ACUITY INC. (DE) 10-Q

Item 1. Financial Statements ACUITY INC. CONSOLIDATED BALANCE SHEETS (In millions, except per-share data) February 28, 2026 August 31, 2025 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 272.5 $ 422.5 Accounts receivable, less reserve for doubtful accounts of $ 6.3 and $ 4.3 , respectively 579.0 593.9 Inventories 515.2 526.7 Prepayments and other current assets 138.5 108.4 Total current assets 1,505.2 1,651.5 Property, plant, and equipment, net 350.3 343.2 Operating lease right-of-use assets 101.9 97.4 Goodwill 1,497.4 1,495.5 Intangible assets, net 1,056.4 1,099.0 Deferred income taxes 3.2 23.4 Other long-term assets 44.1 45.2 Total assets $ 4,558.5 $ 4,755.2 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 354.6 $ 454.5 Current operating lease liabilities 26.3 23.3 Accrued compensation 106.2 110.0 Other current liabilities 241.0 258.0 Total current liabilities 728.1 845.8 Long-term debt 697.1 896.8 Long-term operating lease liabilities 84.8 84.3 Accrued pension liabilities 39.9 39.2 Deferred income taxes 27.2 24.9 Other long-term liabilities 140.6 139.3 Total liabilities 1,717.7 2,030.3 Commitments and contingencies (see Commitments and Contingencies footnote) Stockholders’ equity: Preferred stock, $ 0.01 par value per share; 50.0 shares authorized; none issued — — Common stock, $ 0.01 par value per share; 500.0 shares authorized; 55.0 and 54.9 shares issued, respectively 0.6 0.5 Paid-in capital 1,164.5 1,164.7 Retained earnings 4,491.5 4,285.8 Accumulated other comprehensive loss ( 60.7 ) ( 76.5 ) Treasury stock, at cost, of 24.5 and 24.2 shares, respectively ( 2,755.1 ) ( 2,649.6 ) Total stockholders’ equity 2,840.8 2,724.9 Total liabilities and stockholders’ equity $ 4,558.5 $ 4,755.2 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 1 Table of Contents ACUITY INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions, except per-share data) Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Net sales $ 1,055.7 $ 1,006.3 $ 2,199.4 $ 1,957.9 Cost of products sold 535.3 538.3 1,125.2 1,040.6 Gross profit 520.4 468.0 1,074.2 917.3 Selling, distribution, and administrative expenses 381.5 357.8 774.9 673.8 Special charges 5.9 — 5.9 — Operating profit 133.0 110.2 293.4 243.5 Other expense (income): Interest expense, net 7.0 6.9 15.4 2.9 Miscellaneous expense, net 3.1 1.0 2.5 3.5 Total other expense 10.1 7.9 17.9 6.4 Income before income taxes 122.9 102.3 275.5 237.1 Income tax expense 26.1 24.8 58.2 52.9 Net income $ 96.8 $ 77.5 $ 217.3 $ 184.2 Earnings per share (1) : Basic earnings per share $ 3.16 $ 2.50 $ 7.09 $ 5.95 Basic weighted average number of shares outstanding 30.630 30.999 30.660 30.957 Diluted earnings per share $ 3.09 $ 2.45 $ 6.91 $ 5.80 Diluted weighted average number of shares outstanding 31.362 31.700 31.454 31.742 Dividends declared per share $ 0.20 $ 0.17 $ 0.37 $ 0.32 Comprehensive income: Net income $ 96.8 $ 77.5 $ 217.3 $ 184.2 Other comprehensive income (loss) items: Foreign currency translation adjustments 20.4 ( 11.7 ) 15.3 ( 29.0 ) Defined benefit plans, net of tax 0.3 0.5 0.5 1.0 Other comprehensive income (loss) items, net of tax 20.7 ( 11.2 ) 15.8 ( 28.0 ) Comprehensive income $ 117.5 $ 66.3 $ 233.1 $ 156.2 ______________________________ (1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding. The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 2 Table of Contents ACUITY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Six Months Ended February 28, 2026 February 28, 2025 Cash flows from operating activities: Net income $ 217.3 $ 184.2 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 77.1 52.1 Share-based payment expense 25.6 23.5 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 15.9 36.0 Inventories 11.3 7.6 Prepayments and other current assets ( 23.8 ) ( 26.4 ) Accounts payable ( 94.2 ) ( 11.0 ) Other operating activities 0.7 ( 74.4 ) Net cash provided by operating activities 229.9 191.6 Cash flows from investing activities: Purchases of property, plant, and equipment ( 41.8 ) ( 28.6 ) Acquisition of business, net of cash acquired — ( 1,165.0 ) Other investing activities ( 0.8 ) 3.2 Net cash used for investing activities ( 42.6 ) ( 1,190.4 ) Cash flows from financing activities: Borrowings from term loan — 600.0 Repayments of term loan borrowings ( 200.0 ) — Repurchases of common stock ( 103.0 ) ( 22.6 ) Proceeds from stock option exercises and other 2.3 17.0 Payments of taxes withheld on net settlement of equity awards ( 28.1 ) ( 23.6 ) Dividends paid ( 11.6 ) ( 10.0 ) Other financing activities ( 1.6 ) ( 1.1 ) Net cash (used for) provided by financing activities ( 342.0 ) 559.7 Effect of exchange rate changes on cash and cash equivalents 4.7 ( 8.8 ) Net change in cash and cash equivalents ( 150.0 ) ( 447.9 ) Cash and cash equivalents at beginning of period 422.5 845.8 Cash and cash equivalents at end of period $ 272.5 $ 397.9 Supplemental cash flow information: Income taxes paid during the period $ 31.2 $ 87.1 Interest paid during the period $ 25.9 $ 20.4 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 3 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 — Description of Business and Basis of Presentation Acuity Inc. (referred to herein as “we,” “our,” “us,” the “Company,” or similar references) is a market-leading industrial technology company. We use technology to solve problems in spaces, light, and more things to come. Through our two business segments, Acuity Brands Lighting (“ABL”) and Acuity Intelligent Spaces (“AIS”), we design, manufacture, and bring to market products and services that make a valuable difference in people’s lives. We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and an audio, video, and control platform. We focus on customer outcomes and drive growth and productivity to increase market share and deliver superior returns. We look to aggressively deploy capital to grow the business and to enter attractive new verticals. Acuity Brands Lighting Segment Our mission at ABL is to provide sustainable and intelligent lighting solutions that enrich communities where people live, learn, work, and play. Our strategy is to increase product vitality, elevate service levels, use technology to improve and differentiate both our products and how we operate the business, and drive productivity. At ABL, our offering combines luminaires with advanced electronics. Our luminaires deliver performance and aesthetic appeal, while our electronics portfolio, featuring drivers and a leading controls platform, provides connectivity and functionality. ABL's portfolio of products