Earnings quality remains robust, evidenced by an OCF/NI ratio of 2.06 in 2026Q3 and a free cash flow margin that reached 22.8% during the same period.
| Metric | TTM | Aug'25 | Aug'24 | Aug'23 | Aug'22 | Aug'21 | Aug'20 | Aug'19 | Aug'18 | Aug'17 | Aug'16 | Aug'15 | Aug'14 | Aug'13 | Aug'12 | Aug'11 | Aug'10 | Aug'09 | Aug'08 | Aug'07 | Aug'06 | Aug'05 | Aug'04 | Aug'03 | Aug'02 | Aug'01 |
|---|
| Cash from Operations | 722.7M | 601.4M | 619.2M | 578.1M | 316.3M | 408.7M | 504.8M | 494.7M | 353.2M | 316.2M | 345.7M | 288.9M | 233.1M | 132.3M | 172.2M | 160.8M | 160.5M | 92.44M | 226.05M | 241.16M | 155.88M | 137.09M | 113.25M | 160.34M | 146.84M | 183.65M |
| Operating CF Margin % | - | 13.84% | 16.12% | 14.63% | 7.9% | 11.81% | 15.18% | 13.47% | 9.6% | 9.02% | 10.5% | 10.67% | 9.74% | 6.33% | 8.91% | 8.95% | 9.87% | 5.58% | 11.15% | 12.27% | 8.47% | 6.31% | 5.38% | 7.82% | 7.44% | 9.26% |
| Operating CF Growth % | 112.86% | -2.87% | 7.11% | 82.77% | -22.61% | -19.04% | 2.04% | 40.06% | 11.7% | -8.53% | 19.66% | 23.94% | 76.19% | -23.17% | 7.09% | 0.19% | 73.62% | -59.11% | -6.26% | 54.71% | 13.71% | 21.04% | -29.37% | 9.2% | -20.04% | - |
| Net Income | 472.3M | 396.6M | 422.6M | 346M | 384M | 306.3M | 248.3M | 330.4M | 349.6M | 321.7M | 290.8M | 222.1M | 175.8M | 127.4M | 116.3M | 105.5M | 79M | 85.2M | 148.63M | 148.05M | 106.56M | 52.23M | 67.21M | 47.78M | 52.02M | 55.06M |
| Depreciation & Amortization | 164.2M | 133.1M | 91.1M | 93.2M | 94.8M | 100.1M | 101.1M | 88.3M | 80.3M | 74.6M | 62.6M | 45.8M | 43.4M | 40.8M | 39.8M | 40.1M | 36.5M | 35.74M | 33.84M | 38.41M | 39.01M | 41.08M | 42.96M | 46.04M | 49.49M | 62.91M |
| Stock-Based Compensation | 50.3M | 45.1M | 46.6M | 42M | 37.4M | 32.5M | 38.2M | 29.2M | 32.3M | 32M | 27.7M | 18.2M | 17.7M | 16.5M | 10.4M | 8.4M | 9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | -33.6M | -47.8M | 600K | -2.7M | -6.7M | 9.3M | -38.2M | -7.7M | -6.1M | 2.8M | -200K | 6.5M | 6.2M | 10.3M | 7.4M | -388K | 2.57M | 3.4M | 1.47M | -2.24M | 2.68M | 6.11M | -2.92M | -4.43M |
| Other Non-Cash Items | -9.2M | 16.7M | 3M | 96.9M | -1.2M | 5.9M | 9.1M | 900K | -4.8M | -12.1M | -21.4M | -14.2M | -10M | -10.8M | -4.1M | -4.8M | 13.3M | 10.23M | 5.36M | -6.4M | -9.99M | 9.11M | 7.44M | 3.93M | 1.38M | 10.48M |
| Working Capital Changes | 45.1M | 9.9M | 89.5M | 47.8M | -199.3M | -33.4M | 114.8M | 36.6M | -66M | -92.3M | -7.9M | 14.2M | 6.4M | -48.1M | 3.6M | 1.3M | 15.3M | -39.26M | 36.25M | 57.91M | 17.79M | 34.75M | -7.05M | 56.49M | 43.95M | 59.64M |
| Change in Receivables | -700K | 26.3M | -8.7M | 114.6M | -99.7M | -68.7M | 74.5M | 97.7M | -62.8M | 2.7M | -94.6M | -46.1M | -55.4M | -54.8M | -2.3M | 2.9M | -29.2M | 43.16M | 26.57M | -5.51M | -33.85M | 3.2M | 3.2M | 4.4M | 5.45M | 0 |
| Change in Inventory | 27.6M | -34.2M | -16.3M | 115.2M | -83.3M | -35.5M | 38M | 70.8M | -74.4M | -32.4M | -24M | -15.1M | -9M | -6.5M | -28.6M | -5.3M | -8.6M | 10.28M | 811K | 18.63M | 6.17M | 6.67M | -34.11M | 28.04M | 4.47M | 23.19M |
| Change in Payables | -56.2M | 64.4M | 66.2M | -110.5M | 2.6M | 65.5M | -19.6M | -111.5M | 52.5M | -4.6M | 65.3M | 23.1M | 37.6M | 15.2M | 29.6M | 5.5M | 33.5M | -94.74M | -4.63M | 2.59M | 21.75M | 40.41M | 40.41M | 3.99M | 81.06M | 0 |
| Cash from Investing | -89.6M | -1.28B | -65.1M | -90.7M | -62.2M | -117.9M | -359.8M | -53M | -205.7M | -48.8M | -704.7M | -72.4M | -34.3M | -58.5M | -35.1M | -112.2M | -44.3M | -183.15M | -30.88M | -78.48M | -23.66M | -29.4M | -49.58M | -26.34M | -49.89M | -44.14M |
| Capital Expenditures | -83.3M | -68.4M | -64M | -66.7M | -56.5M | -43.8M | -54.9M | -53M | -43.6M | -67.3M | -83.7M | -56.5M | -35.3M | -40.6M | -31.4M | -23.3M | -44.5M | -21.25M | -27.17M | -36.87M | -28.56M | -32.64M | -53.82M | -28.25M | -33.48M | -47.61M |
