stockrowWhat it does
Acuity, Inc. designs and sells lighting and technology used in buildings and other spaces. Founded in 2001 and headquartered in Atlanta, it is led by Chairman, President and CEO Neil Ashe.
The company has two businesses. Acuity Brands Lighting, or ABL, makes luminaires—the fixtures that house and distribute light—as well as lighting controls, drivers and other electronics. Customers use its products in new buildings and to renovate, retrofit, maintain or repair existing ones. Acuity sells through independent sales agencies, distributors and retailers, as well as directly to some customers.
Acuity Intelligent Spaces, or AIS, sells technology for operating buildings and managing experiences inside them. Distech Controls provides sensors, controls and software for systems such as heating, ventilation and air conditioning. Atrius offers building-performance and spatial-intelligence software. Q-SYS combines audio, video and controls on a platform, while QSC Audio supplies audio equipment for live entertainment and sound professionals.
AIS primarily reaches customers through system integrators, which bring together technology for a customer’s space. Its applications include airports, universities, offices, sports venues, retail and hospitality. ABL’s customers are mainly in North America; AIS also serves customers in Europe and other international locations.
How it makes money
Acuity earns revenue by selling products and services through its lighting and intelligent-spaces segments. It recognizes revenue when it transfers control of goods and services to customers, and records estimated rebates, incentives, returns and discounts in most instances as reductions to revenue.
Total net sales were $4.64 billion for the year ended August 31, 2026 and $1.2 billion in the fourth quarter of fiscal 2026.
ABL generated $3.6 billion in fiscal 2026 revenue, or 76.4% of the company total. Its products range from lighting fixtures to electronics that power and control them. Sales go through independent and internal sales networks, distributors and retailers, and directly to corporate accounts and original equipment manufacturers. Acuity says it prices ABL products based on the value they deliver and also seeks to cover the dollar cost of supply shocks and trade-policy changes.
AIS generated $1.1 billion in fiscal 2026 revenue, or 23.6% of the total. Its offering includes building-management hardware and software, cloud applications, and audio-video and control systems. Acuity also provides and maintains technology for lighting controls, building systems and audio-video platforms. Its disclosures do not quantify recurring revenue or separate subscription revenue from product and other service sales.
For the year ended August 31, 2026, ABL operating profit was $623.5 million and AIS operating profit was $186.5 million. Company operating profit for the same period was $713.7 million. Fiscal 2026 results included $51.3 million in tariff refunds.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| ABL | $3.6 billion | 76.4% | −0.99% |
| AIS | $1.1 billion | 23.6% | 44.8% |
Customers and how it sells
ABL serves new construction, renovation and retrofit, maintenance, and repair applications. Its lighting reaches customers through independent sales agencies, internal sales representatives, electrical distributors and consumer retailers. Acuity also sells directly to large corporate accounts and original equipment manufacturers. Products move directly from factories or through distribution centers.
AIS primarily sells through system integrators. Its customers use the technology in retail stores, airports, universities, enterprise campuses, sports venues, themed entertainment and hospitality. Acuity also identifies live entertainers and sound reinforcement professionals as users of QSC Audio technology.
No individual customer exceeded 10% of net sales during fiscal 2026, 2025, or 2024. Acuity nevertheless says that losing certain larger customers, or a major channel partner, could harm the business. Its channel relationships include electrical distributors, home improvement retailers, independent agencies, system integrators and value-added resellers.
Domestic revenue was $4.1 billion in fiscal 2026, representing 87.3% of total revenue. International revenue was $587.5 million, or 12.7%. ABL customers are in North America and select international markets; AIS operates across North America, Europe and other select international locations. Acuity operates distribution facilities in the United States, Canada and Mexico.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Domestic | $4.1 billion | 87.3% | 7.92% |
| International | $587.5 million | 12.7% | −0.24% |
Suppliers and costs
Acuity uses steel, aluminum, electrical and electronic components, plastics and petroleum-based materials in production. It buys most raw materials and other components on the open market and also purchases finished goods. Materials are generally available from multiple sources, but some components and purchased finished goods have limited suppliers, creating sole-source situations in some cases. Acuity does not name those suppliers.
The company operates eighteen manufacturing facilities: seven in Mexico, six in the United States, three in Canada and two in Europe. It combines internal and outsourced production and uses contract manufacturers in the United States, Asia and Europe for certain products. Approximately 49% of its finished products are manufactured in Mexico.
