Acuity Brands (NYSE:AYI) reported a surge in second-quarter profitability and rewarded shareholders with an 18% dividend hike, as the company’s expansion into intelligent infrastructure compensated for a leaner performance in its core lighting segment.
For the fiscal second quarter ended Feb. 28, 2026, the Atlanta-based lighting and building management firm posted net sales of $1.1 billion, a 4.9% increase over the same period last year.
The bottom line saw even sharper gains, with diluted earnings per share jumping 26.1% to $3.09.
On an adjusted basis, diluted EPS reached $4.14, an 11% improvement year-over-year.
The results highlight a widening divergence between the company’s two primary business units.
The Acuity Brands Lighting (ABL) segment saw net sales retreat to $817.4 million, burdened in part by $6 million in special charges.
Conversely, the Acuity Intelligent Spaces (AIS) segment continued its aggressive growth trajectory, with sales climbing to $248.1 million.
This performance was bolstered by the inclusion of an additional month of contributions from QSC, the audio and cloud platform provider Acuity acquired to deepen its reach into digital building ecosystems.
Operating efficiency remained a bright spot for the quarter.
Operating profit rose 20.7% to $133 million, reflecting management’s success in maintaining margins despite shifting sales volumes in the traditional lighting space.
Flush with $229.9 million in operating cash flow generated through the first half of the fiscal year, management moved to aggressively return capital to investors.
The board authorized an 18% increase in the quarterly dividend to $0.20 per share.
This payout follows a year-to-date share repurchase program that has seen the company buy back approximately 318,000 shares for a total consideration of $106 million.