includes, but is not limited to the following brands: Aculux TM , American Electric Lighting ® , Cyclone TM , Dark to Light ® , eldoLED ® , Eureka ® , Fresco TM , Gotham ® , Healthcare Lighting ® , Holophane ® , Hydrel ® , IOTA ® , Juno ® , Lithonia Lighting ® , Luminaire LED TM , Luminis ® , Mark Architectural Lighting TM , Nightingale TM , nLight ® , Peerless ® , RELOC ® Wiring Solutions, and SensorSwitch TM . Customers of ABL are located in North America and select international markets that serve new construction, renovation and retrofit, and maintenance and repair applications. Our lighting solutions are sold primarily through a network of independent sales agencies, by internal sales representatives, through electrical distributors and consumer retailers, directly to large corporate accounts, and directly to original equipment manufacturer (“OEM”) customers. Products are delivered directly from our manufacturing facilities or through a network of distribution centers. Acuity Intelligent Spaces Segment At AIS, through Atrius ® , Distech Controls ® , and QSC ® , we have unique and disruptive technologies that are driving productivity for people experiencing spaces and for the people providing those spaces. We do this through edge-with-cloud network effects, data-driven growth, a global operating model and end-customer focus. Atrius makes data in a space accessible, usable, and actionable. Our data platform and cloud applications for building performance and spatial intelligence aim to maximize occupant and owner experiences. Our Distech Controls intelligent Building Management Systems (“BMS”) provide management of a space through controls, sensors, and software. Our open technology includes products for heating, ventilation, and air conditioning (“HVAC”), refrigeration, lighting, shades, and building access that prioritize end-user outcomes. Q-SYS, our full-stack audio, video, and control platform, unifies data, devices, and a cloud-first architecture to deliver real-time action, experiences, and insights. QSC Audio includes audio technology that enhances experiences for live entertainers and sound reinforcement professionals. AIS goes to market primarily through system integrators. Key customer verticals include retail stores, airports, universities, enterprise campuses, sports venues, themed entertainment, and hospitality, among many other broad applications throughout North America, Europe, and other select international locations. Basis of Presentation We have prepared the Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) to present the financial position, results of operations, and cash flows of Acuity Inc. and its wholly-owned subsidiaries. These unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly our consolidated financial position as of February 28, 2026, our consolidated comprehensive income for the three and six months ended February 28, 2026 and February 28, 4 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 2025, and our consolidated cash flows for the six months ended February 28, 2026 and February 28, 2025. Certain information and footnote disclosures normally included in our annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. However, we believe that the disclosures included herein are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited consolidated financial statements as of and for the three years in the period ended August 31, 2025 and notes thereto included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on October 27, 2025 (“Form 10-K”). Our business exhibits some seasonality, with net sales being affected by weather and seasonal demand on construction and installation programs, particularly during the winter months, as well as the annual budget cycles of major customers. Historically, with certain exceptions, we have experienced our highest sales in the last two quarters of each fiscal year due to these factors. Note 2 — Significant Accounting Policies Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Reclassifications We may reclassify certain prior period amounts to conform to the current year presentation. No material reclassifications occurred during the current period. Note 3 — Acquisitions QSC, LLC On January 1, 2025, we acquired all of the equity interests of QSC, LLC (“QSC”), a leader in the design, engineering, and manufacturing of audio, video, and control solutions and services, for $ 1.2 billion in cash. This acquisition expanded AIS into a cloud-manageable audio, video, and control platform that includes controls, sensors, and software with broad applications across multiple end-markets including education, commercial, hospitality, government, healthcare, and transportation. We funded the transaction using cash on hand and proceeds from our indebtedness. See the Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements for further details on our outstanding borrowings. We accounted for the acquisition of QSC in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”). We recorded acquired assets and liabilities at their acquisition date fair values. We finalized the purchase accounting for QSC during the second quarter of fiscal 2026. No measurement period adjustments were recorded during the three and six months ended February 28, 2026. Acquisition-related professional fees of $ 23.8 million were expensed as incurred in fiscal 2025, of which $ 14.1 million and $ 18.7 million were incurred during the three and six months ended February 28, 2025, respectively. These costs were recorded in Selling, distribution, and administrative expenses on the Consolidated Statements of Comprehensive Income and were reflected in our unallocated corporate amounts. 