Operating margins scaled to 16.1% in 2026Q3, reflecting significant efficiency gains compared to the 11.0% margin recorded in 2025Q2.
| 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 |
|---|
| Sales/Revenue | 4.61B | 4.35B | 3.84B | 3.95B | 4.01B | 3.46B | 3.33B | 3.67B | 3.68B | 3.51B | 3.29B | 2.71B | 2.39B | 2.09B | 1.93B | 1.8B | 1.63B | 1.66B | 2.03B | 1.96B | 1.84B | 2.17B | 2.1B | 2.05B | 1.97B | 1.98B |
| Revenue Growth % | 10.5% | 13.14% | -2.81% | -1.35% | 15.75% | 4.05% | -9.43% | -0.2% | 4.99% | 6.5% | 21.6% | 13.09% | 14.57% | 8.04% | 7.69% | 10.38% | -1.84% | -18.22% | 3.15% | 6.72% | -15.27% | 3.26% | 2.68% | 3.88% | -0.5% | - |
| Cost of Goods Sold | 2.33B | 2.27B | 2.06B | 2.24B | 2.33B | 1.99B | 1.92B | 2.19B | 2.19B | 2.02B | 1.86B | 1.56B | 1.41B | 1.25B | 1.15B | 1.07B | 965.4M | 1.02B | 1.21B | 1.22B | 1.19B | 1.32B | 1.25B | 1.24B | 1.17B | 1.14B |
| COGS % of Revenue | - | 52.17% | 53.61% | 56.65% | 58.25% | 57.38% | 57.84% | 59.71% | 59.64% | 57.74% | 56.36% | 57.68% | 59.09% | 59.91% | 59.25% | 59.35% | 59.34% | 61.68% | 59.75% | 62.12% | 64.54% | 60.95% | 59.57% | 60.31% | 59.27% | 57.57% |
| Gross Profit | 2.27B | 2.08B | 1.78B | 1.71B | 1.67B | 1.48B | 1.4B | 1.48B | 1.49B | 1.48B | 1.44B | 1.15B | 979.2M | 837.6M | 788M | 730M | 661.5M | 635.1M | 815.79M | 744.32M | 652.84M | 848.54M | 850.79M | 813.41M | 803.51M | 841.35M |
| Gross Margin % | 49.31% | 47.83% | 46.39% | 43.35% | 41.75% | 42.62% | 42.16% | 40.29% | 40.36% | 42.26% | 43.64% | 42.32% | 40.91% | 40.09% | 40.75% | 40.65% | 40.66% | 38.32% | 40.25% | 37.88% | 35.46% | 39.05% | 40.43% | 39.69% | 40.73% | 42.43% |
| Gross Profit Growth % | - | 16.66% | 4% | 2.42% | 13.4% | 5.18% | -5.22% | -0.38% | 0.29% | 3.13% | 25.37% | 16.99% | 16.91% | 6.29% | 7.95% | 10.36% | 4.16% | -22.15% | 9.6% | 14.01% | -23.06% | -0.26% | 4.6% | 1.23% | -4.5% | - |
| Operating Expenses | 1.6B | 1.48B | 1.23B | 1.24B | 1.16B | 1.05B | 1.05B | 1.02B | 1.02B | 953.6M | 961M | 769.3M | 680.1M | 616.1M | 580M | 541.3M | 503.8M | 481.3M | 554.74M | 521.89M | 500.72M | 741.8M | 712.86M | 703.13M | 683.39M | 701.76M |
| OpEx % of Revenue | - | 34.17% | 31.98% | 31.37% | 29.03% | 30.26% | 31.52% | 27.69% | 27.84% | 27.21% | 29.2% | 28.42% | 28.41% | 29.49% | 29.99% | 30.14% | 30.97% | 29.04% | 27.37% | 26.56% | 27.2% | 34.14% | 33.88% | 34.31% | 34.64% | 35.39% |
| Selling, General & Admin | 1.6B | 1.48B | 1.13B | 1.12B | 1.07B | 1.04B | 1.03B | 1.01B | 1.02B | 942.3M | 946M | 756.9M | 680.3M | 607.6M | 566.7M | 541.3M | 495.4M | 454.6M | 540.1M | 521.89M | 500.43M | 718.13M | 710.93M | 703.13M | 679.07M | 683.79M |
| SG&A % of Revenue | - | 34.17% | 29.32% | 28.23% | 26.66% | 30.17% | 30.92% | 27.64% | 27.69% | 26.88% | 28.74% | 27.96% | 28.42% | 29.08% | 29.31% | 30.14% | 30.45% | 27.43% | 26.65% | 26.56% | 27.18% | 33.05% | 33.79% | 34.31% | 34.42% | 34.49% |
| Research & Development | 0 | 0 | 102.3M | 97.1M | 95.1M | 88.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 2.66% | 2.46% | 2.37% | 2.55% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 26.9M | 0 | -85M | 20M | 1.8M | 5.6M | 11.3M | 15M | 12.4M | -200K | 8.5M | 13.3M | 0 | 8.4M | 26.7M | 14.64M | 0 | 292K | 23.66M | 1.93M | 0 | 4.32M | 17.96M |
