AYI Reports Q3 Earnings
Acuity Brands reports a 2% increase in net sales to $1.2 billion, with growth driven by Acuity Intelligent Spaces, offset by declines in Acuity Brands Lighting.
On Thursday, Acuity Brands (NYSE: AYI ) discussed third-quarter financial results during its earnings call. The full transcript is provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.
2 billion, with growth driven by Acuity Intelligent Spaces, offset by declines in Acuity Brands Lighting. 31. 3% adjusted gross profit margin. 1% through strategic pricing and productivity improvements.
The company introduced new products like Beyond by Lithonia and CPX3P, enhancing its Design Select portfolio and reducing SKU complexity. Acuity received several industry recognitions, including Red Dot awards for its Eureka brand, emphasizing consistent design strength. Acuity is investing in product vitality and strategic technologies, including AI, to drive productivity and expand margins. Management is optimistic about future growth, citing firming demand in the lighting market and a strong position in Acuity Intelligent Spaces.
The company successfully refinanced its revolving credit facility, enhancing financial flexibility, and allocated capital towards share repurchases and dividend increases. Full Transcript OPERATOR Good morning and welcome to the Acuity Brands Fiscal 2026 third quarter earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, the company will conduct a question and answer session.
Please be advised that today's conference is being recorded. I would now like to hand the conference over to Charlotte McLaughlin, Vice President of Investor Relations. Charlotte, please go ahead. Charlotte McLaughlin, Vice President of Investor Relations Thank you, Operator.
Good morning and welcome to the Acuity Brands Fiscal 2026 third quarter earnings call. On the call with me this morning are Neil Ashe, our Chairman, President, and Chief Executive Officer, and Karen Holcomb, our Senior Vice President and Chief Financial Officer. Today's call will include updates on our strategic progress and on our fiscal 2026 third quarter performance. There will be an opportunity for Q and A at the end of this call.
As a reminder, some of our comments today may be forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as detailed on slide 2 of the accompanying presentation. Reconciliations of certain non-GAAP financial metrics with their corresponding GAAP measures are available in our 2026 third quarter earnings release and supplemental presentation, both of which are available on our Investor Relations website at Thank you for your interest in Acuity Brands. I will now turn the call over to Neil Ashe.
Neil Ashe, CEO Thank you, Charlotte, and thank you all for joining us this morning. We demonstrated solid execution in our third quarter of fiscal 2026. We grew net sales, we expanded our adjusted operating profit, and we increased our adjusted diluted earnings per share. We generated strong cash flow and allocated capital effectively in Acuity Brands Lighting.
Our sequential performance improved while our margins remained strong. Our ability to drive performance in this market is a result of the execution of our strategy to increase product vitality, elevate service levels, use technology to improve and differentiate both our products and how we operate the business, and drive productivity. Over the past several years, we have focused on enhancing our product portfolios: Contractor Select, Design Select, and Made to Order. By aligning these portfolios to the specific needs of our customers, we have reduced complexity across the value chain while driving productivity for both our partners and ourselves.
Contractor Select drives growth and productivity for electrical distributors and retailers by lowering their cost of doing business and reducing their inventory requirements. Design Select enhances productivity for architects, specifiers, and contractors by enabling efficient configuration of the right products for each project. The balance of the portfolio is made to order, providing customized solutions tailored to specific customer needs. This quarter, we introduced Beyond by Lithonia into our Design Select portfolio.
Beyond is our next-generation linear high bay designed for large-scale industrial applications with pre-configured trim packages for common use cases such as cold storage, automotive manufacturing, and warehousing. It integrates Eldoled drivers with embedded sensor, switch, and nLight controls, delivering a complete lighting and control solution that simplifies specification, ordering, and installation. We also introduced CPX3P, our new three-pane panel available in both Contractor Select and Design Select. The CPX3P combines an architectural aesthetic with switchable lumen output and switchable color temperature at an accessible price point.
By enabling configuration and install, we reduce SKU complexity for our distributor partners and simplify specification, inventory management, and installation for our customers. The industry continues to recognize the value that our products deliver to our customers. This quarter, we received several Red Dot awards. Our Eureka brand continues to demonstrate design leadership.
The Eureka segment earned the prestigious Best of the Best recognition, while Tulip, Jari, and Arela received mult