5 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following table outlines the final fair values of the assets and liabilities obtained in connection with the QSC acquisition as of January 1, 2025 (in millions): Purchase Price Allocation Consideration transferred: Cash consideration $ 1,240.7 Identifiable assets: Intangible assets 713.9 Inventories 101.9 Property, plant, and equipment 28.4 Operating lease right-of-use assets 24.2 Accounts receivable 55.7 Cash and cash equivalents 51.3 Other assets 45.8 Total identifiable assets 1,021.2 Liabilities assumed: Accounts payable 32.6 Operating lease liabilities 24.2 Deferred tax liabilities 17.6 Other liabilities 100.7 Total liabilities assumed 175.1 Total identifiable net assets 846.1 Goodwill $ 394.6 The final fair values and useful lives of identifiable intangible assets as of January 1, 2025 are as follows: Weighted Average Useful Life (Years) Fair Value (in millions) Developed technology and patents (1) 10 $ 434.0 Customer relationships 19 145.0 Trademarks 18 133.0 Other 1 1.9 Total identifiable intangible assets 13 $ 713.9 ____________________________________ (1) Substantially all of the developed technology intangible assets relates to Q-SYS, an audio, video, and control platform. Assets and liabilities for QSC have been reflected in the Consolidated Balance Sheets since the acquisition date. The goodwill is recorded in the AIS segment, and it is primarily comprised of benefits related to the expansion of AIS’ technology and audio, video, and control solution product portfolios. Approximately $ 350.0 million of the goodwill is deductible for tax purposes. The operating results of QSC have been included in our consolidated financial statements since the date of acquisition. The following table provides the amount of QSC net sales and net income included within our consolidated financial statements for fiscal 2025 since the acquisition date (in millions): February 28, 2025 Three Months Ended Six Months Ended Net sales $ 95.1 $ 95.1 Net income (1) ( 1.7 ) ( 1.7 ) ____________________________________ (1) Net income includes pre-tax nonrecurring acquisition date fair value adjustments to inventory of $ 10.4 million and amortization of acquired intangible assets of $ 7.8 million for the three and six months ended February 28, 2025. 6 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) We have included unaudited pro forma financial information for fiscal 2025 to show the impacts of the QSC acquisition to our consolidated results assuming the acquisition closed as of the first day of fiscal 2024. The unaudited pro forma information is not necessarily indicative of our results of operations had the acquisition been completed on this date, neither is it necessarily indicative of our future results. Amounts in the table below combine our previously reported results with QSC’s results for the corresponding periods as well as adjustments for purchase accounting, accounting policy alignments, changes to our capital structure, including additional interest expense associated with borrowings to fund the acquisition, and other nonrecurring items that were incurred in connection with the acquisition, assuming they occurred as of September 1, 2023 (in millions): Quarter-to-Date Year-to-Date February 28, 2025 February 28, 2025 Revenue $ 1,059.4 $ 2,158.6 Net income 98.2 208.8 Note 4 — New Accounting Pronouncements Accounting Standards Yet to Be Adopted Accounting Standards Update ( “ ASU ” ) 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ( “ ASU 2025-06 ” ) In September 2025, the Financial Accounting Standards Board (“FASB”) issued ASU 2025-06, which modernizes the accounting for internal-use software costs by aligning the guidance with incremental and iterative software development methods used today. The amendment removes all references to development stages and requires capitalization of software costs to begin once management approves funds for the project and it is probable the software will be completed and used as intended. The amendment may be applied prospectively, retrospectively, or using a modified prospective approach, and early adoption is permitted. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, or our fiscal 2029. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses ( “ ASU 2024-03 ” ) In November 2024, the FASB issued ASU 2024-03, which requires public entities to disaggregate specific types of expenses, including disclosures for purchases of inventory, employee compensation, depreciation, intangible asset amortization, and selling expenses. Annual disclosures are required for fiscal years beginning after December 15, 2026, or our fiscal 2028. Interim disclosures are required for periods within fiscal years beginning after December 15, 2027, or our fiscal 2029. Prospective application is required, and retrospective application is permitted. Early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ( “ ASU 2023-09 ” ) In December 2023, the FASB issued ASU 2023-09, which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates as well as additional disaggregation of taxes paid. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We will adopt the standard as required in our annual disclosures for fiscal 2026. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. 7 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 5 — Fair Value Measurements We determine fair value measurements based on the assumptions a market participant would use in pricing an asset or liability. ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a three-level hierarchy that distinguishes between market participant assumptions based on (i) unadjusted quoted prices for identical assets or liabilities in an active market (Level 1), (ii) quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (Level 2), and (iii) prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (Level 3). We utilize valuation methodologies to determine the fair values of our financial assets and liabilities in conformity with the concepts of “exit price” and the fair value hierarchy as prescribed in ASC 820. All valuation methods and assumptions are validated at least quarterly to ensure the accuracy and relevance of the fair values. There were no material changes to the valuation methods or assumptions used to determine fair values during the current period. No transfers between the levels of the fair value hierarchy occurred during the current fiscal period. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence. We may from time to time be required to remeasure the carrying value of certain assets and liabilities to fair value on a nonrecurring basis. Such adjustments typically arise if we determine that certain of our assets are impaired. Financial Instruments Recorded at Fair Value The following table summarizes balances and the fair value hierarchy level of our financial instruments recorded at fair value on a recurring basis as of the dates presented (in millions): February 28, 2026 August 31, 2025 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 272.5 $ — $ — $ 272.5 $ 422.5 $ — $ — $ 422.5 Assets in fair value hierarchy 272.5 — — 272.5 422.5 — — 422.5 Other investments (1) 6.1 5.1 Total assets at fair value $ 272.5 $ — $ — $ 278.6 $ 422.5 $ — $ — $ 427.6 ____________________________________ (1) Includes strategic investments in privately-held entities over which we do not exercise significant influence or control and without