Acuity Reports Fiscal 2026 Fourth-Quarter and Full-Year Results (Form 8-K)

Acuity Reports Fiscal 2026 Fourth-Quarter and Full-Year Results

Solid Execution Delivers Net Sales Growth, Improved Operating Performance, and Strong Cash Flow

Fiscal Q4 2026 Highlights:

■Delivered Fiscal Q4 2026 Net Sales of $1.2B, Up 3% Compared to the Prior Year

■Delivered Fiscal Q4 2026 Diluted EPS of $5.63, Up 56% Compared to the Prior Year; Adjusted Diluted EPS of $5.77, Up 11% Compared to the Prior Year

Fiscal 2026 Highlights:

■Delivered Fiscal 2026 Net Sales of $4.6B, Up 7% Compared to the Prior Year

■Delivered Fiscal 2026 Diluted EPS of $17.05, Up 36% Compared to the Prior Year; Adjusted Diluted EPS of $19.90, Up 11% Compared to the Prior Year

■Generated $826M in Cash Flow from Operations in Fiscal 2026

ATLANTA, October 1, 2026 - Acuity Inc. (NYSE: AYI) ("Acuity"), a market-leading industrial technology company, delivered net sales of $1.2 billion in the fourth quarter of fiscal 2026 ended August 31, 2026, an increase of $35.3 million, or 2.9 percent, compared to the prior year.

"We demonstrated solid execution in the fourth quarter of fiscal 2026. We grew sales and expanded our adjusted operating profit and adjusted operating profit margin. We increased our adjusted diluted earnings per share, generated strong cash flow and allocated capital effectively," stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc. "Throughout fiscal 2026 we strengthened Acuity Brands Lighting while continuing to scale Acuity Intelligent Spaces, building the operating and financial capacity needed to compound growth and value over time."

During the fourth quarter of fiscal 2026 we received $44.9 million in tariff refunds, which are reflected as a non-GAAP adjustment in our results. We also took certain actions that resulted in $17.8 million of special charges. Of these charges $14.7 million related to initiatives in our Acuity Brands Lighting segment involving our product portfolio, supply chain, and operating footprint, while $3.1 million related to a facility impairment in our Acuity Intelligent Spaces segment.

Operating profit was $227.0 million in the fourth quarter of fiscal 2026, an increase of $46.4 million, or 25.7 percent, compared to the prior year. Operating profit as a percent of net sales was 18.2 percent in the fourth quarter of fiscal 2026, an increase of 330 basis points compared to the prior year. Adjusted operating profit was $232.9 million in the fourth quarter of fiscal 2026, an increase of $7.6 million, or 3.4 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 18.7 percent in the fourth quarter of fiscal 2026, an increase of 10 basis points compared to the prior year.

Diluted earnings per share was $5.63 in the fourth quarter of fiscal 2026, an increase of $2.02, or 56.0 percent, compared to the prior year. Adjusted diluted earnings per share was $5.77 in the fourth quarter of fiscal 2026, an increase of $0.57, or 11.0 percent, compared to the prior year.

Full-Year 2026 Summary

Net sales of $4.6 billion for the full year of fiscal 2026 increased $296.2 million, or 6.8 percent, compared to the prior year.

Operating profit was $713.7 million for the full year of fiscal 2026, an increase of $149.8 million, or 26.6 percent, compared to the prior year. Operating profit as a percent of net sales was 15.4 percent, an increase of 240 basis points compared to the prior year. Adjusted operating profit was $828.7 million for the full year of fiscal 2026, an increase of $60.1 million, or 7.8 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 17.9 percent, an increase of 20 basis points compared to the prior year.

Diluted earnings per share was $17.05 for the full year of fiscal 2026, an increase of $4.52, or 36.1 percent, compared to the prior year. Adjusted diluted earnings per share was $19.90, an increase of $1.89, or 10.5 percent, compared to the prior year.

Segment Performance

Acuity Brands Lighting ("ABL")

Fourth-Quarter Results

ABL generated net sales of $958.7 million in the fourth quarter of fiscal 2026, a decrease of $3.7 million, or 0.4 percent, compared to the prior year.

ABL operating profit was $188.8 million in the fourth quarter of fiscal 2026, an increase of $5.8 million, or 3.2 percent, compared to the prior year. ABL operating profit as a percent of ABL net sales was 19.7 percent in the fourth quarter of fiscal 2026, an increase of 70 basis points compared to the prior year. ABL adjusted operating profit was $179.8 million in the fourth quarter of fiscal 2026, a decrease of $13.8 million, or 7.1 percent, compared to the prior year. ABL adjusted operating profit as a percent of ABL net

sales was 18.8 percent in the fourth quarter of fiscal 2026, a decrease of 130 basis points compared to the prior year.

Full-Year Results

ABL generated net sales of $3.6 billion for the full year of fiscal 2026, a decrease of $35.8 million, or 1.0 percent, compared to the prior year.

ABL operating profit was $623.5 million for the full year of fiscal 2026, an increase of $32.9 million, or 5.6 percent, compared to the prior year. ABL operating profit as a percent of ABL net sales was 17.4 percent for the full year of fiscal 2026, an increase of 100 basis points compared to the prior year. ABL adjusted operating profit was $646.0 million for the full year of fiscal 2026, a decrease of $16.3 million, or 2.5 percent, compared to the prior year. ABL adjusted operating profit as a percent of ABL net sales was 18.1 percent for the full year of fiscal 2026, a decrease of 20 basis points compared to the prior year.

Acuity Intelligent Spaces ("AIS")

Fourth-Quarter Results

AIS generated net sales of $297.6 million in the fourth quarter of fiscal 2026, an increase of $42.4 million, or 16.6 percent, compared to the prior year.

