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Feb 28

Acuity Brands Q2 2025 Earnings Report

Delivered solid revenue and adjusted EPS growth, supported by the QSC acquisition.

Key Takeaways

Acuity reported higher revenue and adjusted earnings in Q2 2025, driven by the acquisition of QSC and strength in its Intelligent Spaces segment. GAAP profitability declined due to acquisition-related costs.

Revenue grew 11% YoY to $1.006 billion.

Adjusted EPS increased to $3.73, up from $3.38.

GAAP EPS declined 14% to $2.45 due to one-time acquisition expenses.

Closed the acquisition of QSC, contributing $95.1M in revenue.

Total Revenue
$1.01B
Previous year: $906M
+11.1%
EPS
$3.73
Previous year: $3.38
+10.4%
Adj. Operating Margin
16.2%
Previous year: 15.5%
+4.5%
Operating Margin
11%
Previous year: 13%
-15.4%
Adj. EBITDA
$177M
Previous year: $153M
+15.4%
Gross Profit
$468M
Previous year: $402M
+16.3%
Cash and Equivalents
$398M
Previous year: $579M
-31.3%
Free Cash Flow
$163M
Previous year: $264M
-38.2%
Total Assets
$4.58B
Previous year: $3.53B
+29.9%

Acuity Brands

Acuity Brands

Acuity Brands Revenue by Segment

Forward Guidance

The company expects continued growth through acquisitions and operational execution, but acknowledges margin pressure and integration costs.

Positive Outlook

  • Continued sales momentum with integration of QSC.
  • Strong growth in Intelligent Spaces segment.
  • Improved adjusted operating margins.
  • Disciplined capital allocation with share repurchases and dividend hike.
  • Stable cash flow generation.

Challenges Ahead

  • Decline in GAAP EPS due to acquisition costs.
  • Reduced operating profit margin YoY.
  • Lower retail and OEM revenue within ABL.
  • Free cash flow dropped significantly YoY.
  • Increased debt load from QSC acquisition.

Revenue & Expenses

Visualization of income flow from segment revenue to net income