On October 1, 2024, Acuity Brands Inc (AYI, Financial) released its 8-K filing detailing the fiscal 2024 fourth-quarter and full-year results. Acuity Brands Inc is the parent company of Acuity Brands Lighting and other subsidiaries, providing lighting products for various applications. The company serves electrical distributors, electric utilities, retail home improvement centers, and lighting showrooms, with a majority of its revenue generated in the United States.
Q4 2024 Performance Highlights
Acuity Brands Inc reported net sales of $1.03 billion for the fourth quarter of fiscal 2024, marking a 2.2% increase compared to the prior year. This figure slightly exceeded the analyst estimate of $1.024 billion. The company reported a diluted EPS of $3.77, a significant 43% increase over the prior year, and an adjusted diluted EPS of $4.30, up 8% from the previous year. This performance surpassed the analyst estimate of $4.25 per share.
“Our fiscal 2024 fourth quarter performance was strong. We grew net sales in both Lighting and Spaces, delivered margin expansion and increased earnings per share,” stated Neil Ashe, Chairman, President, and Chief Executive Officer of Acuity Brands Inc.
Full-Year 2024 Financial Achievements
For the full year of fiscal 2024, Acuity Brands Inc reported net sales of $3.84 billion, a 2.8% decline compared to the prior year. Despite the revenue decline, the company achieved a diluted EPS of $13.44, up 25% from the previous year, and an adjusted diluted EPS of $15.56, an 11% increase. These results were close to the annual estimates of $13.75 EPS and $3.837 billion in revenue.
Segment Performance
Acuity Brands Lighting and Lighting Controls (ABL)
In the fourth quarter, ABL generated net sales of $955.0 million, a 1.1% increase from the prior year. The segment's operating profit was $161.5 million, up 37% from the previous year, with an operating profit margin of 16.9%. For the full year, ABL reported net sales of $3.6 billion, a 4% decline, but increased its operating profit by 14.4% to $582.8 million.
Intelligent Spaces Group (ISG)
ISG reported net sales of $83.9 million in Q4, a 16.7% increase from the prior year. The segment's operating profit was $16.7 million, up 77% from the previous year, with an operating profit margin of 19.9%. For the full year, ISG generated net sales of $291.9 million, a 15.5% increase, and an operating profit of $43.6 million, up 36% from the prior year.
Cash Flow and Capital Allocation
Acuity Brands Inc generated $619 million in cash flow from operations in fiscal 2024, a 7% increase from the prior year. The company also repurchased approximately 454,000 shares of common stock for a total of $89 million during the fiscal year.
Analysis and Conclusion
Acuity Brands Inc's strong Q4 performance, marked by increased net sales and significant EPS growth, highlights the company's resilience and operational efficiency. Despite a slight decline in full-year revenue, the company managed to improve its profitability and cash flow generation. These achievements are crucial for maintaining competitive advantage and delivering value to shareholders in the industrial products sector.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Acuity Brands Inc for further details.
