AYI

Acuity is the leading North American lighting and building-management company, increasingly weighting toward higher-margin Intelligent Spaces (building controls/software) alongside its core Lighting business. FY2025 revenue grew 13.1% to $4.35B and gross profit rose 16.7% to $2.08B, lifting gross margin to 47.8% — evidence the mix shift and pricing are working. Operating income edged up 1.9% to $564M and operating cash flow held at $601M, while return on equity remained a healthy 14.6%.

The one soft spot is the bottom line: net income fell 6.2% to $397M and diluted EPS dropped 6.8% to $12.53, driven by acquisition-related costs — depreciation/amortization jumped 46.1% and long-term debt rose 80.7% to $897M to fund growth (assets up 24.7%). This is the digestion phase of an acquisition (the QSC/intelligent-spaces expansion), so the gap between strong gross-profit growth and flat-to-down net income should narrow as amortization is absorbed and synergies accrue.