| Operating Income | 667.3M | 593.6M | 553.3M | 473.4M | 509.7M | 427.6M | 353.9M | 462.9M | 460.8M | 527.5M | 475.2M | 376.3M | 299.1M | 221.5M | 208M | 188.7M | 157.7M | 153.75M | 261.06M | 222.42M | 152.12M | 106.75M | 137.93M | 110.28M | 120.13M | 139.59M |
| Operating Margin % | 14.49% | 13.66% | 14.41% | 11.98% | 12.72% | 12.35% | 10.64% | 12.6% | 12.52% | 15.05% | 14.44% | 13.9% | 12.5% | 10.6% | 10.76% | 10.51% | 9.69% | 9.28% | 12.88% | 11.32% | 8.26% | 4.91% | 6.55% | 5.38% | 6.09% | 7.04% |
| Operating Income Growth % | - | 7.28% | 16.88% | -7.12% | 19.2% | 20.83% | -23.55% | 0.46% | -12.64% | 11.01% | 26.28% | 25.81% | 35.03% | 6.49% | 10.23% | 19.66% | 2.57% | -41.1% | 17.37% | 46.22% | 42.51% | -22.61% | 25.07% | -8.2% | -13.94% | - |
| EBITDA | 790.8M | 726.7M | 644.4M | 566.6M | 604.5M | 527.7M | 455M | 551.2M | 541.1M | 602.1M | 537.8M | 422.1M | 342.5M | 262.3M | 247.8M | 228.8M | 194.2M | 189.49M | 294.9M | 253.77M | 182.81M | 147.82M | 180.89M | 156.31M | 169.62M | 202.5M |
| EBITDA Margin % | 17.17% | 16.72% | 16.78% | 14.34% | 15.09% | 15.25% | 13.68% | 15.01% | 14.7% | 17.18% | 16.34% | 15.59% | 14.31% | 12.56% | 12.81% | 12.74% | 11.94% | 11.43% | 14.55% | 12.92% | 9.93% | 6.8% | 8.6% | 7.63% | 8.6% | 10.21% |
| EBITDA Growth % | 27.53% | 12.77% | 13.73% | -6.27% | 14.55% | 15.98% | -17.45% | 1.87% | -10.13% | 11.96% | 27.41% | 23.24% | 30.58% | 5.85% | 8.3% | 17.82% | 2.49% | -35.74% | 16.21% | 38.82% | 23.67% | -18.28% | 15.72% | -7.84% | -16.24% | - |
| D&A (Non-Cash Add-back) | 123.5M | 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 | 31.35M | 30.69M | 41.08M | 42.96M | 46.04M | 49.49M | 62.91M |
| EBIT | 437.7M | 522.2M | 573.9M | 495.3M | 508.4M | 420.4M | 378.2M | 460.1M | 461.4M | 526.7M | 506.1M | 376.2M | 298.3M | 225M | 210.3M | 188M | 148.6M | 156.88M | 265.3M | 228.49M | 153.07M | 106.75M | 137.93M | 110.28M | 120.13M | 143.67M |
| Net Interest Income | -22.4M | -22M | 4.5M | -18.9M | -24.9M | -23.2M | -23.3M | -33.3M | -33.5M | -32.5M | -32.2M | -31.5M | -32.1M | -31.2M | -30.7M | -29.9M | -29.4M | -28.5M | -28.41M | -29.85M | -33.02M | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 5.2M | 20.5M | 29.8M | 9M | 2.1M | 1M | 3.1M | 3.1M | 2M | 1.6M | 1.1M | 1.1M | 500K | 700K | 0 | 500K | 400K | 1.01M | 6.33M | 4.45M | 1.23M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 33.7M | 42.5M | 25.3M | 27.9M | 27M | 24.2M | 26.4M | 36.4M | 35.5M | 34.1M | 33.3M | 32.6M | 32.6M | 31.9M | 30.7M | 30.4M | 29.8M | 29.56M | 34.75M | 30.14M | 33.23M | 35.73M | 34.88M | 37.38M | 40.69M | 0 |
| Other Income/Expense | -68.9M | -93.4M | -4.7M | -26.7M | -15.8M | -31.4M | -29.2M | -38M | -34.9M | -34.9M | -30.6M | -32.7M | -33.4M | -28.4M | -29M | -31.1M | -38.9M | -26.43M | -30.51M | -28.24M | -33.3M | -31.91M | -35.31M | -35.7M | -37.29M | -70.44M |
| Pretax Income | 598.4M | 500.2M | 548.6M | 446.7M | 493.9M | 396.2M | 324.7M | 424.9M | 425.9M | 492.6M | 444.6M | 343.6M | 265.7M | 193.1M | 179M | 157.6M | 118.8M | 127.32M | 230.55M | 194.19M | 118.82M | 74.83M | 102.62M | 74.58M | 82.84M | 69.15M |
