Advanced Drainage Systems tops Q1 estimates amid challenging conditions

Published 07/08/2025, 11:50
 Advanced Drainage Systems tops Q1 estimates amid challenging conditions

Investing.com -- Advanced Drainage Systems, Inc. (NYSE:WMS), a provider of water management solutions, on Thursday reported first-quarter fiscal 2026 results that exceeded analyst expectations despite weather-related challenges and macroeconomic headwinds.

The company posted adjusted earnings per share of $1.95, beating the analyst estimate of $1.76 by $0.19. Revenue came in at $829.9 million, surpassing the consensus estimate of $801.79 million.

Compared to the same quarter last year, revenue increased 1.8%, while adjusted EBITDA rose 1.0% to $278.2 million.

"We delivered strong results in the fiscal first quarter, with Adjusted EBITDA margin of 33.5%," said Scott Barbour, President and CEO.

"Wet weather in May and June continued to delay project installations, and elevated interest rates remain a headwind. However, the ADS and Infiltrator teams executed well and remain focused on driving profitable growth and operational performance in a challenging macroeconomic environment."

The company’s Infiltrator segment showed the strongest performance, with sales increasing 21.1% to $178.4 million, primarily due to the acquisition of Orenco Systems.

Domestic pipe sales decreased 2.5% to $415.5 million, while international sales fell 16.0% to $48.5 million.

Advanced Drainage Systems confirmed its fiscal 2026 outlook, projecting revenue between $2.825 billion and $2.975 billion, in line with the analyst consensus of $2.896 billion.

The company expects adjusted EBITDA between $850 million and $910 million, with capital expenditures ranging from $200 million to $225 million.

The company maintained a strong financial position with total liquidity of $1.23 billion as of June 30, 2025, including $638.3 million in cash and $589.9 million in available credit facilities.

Its trailing-twelve-month leverage ratio stood at 0.9 times adjusted EBITDA.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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