As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the electrical systems industry, including Acuity Brands (NYSE: AYI) and its peers.
Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products.
The 14 electrical systems stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 1.3% below.
In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.
Acuity Brands (NYSE: AYI)
One of the pioneers of smart lights, Acuity (NYSE: AYI) designs and manufactures light fixtures and building management systems used in various industries.
Acuity Brands reported revenues of $1.14 billion, up 20.2% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ adjusted operating income estimates.
"We delivered strong performance in our first quarter of fiscal 2026," stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc.
Unsurprisingly, the stock is down 17.1% since reporting and currently trades at $306.53.
Best Q4: LSI (NASDAQ: LYTS)
Enhancing commercial environments, LSI (NASDAQ: LYTS) provides lighting and display solutions for businesses and retailers.
LSI reported revenues of $147 million, flat year on year, outperforming analysts’ expectations by 4.9%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
The market seems happy with the results as the stock is up 9.1% since reporting. It currently trades at $22.24.
Is now the time to buy LSI? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Whirlpool (NYSE: WHR)
Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.
Whirlpool reported revenues of $4.10 billion, flat year on year, falling short of analysts’ expectations by 3.7%. It was a softer quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.
Whirlpool delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 12.4% since the results and currently trades at $70.82.
Read our full analysis of Whirlpool’s results here.
Verra Mobility (NASDAQ: VRRM)
Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NYSE: VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.
Verra Mobility reported revenues of $257.9 million, up 16.4% year on year. This print topped analysts’ expectations by 6.7%. More broadly, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Verra Mobility achieved the biggest analyst estimates beat among its peers. The stock is down 14.3% since reporting and currently trades at $16.04.
Read our full, actionable report on Verra Mobility here, it’s free.
Sanmina (NASDAQ: SANM)
Founded in 1980, Sanmina (NASDAQ: SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries.
Sanmina reported revenues of $3.19 billion, up 59% year on year. This number surpassed analysts’ expectations by 3.3%. More broadly, it was a mixed quarter as it also recorded an impressive beat of analysts’ revenue estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
Sanmina pulled off the fastest revenue growth among its peers. The stock is down 12% since reporting and currently trades at $160.61.
Read our full, actionable report on Sanmina here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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