Slides
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BMS Software Suite FISCAL 2026 FIRST-QUARTER RESULTS JANUARY 8, 2026 Mark Architectural Lighting , Juno®, Gotham ® Lighting: CIBC Square, Toronto
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This presentation and related conference call and webcast contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include, but are not limited to, statements that describe or relate to the Company’s plans, initiatives, projections, vision, goals, targets, commitments, expectations, objectives, prospects, strategies, or financial outlook, and the assumptions underlying or relating thereto. In some cases, we may use words such as “expect,” “believe,” “intend,” “anticipate,” “estimate,” “forecast,” “indicate,” “project,” “predict,” “plan,” “may,” “will,” “could,” “should,” “would,” “potential,” and words of similar meaning, as well as other words or expressions referencing future events, conditions, or circumstances to identify forward- looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Forward- looking statements are not guarantees of future performance. Our forward-looking statements are based on our current beliefs, expectations, and assumptions, which may not prove to be accurate, and are subject to known and unknown risks and uncertainties, assumptions and other important factors, many of which are outside of our control and any of which could cause our actual results to differ materially from those expressed or implied by the forward- looking statements. These risks and uncertainties are discussed in our filings with the U.S. Securities and Exchange Commission, including our most recent annual report on Form 10-K (including, but not limited to, the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), quarterly reports on Form 10-Q, and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. This presentation is not comprehensive, and for that reason, should be read in conjunction with such filings. Y ou are cautioned not to place undue reliance on any forward-looking statements. Except as required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this presentation, conference call and webcast, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, or otherwise. FORWARD LOOKING STATEMENTS NYSE: AYI 2
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We disclose the following non-generally accepted accounting principles ("GAAP") financial measures: "adjusted gross profit“ and "adjusted gross profit margin“ and “adjusted operating profit” and “adjusted operating profit margin” for total company and by segment; 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, and acquisition-related items. We also provide “free cash flow” (“FCF”) for total company 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 presentation 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 and by segment are “gross profit” and “gross profit margin,” respectively, which include the adjustments detailed in the appendix. 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 adjustments detailed in the appendix. 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 adjustments detailed in the appendix. 