Acuity Brands Delivers Strong Q4 Performance with Net Sales Growth and Higher EPS
Acuity Brands wrapped up fiscal 2024 with a strong fourth-quarter performance, reporting a 2.2% increase in net sales to $1.03 billion. The company’s growth in both the Lighting and Intelligent Spaces segments led to margin expansion and impressive earnings per share (EPS) gains, positioning the company for continued success despite a slight decline in full-year sales.
The market likes the results. As we publish this article, the Acuity stock price is up $14.01 or 5%
For the fourth quarter, Acuity achieved a diluted EPS of $3.77, a 43% increase over the prior year. Adjusted diluted EPS was $4.30, marking an 8% improvement from Q4 2023. Operating profit also saw significant growth, reaching $157 million—an increase of $47.3 million from the previous year—representing a 43% increase in profit margins.
Neil Ashe, Acuity’s Chairman, President, and CEO, attributed the strong quarter to disciplined execution and product innovation. “We grew net sales in both Lighting and Spaces, delivered margin expansion and increased earnings per share,” Ashe noted, “Fiscal 2024 was a successful year of improved operating performance that delivered increased end-user satisfaction and financial results.”
Full-Year Overview: Sales Down Slightly, Profits Climb
While Acuity’s Q4 results were strong, the full-year figures present a more complex picture. The company reported $3.8 billion in total sales for fiscal 2024, representing a 2.8% decline compared to the previous year. The dip in sales can be largely attributed to slower growth in key sectors and ongoing market challenges. However, despite the sales decline, Acuity managed to increase its operating profit by 16.9% for the year, reaching $553.3 million.
EPS for the full year was $13.44, up 25% over fiscal 2023, with adjusted EPS hitting $15.56, an 11% year-over-year increase. Cash flow from operations was a highlight, with Acuity generating $619 million, a 7% increase over the previous year, signaling the company’s strong cash management and operational efficiency.
Segment Breakdown: Lighting and Spaces Show Strength
Acuity’s Lighting and Lighting Controls (ABL) segment, which accounts for the majority of its business, saw a modest 1.1% increase in Q4 sales, reaching $955 million. For the full year, however, ABL sales dipped 4% to $3.6 billion, reflecting some market softness. Despite the slight sales drop, ABL’s operating profit rose 14.4% for the year, driven by cost discipline and efficiency improvements.
Meanwhile, the Intelligent Spaces Group (ISG), which focuses on building management solutions and location-aware applications, posted a 16.7% increase in Q4 sales, reaching $83.9 million. Full-year sales for ISG climbed 15.5%, signaling strong demand for its tech-driven solutions. ISG’s operating profit grew by 35.8% for the year, reflecting increased interest in smart building technologies and solutions that integrate lighting, controls, and building management systems.
Strategic Focus and Capital Deployment
Acuity’s ability to generate cash allowed for strategic capital allocation throughout the year. The company repurchased approximately 454,000 shares of stock, valued at around $89 million. The increase in free cash flow also gave Acuity more flexibility to invest in product development and growth initiatives, particularly in the Intelligent Spaces division.
Looking ahead, Acuity is focused on maintaining its leadership in both the Lighting and Building Management sectors by capitalizing on new technologies and expanding into promising new markets. Ashe highlighted that the company’s focus on customer-driven innovation and operational discipline has positioned it to deliver sustainable growth in the future.