Advanced Drainage Systems Inc (WMS)

Advanced Drainage Systems Hosts 2026 Investor DayJune 18, 2026 6:30 AM
Business Wire Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading manufacturer of stormwater and onsite wastewater management products and solutions for commercial, residential, infrastructure and agricultural applications, will host its 2026 Investor Day today in Hilliard, OH. The event will take place at the new ADS Engineering and Technology Center, the world’s most advanced stormwater facility and a hub for innovation and new product development, and will include a walking tour for in-person guests. Attendees will hear directly from the leadership team as they share updates on ADS’ pure play water exposure, differentiated growth story, and resilient profit platform, followed by a panel discussion on Innovation and the Future of Water Management Solutions. The Company will also unveil its fiscal 2030 outlook and growth projections. The presentation will be followed by a question-and-answer session. The presentation is scheduled to begin at 9:00 a.m. ET and will be webcast live at investors.ads-pipe.com. A replay will also be available on the website following the event. About the Company Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite wastewater solutions that manage the world’s most precious resource: water. ADS, along with NDS and Infiltrator Water Technologies, provides superior stormwater drainage and onsite wastewater products used across commercial, residential, infrastructure, and agricultural applications, while delivering unparalleled customer service. ADS operates the industry’s largest company-owned fleet, an expansive sales team and a vast manufacturing network. As one of the largest plastic recycling companies in North America, ADS keeps hundreds of millions of pounds of plastic out of landfills each year. Founded in 1966, ADS’ water management solutions are designed to last for decades. To learn more, visit the Company’s website at www.adspipe.com. Forward-Looking Statements Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “confident” and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials, new tariff and international trade policies, and our ability to pass any increased costs of raw materials and tariffs on to our customers in a timely manner; disruption or volatility in general business, political and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions or doing so within the intended timeframe, including our ability to successfully integrate NDS into our business; risks that the acquisition of NDS may involve unexpected costs, liabilities, risks that the cost savings and synergies from the acquisition of NDS may not be fully realized; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effects of global climate change and any related regulatory responses; our ability to protect against cybersecurity incidents and disruptions or failures of our IT systems; our ability to assess and monitor the effects of artificial intelligence, machine learning, robotics and blockchain or other new approaches to data mining on our business and operations; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; our ability to appropriately address any environmental, social or governance concerns that may arise from our activities; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260618206310/en/ For more information, please contact:
Michael Higgins
VP, Corporate Strategy & Investor Relations
(614) 658-0050
Mike.Higgins@ads-pipe.com Original: Advanced Drainage Systems Hosts 2026 Investor Day

Advanced Drainage Systems tops forecasts despite cautious demand outlook (WMS)May 21, 2026 8:45 AM
IH Market News Advanced Drainage Systems (NYSE:WMS) reported fourth-quarter results ahead of analyst expectations, although shares fell 3.4% after management struck a cautious tone regarding future demand conditions.The water infrastructure and drainage products group posted adjusted earnings per share of US$1.07 for the quarter ended March 31, beating analyst forecasts of US$0.95 by US$0.12.Quarterly revenue increased 9.9% year-on-year to US$676.8 million, ahead of analyst expectations of US$652.07 million.Organic sales growth reached 2.0% during the quarter.The company said revenue growth was supported by strong demand for Allied products as well as the contribution from its acquisition of NDS, which closed during the quarter.For fiscal 2027, Advanced Drainage Systems forecast revenue of between US$3.35 billion and US$3.55 billion.The midpoint of the guidance range, US$3.45 billion, stands roughly 14% above the analyst consensus estimate of US$3.03 billion.Despite the strong guidance, management warned that the broader demand environment remains uncertain due to geopolitical risks, elevated interest rates and wider economic pressures.The company noted that while large non-residential construction projects continue to support activity, residential construction markets have weakened.“In the fourth quarter, net sales increased 10% overall, driven by strong growth in Allied products as well as the contribution from the NDS acquisition, which we closed in the quarter,” said Scott Barbour, President and Chief Executive Officer.For fiscal 2026, net sales rose 5% as the company continued executing its growth strategy focused on material conversion, product innovation and acquisitions.Higher-margin product categories continued to perform strongly, with Infiltrator products growing 14% and Allied products increasing 13% during the year.Together, those categories represented 48% of total fiscal 2026 revenue.The company also reported an adjusted EBITDA margin of 31.6% for the fiscal year.Advanced Drainage Systems generated US$819.1 million in operating cash flow during fiscal 2026 and returned US$155.4 million to shareholders.Advanced Drainage Systems stock price Original: Advanced Drainage Systems tops forecasts despite cautious demand outlook (WMS)

