We increased our adjusted operating profit $2 million to $162 million and increased our adjusted operating profit margin 100 basis points to 18% on $42 million less sales.
— Neil Ashe
03Detailed Report
AYI
Company AYI
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 13, 2026
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Executive Summary
Acuity Brands reported a solid Q3 2024 with total net sales of $968.1 million, down 3.2% year-over-year but up 6.9% quarter-over-quarter, driven by a robust contribution from the Intelligent Spaces (ISG) segment and a challenging year-over-year comparison in Lighting & Lighting Controls. The company continues to expand margins through product vitality, pricing discipline, cost management, and productivity gains, producing adjusted operating profit of $162 million in ABL and an adjusted operating margin of 18.0% despite a 5% year-over-year decline in Lighting-led net sales. Management highlighted backlog creation as orders exceeded shipments, setting up a favorable cadence for the balance of the year as production targets are normalized. Management reiterated a multi-year strategy to return the Lighting business to growth while expanding margins and free cash flow, supported by ongoing investments in high-value product platforms and differentiated offerings (Made-to-Order, Design Select, Contractor Select). Spaces growth remains a meaningful contributor to overall profitability, with ISG delivering a 22.9% adjusted operating margin in Q3, up 340 basis points YoY. The company also signaled disciplined capital allocation, including a 15% dividend increase and share repurchases, while stressing a robust M&A pipeline focused on expanding addressable markets within Spaces and adjacent lighting adjacencies. Overall, AYI demonstrates resilience in a mixed macro environment, supported by a diversified portfolio, strong balance sheet (net cash position), and a clear path to sustainable free cash flow generation and margin expansion.
Key Performance Indicators
Revenue
Decreasing
968.10M
QoQ: 6.87% | YoY: -3.22%
Gross Profit
Decreasing
442.20M
45.68% margin
QoQ: 9.89% | YoY: -1.14%
Operating Income
Increasing
145.30M
QoQ: 23.03% | YoY: 1.40%
Net Income
Increasing
113.90M
QoQ: 27.69% | YoY: 8.48%
EPS
Increasing
3.69
QoQ: 27.68% | YoY: 11.48%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability highlights:
- Total AYI net sales: $968.1 million in Q3 2024, down 3.22% YoY and up 6.87% QoQ. Lighting & Lighting Controls contributed to the decline, while Intelligent Spaces grew 15% YoY.
- Segment mix: ABL net sales $899 million (-5% YoY); Intelligent Spaces net sales $76 million (+15% YoY). ISG margin expanded meaningfully (adjusted operating margin 22.9%, +340 bp YoY). ABL margin remained strong at 18.0% (up 100 bp YoY).
- Gross profit and margin: Gross profit $442.2 million; gross margin 45.68% (0.457). YoY gross profit change -1.14%; QoQ +9.89% driven by product vitality and productivity benefits.
- Operating and net profitability: Operating income $145.3 million; operating margin 15.01% (YoY margin +~0.5%-1.0% range depending on basis). Adjusted operating profit rose by $4 million despite a $32 million sales decline (Q3 vs. prior year). Net income $113.9 million; net margin 11.77%.
- EPS and liquidity: GAAP diluted EPS $3.62; basic EPS $3.69; adjusted diluted EPS $4.15 (+11% YoY, +27% QoQ). Cash flow metrics: year-to-date operating cash flow $152.5 million; free cash flow $140.5 million; cash balance $699 million; net debt negative $120.3 million (net cash).
- Balance sheet health: Total assets $3.6429 billion; total liabilities $1.3882 billion; stockholders’ equity $2.2547 billion. Current ratio 2.77; quick ratio 2.15; cash ratio 1.16. Debt-to-capitalization 0.204; debt-to-equity 0.257. Capex $12 million in the period; YTD capex $41 million; dividends per share up 15% YTD; approximately 454k shares repurchased for ~$89 million.
- Forward-looking signals: Order rate continued to grow YoY in Q3; backlog built; production targets to be realigned in coming quarters; management emphasized continued margin expansion and free cash flow generation as priorities. Backlog and diverse end-market exposure provide a degree of resilience against near-term macro softness.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
968.10M
-3.22%
6.87%
Gross Profit
442.20M
-1.14%
9.89%
Operating Income
145.30M
1.40%
23.03%
Net Income
113.90M
8.48%
27.69%
EPS
3.69
11.48%
27.68%
Key Financial Ratios
Gross Profit Margin
Good
45.70%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Good
15.00%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
11.80%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Fair
3.13%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
5.05%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
2.77
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.26
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
17.57x
P/E ratio in line with market averages
Price to Book
Premium
3.55x
Trading at premium to book value, reflects strong intangibles or growth
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