Acuity (NYSE: AYI) released fiscal fourth-quarter 2025 results, reporting a 17.1% year-over-year net sales growth to $1.21 billion, slightly below analyst estimates. Adjusted EPS came in at $5.20, beating expectations. Acuity Intelligent Spaces (AIS) revenue soared by 204.2% to $255.2 million, while Acuity Brands Lighting (ABL) saw a 0.8% increase to $962.4 million.

Operating margin decreased by 30 bps to 14.9%, despite a 15.0% growth in operating profit. The consolidated adjusted operating margin grew by 130 bps to 18.6%, with ABL’s margin improving by 210 bps to 20.1% and AIS’ margin decreasing by 420 bps to 21.4%. The company generated $202.5 million in operating cash flow for the quarter.

Acuity held $422.5 million in cash and equivalents as of August 31, 2025, down from $845.8 million a year prior. Adjusted EBITDA rose to $240.7 million, with a margin expansion to 19.9%. Throughout fiscal 2025, Acuity completed the acquisition of QSC and M3 Innovation, increased its dividend, repurchased shares, and repaid term-loan borrowings.

Neil Ashe, Chairman, President, and CEO of Acuity, highlighted the company’s strong performance in the fourth quarter, citing growth in net sales, adjusted operating profit, and adjusted diluted earnings per share. Acuity stock has gained 18% year-to-date, outperforming the S&P 500 index, driven by its successful AIS segment.

Despite positive performance, Acuity stock has missed analyst consensus expectations in several recent quarters. AYI shares closed 1.56% higher at $344.39.

Read more at Yahoo Finance: Acuity Sees Explosive Growth In Intelligent Spaces Segment