readily determinable fair values. Amounts are recorded at cost less any impairment adjusted for observable price changes, if any. Disclosures of Fair Value of Financial Instruments Disclosures of fair value information about financial instruments, for which it is practicable to estimate that value, are required each reporting period in addition to any financial instruments carried at fair value on a recurring basis as prescribed by ASC Topic 825, Financial Instruments (“ASC 825”). In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Fair value for our senior unsecured public notes is estimated based on discounted future cash flows using rates currently available for debt of similar terms and maturity (Level 2). Our senior unsecured public notes are carried at the outstanding balance, net of unamortized bond discount and deferred costs, as of the end of the reporting period. The estimated fair value of our senior unsecured public notes was $ 454.9 million and $ 446.7 million as of February 28, 2026 and August 31, 2025, respectively. We had $ 200.0 million and $ 400.0 million of borrowings outstanding under our Term Loan Facility (as defined herein) as of February 28, 2026 and August 31, 2025, respectively. Such borrowings are variable-rate instruments that reset on a frequent short-term basis; therefore, we estimate that any outstanding carrying values of these instruments, which are equal to their face amounts, approximate their fair values. See Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements for further details on our outstanding borrowings. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value to us. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating our management of liquidity 8 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) and other risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above. Note 6 — Inventories Inventories include materials, direct labor, inbound freight, customs, duties, tariffs, and related manufacturing overhead. Inventories are stated on a first-in, first-out basis at the lower of cost and net realizable value and consist of the following as of the dates presented (in millions): February 28, 2026 August 31, 2025 Raw materials, supplies, and work in process (1) $ 262.0 $ 246.8 Finished goods 285.2 306.7 Inventories excluding reserves 547.2 553.5 Less: Reserves ( 32.0 ) ( 26.8 ) Total inventories $ 515.2 $ 526.7 _______________________________________ (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, we do not believe the segregation of raw materials and work in process is meaningful information. We review inventory quantities on hand and record a provision for excess or obsolete inventory primarily based on estimated future demand and current market conditions. Although our historical experience related to demand and market conditions have been within expectations, a significant change in customer demand, market conditions, or technology could render certain inventory obsolete and thus could have a material adverse impact on our operating results in the period the change occurs. Note 7 — Property, Plant, and Equipment Property, plant, and equipment consist of the following as of the dates presented (in millions): February 28, 2026 August 31, 2025 Land $ 22.6 $ 22.2 Buildings and leasehold improvements 242.6 235.3 Machinery, equipment, and information technology 871.5 839.4 Total property, plant, and equipment, at cost 1,136.7 1,096.9 Less: Accumulated depreciation and amortization ( 786.4 ) ( 753.7 ) Property, plant, and equipment, net $ 350.3 $ 343.2 In the third quarter of fiscal 2025, one of our assets, with a carrying value of $ 5.5 million, met the criteria to be classified as held for sale. This asset is reflected within Prepayments and other current assets on our Consolidated Balance Sheets. It is expected to be sold within one year. Note 8 — Goodwill and Intangible Assets Through multiple acquisitions, we acquired definite-lived intangible assets consisting primarily of customer relationships, developed technology and patents, distribution networks, and trademarks and trade names associated with specific products, which are amortized over their estimated useful lives. Indefinite-lived intangible assets consist of trade names that are expected to generate cash flows indefinitely. We recorded amortization expense for definite-lived intangible assets of $ 24.0 million and $ 16.8 million during the three months ended February 28, 2026 and February 28, 2025, respectively and $ 47.4 million and $ 25.5 million during the six months ended February 28, 2026 and February 28, 2025, respectively. 9 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following table summarizes the changes in the carrying amount of goodwill by segment during the periods presented (in millions): ABL AIS Total Balance at August 31, 2025 $ 1,016.0 $ 479.5 $ 1,495.5 Foreign currency translation adjustments 1.2 0.7 1.9 Balance at February 28, 2026 $ 1,017.2 $ 480.2 $ 1,497.4 ABL AIS Total Balance at August 31, 2024 $ 1,015.1 $ 83.6 $ 1,098.7 Provisional amounts from acquired businesses — 363.5 363.5 Foreign currency translation adjustments ( 8.2 ) ( 3.7 ) ( 11.9 ) Balance at February 28, 2025 $ 1,006.9 $ 443.4 $ 1,450.3 Further discussion of goodwill and intangible assets is included within the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Note 9 — Other Current Liabilities Other current liabilities consist of the following as of the dates presented (in millions): February 28, 2026 August 31, 2025 Customer incentive programs (1) $ 33.1 $ 46.5 Refunds to customers (1) 31.9 31.7 Current deferred revenues (1) 23.3 21.4 Sales commissions 30.3 30.8 Freight costs 21.3 13.3 Product warranty costs (2) 27.0 29.4 Tax-related items (3) 21.6 25.3 Interest on debt (4) 3.1 3.8 Other 49.4 55.8 Total other current liabilities $ 241.0 $ 258.0 ____________________________________ (1) Refer to the Revenue Recognition footnote of the Notes to Consolidated Financial Statements within our Form 10-K for additional information. (2) Refer to the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements for additional information. (3) Includes accruals for income, property, sales and use, and value-added taxes. (4) Refer to the Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements for additional information. 