| CapEx % of Revenue | 1.81% | 1.57% | 1.67% | 1.69% | 1.41% | 1.27% | 1.65% | 1.44% | 1.18% | 1.92% | 2.54% | 2.09% | 1.47% | 1.94% | 1.62% | 1.3% | 2.74% | 1.28% | 1.34% | 1.88% | 1.55% | 1.5% | 2.56% | 1.38% | 1.7% | 2.4% |
| Acquisitions | 0 | -1.19B | 0 | -35.5M | -12.9M | -75.3M | -303M | -2.9M | -162.1M | 5.5M | -623.2M | -14.6M | 0 | -25.5M | -3.8M | -90.4M | -22.6M | -162.08M | -3.5M | -43.36M | 151K | 0 | 0 | 0 | -24.77M | 1.63M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -6.3M | -22.9M | -1.1M | 11.5M | 7.2M | 1.2M | -1.9M | 2.9M | 1.7M | 5.3M | 2.2M | -1.3M | 1M | 7.6M | 100K | 1.5M | 22.8M | 183K | -212K | 1.75M | 4.75M | 3.24M | 4.24M | 1.91M | 8.36M | 1.84M |
| Cash from Financing | -598.9M | 255.4M | -104.5M | -312.9M | -512.4M | -362.6M | -50.3M | -108.2M | -326.7M | -371.4M | 19.3M | -3.9M | -6.3M | 1.1M | -18.7M | -71.8M | 59.2M | -180.61M | -112.51M | -30.11M | -143.43M | -22.72M | -65.9M | -120.43M | -102.12M | -132.14M |
| Debt Issued (Net) | -300M | 400M | 0 | -18M | 18M | 92.7M | 44.3M | -400K | -400K | 1M | 2.5M | 0 | 0 | 0 | 0 | 0 | 108.6M | -162.4M | -8K | -648K | 0 | -23.49M | -50.15M | -97.31M | -63.02M | -18.42M |
| Equity Issued (Net) | -118.4M | -90.1M | -88.7M | -263.9M | -523.4M | -431.7M | -68.4M | -81M | -296.7M | -354.9M | 14.2M | 0 | 0 | 0 | -9.2M | -61M | -36.1M | 265K | -155.14M | -44.22M | -194.59M | 27.11M | 9.66M | 1.79M | 830K | 0 |
| Dividends Paid | -23M | -20.6M | -18.2M | -16.8M | -18.1M | -19.1M | -20.8M | -20.8M | -21.4M | -22.7M | -22.9M | -22.7M | -22.5M | -22.4M | -22M | -22.6M | -22.6M | -21.63M | -22.47M | -26.36M | -26.85M | -26.34M | -25.41M | -24.91M | -18.61M | 0 |
| Share Repurchases | -257.1M | -118.5M | -88.7M | -266.6M | -514.8M | -434.9M | -69.3M | -81.6M | -298.4M | -357.9M | 0 | 0 | 0 | 0 | -9.2M | -61M | -36.1M | 0 | -155.65M | -44.96M | -194.86M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -157.5M | -33.9M | 2.4M | -14.2M | 11.1M | -4.5M | -5.4M | -6M | -8.2M | 5.2M | 25.5M | 18.8M | 16.2M | 23.5M | 12.5M | 11.8M | 9.3M | 39.9M | 67.44M | 41.12M | 78.01M | 0 | 0 | 0 | -21.32M | -113.72M |
| Net Change in Cash | 40.1M | -423.3M | 447.9M | 174.7M | -268.1M | -69.4M | 99.7M | 331.9M | -182M | -102.1M | -343.6M | 204.3M | 193.4M | 74.6M | 114.3M | -20.8M | 172.3M | -278.41M | 83.42M | 134.17M | -9.88M | 84.4M | -1.92M | 13.36M | -5.31M | 7.55M |
| Free Cash Flow | 639.4M | 533M | 555.2M | 511.4M | 259.8M | 364.9M | 449.9M | 441.7M | 309.6M | 248.9M | 262M | 232.4M | 197.8M | 91.7M | 140.8M | 137.5M | 116M | 71.19M | 198.89M | 204.29M | 127.32M | 104.45M | 59.43M | 132.1M | 113.36M | 136.04M |
| FCF Margin % | 13.88% | 12.27% | 14.45% | 12.94% | 6.49% | 10.54% | 13.53% | 12.03% | 8.41% | 7.1% | 7.96% | 8.59% | 8.26% | 4.39% | 7.28% | 7.66% | 7.13% | 4.3% | 9.81% | 10.4% | 6.92% | 4.81% | 2.82% | 6.45% | 5.75% | 6.86% |
| FCF Growth % | 26.26% | -4% | 8.56% | 96.84% | -28.8% | -18.89% | 1.86% | 42.67% | 24.39% | -5% | 12.74% | 17.49% | 115.7% | -34.87% | 2.4% | 18.53% | 62.94% | -64.2% | -2.65% | 60.45% | 21.9% | 75.75% | -55.01% | 16.53% | -16.67% | - |
| FCF per Share | 20.66 | 16.85 | 17.66 | 15.90 | 7.50 | 9.97 | 11.36 | 11.10 | 7.55 | 5.75 | 5.98 | 5.35 | 4.60 | 2.16 | 3.36 | 3.21 | 2.68 | 1.71 | 4.78 | 4.65 | 2.79 | 2.34 | 1.38 | 3.17 | 2.75 | 3.31 |
| FCF Conversion (FCF/Net Income) | 1.35x | 1.52x | 1.47x | 1.67x | 0.82x | 1.33x | 2.03x | 1.50x | 1.01x | 0.98x | 1.19x | 1.30x | 1.33x | 1.04x | 1.48x | 1.52x | 2.02x | 1.09x | 1.52x | 1.63x | 1.46x | 2.62x | 1.68x | 3.36x | 2.82x | 4.53x |
