Acuity (AYI) Q4 2024 earnings summary

Executive summary

• Fiscal Q4 2024 net sales grew 2% year-over-year to $1.032B, with margin expansion and adjusted diluted EPS up 8% to $4.30.

• Full-year 2024 net sales declined 2.8% to $3.84B, but diluted EPS rose 25% to $13.44; adjusted EPS up 11% to $15.56.

• Cash flow from operations reached $619M for the year, up 7% year-over-year, with $89M in share repurchases and $64M in CapEx.

• Strategic initiatives included combining lighting and supply chain organizations, launching innovative products, and expanding into new verticals like refueling and horticulture.

• ISG achieved strong growth and margin performance, driven by large data center projects and international expansion.

Financial highlights

• Q4 net sales reached $1.032B, up 2% year-over-year, with adjusted operating profit up $16.2M and margin expanding 120 bps to 17.3%.

• Adjusted gross profit margin reached 47.3% in Q4 2024, up from 45.1% in Q4 2023.

• Q4 adjusted EBITDA margin was 18.5%; adjusted net income for Q4 was $136M.

• Full-year adjusted operating profit was $639.6M, up $42.2M; adjusted margin up 160 bps to 16.7%.

• Free cash flow for the year was $555M, up $44M year-over-year.

Outlook and guidance

• Fiscal 2025 net sales expected in the range of $3.9–$4.1B.

• ABL segment projected to deliver low- to mid-single-digit sales growth, weighted toward the back half of the year.

• ISG segment expected to achieve low- to mid-teens sales growth.

• Adjusted diluted EPS guidance for fiscal 2025 is $16–$17.50.

• Effective GAAP tax rate anticipated at ~23.5%; CapEx expected at $70M to $75M.