Acuity Brands, Inc. (AYI): history, ownership, mission, how it works & makes money

A Brief History of Acuity Brands, Inc.

Acuity Brands, Inc. (NYSE: AYI), a leading industrial technology company, operates primarily in the lighting and building management solutions sectors. As of 2024, the company has demonstrated significant financial performance driven by its two main business segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG).

Financial Performance Overview

In fiscal year 2024, Acuity Brands reported a net sales figure of $3.84 billion, reflecting a decrease of 2.8% from the previous year's total of $3.95 billion. The operating profit for the same period was $553.3 million, which showcases an increase of 16.9% compared to $473.4 million in fiscal 2023. The operating profit margin improved to 14.4%, an increase of approximately 240 basis points year-over-year.

Quarterly Highlights

For the fourth quarter of fiscal 2024, Acuity Brands reported net sales of $1.03 billion, an increase of 2.2% from $1.01 billion in the same quarter of the previous year. The operating profit for the fourth quarter was $157.0 million, marking a 43.1% increase compared to $109.7 million in Q4 2023.

Segment Performance

The ABL segment generated net sales of $3.57 billion in fiscal 2024, a decrease of 4.0% from $3.72 billion in fiscal 2023. The ISG segment, however, reported an increase in net sales to $291.9 million, up 15.5% from $252.7 million in the previous year.

Cash Flow and Capital Allocation

For the fiscal year 2024, Acuity Brands generated $619.2 million in cash flow from operations, reflecting an increase of 7.1% compared to $578.1 million in fiscal 2023. The company also repurchased approximately 454,000 shares of common stock for about $89 million.

Balance Sheet Position

As of August 31, 2024, Acuity Brands reported total assets of $3.81 billion, an increase from $3.41 billion in the previous year. The total stockholders' equity stood at $2.38 billion, up from $2.02 billion.

A Who Owns Acuity Brands, Inc. (AYI)

Ownership Structure

Acuity Brands, Inc. (AYI) is publicly traded on the New York Stock Exchange (NYSE). As of 2024, the ownership structure is comprised of institutional investors, individual shareholders, and company insiders.

Major Shareholders

The following table lists the major shareholders of Acuity Brands, Inc. as of 2024:

Insider Ownership

Insider ownership as of 2024 includes significant positions held by the company's executives and board members:

Institutional Ownership

As of 2024, institutional investors own approximately 70% of Acuity Brands' total shares. This demonstrates strong institutional confidence in the company's financial performance and growth potential.

Stock Performance and Market Trends

Acuity Brands, Inc. reported a diluted earnings per share (EPS) of $13.44 for the fiscal year ending August 31, 2024, representing a 24.9% increase from the previous fiscal year. The adjusted diluted EPS was $15.56, up 10.7% from $14.05 in the prior year .

The company's total assets as of August 31, 2024, were $3.81 billion, an increase from $3.41 billion in the previous year . This growth in assets is indicative of the company's expanding operations and market presence.

Market trends show that the demand for energy-efficient lighting solutions continues to rise, positively impacting the financial health of Acuity Brands. The company generated net sales of $3.84 billion for the full year of fiscal 2024, a decrease of 2.8% compared to $3.95 billion in fiscal 2023 .

Recent Share Buybacks

During fiscal 2024, Acuity Brands repurchased approximately 454,000 shares of common stock for a total of approximately $89 million, reflecting the company's strategy to return capital to shareholders and manage its capital structure .

Conclusion on Ownership Dynamics

The ownership dynamics of Acuity Brands, Inc. as of 2024 reflect a robust mix of institutional and insider ownership, alongside a significant focus on enhancing shareholder value through strategic buybacks and strong financial performance metrics.

Acuity Brands, Inc. (AYI) Mission Statement

Mission Statement Overview

Acuity Brands, Inc. focuses on using technology to solve problems in spaces, light, and more. Their mission is to enhance the quality of life for their customers by delivering innovative lighting and building management solutions.

Fiscal Performance Metrics

As of fiscal year 2024, Acuity Brands reported the following key financial metrics:

Segment Performance

In 2024, Acuity Brands operated through two main segments: Acuity Brands Lighting and Lighting Controls (ABL) and Intelligent Spaces Group (ISG). The performance of each segment is highlighted below:

Profit Margins

The profit margins for Acuity Brands in fiscal 2024 are as follows:

Cash Flow and Capital Allocation

In terms of cash flow, Acuity Brands reported significant improvements:

Balance Sheet Highlights

Acuity Brands' balance sheet reflects its financial position as of August 31, 2024:

How Acuity Brands, Inc. (AYI) Works

Company Overview

Acuity Brands, Inc. (NYSE: AYI) is a market-leading industrial technology company that designs and manufactures products and services in the lighting and building management sectors. As of 2024, the company operates through two primary segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG).

Financial Performance

For the fiscal year 2024, Acuity Brands reported net sales of $3.84 billion, a decline of 2.8% from $3.95 billion in the previous year. The operating profit for the same period was $553.3 million, reflecting a significant increase of 16.9% compared to $473.4 million in fiscal 2023.

Segment Performance

The ABL segment generated net sales of $3.57 billion, a decrease of 4.0% from $3.72 billion in the prior year. Operating profit within this segment was $582.8 million, an increase of 14.4% from $509.5 million in 2023. The ISG segment reported net sales of $291.9 million, a rise of 15.5% compared to $252.7 million in the previous year.

Cash Flow and Capital Allocation

In fiscal 2024, Acuity Brands generated $619.2 million in cash flow from operations, an increase of 7.1% from the previous year. The company repurchased approximately 454,000 shares of common stock for about $89 million during the year.

Balance Sheet Highlights

As of August 31, 2024, Acuity Brands reported total assets of $3.81 billion, up from $3.41 billion in 2023. Total liabilities were $1.44 billion, with total stockholders' equity at $2.38 billion.

Market Position and Strategy

Acuity Brands focuses on leveraging technology to enhance its product offerings in lighting and building management. The company aims to improve operational efficiencies and increase market share through innovative solutions and strategic capital deployment.

How Acuity Brands, Inc. (AYI) Makes Money

Revenue Streams

Acuity Brands, Inc. generates revenue primarily through two segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG).

For the fiscal year 2024, Acuity Brands reported total net sales of $3.84 billion, a decrease of 2.8% from $3.95 billion in fiscal 2023.

Product Offerings

The ABL segment includes a range of lighting solutions, while the ISG focuses on intelligent building solutions, including building management systems and location-aware applications. In the fourth quarter of fiscal 2024, ABL generated net sales of $955 million, a 1.1% increase compared to the previous year.

Cost Structure and Profitability

For fiscal 2024, the cost of products sold was $2.06 billion, leading to a gross profit of $1.78 billion, representing a gross profit margin of 46.4%.

Operating expenses totaled $1.23 billion for fiscal 2024, with special charges amounting to $0.

Earnings Performance

Net income for fiscal 2024 was $422.6 million, resulting in a diluted earnings per share of $13.44, which reflects a 24.9% increase compared to fiscal 2023.

Market Strategy

Acuity Brands focuses on innovation and efficiency to enhance its market position. They aim to expand their product offerings and enter new verticals, leveraging technology to improve customer satisfaction and operational performance.

Cash Flow and Capital Allocation

For fiscal 2024, the company generated $619.2 million in cash flow from operations, an increase of 7% compared to the previous year. Free cash flow was reported at $555.2 million, reflecting a growth of 8.6%.