10 Benjamin Graham Stocks for Defensive Investors

3. Acuity Inc. (NYSE:AYI)

Number of Hedge Fund Holders: 47

Acuity Inc. (NYSE: AYI) is a market-leading industrial technology company that designs and manufactures lighting and building management solutions. Through its two segments, Acuity Brands Lighting and Lighting Controls (ABL) and Intelligent Spaces Group (ISG), the company focuses on innovative products like energy-efficient LED lighting, building management systems, and location-aware applications. ABL offers a range of lighting products and controls, while ISG enhances building efficiency with integrated solutions for HVAC, lighting, and security. Acuity serves various industries across North America and select international markets.

In Q1 of Fiscal 2025, Acuity Inc. (NYSE: AYI) reported $952 million in net sales, up 2% from the prior year. Adjusted operating profit increased by 3% to $159 million, with a margin of 16.7%. Adjusted diluted earnings per share grew 7% to $3.97. ABL saw growth from lighting solutions, while ISG benefited from strong sales in building management systems. The acquisition of QSC strengthens the Intelligent Spaces division. The company’s financial outlook for FY2025 includes net sales between $4.3 billion and $4.5 billion and adjusted earnings per share between $16.50 and $18. Acuity is optimistic about 2025, expecting better market conditions than 2024, driven by solid execution in its Lighting business and growing momentum in its Intelligent Spaces Group. Product segmentation strategies like Contractor Select and Design Select are gaining traction. Meanwhile, the acquisition of QSC strengthens the Intelligent Spaces division, and particularly its end-to-end control of smart spaces, with revenue synergies expected over time. While corporate and retail channels varied, strong performance in the independent sales network suggests continued growth.