momentum, product awards, and capital allocation) outweigh the headwinds tied to lighting demand and supply constraints.Positive Updates
Total Net Sales Growth
Total net sales of $1.1 billion, up $49 million or +5% year-over-year, driven by strong growth in Acuity Intelligence Spaces (AIS) and an extra month of QSC sales.
Negative Updates
ABL Revenue Decline
Acuity Brands Lighting sales of $817 million decreased $23 million or -3% year-over-year, driven by declines in the direct sales channel and several large projects in the prior year that did not repeat.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Net Sales Growth
Total net sales of $1.1 billion, up $49 million or +5% year-over-year, driven by strong growth in Acuity Intelligence Spaces (AIS) and an extra month of QSC sales.
Read all positive updates
Company Guidance
Management guided that for fiscal 2026 Acuity Brands Lighting (ABL) sales are now expected to be flat to down low single digits year‑over‑year, while Acuity Intelligence Spaces (AIS) is still expected to grow low‑to‑mid‑teens and there is no change to overall EPS guidance; they will continue to manage margins via strategic pricing, product and productivity improvements and targeted cost actions. In Q2 the company reported total net sales of $1.1B (+$49M, +5% YoY), adjusted operating profit $176M (+$13M, +8%), adjusted operating margin 16.7% (+50 bps) and adjusted diluted EPS $4.14 (+$0.41, +11%); ABL sales were $817M (‑$23M, ‑3%) with gross margin 45.7% (+70 bps), adjusted operating profit $142M and a 17.3% margin (+50 bps) (including a $6M special labor charge), and AIS sales were $248M (+$77M) with adjusted gross margin 59.1% (+60 bps), adjusted operating profit $48M and a 19.3% margin (+60 bps); H1 operating cash flow was $230M (+$38M), the company repaid $100M this quarter ($200M YTD) leaving $200M outstanding from the QSC financing, raised the quarterly dividend 18% to $0.20 per share and repurchased $106M of stock (318,000 shares).Acuity Brands Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.59B | 4.35B | 3.84B | 3.95B | 4.01B | 3.46B |
| Gross Profit | 2.24B | 2.08B | 1.78B | 1.71B | 1.67B | 1.48B |
| EBITDA | 697.00M | 655.30M | 665.00M | 588.50M | 603.20M | 520.50M |
| Net Income | 429.70M | 396.60M | 422.60M | 346.00M | 384.00M | 306.30M |
Balance Sheet | ||||||
| Total Assets | 4.56B | 4.76B | 3.81B | 3.41B | 3.48B | 3.58B |
| Cash, Cash Equivalents and Short-Term Investments | 272.50M | 422.50M | 845.80M | 397.90M | 223.20M | 491.30M |
| Total Debt | 808.20M | 1.00B | 573.50M | 590.80M | 596.10M | 556.90M |
| Total Liabilities | 1.72B | 2.03B | 1.44B | 1.39B | 1.57B | 1.53B |
| Stockholders Equity | 2.84B | 2.72B | 2.38B | 2.02B | 1.91B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | 558.10M | 533.00M | 555.20M | 511.40M | 259.80M | 364.90M |
| Operating Cash Flow | 639.70M | 601.40M | 619.20M | 578.10M | 316.30M | 408.70M |
| Investing Cash Flow | -132.90M | -1.28B | -65.10M | -90.70M | -62.20M | -117.90M |
| Financing Cash Flow | -646.30M | 255.40M | -104.50M | -312.90M | -512.40M | -362.60M |
Acuity Brands Technical Analysis
Positive
292.63
Price Trends
282.36
Positive
297.23
Positive
323.41
Negative
Market Momentum
0.07
Negative
59.02
Neutral
75.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AYI, the sentiment is Positive. The current price of 292.63 is above the 20-day moving average (MA) of 287.20, above the 50-day MA of 282.36, and below the 200-day MA of 323.41, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.02 is Neutral, neither overbought nor oversold. The STOCH value of 75.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AYI.
Acuity Brands Risk Analysis
Acuity Brands disclosed 25 risk factors in its most recent earnings report. Acuity Brands reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Acuity Brands Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $10.17B | 35.75 | 28.61% | 0.32% | 4.50% | 7.18% | |
80 Outperform | $8.48B | 21.06 | 15.60% | 0.67% | 3.70% | -14.17% | |
78 Outperform | $26.63B | 33.98 | 13.36% | 0.84% | 34.18% | -15.12% | |
74 Outperform | $8.72B | 23.86 | 15.71% | 0.18% | 15.89% | 3.60% | |
64 Neutral | $12.35B | 45.53 | 14.35% | 0.18% | 22.19% | 157.87% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $2.86B | -3.97 | -8.68% | 2.02% | -3.36% | -168.34% |
* Industrials Sector Average
AYI
Acuity Brands
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13.98%
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Acuity Brands Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Acuity Brands Secures New $800 Million Revolving Credit Facility
Positive
May 13, 2026
On May 8, 2026, Acuity Inc. entered into a new unsecured revolving credit agreement with a syndicate of lenders led by JPMorgan Chase Bank, N.A., providing up to $800 million in borrowing capacity and maturing in May 2031. The facility, guaranteed...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.