Advanced Drainage Systems Announces Fourth Quarter and Fiscal Year 2026 ResultsMay 21, 2026 6:40 AM
Business Wire Closed NDS acquisition Fourth quarter net sales increased 9.9% to $676.8 million Fourth quarter organic sales increased 2.0% Generated $819.1 million in cash from operations; returned $155.4 million to shareholders in Fiscal Year 2026 Advanced Drainage Systems, Inc. (NYSE: WMS) ("ADS" or the "Company"), a leading provider of innovative water management solutions in the stormwater and wastewater industries today announced financial results for the fourth quarter and fiscal year ended March 31, 2026. Scott Barbour, President and Chief Executive Officer of ADS commented, "In the fourth quarter, net sales increased 10% overall, driven by strong growth in Allied products as well as the contribution from the NDS acquisition, which we closed in the quarter. We continue to focus on material conversion, new product introductions, customer programs and acquisitions to drive growth in the challenging demand environment. Adjusted EBITDA also increased 6%, driven by favorable volume and price/cost." "In Fiscal 2026, net sales increased 5% as we executed our differentiated growth strategy to drive above market performance through material conversion, product innovation and acquisitions in the stormwater and wastewater markets. Importantly, sales in our higher margin products, Infiltrator and Allied products, increased 14% and 13%, respectively, and these product categories represented a collective 48% of Fiscal 2026 revenue. The resiliency of our model demonstrated by this year's 31.6% Adjusted EBITDA margin is due in part to our strategy to grow these more profitable products to be a higher mix of the overall sales." "Turning to Fiscal 2027, we are cautious on the demand outlook due to the geopolitical uncertainty, elevated interest rates and resulting economic uncertainty. Non-residential construction activity continues to benefit from large projects, though residential construction activity has slowed. We have good line of sight into our costs, and we are working to offset inflationary pressure on a dollar-for-dollar basis through pricing actions as well as by utilizing our North American leading recycling capabilities to pivot to lower-cost material. We are confident in our ability to grow and increase market share during this period of market uncertainty, supported by our national reach and industry-leading product portfolio, as we focus on growing geographies and segments of the construction market, such as data centers." Barbour concluded, "Long term, we will continue to grow our resilient platform with strong cash generation to enable disciplined capital allocation that drives shareholder returns." Fourth Quarter Fiscal 2026 Results Net sales increased $61.0 million, or 9.9%, to $676.8 million, as compared to $615.8 million in the prior year quarter. Stormwater sales increased $56.0 million, or 11.7%, to $534.7 million, as compared to $478.8 million in the prior year quarter. Stormwater sales include $48.8 million of revenue from the acquisition of National Diversified Sales ("NDS"). Stormwater sales increased 2% on an organic basis. Wastewater sales increased $5.0 million, or 3.7%, to $142.0 million, as compared to $137.0 million in the prior year period. Gross profit increased $11.4 million, or 5.0%, to $237.7 million as compared to $226.3 million in the prior year. The increase in gross profit is primarily driven by volume growth, favorable price/cost, and favorable mix of Allied products and Infiltrator. Selling, general and administrative expenses increased $46.2 million, or 50.5% to $137.6 million, as compared to $91.4 million in the prior year. As a percentage of sales, selling, general and administrative expense was 20.3% as compared to 14.8% in the prior year. The increase was primarily driven by the acquisition of NDS and associated transaction costs. Net income from continuing operations decreased $41.6 million, or 54.1%, to $35.2 million, as compared to $76.8 million in the prior year. Diluted Earnings Per Share ("EPS") from continuing operations decreased $0.56, or 56.6%, to $0.43, as compared to $0.99 per share in the prior year quarter. The decrease is primarily due to acquisition related costs as well as restructuring and realignment expenses. Adjusted EPS from continuing operations increased $0.04, or 3.9%, to $1.07, as compared to $1.03 in the prior year period. Adjusted EBITDA (Non-GAAP) increased $11.3 million, or 6.4%, to $188.0 million, as compared to $176.7 million in the prior year, primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 27.8% as compared to 28.7% in the prior year. Segment sales results are based on Net sales to external customers. Reconciliations of GAAP to Non-GAAP financial measures for Adjusted EBITDA, Free Cash Flow and Adjusted Earnings per Share have been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures." Fiscal Year 2026 Results Net sales increased $146.1 million, or 5.0%, to $3,050.4 million, as compared to $2,904.2 million in the prior year. Stormwater sales increased $71.0 million, or 3.1% to $2,397.4 million, as compared to $2,326.4 million in the prior year. Wastewater sales increased $75.1 million, or 13.0%, to $653.0 million, as compared to $577.9 million in the prior year. Gross profit increased $73.1 million, or 6.7%, to $1,167.4 million as compared to $1,094.2 million in the prior year. The increase in gross profit is primarily driven by favorable volume, price/cost and mix of construction market and Infiltrator sales, partially offset by unfavorable fixed cost absorption as well as the mix impact from acquisitions. Selling, general and administrative expenses increased $89.2 million, or 23.4% to $469.5 million, as compared to $380.4 million. As a percentage of sales, selling, general and administrative expense was 15.4% as compared to 13.1% in the prior year. The increase was primarily driven by the acquisitions of Orenco and NDS, as well as transaction costs associated with the acquisition of NDS. Net income from continuing operations decreased $22.7 million, or 5.0%, to $429.9 million, as compared to $452.6 million in the prior year. Diluted EPS from continuing operations decreased $0.31, or 5.4%, to $5.45, as compared to $5.76 per share in the prior year quarter. The decrease is primarily due to acquisition related costs as well as restructuring and realignment expenses. Adjusted EPS from continuing operations increased $0.38, or 6.5%, to $6.27, as compared to $5.89 in the prior year period. Adjusted EBITDA (Non-GAAP) increased $73.7 million, or 8.3%, to $962.9 million, as compared to $889.2 million in the prior year, primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 31.6% as compared to 30.6% in the prior year. NDS Acquisition and New Segment Reporting On February 2, 2026, the Company announced that it completed the previously disclosed acquisition of the water management business of Norma Group SE (DAX: NOEJ), known as National Diversified Sales ("NDS"). For more information, visit the Investor Relations section of the Company's website. Following the acquisition of NDS the Company realigned its reportable segments to align with the manner in which the chief operating decision maker assesses performance and makes resource allocation decisions. ADS operates its business in two distinct reportable segments: "Stormwater" and "Wastewater", which are primarily organized based on products. The Stormwater segment primarily consists of the former Pipe and International segments, as well as Allied Products & Other. The Wastewater segment primarily consists of the former Infiltrator segment. Balance Sheet and Liquidity Net cash provided by operating activities was $819.1 million, as compared to $581.5 million in the prior year. Free cash flow (Non-GAAP) was $569.3 million, as compared to $368.5 million in the prior year. Capital expenditures increased $36.8 million over the prior year as we continue to invest in safety, capacity and productivity. Net debt (total debt and finance lease obligations net of cash) was $1,548.9 million as of March 31, 2026, an increase of $586.5 million from March 31, 2025. ADS had total liquidity of $962.9 million, comprised of cash of $223.0 million as of March 31, 2026 and $739.9 million of availability under committed credit facilities. As of March 31, 2026, the Company’s leverage ratio was 1.6 times. In the twelve months ended March 31, 2026, the Company repurchased 0.7 million shares of its common stock for a total cost of $99.2 million. Between common stock repurchased and dividends paid, the Company returned $155.4 million to shareholders in the year ended March 31, 2026, an increase of 29.8% compared to $119.7 million in the year ended March 31, 2025. As of March 31, 2026, the Company has $1.0 billion remaining under its share repurchase authorization. Fiscal Year 2027 Outlook Based on current visibility, backlog of existing orders and business trends, the Company issued the following targets for fiscal 2027. Net sales are expected to be in the range of $3.350 billion to $3.550 billion. Adjusted EBITDA is expected to be in the range of $1.0 billion to $1.050 billion. Capital expenditures are expected to be approximately $200 million. Conference Call Information Webcast: Interested investors and other parties can listen to a webcast of the live conference call by logging in through the Investor Relations section of the Company's website at https://investors.ads-pipe.com/events-and-presentations. An online replay will be available on the same website following the call. About the Company Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite wastewater solutions that manage the world’s most precious resource: water. ADS, along with NDS and Infiltrator Water Technologies, provides superior stormwater drainage and onsite wastewater products used across commercial, residential, infrastructure, and agricultural applications, while delivering unparalleled customer service. ADS operates the industry’s largest company-owned fleet, an expansive sales team and a vast manufacturing network. As one of the largest plastic recycling companies in North America, ADS keeps hundreds of millions of pounds of plastic out of landfills each year. Founded in 1966, ADS’ water management solutions are designed to last for decades. To learn more, visit the Company’s website at www.adspipe.com. Forward Looking Statements Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as "may," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expects," "intends," "plans," "projects," "believes," "estimates," "confident" and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials, new tariff and international trade policies, and our ability to pass any increased costs of raw materials and tariffs on to our customers in a timely manner; disruption or volatility in general