| Pretax Margin % | 12.99% | 11.51% | 14.28% | 11.3% | 12.33% | 11.45% | 9.76% | 11.57% | 11.57% | 14.05% | 13.51% | 12.69% | 11.1% | 9.24% | 9.26% | 8.78% | 7.3% | 7.68% | 11.38% | 9.88% | 6.45% | 3.44% | 4.88% | 3.64% | 4.2% | 3.49% |
| Income Tax | 126.1M | 103.6M | 126M | 100.7M | 109.9M | 89.9M | 76.4M | 94.5M | 76.3M | 170.9M | 153.8M | 121.5M | 89.9M | 65.7M | 62.7M | 52.1M | 39.8M | 42.13M | 81.92M | 65.5M | 39.15M | 22.6M | 35.4M | 26.8M | 30.81M | 28.65M |
| Effective Tax Rate % | 21.07% | 20.71% | 22.97% | 22.54% | 22.25% | 22.69% | 23.53% | 22.24% | 17.92% | 34.69% | 34.59% | 35.36% | 33.84% | 34.02% | 35.03% | 33.06% | 33.5% | 33.09% | 35.53% | 33.73% | 32.95% | 30.2% | 34.5% | 35.93% | 37.2% | 41.43% |
| 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 | 79.6M | 84.91M | 148.25M | 148.05M | 106.56M | 52.23M | 67.21M | 47.78M | 52.02M | 40.5M |
| Net Margin % | 10.25% | 9.13% | 11% | 8.75% | 9.59% | 8.85% | 7.46% | 9% | 9.5% | 9.18% | 8.84% | 8.21% | 7.34% | 6.1% | 6.01% | 5.88% | 4.89% | 5.12% | 7.32% | 7.54% | 5.79% | 2.4% | 3.19% | 2.33% | 2.64% | 2.04% |
| Net Income Growth % | 17.63% | -6.15% | 22.14% | -9.9% | 25.37% | 23.36% | -24.85% | -5.49% | 8.67% | 10.63% | 30.93% | 26.34% | 37.99% | 9.54% | 10.24% | 32.54% | -6.25% | -42.73% | 0.14% | 38.94% | 104.03% | -22.29% | 40.67% | -8.15% | 28.44% | - |
| Net Income (Continuing) | 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 | 40.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 600K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 15.26 | 12.53 | 13.44 | 10.76 | 11.08 | 8.37 | 6.27 | 8.30 | 8.53 | 7.43 | 6.63 | 5.09 | 4.05 | 2.95 | 2.72 | 2.42 | 1.80 | 2.04 | 3.56 | 3.37 | 2.34 | 1.17 | 1.56 | 1.15 | 1.26 | 0.99 |
| EPS Growth % | 18.83% | -6.77% | 24.91% | -2.89% | 32.38% | 33.49% | -24.46% | -2.7% | 14.8% | 12.07% | 30.26% | 25.68% | 37.29% | 8.46% | 12.4% | 34.44% | -11.76% | -42.7% | 5.64% | 44.02% | 100% | -25% | 35.65% | -8.73% | 27.27% | - |
| EPS (Basic) | - | 12.85 | 13.68 | 10.88 | 11.23 | 8.44 | 6.29 | 8.32 | 8.55 | 7.46 | 6.67 | 5.13 | 4.07 | 2.97 | 2.75 | 2.46 | 1.84 | 2.08 | 3.65 | 3.48 | 2.43 | 1.21 | 1.60 | 1.15 | 1.26 | 0.99 |
| Diluted Shares Outstanding | 30.95M | 31.64M | 31.45M | 32.16M | 34.65M | 36.6M | 39.6M | 39.8M | 41M | 43.3M | 43.8M | 43.4M | 43M | 42.5M | 41.9M | 42.8M | 43.3M | 41.56M | 41.61M | 43.9M | 45.58M | 44.64M | 43.09M | 41.72M | 41.29M | 41.07M |
| Basic Shares Outstanding | 30.27M | 30.86M | 30.89M | 31.81M | 34.18M | 36.3M | 39.5M | 39.7M | 40.9M | 43.1M | 43.5M | 43.1M | 42.8M | 42.2M | 41.4M | 42.2M | 42.5M | 40.78M | 40.66M | 42.59M | 43.88M | 43.16M | 42.01M | 41.46M | 41.29M | 41.07M |
| Dividend Payout Ratio | - | 5.19% | 4.31% | 4.86% | 4.71% | 6.24% | 8.38% | 6.3% | 6.12% | 7.06% | 7.87% | 10.22% | 12.8% | 17.58% | 18.92% | 21.42% | 28.39% | 25.48% | 15.15% | 17.8% | 25.2% | 50.44% | 37.8% | 52.13% | 35.76% | - |
Cyclical non-residential construction exposure
According to recent financial disclosures, Acuity Brands experienced a revenue growth rate of 1.6% in 2026Q3, reflecting a deceleration from the 21.7% peak observed in 2025Q3, which suggests that the company's top-line performance remains highly sensitive to the broader non-residential construction cycle and project-based demand fluctuations.
