The North American Signify (Philips Lighting) for intelligent lighting and building solutions.

Like a Honeywell for smart building lighting and control systems.

• LED Lighting Luminaires: Acuity Brands designs, manufactures, and sells a comprehensive portfolio of indoor and outdoor LED lighting fixtures for commercial, institutional, industrial, and residential applications.
• Lighting Controls & Systems: They develop advanced lighting control systems, sensors, and software platforms that optimize energy efficiency, enhance occupant comfort, and improve building performance.
• Intelligent Building Management Solutions (IBMS): Acuity Brands provides integrated solutions that combine lighting with other building systems, such as HVAC and security, to offer data-driven insights and automation for smart buildings.
• Daylighting Products: They offer natural light solutions, including skylights and sun tunnels, designed to harness daylight for interior illumination and contribute to energy savings.

Major Customers of Acuity Brands (AYI)

• Retail Home Improvement Centers: Acuity Brands sells a range of its lighting products directly to major retail chains, which then offer these products to individual consumers and small contractors.
  • The Home Depot, Inc. (NYSE: HD)
  • Lowe's Companies, Inc. (NYSE: LOW)
• Electrical Distributors: A significant portion of Acuity Brands' revenue comes from sales to a vast network of independent electrical distributors. These distributors purchase Acuity's products in bulk and then resell them to electrical contractors, builders, and various commercial, industrial, institutional, and residential end-users for new construction, renovation, and maintenance projects. While this distribution network is critical to Acuity's business model, Acuity Brands does not typically disclose specific individual distributors as "major customers" by name in its public filings, as its sales in this channel are highly fragmented across numerous companies.
• National Accounts and Large End-Users: Acuity Brands also engages in direct sales to large national accounts, which may include major retail chains (beyond home improvement stores), government entities, educational institutions, healthcare facilities, and large commercial and industrial enterprises. These are often project-based sales for specific installations. However, specific customer names are generally not disclosed unless they represent an exceptionally large portion of revenue.

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

Neil M. Ashe has served as President and Chief Executive Officer of Acuity Brands since January 2020 and as Chairman since January 2021. Prior to joining Acuity Brands, he was the Chief Executive Officer of Faster Horses LLC from February 2017 to December 2019. He also served as President and Chief Executive Officer of Global eCommerce & Technology at Walmart, Inc. from January 2012 through January 2017, President of CBS Interactive from July 2008 through July 2011, and Chief Executive Officer of CNET Networks, Inc. from 2006 to 2008. In these prior roles, he and his teams created significant shareholder value.

Karen J. Holcom, Senior Vice President and Chief Financial Officer

Karen J. Holcom has been the Senior Vice President and Chief Financial Officer of Acuity Brands since September 2019. She has over 30 years of financial experience and has been with Acuity Brands since its inception in 2001. Prior to her current role, she served as Senior Vice President, Finance and Associate Engagement for Acuity Brands Lighting, Inc. from January 2019 to September 2019, and as Senior Vice President of Finance for ABL from 2006 to December 2018. She also held positions as Vice President and Controller of Acuity Brands from 2004 to 2006, and Vice President, Financial Services from 2001 to 2004. Before joining Acuity Brands, Ms. Holcom held various positions in accounting, reporting, and financial reporting at National Service Industries, Inc. from 1998 to 2001, which was the predecessor to Acuity Brands. Ms. Holcom is a Certified Public Accountant.

Sach Sankpal, President, Acuity Brands Lighting

Sach Sankpal joined Acuity Brands in 2022 as President, Acuity Brands Lighting. He has over 30 years of experience in leading turnarounds, accelerating digital transformation, innovation, and positioning global industrial technology organizations for future growth. Previously, he served as President of Product and Solutions at Resideo and as Senior Vice President of Emerging Industries at Trimble from 2015 to 2020. He was also President, Vice President and General Manager of Safety Products, and Vice President of Strategic Marketing at Honeywell from 2010 to 2015.

Dianne S. Mills, Senior Vice President and Chief Human Resources Officer

Dianne S. Mills has been the Senior Vice President and Chief Human Resources Officer of Acuity Brands since 2020. Before joining Acuity, Ms. Mills served as a Principal at Mills Consulting from 2017 to February 2020. She also served as the Senior Vice President and Chief People Officer for Walmart’s eCommerce Division from 2014 to 2017 and as Head of Human Resources for PayPal from 2009 to 2014.

Barry R. Goldman, Senior Vice President and General Counsel

Barry R. Goldman serves as Senior Vice President and General Counsel of Acuity Brands, a role he has held since the company's inception in 2001. He has over 30 years of legal experience in the real estate, lighting, and building management industries. As General Counsel, he oversees the company's legal matters, including corporate governance, compliance, mergers and acquisitions, intellectual property, and risk management.

