What Acuity Inc. told the SEC could break it.

Approximately 55% of Acuity's finished products are manufactured in Mexico (7 of 18 facilities, ~57% of finished goods), several operating under Maquiladora/IMMEX duty-free status; Mexican civil unrest, US-Mexico trade disputes, stricter Maquiladora rules or loss of that status (or nationalization) could disrupt supply and raise manufacturing costs.

“Approximately 55% of our finished products are manufactured in Mexico, a country that periodically experiences heightened civil unrest or may experience trade disputes with the U.S., both of which could cause a disruption of the supply of products to or from these facilities.”

A large portion of Acuity's sales depend on USMCA preferential tariff treatment, and the US has imposed/considered tariffs on steel, copper and aluminum (with retaliatory tariffs from China and others); higher tariffs already raised production costs in fiscal 2025 and could further increase costs or reduce demand if not mitigated.

“A large portion of our sales are impacted by the USMCA. In addition, the U.S. government has initiated or is considering imposing tariffs on certain foreign goods, including steel, copper, and aluminum. Increased and/or proposed tariffs by the United States have led, and may continue to lead, to the imposition of retaliatory tariffs by China and other countries.”

Although Acuity generally sources from multiple suppliers, a limited number of suppliers exist for certain components and purchased finished goods, resulting on a limited basis in sole-source situations; some of those items are supplied by competitors who may, for strategic reasons, cease selling to Acuity.

“However, there are a limited number of suppliers for certain components and certain purchased finished goods, which on a limited basis, results in sole-source supplier situations. Our competitors supply certain items, and those competitors and other suppliers may, for various strategic reasons, choose to cease selling to us.”