Acuity Brands, Inc. AYI
Acuity Brands posted strong FY2025 revenue growth of 13.14% to $4.35B with gross margin expansion to 47.83%, but diluted EPS fell 6.77% to $12.53 and operating margin compressed to 13.66% from 14.41% as total debt nearly doubled to $1.0B — the acquisition-driven top-line surge remains undigested at the earnings line. The stock trades at a 21.5x P/E, a ~36% discount to the peer median of 33.5x, and BlackRock's new ~9.95% position in Q2 2026 alongside CPP's purchase signals institutional accumulation, but technicals have deteriorated with price ($331.79) below the 50-day MA ($342.13), a negative MACD histogram of -2.79, and RSI at 41.68.
The October 1 fiscal Q4/full-year results are the key catalyst to determine whether EPS inflects positive; until then, the transition story is credible but unfinished.
What could go wrong
- Earnings dilution persists. FY2025 EPS declined 6.77% to $12.53 despite 13.14% revenue growth, and operating margin compressed from 14.41% to 13.66% — if the October 1 results show continued EPS weakness, the acquisition thesis breaks.
- Elevated leverage. Total debt nearly doubled from $573.5M in FY2024 to $1.0B in FY2025, increasing interest burden and financial risk if end-market demand softens.
- Technical deterioration. Stock at $331.79 is below its 50-day MA of $342.13 with a bearish MACD histogram of -2.79 and RSI of 41.68, suggesting near-term momentum has weakened since the prior assessment.
- Insider net selling. Over 24 months, insider net transaction value was -$31.08M despite a positive net share count of 56,327, indicating insiders are selling at higher prices than they are acquiring.
What would change my mind
Where this comes from: FMP FY2025 annual + derived_metrics · FMP FY2025 annual + derived_metrics · FMP FY2025 and FY2024 annual · peer_relative composite. Orin's read on AYI; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All AYI filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Fmr | $1.4B | 0.1% of fund |
| Vanguard Portfolio Management | $541.2M | 0.0% of fund |
| Vanguard Capital Management | $515.8M | 0.0% of fund |
| Aqr Capital Management | $471.0M | 0.2% of fund |
| State Street | $363.8M | 0.0% of fund |
| Geode Capital Management | $289.5M | 0.0% of fund |
73 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 80 Form 4 filings, net −$31.7M. Of the 50 on hand, 2 were open-market purchases and 15 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about AYI
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Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 20.0× | — | 44.5× |
| EV/EBITDA | 12.1× | — | — |
| P/S | 2.01× | — | — |
| P/B | 3.3× | — | — |
5.8%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.5B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$404
$358 – $465 · +28% against today's price
- 14 buy or overweight
- 18 hold
- 1 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| AYIAcuity Brands, Inc. | $9B | 20.0× | 12.1× | 49.3% | 10.3% | 17% |
| CLHClean Harbors, Inc. | $17B | 38.2× | 15.8× | 26.6% | 7.0% | 16% |
| CRCrane Company | $12B | 35.3× | 22.5× | 41.7% | 13.0% | 16% |
| HIIHuntington Ingalls Industries, Inc. | $10B | 15.8× | 12.0× | 12.6% | 5.0% | 13% |
| STRLSterling Infrastructure, Inc. | $16B | 36.6× | 21.7× | 23.6% | 12.5% | 37% |
| SWKStanley Black & Decker, Inc. | $14B | 22.1× | 12.6× | 31.7% | 4.1% | 7% |
The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 43.3% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.