10 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 10 — Debt and Lines of Credit Unsecured Notes On November 10, 2020, Acuity Brands Lighting, Inc., a wholly-owned operating subsidiary of Acuity Inc., issued $ 500.0 million aggregate principal amount of 2.150 % senior unsecured notes due December 15, 2030 (the “Unsecured Notes”) at a price equal to 99.737 % of their face value. Interest on the Unsecured Notes is paid semi-annually in arrears on June 15 and December 15 of each year. At issuance we recorded $ 4.8 million of deferred issuance costs related to the Unsecured Notes as a direct deduction from the face amount of the Unsecured Notes. These issuance costs are amortized over the 10-year term of the Unsecured Notes. The Unsecured Notes are fully and unconditionally guaranteed on a senior unsecured basis by Acuity Inc. and ABL IP Holding LLC, a wholly-owned subsidiary of Acuity Inc. Lines of Credit On June 30, 2022, we entered into a credit agreement (the “Credit Agreement”) with a syndicate of banks that provides us with a $ 600.0 million five-year unsecured revolving credit facility (the “Revolving Credit Facility”) with the ability to request an additional $ 400.0 million of borrowing capacity. We had no short-term borrowings outstanding under the Revolving Credit Facility at February 28, 2026 and August 31, 2025. On November 25, 2024, we entered into an amendment to the Credit Agreement that, among other things, provided for a delayed draw term loan facility of up to $ 600.0 million (the “Term Loan Facility”), which could be drawn in a single borrowing at any time, subject to certain conditions. In connection with the acquisition of QSC, we incurred an aggregate $ 600.0 million in indebtedness under the Term Loan Facility. In fiscal 2025, we voluntarily repaid $ 200.0 million of the outstanding obligation. In the first six months of fiscal 2026, we voluntarily repaid an additional $ 200.0 million of the outstanding obligation. We had borrowings outstanding under the Term Loan Facility of $ 200.0 million and $ 400.0 million at February 28, 2026 and August 31, 2025, respectively. The Term Loan Facility will mature on June 30, 2027, which is the maturity date of the revolving loans and commitments under the existing Credit Agreement. Borrowings under the Term Loan Facility bear interest at an adjusted term Secured Overnight Financing Rate (“SOFR”), adjusted daily simple SOFR rate, or base rate, at the Company’s option, plus an applicable margin. The applicable margin is based on, at our option, the Company’s leverage ratio or ratings level, each as defined in the Credit Agreement, and ranges from 0.875 % to 1.375 % (for SOFR-based loans) and from 0.0 % to 0.375 % (for base rate loans). The covenants and events of default that apply to the revolving loans and commitments under the Credit Agreement also apply to the Term Loan Facility, and borrowings under the Term Loan Facility are guaranteed by the Company and the subsidiaries of the Company that guarantee the revolving loans and commitments. We were in compliance with all financial covenants under the Credit Agreement as of the periods presented. At February 28, 2026, we had additional borrowing capacity under the Credit Agreement of $ 593.4 million under the most restrictive covenant in effect at the time, which represents the full amount of the Revolving Credit Facility less outstanding letters of credit of $ 6.6 million issued under the Revolving Credit Facility, primarily for securing collateral requirements under our casualty insurance policies. None of our existing debt instruments include provisions that would require an acceleration of repayments based solely on changes in our credit ratings. Borrowings and repayments on our Revolving Credit Facility with terms of three months or less are reported on a net basis on our Consolidated Statements of Cash Flows . 11 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 11 — Commitments and Contingencies In the normal course of business, we are subject to the effects of certain contractual stipulations, events, transactions, and laws and regulations that may, at times, require the recognition of liabilities, such as those related to self-insurance estimated liabilities and claims, legal and contractual issues, environmental laws and regulations, guarantees, and indemnities. We establish estimated liabilities when the associated costs related to uncertainties or guarantees become probable and can be reasonably estimated. For the period ended February 28, 2026, no material changes have occurred in our estimated liabilities for self-insurance, litigation, environmental matters, guarantees, and indemnities, or relevant events and circumstances, from those disclosed in the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Product Warranty Costs Our products generally have a standard warranty term of five years or less that assures our products comply with agreed upon specifications. We record an accrual for the estimated amount of future warranty costs in accordance with ASC Topic 450, Contingencies (“ASC 450”) when the related revenue is recognized and when costs are deemed to be probable and can be reasonably estimated. Liabilities related to product warranty costs are subject to uncertainty because they require estimates of future costs. Estimated future warranty costs are primarily based on historical experience, including the number and costs of identified warranty claims as well as the period of time between the shipment of products and our settlement of related claims. Any estimated or actual loss recoveries that offset our costs and payments are reflected as assets and included within Other current assets or Other long-term assets based on the timing of receipt of recovery. Recoveries are recorded net of allowances for credit losses. Although we assume that historical experience will continue to be the best indicator of future warranty costs, we cannot assure that future warranty costs will not exceed historical amounts, and/or loss recoveries will be fully collectible. If actual future warranty costs exceed recorded amounts, or recoveries are no longer collectible, adjustments to our accruals and/or receivables may be warranted, which could have a material adverse impact on our results of operations and cash flows. Estimated liabilities for product warranty costs are included in Other accrued liabilities or Other long-term liabilities on the Consolidated Balance Sheets based upon when we expect to settle the incurred warranty. The following table summarizes changes in the estimated liabilities for product warranty costs, excluding any estimated or actual lost recoveries, during the periods presented (in millions): Six Months Ended February 28, 2026 February 28, 2025 Beginning balance $ 44.1 $ 37.5 Product warranty