A maker of lighting, building-management, and audio-video-control systems sold under brands like Lithonia Lighting, Holophane, Distech Controls, and Q-SYS, serving airports, universities, and retailers. It traces to 1946, when Lithonia Lighting began in a two-person garage in Lithonia, Georgia, later becoming a 2001 spin-off of National Service Industries; the name "Acuity" was chosen to signal sharp, focused leadership. Roughly half its finished goods come from Mexican Maquiladora plants with duty-free import status.
Q3 FY2026 net income rose 43.3% to $141.0M as QSC inventory adjustments dropped out
Quarterly profit more than recovered from the QSC drag that weighed on last year. rose 1.6% to $1,209.1M, expanded 2.2 points to 50.6%, and rose 46.2% to $4.56 as prior-year charges and special costs did not recur. The company is back to margin-led growth with debt down and liquidity intact.
Key takeaways
rose 43.3% to $141.0M and rose 46.2% to $4.56 as the $19.2M prior-year QSC fair-value adjustment and $29.7M in for impairments and severance did not recur.
expanded 2.2 points to 50.6%, the highest in the reported quarterly series, driven by higher-margin AIS sales and the absence of the prior-year QSC adjustment.
rose 38.3% to $193.3M while rose only 3.1%, against a 30.6% rise a year earlier.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 net income rose 43% to $141M on AIS growth and lower special charges, while ABL sales dipped 2%.
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Consolidated increased 1.6% to $1.20B, driven by a 14.9% jump in AIS sales from Distech and QSC products, partially offset by a 1.9% decline in ABL sales.
expanded 220 to 50.6%, primarily due to higher-margin AIS sales and the absence of $19.2M in prior-year QSC fair value adjustments.
halved to $6.1M after the company repaid $200M on its , leaving at $697.3M, down 30.0% .
Consolidated rose 1.6% to $1,209.1M as AIS sales rose 14.9% on Distech and QSC products while ABL sales dipped 1.9%; revenue rose 13.5% sequentially from Q2's $1,198.0M.
for the first nine months grew $121.3M to $520.2M and total liquidity was $1.0B, combining $411.9M cash with $592.8M ; $229.9M was returned via in the nine months.
What changed
AIS margin recovery: after the 5.8% Q2 FY2025 level and the absent stated Q2 FY2026 margin, the Q3 result shows AIS sales up 14.9% and consolidated at 50.6% with prior-year QSC adjustments gone.
servicing: debt fell to $697.3M after the $200M Q2 repayment and a further $100M Q1 repayment, with halved to $6.1M in Q3 versus $12.1M a year earlier.
ABL production costs and sales: ABL sales dipped 1.9% in Q3 after a 2.8% Q2 decline, continuing the softness flagged after FY2025.
Cash balance: cash rose to $411.9M from $272.5M at Q2 end, recovering part of the post-acquisition decline to $422.5M at FY2025 year-end.
Tariff exposure carried from FY2025 and Q3 FY2025 flaggings remains a noted risk with no new quantification this quarter; risk factors restated no material change from the 10-K.
What to watch
AIS next quarter as QSC integration proceeds and the 14.9% Q3 sales rise flows through.
ABL trend after the 1.9% Q3 decline and consecutive quarterly softness.
level and in Q4 after the $697.3M balance.
Cash balance recovery toward the $422.5M FY2025 year-end level after the Q2 drawdown.
surged 38.3% to $193.3M as SD&A rose only 3.1% and prior-year of $29.7M for asset impairments and severance did not recur.
Net halved to $6.1M due to lower outstanding borrowings after repaying $200M on the Term Loan Facility.
for the first nine months grew $121.3M to $520.2M, and total liquidity stood at $1.0B, combining $411.9M in cash with $592.8M in availability.
The company returned $247.6M to shareholders through $17.7M in dividends and $229.9M in share repurchases during the first nine months.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks that may impact our Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Cash Flows due primarily to fluctuations in interest and foreign exchange rates. We do not currently engage in signific…
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We are exposed to market risks that may impact our Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Cash Flows due primarily to fluctuations in interest and foreign exchange rates. We do not currently engage in significant commodity hedging transactions for raw materials. There have been no material changes to our exposure from market risks from those disclosed in Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk of our Form 10-K.
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Table of Contents
Information regarding reportable legal proceedings is contained in Part I, Item 3. Legal Proceedings in our Form 10-K. Information set forth in this report’s Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements describes any legal proceedings…
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Information regarding reportable legal proceedings is contained in Part I, Item 3. Legal Proceedings in our Form 10-K. Information set forth in this report’s Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements describes any legal proceedings that became reportable during the three and nine months ended May 31, 2026, and updates any descriptions of previously reported legal proceedings in which there have been material developments during such period. The discussion of legal proceedings included within the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements is incorporated into this Item 1 by reference.