Material prices, freight, tariffs, duties and availability affect costs. Acuity does not currently use significant commodity hedging for raw materials, although it commits to buy some materials for periods generally up to 12 months. Research and development expense was $165.6 million in fiscal 2026. Selling, distribution and administrative expenses were $1.61 billion for the year ended August 31, 2026, including costs associated with QSC. Acuity expects higher memory costs to affect AIS margins in fiscal 2027.
- Revenue$4.6B
- Cost of revenue−$2.3B
- Selling, general and administrative−$1.6B
- Other operating costs−$23.7M
- Operating income$713.7M
Competitive position
Acuity competes in lighting, lighting controls, building-management technology, and audio-video and control systems. It identifies price, product quality and design, energy efficiency, service, brand recognition and customer relationships as competitive factors. It does not name individual competitors. The markets include importers, startups, global electronics and software companies, and diversified manufacturers that can bundle products and services.
Our reading: Acuity’s distribution and customer relationships provide a meaningful competitive asset: ABL reaches the market through several channels, while AIS works primarily through system integrators. Those relationships are not guaranteed, however, and losing major channel partners could affect sales.
Our reading: Its portfolio and technical capabilities provide another source of differentiation, but their strength depends on continued product development. Acuity combines lighting fixtures and controls with building-management and audio-video offerings, while competitors can offer broader bundles or different technologies.
Our reading: Intellectual property offers some protection rather than a standalone barrier across the business. Acuity had approximately 1,800 total patent assets as of August 31, 2026, but says no single patent or application is individually material and enforcement can be difficult in some countries. The company says the market continues to evolve through acquisitions and consolidation.
Growth opportunities
Acuity seeks to grow by developing products and services, improving existing offerings and entering new customer verticals. In lighting, its priorities include product development, service and productivity. In intelligent spaces, it is pursuing growth in building operations and experiences through products, software and acquisitions.
AIS revenue grew 44.8% in fiscal 2026. The increase was primarily due to the QSC acquisition and higher sales of Distech products. Acuity acquired QSC on January 1, 2025, expanding AIS into a cloud-manageable audio, video and control platform. ABL sales decreased 1.0% for the year ended August 31, 2026, principally because of lower sales in its direct sales network and OEM and other channel.
Acuity has introduced a lighting fixture designed for data centers. It has also added a controller to Distech and says existing intelligent-spaces data-center sales are growing. The company is embedding AI in products including Q-SYS Reflect and Atrius DataLab, which help customers use data and analytics to manage spaces.
It was reported on 26 October 2026 that Acuity agreed to acquire Parameter Technologies for $675 million. Acuity plans to place Parameter within Distech Controls after closing. The company says Parameter’s monitoring technology would expand its data-center capabilities when combined with Distech controls.
For full year fiscal 2027, Acuity expects net sales within the range of $4.7 billion and $4.9 billion, with flat to low single-digit sales growth in ABL and low to mid-teens growth in AIS.
- $4.0BFY2022
- $4.0BFY2023
- $3.8BFY2024
- $4.3BFY2025
- $4.6BFY2026
- $4.7BFY2027 guidance
Structural risks
- Construction demand: Sales depend significantly on new construction and renovation activity. Economic weakness, interest rates, labor availability and policy uncertainty can delay projects and reduce demand for lighting and building technology.
- Pricing and input costs: Competitor pricing may prevent Acuity from passing higher costs to customers. Supply disruptions, tariffs and limited suppliers for some components can raise costs or delay purchases. Acuity expects memory cost increases to affect AIS margins in fiscal 2027.
- Manufacturing disruption: Approximately 49% of finished products are manufactured in Mexico. Trade disputes, civil unrest, labor actions or other disruptions could interrupt production and deliveries, leading to customer claims or lost business.
- Technology and security: Acuity’s systems have experienced security compromises, and future incidents could disrupt operations or customer systems, create liabilities and harm its reputation. AI products and internal uses also carry performance, privacy and regulatory risks.
- Acquisitions and product development: Acquired businesses may be difficult to integrate or fail to deliver anticipated benefits. New products may not gain acceptance or meet expected margins, and shorter product cycles can leave inventory exposed to write-downs.
- Customer and channel relationships: Although no individual customer exceeded 10% of net sales during fiscal 2026, 2025, or 2024, a substantial reduction in purchases by larger customers or major channel partners could harm results.
Bottom line
Our reading
Our reading: Acuity is primarily a lighting business, with a growing building-technology segment that has expanded through QSC. Its distribution relationships and product portfolio support its position, but competition and construction spending remain important constraints. The shift toward intelligent spaces adds opportunities in controls and audio-video systems while bringing acquisition, technology and component-cost risks.