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 adjustments detailed in the appendix. EBITDA margin is EBITDA divided by net sales. The most directly comparable GAAP measure for adjusted EBITDA is “net income,” which includes the adjustments detailed in the appendix. Adjusted EBITDA margin is adjusted EBITDA divided by net sales. A reconciliation of each measure to the most directly comparable GAAP measure is available in the appendix of this presentation, except for forward- looking measures of adjusted diluted EPS where a reconciliation to the corresponding GAAP measure is not available without unreasonable effort due to the variability, complexity, and limited visibility of certain assumptions within, as well as the methodology used to estimate, the 2026 non-GAAP outlook measure. 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 presentation. 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. NON-GAAP FINANCIAL MEASURES NYSE: AYI 3
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a ABOUT ACUITY We use technology to solve problems in spaces, light and more things to come. a a Integrity Time Curiosity Customer Obsessed People Community Owner’s Mindset OUR VALUES OUR OPERATING SYSTEMHOW WE CREATE VALUE INNOVATORS | DISRUPTORS | BUILDERS OUR BUSINESS SEGMENTS Grow Net Sales Turn Profits Into Cash Don’t Grow the Balance Sheet as Fast
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$3.97 $4.69 Q1'25 Q1'26 AYI: FISCAL 2026 FIRST QUARTER PERFORMANCE Generated Strong Cash Flow From Operations; Repaid an Additional $100 Million of Term Loan Increased Adjusted Diluted EPS 1 by 18 Percent $952 $1,144 Q1'25 Q1'26 $159 $196 Q1'25 Q1'26 $132 $141 Q1'25 Q1'26 1 AYI Adjusted Operating Prof it, Adjusted Operating Profit Margin and Adjusted Diluted EPS are non-GAAP f inancial measures. See the Appendix for reconciliations t o the most directly comparable financial measures calculated in accordance with GAAP. Not e: Graphs not to scale ($ in Millions, Except Per Share Data) AYI YTD CASH FLOW FROM OPERATIONS NYSE: AYI 5 20% 18% 24% 7% Increased Adjusted Operating Profit 1 by 24 Percent and Expanded Adjusted Operating Profit Margin 1 by 50 bps Strong Performance NET SALES AYI ADJUSTED DILUTED EPS1 AYI ADJUSTED OPERATING PROFIT1
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ABL: ACUITY BRANDS LIGHTING 1 ABL Adjusted Operat ing Profit and Adjusted Operating Profit Margin are non-GAAP f inancial measures. See the Appendix f or reconciliations t o the most directly comparable financial measures calculated in accordance with GAAP. Not e: Graphs not to scale ($ in Millions) NYSE: AYI 6 PREDICTABLE, REPEATABLE, SCALABLE Fiscal 2026 First Quarter Performance NET SALES 1% $154 $160 Q1'25 Q1'26 ADJUSTED OPERATING PROFIT1 4% 17.3% 17.9% Q1'25 Q1'26 ADJUSTED OPERATING PROFIT MARGIN1 60bps Mark Architectural Lighting , Peerless® Lighting: Portland International Airport $886 $895 Q1'25 Q1'26
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$15 $57 Q1'25 Q1'26 21.0% 22.0% Q1'25 Q1'26 NET SALES 250% ADJUSTED OPERATING PROFIT1 268% ADJUSTED OPERATING PROFIT MARGIN1 100bps AIS: ACUITY INTELLIGENT SPACES UNIQUE AND DISRUPTIVE TECHNOLOGIES DRIVING PRODUCTIVITY FOR PEOPLE EXPERIENCING SPACES AND FOR PEOPLE PROVIDING THOSE SPACES 1 Acuity Int elligent Spaces Adjusted Operating Profit and Adjust ed Operating Profit Margin are non-GAAP f inancial measures. See the Appendix for reconciliat ions to the most directly comparable financial measures calculated in accordance with GAAP. Not e: Graphs not to scale ($ in Millions) NYSE: AYI 7 MAKING SPACES AUTONOMOUS Fiscal 2026 First Quarter Performance $74 $257 Q1'25 Q1'26 Acuity India Experience Center
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FISCAL 2026 CAPITAL ALLOCATION PRIORITIES Invest for Growth in our Current Businesses Invest in M&A Increase our Dividend Repurchase Shares $28M Share Repurchases $141M Cash Flow From Operations NYSE: AYI 8 $26M Capital Expenditures 4. 3. 2. 1. FISCAL FIRST QUARTER ALLOCATION