costs 16.3 14.1 Payments and other deductions ( 19.7 ) ( 19.9 ) Acquired warranty liabilities — 7.8 Ending balance $ 40.7 $ 39.5 Litigation We are subject to various other legal claims arising in the normal course of business, including patent infringement, employment matters, and product liability claims. Based on information currently available, it is the opinion of management that the ultimate resolution of pending and threatened legal proceedings will not have a material adverse effect on our financial condition, results of operations, or cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of any such matters, if unfavorable, could have a material adverse effect on our financial condition, results of operations, or cash flows in future periods. We establish estimated liabilities for legal claims when associated costs become probable and can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher than the amounts accrued for such claims. However, we cannot make a meaningful estimate of actual costs to be incurred that could possibly be higher or lower than the accrued amounts. 12 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 12 — Changes in Stockholders' Equity The following tables summarize changes in the components of stockholders' equity for the periods presented (in millions): Common Stock Outstanding Shares (1) Amount Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock, at cost Total Balance, August 31, 2025 30.7 $ 0.5 $ 1,164.7 $ 4,285.8 $ ( 76.5 ) $ ( 2,649.6 ) $ 2,724.9 Net income — — — 120.5 — — 120.5 Other comprehensive loss — — — — ( 4.9 ) — ( 4.9 ) Share-based payment amortization, issuances, and cancellations 0.1 0.1 ( 15.1 ) — — — ( 15.0 ) Stock options exercised and other — * — 1.4 — — — 1.4 Cash dividends of $ 0.17 per share paid on common stock — — — ( 5.3 ) — — ( 5.3 ) Repurchases of common stock ( 0.1 ) — — — — ( 27.6 ) ( 27.6 ) Balance, November 30, 2025 30.7 0.6 1,151.0 4,401.0 ( 81.4 ) ( 2,677.2 ) 2,794.0 Net income — — — 96.8 — — 96.8 Other comprehensive income — — — — 20.7 — 20.7 Share-based payment amortization, issuances, and cancellations — * — 12.6 — — — 12.6 Stock options exercised and other — * — 0.9 — — — 0.9 Cash dividends of $ 0.20 per share paid on common stock — — — ( 6.3 ) — — ( 6.3 ) Repurchases of common stock ( 0.2 ) — — — — ( 77.9 ) ( 77.9 ) Balance, February 28, 2026 30.5 $ 0.6 $ 1,164.5 $ 4,491.5 $ ( 60.7 ) $ ( 2,755.1 ) $ 2,840.8 _______________________________________ (1) Share activity and balances above are calculated using rounded numbers. * Represents shares of less than 0.1 million. Common Stock Outstanding Shares (1) Amount Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock, at cost Total Balance, August 31, 2024 30.8 $ 0.5 $ 1,115.9 $ 3,909.8 $ ( 114.9 ) $ ( 2,532.5 ) $ 2,378.8 Net income — — — 106.7 — — 106.7 Other comprehensive loss — — — — ( 16.8 ) — ( 16.8 ) Share-based payment amortization, issuances, and cancellations 0.1 — ( 11.0 ) — — — ( 11.0 ) Stock options exercised and other 0.1 — 15.6 — — — 15.6 Cash dividends of $ 0.15 per share paid on common stock — — — ( 4.5 ) — — ( 4.5 ) Repurchases of common stock — * — — — — ( 5.4 ) ( 5.4 ) Balance, November 30, 2024 31.0 0.5 1,120.5 4,012.0 ( 131.7 ) ( 2,537.9 ) 2,463.4 Net income — — — 77.5 — — 77.5 Other comprehensive loss — — — — ( 11.2 ) — ( 11.2 ) Share-based payment amortization, issuances, and cancellations — * — 10.9 — — — 10.9 Stock options exercised and other — * — 1.4 — — — 1.4 Cash dividends of $ 0.17 per share paid on common stock — — — ( 5.5 ) — — ( 5.5 ) Repurchases of common stock — * — — — — ( 16.1 ) ( 16.1 ) Balance, February 28, 2025 31.0 $ 0.5 $ 1,132.8 $ 4,084.0 $ ( 142.9 ) $ ( 2,554.0 ) $ 2,520.4 _______________________________________ (1) Share activity and balances above are calculated using rounded numbers. * Represents shares of less than 0.1 million. 13 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 13 — Revenue We recognize revenue when we transfer control of goods and services to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for goods and services and is recognized net of rebates, sales incentives, product returns, and discounts to customers. We allocate the expected consideration to be collected to each distinct performance obligation identified in a sale based on its standalone selling price. Sales and use taxes collected on behalf of governmental authorities are excluded from revenues. Further details regarding revenue recognition are included within the Revenue Recognition footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Contract Balances Our rights related to collections from customers are unconditional and are reflected within Accounts receivable on the Consolidated Balance Sheets at net realizable value. Further details regarding our method for developing our estimate of expected credit losses over the contractual term of our receivables are included within the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. We do not have any other significant contract assets. Contract liabilities arise when we receive cash or an unconditional right to collect cash prior to the transfer of control of goods or services. The amount of transaction price from contracts with customers allocated to our contract liabilities consists of the following as of the dates presented (in millions): February 28, 2026 August 31, 2025 Current deferred revenues $ 23.3 $ 21.4 Non-current deferred revenues 34.1 38.0 Current deferred revenues primarily consist of upfront fees collected for service-type warranties, time-bound software licenses, software as a service arrangements, and professional fees and are included within Other current liabilities on the Consolidated Balance Sheets. These services are expected to be performed within one year. Revenue recognized from beginning balances of contract liabilities during the six months ended February 28, 2026 totaled $ 13.7 million. Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five years and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets. Unsatisfied performance obligations that do not represent contract liabilities are expected to be satisfied within one year from February 28, 2026 and consist primarily of orders for physical goods that have not yet been shipped. 