business, political and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions or doing so within the intended timeframe, including our ability to successfully integrate NDS into our business; risks that the acquisition of NDS may involve unexpected costs, liabilities, risks that the cost savings and synergies from the acquisition of NDS may not be fully realized; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effects of global climate change and any related regulatory responses; our ability to protect against cybersecurity incidents and disruptions or failures of our IT systems; our ability to assess and monitor the effects of artificial intelligence, machine learning, robotics and blockchain or other new approaches to data mining on our business and operations; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; our ability to appropriately address any environmental, social or governance concerns that may arise from our activities; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Financial Statements ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (unaudited)     Three Months Ended March 31,   Fiscal Year Ended March 31, (In thousands, except per share data)   2026       2025       2026       2025   Net sales $ 676,761     $ 615,761     $ 3,050,376     $ 2,904,245   Cost of goods sold   439,097       389,509       1,882,990       1,810,004   Gross profit   237,664       226,252       1,167,386       1,094,241   Operating expenses:               Selling, general and administrative   137,622       91,416       469,549       380,378   Loss (gain) on disposal of assets and costs from exit and disposal activities   28,026       3,426       19,211       3,858   Intangible amortization   18,678       14,429       59,424       52,569   Income from operations   53,338       116,981       619,202       657,436   Other expense:               Interest expense   25,145       22,729       93,869       91,803   Interest income and other, net   (11,239 )     (4,968 )     (34,455 )     (23,832 ) Income before income taxes   39,432       99,220       559,788       589,465   Income tax expense   5,358       23,166       134,988       141,063   Equity in net income of unconsolidated affiliates   (1,161 )     (734 )     (5,063 )     (4,171 ) Net income from continuing operations   35,235       76,788       429,863       452,573   Net loss from discontinued operations   (1,090 )     —       (1,090 )     —   Net income   34,145       76,788       428,773       452,573   Less: net income attributable to noncontrolling interest   1,245       (369 )     2,308       2,401   Net income attributable to ADS $ 32,900     $ 77,157     $ 426,465     $ 450,172                   Weighted average common shares outstanding:               Basic   77,818       77,576       77,756       77,549   Diluted   78,482       78,109       78,383       78,188   Net income from continuing operations per share               Basic $ 0.44     $ 0.99     $ 5.50     $ 5.81   Diluted $ 0.43     $ 0.99     $ 5.45     $ 5.76   Net loss from discontinued operations per share               Basic $ (0.01 )   $ —     $ (0.01 )   $ —   Diluted $ (0.01 )   $ —     $ (0.01 )   $ —   Net income per share:               Basic $ 0.42     $ 0.99     $ 5.48     $ 5.81   Diluted $ 0.42     $ 0.99     $ 5.44     $ 5.76   Cash dividends declared per share $ 0.18     $ 0.16     $ 0.72     $ 0.64   ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (unaudited)     As of (Amounts in thousands) March 31, 2026   March 31, 2025 ASSETS       Current assets:       Cash $ 223,012     $ 463,319   Receivables, net   390,536       333,221   Inventories   543,381       488,269   Assets held for sale   43,451       8,194   Other current assets   30,449       31,780   Total current assets   1,230,829       1,324,783   Property, plant and equipment, net   1,217,165       1,051,040   Other assets:       Goodwill   1,042,716       720,223   Intangible assets, net   848,527       448,060   Other assets   166,386       146,254   Total assets $ 4,505,623     $ 3,690,360   LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY       Current liabilities:       Current maturities of debt obligations $ 5,865     $ 9,934   Current maturities of finance lease obligations   38,136       33,143   Accounts payable   237,706       218,024   Liabilities held for sale   15,139       —   Other accrued liabilities   212,623       137,295   Total current liabilities   509,469       398,396   Long-term debt obligations, net   1,605,958       1,251,589   Long-term finance lease obligations   121,935       131,000   Deferred tax liabilities   220,994       190,416   Other liabilities   91,303       83,171   Total liabilities   2,549,659       2,054,572   Mezzanine equity:       Redeemable convertible preferred stock   73,652       92,652   Total mezzanine equity   73,652       92,652           Stockholders’ equity:       Common stock   11,710       11,694   Paid-in capital   1,342,091       1,277,694   Common stock in treasury, at cost   (1,325,713 )     (1,219,408 ) Accumulated other comprehensive loss   (32,290 )     (37,178 ) Retained earnings   1,862,936       1,492,634   Total ADS stockholders’ equity   1,858,734       1,525,436   Noncontrolling interest in subsidiaries   23,578       17,700   Total stockholders’ equity   1,882,312       1,543,136   Total liabilities, mezzanine equity and stockholders’ equity $ 4,505,623     $ 3,690,360   ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)     Fiscal Year Ended March 31, (Amounts in thousands)   2026       2025   Cash Flow from Operating Activities       Net income $ 428,773     $ 452,573   Less: Net loss from discontinued operations, net of taxes   (1,090 )     —   Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization   216,261       183,281   Deferred income taxes   35,385       (423 ) Loss (gain) on disposal of assets and costs from exit and disposal activities   19,211       3,858   Stock-based compensation   32,354       26,581   Amortization of deferred financing charges   2,225       2,044   Inventory step up related to NDS acquisition   12,277       —   Fair market value adjustments to derivatives   (5,129 )     220   Equity in net income of unconsolidated affiliates   (5,063 )     (4,171 ) Other operating activities   806       (298 ) Changes in working capital:       Receivables   (2,288 )     1,414   Inventories   30,609       (15,749 ) Prepaid expenses and other current assets   (1,110 )     (3,983 ) Accounts payable, accrued expenses and other liabilities   53,960       (63,856 ) Operating cash flows from discontinued operations   (307 )     —   Net cash provided by operating activities   819,054       581,491   Cash Flows from Investing Activities       Capital expenditures   (249,766 )     (212,944 ) Proceeds from disposition of assets or businesses   32,541       —   Acquisition, net of cash acquired   (991,064 )     (237,310 ) Other investing activities   (3,531 )     2,388   Net cash used in investing activities   (1,211,820 )     (447,866 ) Cash Flows from Financing Activities       Proceeds from Term Loan Facility   600,000       —   Payments on syndicated Term Loan Facility   (413,250 )     (7,000 ) Proceeds from Revolving Credit Agreement   75,500       —   Payments on Revolving Credit Agreement   (75,500 )     —   Proceeds from Senior Notes due 2034   500,000       —   Payments on Senior Notes due 2027   (350,000 )     —   Proceeds from commercial loan agreement   27,200       —   Debt issuance costs   (17,182 )     —   Payments on Equipment Financing   (2,937 )     (4,897 ) Payments on finance lease obligations   (40,602 )     (25,487 ) Repurchase of common stock   (91,958 )     (69,922 ) Cash dividends paid   (56,124 )     (49,737 ) Proceeds from noncontrolling interest holder   3,342       —   Dividends paid to noncontrolling interest holder   (1,960 )     —   Proceeds from option exercises   6,850       9,971   Payment of withholding taxes on vesting of restricted stock units   (7,060 )     (10,657 ) Other financing activities   (2 )     2   Net cash provided by (used in) financing activities   156,317       (157,727 ) Effect of exchange rate changes on cash   1,145       (2,475 ) Net change in cash   (235,304 )     (26,577 ) Cash at beginning of year   469,271       495,848   Cash and restricted cash at end of year $ 233,967     $ 469,271   Less: cash held for sale $ (9,184 )   $ —   Cash and restricted cash, excluding cash held for sale, at end of year $ 224,783     $ 469,271           RECONCILIATION TO BALANCE SHEET       Cash $ 223,012     $ 463,319   Restricted cash   1,771       5,952   Total cash and restricted cash $ 224,783     $ 469,271   Selected Financial Data Non-GAAP Financial Measures This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). ADS management uses non-GAAP measures in its analysis of the Company’s performance. Investors are encouraged to review the reconciliation of non-GAAP financial measures to the comparable GAAP results available in the accompanying tables. Reconciliation of Non-GAAP Financial Measures This press release includes references to Adjusted EBITDA, Organic Net Sales, Free Cash Flow and Adjusted Earnings per Share from Continuing Operations, non-GAAP financial measures. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These measures are not intended to be substitutes for those reported in accordance with GAAP. Adjusted EBITDA and Free Cash Flow may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures. EBITDA and Adjusted EBITDA are non-GAAP financial measures that comprise net income before interest, income taxes, depreciation and amortization, stock-based compensation, non-cash charges and certain other expenses. The Company’s definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Adjusted EBITDA is a key metric used by management and the Company’s board of directors to assess financial performance and evaluate the effectiveness of the Company’s business strategies. Accordingly, management believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as the Company’s management and board of directors. In order to provide investors with a meaningful reconciliation, the Company has provided below reconciliations of Adjusted EBITDA to net income. Organic Net Sales is a non-GAAP financial measure that represents net sales excluding the impact of acquisitions and is intended to provide a meaningful comparison of sales growth attributable to underlying volume and pricing changes in the Company’s continuing operations. Free Cash Flow is a non-GAAP financial measure that comprises cash flow from operating activities less capital expenditures. Free Cash Flow is a measure used by management and the Company’s board of directors to assess the Company’s ability to generate cash. Accordingly, management believes that Free Cash Flow provides useful information to investors and others in understanding and evaluating our ability to generate cash flow from operations after capital expenditures. In order to provide investors with a meaningful reconciliation, the Company has provided below a reconciliation of cash flow from operating activities to Free Cash Flow. Adjusted Earnings per Share from Continuing Operations excludes (gains) losses on disposals of assets or business, restructuring expenses, impairment charges, inventory step up related to the acquisition of NDS and transaction costs. Adjusted Earnings per Share from Continuing Operations is a measure used by management and may be useful for investors to evaluate the Company's operational performance. The following tables present a reconciliation of EBITDA and Adjusted EBITDA to Net Income, Free Cash Flow to Cash Flow from Operating Activities, and Adjusted Earnings per Share to Diluted Earnings per Share, the most comparable GAAP measures, for each of the periods indicated. Reconciliation of Segment Adjusted EBITDA to Net Income From Continuing Operations     Three Months Ended March 31, 2026 (Amounts in thousands) Stormwater   Wastewater   Intersegment