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FISCAL 2026 OUTLOOK 1 Management estimates are based on multiple quantitative and qualitative inputs and contains forward-looking information; please see Forward Looking Statements on slide 2. We do not expect to update guidance on a quarterly basis. AYI Net Sales Range1 $4.7B to $4.9B Adjusted Diluted EPS Range1 $19.00 to $20.50 NYSE: AYI 9
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Luminus® Pelican: Application Rendering QUARTERLY TRENDS
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Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales Growth (6.3%) (4.0%) (3.2%) 2.2% 1.8% 11.1% 21.7% 17.1% 20.2% Gross Profit Margin (GAAP) 45.8% 45.5% 46.7% 47.3% 47.2% 46.5% 48.4% 48.9% 48.4% Adjusted Gross Profit Margin1 45.8% 45.5% 46.7% 47.3% 47.2% 47.5% 50.0% 48.9% 48.4% Operating Margin (GAAP) 14.2% 13.0% 15.0% 15.2% 14.0% 11.0% 11.9% 14.9% 14.0% Adjusted Operating Profit Margin1 16.5% 15.5% 17.3% 17.3% 16.7% 16.2% 18.8% 18.6% 17.2% Diluted Earnings per Share (GAAP) $3.21 $2.84 $3.62 $3.77 $3.35 $2.45 $3.12 $3.61 $3.82 Adjusted Diluted Earnings per Share1 $3.72 $3.38 $4.15 $4.30 $3.97 $3.73 $5.12 $5.20 $4.69 AYI: QUARTERLY TRENDS Net Sales ($ in Millions, Except Per Share Data) $935 $906 $968 $1,032 $952 $1,006 $1,179 $1,209 $1,144 1 AYI Adjusted Gross Prof it Margin, Adjusted Operating Profit Margin and Adjusted Diluted Earnings Per Share are non-GAAP f inancial measures. See the Appendix f or reconciliations to the most directly comparable f inancial measures calculated in accordance with GAAP. . NYSE: AYI 11
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Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales Growth (7.5%) (5.3%) (4.5%) 1.1% 1.1% (0.3%) 2.7% 0.8% 1.0% Gross Profit Margin (GAAP) 44.7% 44.1% 45.6% 46.0% 45.9% 45.0% 46.6% 45.7% 44.8% Adjusted Gross Profit Margin1 44.7% 44.1% 45.6% 46.0% 45.9% 45.0% 46.6% 45.7% 44.8% Operating Margin (GAAP) 16.4% 14.9% 16.9% 16.9% 16.2% 15.5% 14.5% 19.0% 16.6% Adjusted Operating Profit Margin1 17.5% 16.2% 18.0% 18.0% 17.3% 16.8% 18.8% 20.1% 17.9% ABL: QUARTERLY TRENDS Net Sales ($ in Millions) $876 $844 $899 $955 $886 $841 $923 $962 $895 1 ABL Adjusted Operating Profit Margin and Adjusted Gross Profit Margin are non-GAAP f inancial measures. See the Appendix f or reconciliations to the most directly comparable financial measures calculated in accordance with GAAP. NYSE: AYI 12
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Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales Growth 13.0% 17.0% 15.0% 16.7% 14.5% 151.8% 248.9% 204.2% 250.2% Gross Profit Margin (GAAP) 56.9% 59.7% 55.9% 59.4% 58.5% 52.5% 52.9% 59.2% 59.5% Adjusted Gross Profit Margin1 56.9% 59.7% 55.9% 59.4% 58.5% 58.5% 60.2% 59.2% 59.5% Operating Margin (GAAP) 8.3% 13.4% 16.5% 19.9% 14.7% 5.8% 10.4% 11.0% 14.4% Adjusted Operating Profit Margin1 16.0% 21.0% 22.9% 25.6% 21.0% 18.7% 23.6% 21.4% 22.0% AIS: QUARTERLY TRENDS Net Sales $64 $68 $76 $84 $74 $172 $264 $255 $257 1 AI S Adjusted Operating Profit Margin and Adjusted Gross Profit Margin are non-GAAP f inancial measures. See the Appendix f or reconciliations to the most directly comparable f inancial measures calculated in accordance wit h GAAP. ($ in Millions) NYSE: AYI 13
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nLight® AnimateTM Controller: Application Rendering APPENDIX
