Acuity (AYI) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY26 increased 20% year-over-year to $1.14 billion, driven by both business segments and the QSC acquisition.

• Adjusted operating profit rose 24% to $196 million, and adjusted diluted EPS increased 18% to $4.69.

• Robust cash flow supported $28 million in share repurchases and $100 million in term-loan repayments.

• The QSC acquisition expanded the AIS segment into audio, video, and control solutions, fueling segment growth.

• Product innovation and multiple industry awards highlighted operational strength.

Financial highlights

• Net sales reached $1,143.7 million, up 20.2% from $951.6 million in Q1 FY25.

• Adjusted operating profit was $196.3 million, up 23.7% year-over-year; adjusted operating profit margin expanded to 17.2%, up 50 basis points.

• Adjusted diluted EPS rose to $4.69, up 18% year-over-year.

• Gross profit increased 23.3% to $553.8 million, with gross margin up 120 bps to 48.4%.

• Operating cash flow was $141 million, up from $132 million in the prior year.

Outlook and guidance

• Fiscal 2026 net sales are projected in the range of $4.7 billion to $4.9 billion.

• Adjusted diluted EPS guidance is $19.00 to $20.50 for the year.

• Q2 expected to reflect more typical seasonality, with potential for slightly lower growth as backlog normalizes.

• Confident in long-term performance and margin improvement targets, aiming for 50-100 basis points of operating profit margin improvement per year.

• Management expects to meet liquidity needs over the next 12 months with cash on hand, operating cash flow, and borrowing capacity.