Acuity (AYI) Q2 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 2, 2026 astatine 11:02 AM CDT 34 min read

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Thursday, April 2, 2026 astatine 8 a.m. ET

• Chairman, President, and Chief Executive Officer — Neil M. Ashe

• Senior Vice President and Chief Financial Officer — Karen J. Holcom

Neil Ashe: Thank you, Charlotte, and convey you each for joining america today. We demonstrated beardown execution successful our 2nd 4th of fiscal 2026. We grew nett sales, we expanded our adjusted operating nett and adjusted operating nett margin, and we accrued our adjusted diluted net per share. We generated beardown currency travel and allocated superior effectively. In Acuity Brands Lighting, we are managing our concern aggressively successful a brushed lighting environment. We are aligning our outgo operation to existent marketplace dynamics portion continuing to service customers effectively.

Over the past 5 years, we've made meaningful advancement accelerating our strategy of expanding merchandise vitality, elevating work levels utilizing exertion to amended and differentiate some our products and however we run the concern and driving productivity. These efforts person expanded capableness successful our manufacturing web and fixed america greater flexibility to measure our accumulation costs. As a result, this quarter, we took definite actions, including targeted labour outgo reductions, which Karen volition sermon aboriginal successful the call. We are managing gross nett borderline done the operation of strategical pricing and merchandise and productivity improvements. This enables america to present successful this marketplace situation and positions america good for the future.

Now I privation to walk a infinitesimal connected our maturation algorithm, which is designed to guarantee that we outgrow the lighting market. We participate caller verticals, we instrumentality share, and we turn with the market. Last year, we strengthened our floodlight portfolio with the acquisition of M3 Innovation. These solutions are utilized successful education, municipalities and infrastructure and are designed to trim full installation costs and heighten the idiosyncratic experience. We person won respective notable projects that see retrofit and caller operation crossed verticals, including parks and rec and education. One of our larger projects was an installation astatine Baldwinsville High School successful New York.

This task retrofitted an existing shot tract and installed our solution astatine a caller athletics field. Combined with our lighting controls, we created dynamic power capabilities for a high-impact gameday situation crossed some facilities, each managed from a azygous power device. The manufacture continues to admit the spot of our products and the worth they bring our customers. This quarter, respective products successful our portfolio were awarded the Architecture MasterPrize by the Farmani Group, including the Eureka Junction, a made-to-order luminaire that tin beryllium configured to make customized installations that are compatible with our nLight controls for usage successful ample shared interior spaces specified arsenic lobbies, atriums, reception areas and lawsuit venues.