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AYI: ADJUSTED GROSS PROFIT AND ADJUSTED GROSS PROFIT MARGIN ($ in Millions) Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales $935 $906 $968 $1,032 $952 $1,006 $1,179 $1,209 $1,144 Gross Profit (GAAP) 428 412 452 489 449 468 570 591 $554 Gross Profit Margin (GAAP) 45.8% 45.5% 46.7% 47.3% 47.2% 46.5% 48.4% 48.9% 48.4% Adjustments Add-back: Acquired profit in inventory - - - - - 10 19 - - Adjusted Gross Profit (Non-GAAP) $428 $412 $452 $489 $449 $478 $589 $591 $554 Adjusted Gross Profit Margin (Non-GAAP) 45.8% 45.5% 46.7% 47.3% 47.2% 47.5% 50.0% 48.9% 48.4% Not e: May Not Foot Due to R ounding NYSE: AYI 15
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AYI: ADJUSTED OPERATING PROFIT AND ADJUSTED OPERATING PROFIT MARGIN ($ in Millions) Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales $935 $906 $968 $1,032 $952 $1,006 $1,179 $1,209 $1,144 Operating Profit (GAAP) 133 118 145 157 133 110 140 181 $160 Operating Profit Margin (GAAP) 14.2% 13.0% 15.0% 15.2% 14.0% 11.0% 11.9% 14.9% 14.0% Adjustments Add-back: Amortization of acquired intangible assets 10 10 10 10 9 17 20 31 23 Add-back: Stock-based compensation expense 11 12 12 12 12 11 11 11 13 Add-back: Special charges - - - - - - 30 - - Add-back: Acquisition-related costs - - - - 5 14 3 3 - Add-back: Acquired profit in inventory - - - - - 10 19 - - Adjusted Operating Profit (Non-GAAP) $154 $140 $167 $179 $159 $163 $222 $225 $196 Adjusted Operating Profit Margin (Non-GAAP) 16.5% 15.5% 17.3% 17.3% 16.7% 16.2% 18.8% 18.6% 17.2% Not e: May Not Foot Due to R ounding NYSE: AYI 16
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AYI: ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales $935 $906 $968 $1,032 $952 $1,006 $1,179 $1,209 $1,144 Net income (GAAP) 101 89 114 119 107 78 98 114 $121 Adjustments Add-back: Amortization of acquired intangible assets 10 10 10 10 9 17 20 31 23 Add-back: Stock-based compensation expense 11 12 12 12 12 11 11 11 13 Add-back: Special charges - - - - - - 30 - - Add-back: Loss on sale of a business - - - - - - - - - Add-back: Impairment of investment - - - - - - - - - Add-back: Acquisition-related costs - - - - 5 14 3 3 - Add-back: Acquired profit in inventory - - - - - 10 19 - - Add-back: Pension settlement loss - - - - - - - 31 - Total pre-tax adjustments to Net income 21 22 22 22 25 53 82 76 36 Adjustment for tax effect (5) (5) (5) (5) (6) (12) (19) (17) (8) Less: One-time tax benefit - - - - - - - (8) - Adjusted Net Income (Non-GAAP) $117 $106 $131 $136 $126 $118 $162 $164 $148 Diluted weighted average number of shares outstanding 31.4 31.4 31.5 31.5 31.8 31.7 31.6 31.5 31.6 Diluted Earnings Per Share (GAAP) $3.21 $2.84 $3.62 $3.77 $3.35 $2.45 $3.12 $3.61 $3.82 Adjusted Diluted Earnings Per Share (Non-GAAP) $3.72 $3.38 $4.15 $4.30 $3.97 $3.73 $5.12 $5.20 $4.69 Not e: May Not Foot Due to R ounding ($ in Millions, Except Per Share Data) NYSE: AYI 17
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AYI: EBITDA AND ADJUSTED EBITDA ($ in Millions) Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales $935 $906 $968 $1,032 $952 $1,006 $1,179 $1,209 $1,144 Net Income (GAAP) 101 89 114 119 107 78 98 114 121 Net Income as a Percent of Net Sales (GAAP) 10.8% 9.8% 11.8% 11.5% 11.2% 7.7% 8.3% 9.4% 10.5% Interest expense (income), net 1 - (2) (4) (4) 7 12 7 8 Income tax expense 30 28 34 34 28 25 27 24 32 Depreciation 13 13 13 13 13 14 15 15 15 Amortization 10 10 10 10 9 17 20 31 23 EBITDA (Non-GAAP) 155 140 169 172 152 140 172 191 199 EBITDA Margin (Non-GAAP) 16.5% 15.5% 17.4% 16.6% 16.0% 13.9% 14.6% 15.8% 17.4% Adjustments Miscellaneous expense (income), net 1 1 (1) 8 3 1 2 36 (1) Share-based payment expense 11 12 12 12 12 11 11 11 13 Special charges - - - - - - 30 - - Acquisition-related costs - - - - 5 14 3 3 - Acquired profit in inventory - - - - - 10 19 - - Adjusted EBITDA (Non-GAAP) $167 $153 $180 $191 $172 $177 $236 $241 $211 Adjusted EBITDA Margin (Non-GAAP) 17.8% 16.9% 18.6% 18.5% 18.0% 17.5% 20.0% 19.9% 18.5% Not e: May Not Foot Due to R ounding NYSE: AYI 18