| Interest Paid | -1.6M | 40.5M | 24.4M | 27.9M | 26.1M | 22.2M | 29.8M | 35.6M | 36.7M | 33.6M | 32.8M | 32.2M | 32.5M | 31.3M | 31.6M | 29.9M | 30.8M | 29.1M | 34.85M | 34.3M | 34.18M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -87.1M | 151.8M | 155.7M | 147.2M | 109.4M | 86.4M | 64.6M | 92.9M | 126.6M | 173.6M | 120.7M | 106.3M | 77.4M | 46.8M | 50.7M | 34.2M | 32.7M | 40.5M | 84.38M | 51.36M | 40.95M | 0 | 0 | 0 | 0 | 0 |
Cyclical non-residential construction exposure
According to recent financial statements, AYI consistently reports operating cash flow exceeding net income, with an OCF/NI ratio reaching 2.06 in 2026Q3, which suggests that the company's reported earnings are supported by high-quality cash generation rather than aggressive accounting accruals or non-cash adjustments.
The consistent premium of operating cash flow over net income indicates that the company's earnings are conservative and well-supported by actual cash inflows. This relationship suggests that management is effectively managing the conversion of accounting profits into liquid resources, which provides a buffer against potential earnings volatility.
As reported in quarterly filings, AYI's free cash flow margin reached 22.8% in 2026Q3, a significant improvement from the 4.9% observed in 2025Q2, highlighting the company's ability to scale cash generation despite the inherent cyclicality of the non-residential construction market and project-based revenue streams.
The trajectory of free cash flow margins suggests that the company is successfully leveraging its operational improvements to drive higher cash conversion. Investors should monitor whether this margin expansion is sustainable if the broader construction cycle faces a sustained downturn, as project-based businesses often see rapid cash flow compression during volume declines.
Based on the provided cash flow data, working capital changes have been highly volatile, swinging from a $60.0 million outflow in 2025Q2 to a $90.1 million inflow in 2026Q3, which suggests that inventory and receivables management remains sensitive to project timing and distributor stocking patterns.
The significant swings in working capital indicate that the company's cash flow is heavily influenced by the timing of large-scale project completions and distributor inventory management. This volatility warrants further investigation into whether these inflows represent genuine operational efficiency or merely the timing of payments and receipts within the distribution channel.
As evidenced by the $126.9 million in share repurchases during 2026Q3, AYI utilizes its robust free cash flow to aggressively return capital to shareholders, a trend that appears consistent with management's focus on maintaining a fortress balance sheet while avoiding large-scale, potentially dilutive acquisitions.
The company's preference for share repurchases over transformative M&A suggests a disciplined approach to capital deployment that prioritizes shareholder value. While this strategy enhances EPS, investors should monitor whether the lack of significant reinvestment in growth-oriented acquisitions may limit the company's long-term competitive positioning in the evolving smart building technology space.
Quick answers to the most common questions about buying AYI stock.
Acuity Brands, Inc. (AYI) generated $601.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Acuity Brands, Inc. (AYI) generated $533.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Acuity Brands, Inc. (AYI) spent $68.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Acuity Brands, Inc. (AYI) returned $20.6M to shareholders via cash dividends and spent $118.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.