AIS operating profit was $64.7 million in the fourth quarter of fiscal 2026, an increase of $36.7 million, or 131.1 percent, compared to the prior year. AIS operating profit as a percent of AIS net sales was 21.7 percent in the fourth quarter of fiscal 2026, an increase of 1,070 basis points compared to the prior year. AIS adjusted operating profit was $74.1 million in the fourth quarter of fiscal 2026, an increase of $19.5 million, or 35.7 percent, compared to the prior year. AIS adjusted operating profit as a percent of AIS net sales was 24.9 percent in the fourth quarter of fiscal 2026, an increase of 350 basis points compared to the prior year.

Full-Year Results

AIS generated net sales of $1.1 billion for the full year of fiscal 2026, an increase of $342.3 million, or 44.8 percent, compared to the prior year.

AIS operating profit was $186.5 million for the full year of fiscal 2026, an increase of $110.4 million, or 145.1 percent, compared to the prior year. AIS operating profit as a percent of AIS net sales was 16.9 percent for the full year of fiscal 2026, an increase of 690 basis points compared to the prior year. AIS adjusted operating profit was $255.0 million for the full year of fiscal 2026, an increase of $90.7 million, or 55.2 percent, compared to the prior year. AIS adjusted operating profit as a percent of AIS net sales was 23.0 percent for the full year of fiscal 2026, an increase of 150 basis points compared to the prior year.

Cash Flow and Capital Allocation

Net cash from operating activities was $825.6 million for the full year of fiscal 2026. During the year we repaid $200 million of our term loan, we increased our dividend by 18 percent, and we repurchased over 940,000 shares of common stock for $287.2 million.

Form 10-K Filing

The independent registered public accounting firm's audit report with respect to the Company's fiscal year-end financial statements will not be issued until the Company files its annual report on Form 10-K, including its evaluation of the effectiveness of internal controls over financial reporting. Accordingly, the financial results reported in this earnings release are preliminary pending completion of the audit.

Today's Call Details

The Company will host a conference call at 8:00 a.m. (ET) today, Thursday, October 1, 2026. Neil Ashe, Chief Executive Officer of Acuity Inc. will lead the call. The conference call and earnings release can be accessed via our Investor Relations section of our website at www.investors.acuityinc.com. A replay of the call will also be posted to the Investor Relations website within two hours of the completion of the conference call and will be available on the website for a limited time.

About Acuity

Acuity Inc. (NYSE: AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces, light and more things to come. Through our two business segments, Acuity Brands Lighting (ABL) and Acuity Intelligent Spaces (AIS), we design, manufacture, and bring to market products and services that make a valuable difference in people's lives.

We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and an audio, video and control platform. We focus on customer outcomes and drive growth and productivity to increase market share and deliver superior returns. We look to aggressively deploy capital to grow the business and to enter attractive new verticals.

Acuity Inc. is based in Atlanta, Georgia, with operations across North America, Europe and Asia. The Company is powered by approximately 13,000 dedicated and talented associates. Visit us at www.acuityinc.com.

Non-GAAP Financial Measures

This news release includes the following non-generally accepted accounting principles ("GAAP") financial measures for total company and by segment: "adjusted gross profit;" "adjusted gross profit margin;" "adjusted operating profit" and "adjusted operating profit margin." For total company only we additionally include: "adjusted net income;" "adjusted diluted EPS;" "earnings before interest, taxes, depreciation and amortization ("EBITDA");" "EBITDA margin;" "adjusted EBITDA;" and "adjusted EBITDA margin". These non-GAAP financial measures are provided to enhance the reader's overall understanding of our current financial performance and prospects for the future. Specifically, management believes that these non-GAAP measures provide useful information to investors by excluding or adjusting items for amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related costs, special charges, tariff refunds, pension settlement loss, and a fiscal 2025 one-time tax benefit.

We also provide "free cash flow" ("FCF") to enhance the reader's understanding of our ability to generate additional cash from its business.

Management typically adjusts for these items for internal reviews of performance and uses the above non-GAAP measures for baseline comparative operational analysis, decision making and other activities. Management believes these non-GAAP measures provide greater comparability and enhanced visibility into our results of operations as well as comparability with many of its peers, especially those companies focused more on technology and software. Non-GAAP financial measures included in this news release should be considered in addition to, and not as a substitute for or superior to, results prepared in accordance with GAAP.

The most directly comparable GAAP measures for adjusted gross profit and adjusted gross profit margin for total company are "gross profit" and "gross profit margin," respectively, which include the impact of acquired profit in inventory and tariff refunds. Adjusted gross profit margin is adjusted gross profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted operating profit and adjusted operating profit margin for total company and by segment are "operating profit" and "operating profit margin," respectively, which include the impact of amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related costs, special charges, and tariff refunds. Adjusted operating profit margin is adjusted operating profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted net income and adjusted diluted EPS are "net income" and "diluted EPS," respectively, which include the impact of amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related costs, special charges, pension settlement loss, tariff refunds and a fiscal 2025 one-time tax benefit. Adjusted diluted EPS is adjusted net income divided by diluted weighted average shares outstanding. The most directly comparable GAAP measure for EBITDA is "net income,", which includes the impact of net interest expense, income taxes, depreciation and amortization of acquired intangible assets. EBITDA margin is EBITDA divided by net sales for total company. The most directly comparable GAAP measure for adjusted EBITDA is "net income,", which includes the impact of net interest expense, income taxes, depreciation, amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related costs, special charges, miscellaneous expense, net, and tariff refunds. Adjusted EBITDA margin is adjusted EBITDA divided by net sales for total company. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release.

We define FCF as net cash provided by operating activities less purchases of property, plant and equipment. A calculation of this measure is available in this news release.

Our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures used by other companies, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for GAAP financial measures. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items.