Eliminations   Total Net sales:               Net sales from external customers $ 534,749     $ 142,012     $ —     $ 676,761   Intersegment net sales   8,870       13,534       (22,404 )     —   Net sales   543,619       155,546       (22,404 )     676,761                   Significant segment expenses:               Costs of goods sold   377,356       85,806       (24,065 )     439,097   Selling, general and administrative expenses   106,709       15,690       —       122,399   Other segment items(a)   (80,625 )     (7,323 )     —       (87,948 ) Segment Adjusted EBITDA(b) $ 140,179     $ 61,373     $ 1,661                       Corporate and other costs(c)               15,223   Total consolidated Adjusted EBITDA             $ 187,990                   Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes: Interest expense               25,145   Interest income               (3,805 ) Depreciation and amortization               59,818   Stock-based compensation expense               6,538   Loss (gain) on disposal of assets and costs from exit and disposal activities     28,026   Transaction costs(d)               23,509   Other adjustments(e)               9,327   Income before income taxes               39,432                   Income tax expense               5,358   Equity in net income of unconsolidated affiliates     (1,161 ) Net income from continuing operations             $ 35,235   a. Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs. b. The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses. c. Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA. d. Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions. e. Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).   Three Months Ended March 31, 2025 (Amounts in thousands) Stormwater   Wastewater   Intersegment
Eliminations   Total Net sales:               Net sales from external customers $ 478,799     $ 136,962     $ —     $ 615,761   Intersegment net sales   8,530       11,205       (19,735 )     —   Net sales   487,329       148,167       (19,735 )     615,761                   Significant segment expenses:               Costs of goods sold   329,009       80,013       (19,513 )     389,509   Selling, general and administrative expenses   62,585       16,530       —       79,115   Other segment items(a)   (34,371 )     (7,488 )     —       (41,859 ) Segment Adjusted EBITDA(b) $ 130,106     $ 59,112     $ (222 )                     Corporate and other costs(c)               12,301   Total consolidated Adjusted EBITDA             $ 176,695                   Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes: Interest expense               22,729   Interest income               (5,007 ) Depreciation and amortization               49,610   Stock-based compensation expense               4,823   Loss (gain) on disposal of assets and costs from exit and disposal activities     3,426   Transaction costs(d)               672   Other adjustments(e)               1,222   Income before income taxes               99,220                   Income tax expense               23,166   Equity in net income of unconsolidated affiliates     (734 ) Net income from continuing operations             $ 76,788   a. Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs. b. The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses. c. Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA. d. Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions. e. Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).   Fiscal Year Ended March 31, 2026 (Amounts in thousands) Stormwater   Wastewater   Intersegment
Eliminations   Total Net sales:               Net sales from external customers $ 2,397,414     $ 652,962     $ —     $ 3,050,376   Intersegment net sales   36,466       61,580       (98,046 )     —   Net sales   2,433,880       714,542       (98,046 )     3,050,376                   Significant segment expenses:               Costs of goods sold   1,613,170       367,963       (98,143 )     1,882,990   Selling, general and administrative expenses   348,829       69,002       —       417,831   Other segment items(a)   (231,194 )     (33,875 )     —       (265,069 ) Segment Adjusted EBITDA(b) $ 703,075     $ 311,452     $ 97                       Corporate and other costs(c)               51,718   Total consolidated Adjusted EBITDA             $ 962,906                   Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes: Interest expense               93,869   Interest income               (25,000 ) Depreciation and amortization               216,261   Stock-based compensation expense               32,354   Loss (gain) on disposal of assets and costs from exit and disposal activities     19,211   Transaction costs(d)               40,805   Other adjustments(e)               25,618   Income before income taxes               559,788                   Income tax expense               134,988   Equity in net income of unconsolidated affiliates     (5,063 ) Net income from continuing operations             $ 429,863   a. Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs. b. The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses. c. Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA. d. Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions. e. Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).   Fiscal Year Ended March 31, 2025 (Amounts in thousands) Stormwater   Wastewater   Intersegment