The key risks to Acuity Brands Inc. (AYI) business primarily revolve around maintaining consistent revenue growth in a dynamic market and navigating the complexities of technological advancements.

1. Challenges in Long-Term Revenue Growth and Declining Organic Revenue
   A significant risk for Acuity Brands is its struggle to achieve consistent long-term revenue growth. Analysis indicates that the company's sales for the trailing 12 months were similar to its revenue five years prior, and its organic revenue has seen average year-on-year declines of 1.8% over the last two years. This suggests a potential difficulty in expanding its core business and generating new demand.
2. Sensitivity to Market Demand and Economic Fluctuations
   Acuity Brands' performance is susceptible to broader economic conditions and fluctuations in market demand, particularly within the non-residential construction sector. The company experienced a 14.3% revenue reduction in commercial lighting segments during the 2022-2023 economic slowdown, highlighting its sensitivity to economic cycles. The company's annual reports consistently list "market demand" as a key risk factor.
3. Technological Disruption and AI-Related Risks
   As a market-leading industrial technology company focused on smart lighting and intelligent spaces, Acuity Brands faces inherent risks associated with rapid technological advancements and the integration of artificial intelligence (AI). These risks include potential issues with the accuracy and accountability of AI systems, intellectual property and legal challenges, data privacy violations, and the rapid obsolescence of technology if the company fails to continuously innovate and adapt.

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Acuity Brands (AYI) operates in two main addressable markets: Lighting and Lighting Controls, and Intelligent Spaces (Building Management Systems).

Lighting and Lighting Controls

• The global lighting market size was approximately USD 141.5 billion in 2024.
• The North America LED lighting market was valued at USD 26.96 billion in 2024.

Intelligent Spaces (Building Management Systems)

• The global Building Management System (BMS) market size was valued at USD 20.73 billion in 2024.
• The U.S. Building Management System market size reached USD 5.58 billion in 2024.

• Expansion of Intelligent Spaces (AIS) Segment and Strategic Acquisitions: The company anticipates significant growth from its Intelligent Spaces segment, which focuses on smart building solutions, lighting controls, and energy-efficient technologies. This growth is substantially bolstered by strategic acquisitions, such as QSC, which expands Acuity's offerings into cloud-manageable audio, video, and control. The AIS segment has already shown explosive growth, notably surging by 204% in Q4 2025, primarily driven by the QSC acquisition.
• Product Vitality and Innovation: Acuity Brands is focused on increasing product vitality and introducing new, innovative products and advanced technologies across both its lighting (ABL) and space management systems. Recent examples include the launch of HOLOBAY by Holophane, Wireless Sensor Switch Air, and Animate Controller by nLIGHT. This continuous innovation aims to enhance market presence and drive sales.
• Penetration of New Vertical Markets: The company is actively pursuing growth by expanding into underpenetrated and new vertical markets. This includes ventures into areas like the refueling market, horticulture, and healthcare-focused lighting solutions, which are expected to boost market presence and revenue.
• Leveraging Demand in Data Center Projects: Within the Intelligent Spaces segment, the Distech product line has demonstrated impressive growth, driven in part by large data center projects. The ongoing demand for data centers is expected to continue acting as a significant growth driver for Acuity Brands.
• Operational Efficiency and Strategic Pricing: While primarily impacting profitability, Acuity Brands' sustained focus on improving operational efficiency, managing price and cost, and implementing productivity improvements, including optimizing its supply chain, indirectly supports revenue growth. These efforts allow the company to maintain competitive pricing and allocate resources more effectively towards growth initiatives, aiming for continued margin expansion in its lighting business.

Share Repurchases

• Acuity Brands repurchased approximately $119 million of common stock in fiscal year 2025.
• In fiscal year 2023, the company repurchased approximately 1.6 million shares of common stock for a total of $269 million.
• As of January 2024, Acuity was authorized to repurchase up to 3.7 million shares, equating to approximately $1 billion, by the end of the second quarter of fiscal year 2025.

Outbound Investments

• In fiscal year 2025, Acuity Inc. acquired QSC, LLC for $1.215 billion, or $1.1 billion net of expected tax benefits, significantly expanding its Intelligent Spaces segment.
• In January 2024, Acuity acquired certain assets related to Arize® horticulture lighting products from Current Lighting Solutions, LLC.
• In May 2023, the company acquired all of the equity interests of KE2 Therm Solutions, Inc., which expanded the Intelligent Spaces Group's technology and controls product portfolio.

Capital Expenditures

• Capital expenditures were $64.0 million in fiscal year 2024 and $66.7 million in fiscal year 2023.
• The primary focus of these capital expenditures has been on new and enhanced information technology, tooling, machinery, facility improvements, and the development of software applications and capabilities to boost data analytics for building performance.
• The company continues to invest in its electronics portfolio, including lighting controls technology and proprietary drivers, to enhance product vitality and productivity.