The inconsistent revenue trajectory appears to mirror the underlying Architecture Billings Index, indicating that the company struggles to maintain momentum when new construction starts soften. Investors should monitor whether the shift toward Intelligent Spaces Group can eventually decouple the firm from these traditional cyclical headwinds.
As reported in quarterly filings, the company achieved a gross margin of 50.6% in 2026Q3, representing a notable improvement from the 45.5% level seen in 2024Q2, which indicates that management's focus on high-value integrated systems is successfully offsetting the inherent volatility of raw material input costs.
This margin expansion suggests that the company possesses significant pricing power within its core distribution channel, likely bolstered by the technical interoperability of its lighting and control ecosystems. Sustaining these levels will likely depend on the company's ability to continue migrating its product mix toward higher-margin software-enabled solutions.
Based on the provided income statement data, operating income reached $193.3 million in 2026Q3, demonstrating a clear scaling effect as operating margins expanded to 16.1% compared to 11.0% in 2025Q2, suggesting that the Acuity Business Process is effectively driving overhead efficiency despite fluctuating top-line revenue growth.
The ability to expand operating margins while revenue growth remains modest implies a disciplined approach to managing SG&A expenses. This operational leverage is a critical component of the company's earnings profile, as it allows for bottom-line growth even when the broader construction market faces periods of stagnation.
While current profitability appears robust, the company's reliance on project-based revenue and the potential for distributor destocking, as hinted at by historical inventory-to-sales relationships, warrants caution regarding whether the 50.6% gross margin can be maintained if volume deleveraging occurs during a sustained downturn in non-residential construction.
Short-term margin gains may be masking underlying volume pressures that could surface if the current construction cycle turns negative. Investors should remain skeptical of whether the current profitability levels are purely structural or if they are temporarily inflated by favorable pricing environments that may not persist.
Quick answers to the most common questions about buying AYI stock.
For fiscal year 2025, Acuity Brands, Inc. (AYI) reported total revenue of $4.35B. This represents a 119.2% increase compared to $1.98B in 2001.
Acuity Brands, Inc. (AYI) is profitable, generating $396.6M in net income for the fiscal year ending 2025 with a net profit margin of 9.1%.
Acuity Brands, Inc. (AYI) reported an operating income of $593.6M, resulting in an operating profit margin of 13.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Acuity Brands, Inc. (AYI) generated $2.08B in gross profit for the year, representing a gross profit margin of 47.8%. This demonstrates the company's core pricing power and production efficiency.