14 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Disaggregated Revenues Our ABL segment's luminaires and electronics are sold primarily through independent sales agents who cover specific geographic areas and market channels, by internal sales representatives, through consumer retail channels, directly to large corporate accounts, and through other distribution methods, including directly to OEM customers. AIS sells predominantly to system integrators. The following table shows revenue from contracts with customers by sales channel and reconciles to our segment information for the periods presented (in millions): Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 ABL: Independent sales network $ 616.7 $ 615.2 $ 1,283.0 $ 1,259.1 Direct sales network 70.6 97.4 161.0 204.6 Retail sales 40.3 41.0 87.1 85.9 Corporate accounts 40.7 35.6 80.6 68.3 OEM and other 49.1 51.4 100.8 108.7 Total ABL 817.4 840.6 1,712.5 1,726.6 AIS 248.1 171.5 505.5 245.0 Eliminations ( 9.8 ) ( 5.8 ) ( 18.6 ) ( 13.7 ) Total $ 1,055.7 $ 1,006.3 $ 2,199.4 $ 1,957.9 Note 14 — Share-based Payments We account for share-based payments through the measurement and recognition of compensation expense for share-based payment awards made to employees and directors over the related requisite service period, including restricted stock, performance stock units, and stock options (all part of our equity incentive plan), as well as stock units representing certain deferrals into our director deferred compensation plan or our supplemental deferred savings plan. The following table presents share-based payment expense for the periods presented (in millions): Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Share-based payment expense $ 13.1 $ 11.4 $ 25.6 $ 23.5 Further details regarding our share-based payments are included within the Share-based Payments footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Note 15 — Pension Plans We have pension plans, both qualified and non-qualified, covering certain hourly and salaried employees. Benefits paid under these plans are based generally on employees’ years of service and/or compensation during the final years of employment. We historically have made at least the minimum annual contributions to the plans to the extent indicated by actuarial valuations and statutory requirements. Plan assets are invested primarily in fixed income and equity securities. 15 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Service cost of net periodic pension cost is allocated between Cost of products sold and Selling, distribution, and administrative expenses in the Consolidated Statements of Comprehensive Income based on the function of the employee's services. All other components of net periodic pension cost are included within Miscellaneous expense, net in the Consolidated Statements of Comprehensive Income . Net periodic pension cost included the following components before tax for the periods presented (in millions): Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Service cost $ 1.0 $ 1.3 $ 2.1 $ 2.7 Administrative cost 0.1 — 0.1 — Interest cost 1.3 2.4 2.5 4.8 Expected return on plan assets ( 0.8 ) ( 2.1 ) ( 1.5 ) ( 4.2 ) Recognized actuarial loss 0.4 0.6 0.8 1.3 Net periodic pension cost $ 2.0 $ 2.2 $ 4.0 $ 4.6 Further details regarding our pension plans are included within the Pension and Defined Contribution Plans footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Note 16 — Special Charges During the second fiscal quarter of 2026, we recognized pre-tax special charges consisting of employee severance costs of $ 5.9 million related to productivity improvements in our ABL segment. These charges primarily related to labor cost reductions. We recognized no special charges during the three and six months ended February 28, 2025. As of February 28, 2026, remaining accruals related to special charges totaled $ 4.9 million and are included in Accrued compensation in the Consolidated Balance Sheets . These amounts related to unpaid severance and employee-related costs from our second quarter fiscal 2026 actions. Note 17 — Other Expense The following table summarizes the components of O ther expense (income) , net for the periods presented (in millions): Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Interest expense (income), net: Interest expense $ 8.7 $ 11.7 $ 19.2 $ 17.8 Interest income ( 1.7 ) ( 4.8 ) ( 3.8 ) ( 14.9 ) Interest expense, net 7.0 6.9 15.4 2.9 Miscellaneous (income) expense, net: Non-service components of net periodic pension cost 1.0 0.9 1.9 1.9 Foreign currency transaction losses (gains) 1.6 ( 0.2 ) 0.9 ( 0.1 ) Other items 0.5 0.3 ( 0.3 ) 1.7 Miscellaneous expense, net 3.1 1.0 2.5 3.5 Other expense, net $ 10.1 $ 7.9 $ 17.9 $ 6.4 16 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 18 — Earnings Per Share Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share is computed similarly but reflects the potential dilution that would occur if dilutive options were exercised, unvested share-based payment awards were vested, and other distributions related to deferred stock agreements were incurred. Common stock equivalents are calculated using the treasury stock method. The dilutive effects of share-based payment awards subject to market and/or performance conditions that were not met during the period are excluded from the computation of diluted earnings per share. The following table calculates basic earnings per common share and diluted earnings per common share for the periods presented (in millions, except per share data): Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Net income $ 96.8 $ 77.5 $ 217.3 $ 184.2 Basic weighted average shares outstanding 30.630 30.999 30.660 30.957 Common stock equivalents 0.732 0.701 0.794 0.785 Diluted weighted average shares outstanding 31.362 31.700 31.454 31.742 Basic earnings per share (1) $ 3.16 $ 2.50 $ 7.09 $ 5.95 Diluted earnings per share (1) $ 3.09 $ 2.45 $ 6.91 $ 5.80 _______________________________________ (1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding. Stock options, performance stock awards, and restricted stock awards that were excluded from the diluted earnings per share calculation as the effect of inclusion would have been antidilutive were immaterial for the three and six months ended February 28, 2026 and February 28, 2025. Further discussion of our share-based payment awards is included within the Common Stock and Related Matters and Share-based Payments footnotes of the Notes to Consolidated Financial Statements within our Form 10-K. Note 19 — Comprehensive Income Comprehensive income represents a measure of all changes in equity that result from recognized transactions and other economic events other than transactions with owners in their capacity as owners. Comprehensive income includes our net income as well as other comprehensive (loss) income items, which are comprised of foreign currency translation and pension adjustments. 