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AYI: YEAR-TO-DATE CASH FLOW ($ in Millions) Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 YTD Net cash provided by operating activities (GAAP) $190 $293 $445 $619 $132 $192 $399 $601 $141 YTD Purchases of property, plant, and equipment (15) (29) (41) (64) (19) (29) (44) (68) (26) Free Cash Flow (Non-GAAP) $175 $264 $404 $555 $113 $163 $355 $533 $115 Not e: May Not Foot Due to R ounding NYSE: AYI 19
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ABL: ADJUSTED GROSS PROFIT AND ADJUSTED GROSS PROFIT MARGIN ($ in Millions) Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales $876 $844 $899 $955 $886 $841 $923 $962 $895 Gross Profit (GAAP) 392 372 410 439 406 378 430 440 401 Gross Profit Margin (GAAP) 44.7% 44.1% 45.6% 46.0% 45.9% 45.0% 46.6% 45.7% 44.8% Adjusted Gross Profit (Non-GAAP) 392 372 410 439 406 378 430 440 401 Adjusted Gross Profit Margin (Non-GAAP) 44.7% 44.1% 45.6% 46.0% 45.9% 45.0% 46.6% 45.7% 44.8% Not e: May Not Foot Due to R ounding NYSE: AYI 20
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ABL: ADJUSTED OPERATING PROFIT AND ADJUSTED OPERATING PROFIT MARGIN ($ in Millions) Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales $876 $844 $899 $955 $886 $841 $923 $962 $895 Operating Profit (GAAP) 144 126 152 162 143 130 134 183 149 Operating Profit Margin (GAAP) 16.4% 14.9% 16.9% 16.9% 16.2% 15.5% 14.5% 19.0% 16.6% Adjustments Add-back: Amortization of acquired intangible assets 7 7 7 7 6 7 6 6 6 Add-back: Stock-based compensation expense 4 4 4 4 4 4 4 4 5 Add-back: Special charge - - - - - - 30 - - Adjusted Operating Profit (Non-GAAP) $154 $136 $162 $172 $154 $141 $174 $194 $160 Adjusted Operating Profit Margin (Non-GAAP) 17.5% 16.2% 18.0% 18.0% 17.3% 16.8% 18.8% 20.1% 17.9% Not e: May Not Foot Due to R ounding NYSE: AYI 21
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AIS: ADJUSTED GROSS PROFIT AND ADJUSTED GROSS PROFIT MARGIN ($ in Millions) Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales $64 $68 $76 $84 $74 $172 $264 $255 $257 Gross Profit (GAAP) 37 41 42 50 43 90 140 151 153 Gross Profit Margin (GAAP) 56.9% 59.7% 55.9% 59.4% 58.5% 52.5% 52.9% 59.2% 59.5% Adjustments Add-back: Acquired profit in inventory - - - - - 10 19 - - Adjusted Gross Profit (Non-GAAP) 37 41 42 50 43 100 159 151 153 Adjusted Gross Profit Margin (Non-GAAP) 56.9% 59.7% 55.9% 59.4% 58.5% 58.5% 60.2% 59.2% 59.5% Not e: May Not Foot Due to R ounding NYSE: AYI 22
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AIS: ADJUSTED OPERATING PROFIT AND ADJUSTED OPERATING PROFIT MARGIN ($ in Millions) Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Sales $64 $68 $76 $84 $74 $172 $264 $255 $257 Operating Profit (GAAP) 5 9 13 17 11 10 27 28 37 Operating Profit Margin (GAAP) 8.3% 13.4% 16.5% 19.9% 14.7% 5.8% 10.4% 11.0% 14.4% Adjustments Add-back: Amortization of acquired intangible assets 3 3 3 3 3 10 14 25 17 Add-back: Stock-based compensation expense 2 2 1 2 2 2 2 2 2 Add-back: Acquired profit in inventory - - - - - 10 19 - - Adjusted Operating Profit (Non-GAAP) $10 $14 $17 $22 $15 $32 $62 $55 $57 Adjusted Operating Profit Margin (Non-GAAP) 16.0% 21.0% 22.9% 25.6% 21.0% 18.7% 23.6% 21.4% 22.0% Not e: May Not Foot Due to R ounding NYSE: AYI 23