17 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following table presents the changes in each component of accumulated other comprehensive loss net of tax during the periods presented (in millions): Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Items Balance at August 31, 2025 $ ( 60.1 ) $ ( 16.4 ) $ ( 76.5 ) Other comprehensive income before reclassifications 15.3 — 15.3 Amounts reclassified from accumulated other comprehensive loss (1) — 0.5 0.5 Net current period other comprehensive income 15.3 0.5 15.8 Balance at February 28, 2026 $ ( 44.8 ) $ ( 15.9 ) $ ( 60.7 ) Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Items Balance at August 31, 2024 $ ( 70.9 ) $ ( 44.0 ) $ ( 114.9 ) Other comprehensive loss before reclassifications ( 29.0 ) — ( 29.0 ) Amounts reclassified from accumulated other comprehensive loss (1) — 1.0 1.0 Net current period other comprehensive (loss) income ( 29.0 ) 1.0 ( 28.0 ) Balance at February 28, 2025 $ ( 99.9 ) $ ( 43.0 ) $ ( 142.9 ) _______________________________________ (1) The before tax amounts of the defined benefit pension plan items are included in net periodic pension cost. See the Pension and Defined Contribution Plans footnote of the Notes to Consolidated Financial Statements for additional details. The following table summarizes the tax expense or benefit allocated to each component of other comprehensive income (loss) for the periods presented (in millions): Three Months Ended February 28, 2026 February 28, 2025 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Foreign currency translation adjustments $ 20.4 $ — $ 20.4 $ ( 11.7 ) $ — $ ( 11.7 ) Actuarial losses on defined benefit pension plans 0.4 ( 0.1 ) 0.3 0.6 ( 0.1 ) 0.5 Other comprehensive income (loss) $ 20.8 $ ( 0.1 ) $ 20.7 $ ( 11.1 ) $ ( 0.1 ) $ ( 11.2 ) Six Months Ended February 28, 2026 February 28, 2025 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Foreign currency translation adjustments $ 15.3 $ — $ 15.3 $ ( 29.0 ) $ — $ ( 29.0 ) Actuarial losses on defined benefit pension plans 0.8 ( 0.3 ) 0.5 1.3 ( 0.3 ) 1.0 Other comprehensive income (loss) $ 16.1 $ ( 0.3 ) $ 15.8 $ ( 27.7 ) $ ( 0.3 ) $ ( 28.0 ) Note 20 — Segment Information We report our financial results of operations in two reportable segments, ABL and AIS, consistent with how our chief operating decision maker (“CODM”), Neil Ashe, Chairman, President and Chief Executive Officer, evaluates operating results, assesses performance, and allocates resources within the Company. See the Description of Business and Basis of Presentation footnote of the Notes to Consolidated Financial Statements for further details on how we identify our reportable segments. For both segments, our CODM uses segment operating profit as the measurement of segment profit to allocate resources and assess performance. Our CODM considers target-to-actual differences in operating profit when making decisions on how to allocate capital and resources. Additionally, he considers segment operating profit when evaluating employee compensation and personnel allocations. 18 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) We allocate certain working capital assets and capital expenditures to our segments primarily to assess each segment's contribution to our consolidated operating cash flows and capital expenditures. Segment assets include accounts receivable and inventory. Unallocated assets are presented in corporate as a reconciling item to our total consolidated assets. The accounting policies of our reportable segments are the same as those described in the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Corporate expenses that are primarily administrative in function and benefit the Company on an entity-wide basis are not allocated to segments. These include expenses related to governance, policy setting, compliance, and certain other shared services functions. Additionally, net interest expense, net miscellaneous expense, and income tax expense are not allocated to segments. The following table presents financial information by operating segment for the periods presented (in millions): Three Months Ended February 28, 2026 ABL AIS Corporate Eliminations Total Net sales $ 817.4 $ 248.1 $ — $ ( 9.8 ) $ 1,055.7 Cost of products sold 443.6 101.5 — ( 9.8 ) 535.3 Selling, distribution, and administrative expenses 242.8 118.3 20.4 — 381.5 Special charges 5.9 — — — 5.9 Operating profit $ 125.1 $ 28.3 $ ( 20.4 ) $ — 133.0 Interest expense, net 7.0 Miscellaneous expense, net 3.1 Income before income taxes $ 122.9 Supplemental Information: Depreciation and amortization $ 17.9 $ 20.4 $ 0.5 $ — $ 38.8 Segment assets 864.9 229.3 3,464.3 — 4,558.5 Capital expenditures 12.8 1.5 1.5 — 15.8 Three Months Ended February 28, 2025 ABL AIS Corporate Eliminations Total Net sales $ 840.6 $ 171.5 $ — $ ( 5.8 ) $ 1,006.3 Cost of products sold 462.6 81.5 — ( 5.8 ) 538.3 Selling, distribution, and administrative expenses 247.7 80.1 30.0 — 357.8 Operating profit $ 130.3 $ 9.9 $ ( 30.0 ) $ — 110.2 Interest expense, net 6.9 Miscellaneous expense, net 1.0 Income before income taxes $ 102.3 Supplemental Information: Depreciation and amortization $ 18.1 $ 11.8 $ 0.6 $ — $ 30.5 Segment assets 834.8 214.7 3,532.2 — 4,581.7 Capital expenditures 7.4 2.1 0.2 — 9.7 19 Table of Contents ACUITY INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Six Months Ended February 28, 2026 ABL AIS Corporate Eliminations Total Net sales $ 1,712.5 $ 505.5 $ — $ ( 18.6 ) $ 2,199.4 Cost of products sold 938.1 205.7 — ( 18.6 ) 1,125.2 Selling, distribution, and administrative expenses 494.4 234.5 46.0 — 774.9 Special charges 5.9 — — — 5.9 Operating profit $ 274.1 $ 65.3 $ ( 46.0 ) $ — 293.4 Interest expense, net 15.4 Miscellaneous expense, net 2.5 Income before income taxes $ 275.5 Supplemental Information: Depreciation and amortization $ 35.0 $ 40.8 $ 1.3 $ — $ 77.1 Segment assets 864.9 229.3 3,464.3 — 4,558.5 Capital expenditures 36.1 4.2 1.5 — 41.8 Six Months Ended February 28, 2025 ABL AIS Corporate Eliminations Total Net sales $ 1,726.6 $ 245.0 $ — $ ( 13.7 ) $ 1,957.9 Cost of products sold 942.2 112.1 — ( 13.7 ) 1,040.6 Selling, distribution, and administrative expenses 510.8 112.2 50.8 — 673.8 Operating profit $ 273.6 $ 20.7 $ ( 50.8 ) $ — 243.5 Interest expense, net 2.9 Miscellaneous expense, net 3.5 Income before income taxes $ 237.1 Supplemental Information: Depreciation and amortization $ 35.7 $ 15.2 $ 1.2 $ — $ 52.1 Segment assets 834.8 214.7 3,532.2 — 4,581.7 Capital expenditures 25.5 2.9 0.2 — 28.6 20 Table of Contents