Eliminations   Total Net sales:               Net sales from external customers $ 2,326,370     $ 577,875     $ —     $ 2,904,245   Intersegment net sales   35,647       52,031       (87,678 )     —   Net sales   2,362,017       629,906       (87,678 )     2,904,245                   Significant segment expenses:               Costs of goods sold   1,582,828       314,465       (87,289 )     1,810,004   Selling, general and administrative expenses   282,877       55,186       —       338,063   Other segment items(a)   (143,608 )     (31,757 )     —       (175,365 ) Segment Adjusted EBITDA(b) $ 639,920     $ 292,012     $ (389 )                     Corporate and other costs(c)               42,315   Total consolidated Adjusted EBITDA             $ 889,228                   Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes: Interest expense               91,803   Interest income               (23,485 ) Depreciation and amortization               183,281   Stock-based compensation expense               26,581   Loss (gain) on disposal of assets and costs from exit and disposal activities     3,858   Transaction costs(d)               9,291   Other adjustments(e)               8,434   Income before income taxes               589,465                   Income tax expense               141,063   Equity in net income of unconsolidated affiliates     (4,171 ) Net income from continuing operations             $ 452,573   a. Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs. b. The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses. c. Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA. d. Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions. e. Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit). Reconciliation of Adjusted EBITDA to Net Income     Three Months Ended March 31,   Fiscal Year Ended March 31, (Amounts in thousands)   2026       2025       2026       2025   Net income from continuing operations $ 35,235     $ 76,788     $ 429,863     $ 452,573   Depreciation and amortization   59,818       49,610       216,261       183,281   Interest expense   25,145       22,729       93,869       91,803   Income tax expense   5,358       23,166       134,988       141,063   EBITDA   125,556       172,293       874,981       868,720   Restructuring and realignment expense(a)   30,627       —       48,299       —   (Gain) loss on disposal of assets   (590 )     3,426       (17,039 )     3,858   Stock-based compensation expense   6,538       4,823       32,354       26,581   Transaction costs   23,509       672       40,805       9,291   Inventory step up related to acquisition of NDS   12,277       —       12,277       —   Interest income   (3,805 )     (5,007 )     (25,000 )     (23,485 ) Other adjustments (b)   (6,122 )     488       (3,771 )     4,263   Adjusted EBITDA $ 187,990     $ 176,695     $ 962,906     $ 889,228   a. Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions. b. Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, the proportionate share of interest, income taxes, depreciation and amortization related to the South American Joint Venture, which is accounted for under the equity method of accounting and executive retirement expense (benefit). Reconciliation of Free Cash Flow to Cash flow from Operating Activities     Fiscal Year Ended March 31, (Amounts in thousands)   2026       2025   Net cash flow from operating activities $ 819,054     $ 581,491   Capital expenditures   (249,766 )     (212,944 ) Free cash flow $ 569,288     $ 368,547   Organic Net Sales - The following table presents a reconciliation of Net Sales to Organic Net Sales for the Company:     Three Months Ended March 31,   (Amounts in thousands)   2026       2025   Net Sales $ 676,761     $ 615,761   Less: Net Sales from NDS   (48,834 )     —   Organic Net Sales $ 627,927     $ 615,761   Reconciliation of Diluted Earnings per Share from Continuing Operations to Adjusted Earnings per Share from Continuing Operations - The following table diluted presents earnings per share from continuing operations on an adjusted basis to supplement the Company's discussion of its results of operations herein:     Three Months Ended
March 31,   Fiscal Year Ended
March 31,     2026       2025       2026       2025   Diluted Earnings Per Share from Continuing Operations $ 0.43     $ 0.99     $ 5.45     $ 5.76   Restructuring and realignment expense   0.39       —       0.62       —   (Gain) loss on disposal of assets   (0.01 )     0.04       (0.22 )     0.05   Inventory step up related to the acquisition of NDS   0.16       —       0.16       —   Transaction costs   0.30       0.01       0.52       0.12   Income tax impact of adjustments (a)   (0.20 )     (0.01 )     (0.26 )     (0.04 ) Adjusted Earnings per Share from Continuing Operations $ 1.07     $ 1.03     $ 6.27     $ 5.89   a. The income tax impact of adjustments to each period is based on the statutory tax rate.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260521886136/en/ For more information, please contact:
Michael Higgins
VP, Corporate Strategy & Investor Relations
(614) 658-0050
Michael.Higgins@adspipe.com Original: Advanced Drainage Systems Announces Fourth Quarter and Fiscal Year 2026 Results

Advanced Drainage Systems Announces Increase in Quarterly Cash DividendMay 21, 2026 6:42 AM
Business Wire Advanced Drainage Systems, Inc. (NYSE: WMS) ("ADS" or the "Company"), a leading provider of innovative water management solutions in the stormwater and onsite wastewater industries, today announced that its Board of Directors (the "Board") has approved a total annual cash dividend to its shareholders in the amount of $0.80 per share, an 11% increase over the prior year dividend amount. Scott Barbour, President and Chief Executive Officer of Advanced Drainage Systems commented, "The 11% increase in the cash dividend is predicated on the strength of our balance sheet, formidable cash generation, and ongoing commitment to returning capital to shareholders. In Fiscal 2026, we returned $155.4 million to shareholders through dividends and share repurchases. Our strong financial performance and operational excellence initiatives provide us with the confidence and financial flexibility to return excess cash to our shareholders while simultaneously continuing to invest in safety, capacity and productivity." The quarterly cash dividend amount of $0.20 per share will be paid on June 15, 2026, to shareholders of record at the close of business on June 1, 2026. About the Company Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite wastewater solutions that manage the world’s most precious resource: water. ADS, along with NDS and Infiltrator Water Technologies, provides superior stormwater drainage and onsite wastewater products used across commercial, residential, infrastructure, and agricultural applications, while delivering unparalleled customer service. ADS operates the industry’s largest company-owned fleet, an expansive sales team and a vast manufacturing network. As one of the largest plastic recycling companies in North America, ADS keeps millions of pounds of plastic out of landfills each year. Founded in 1966, ADS’ water management solutions are designed to last for decades. To learn more, visit the Company’s website at www.adspipe.com. Forward Looking Statements Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “confident” and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials, new tariff and international trade policies, and our ability to pass any increased costs of raw materials and tariffs on to our customers in a timely manner; disruption or volatility in general business, political and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions or doing so within the intended timeframe, including our ability to successfully integrate NDS into our business; risks that the acquisition of NDS may involve unexpected costs, liabilities, risks that the cost savings and synergies from the acquisition of NDS may not be fully realized; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effects of global climate change and any related regulatory responses; our ability to protect against cybersecurity incidents and disruptions or failures of our IT systems; our ability to assess and monitor the effects of artificial intelligence, machine learning, robotics and blockchain or other new approaches to data mining on our business and operations; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; our ability to appropriately address any environmental, social or governance concerns that may arise from our activities; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260521872932/en/ For more information, please contact:
Michael Higgins
VP, Corporate Strategy & Investor Relations
(614) 658-0050
Michael.Higgins@adspipe.com Original: Advanced Drainage Systems Announces Increase in Quarterly Cash Dividend

Advanced Drainage Systems Announces Proposed $500 Million Senior Notes OfferingFebruary 12, 2026 7:08 AM
Business Wire
Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite wastewater industries, today announced that the Company intends, subject to market and other conditions, to commence an offering (the “Offering”) of up to $500 million aggregate principal amount of senior unsecured notes due 2034 (the “Notes”) in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Notes will be guaranteed by each of the Company’s present and future direct and indirect domestic subsidiaries that guarantee its senior secured credit facility.


In connection with the issuance of the Notes, the Company expects to amend its existing senior secured credit facility to (i) increase the revolving credit facility from $600 million to $750 million, (ii) increase the term loan “B” from $408 million to $600 million, and (iii) extend the maturity date (the “Amended Credit Facility”). The closing of this Offering is not conditioned on the closing of the Amended Credit Facility. The completion of the Amended Credit Facility is also subject to customary closing conditions and there can be no assurance as to whether or when the Amended Credit Facility may be completed, if at all.


The Company intends to use the net proceeds from the Offering, together with the proceeds of the term loan “B” portion of the Amended Credit Facility, to refinance the outstanding balance under the existing senior secured credit facility and redeem all of the Company's outstanding 5.000% senior notes due 2027 with the balance for general corporate purposes.


The Notes and the related guarantees have not been, and will not be, registered under the Securities Act, or the securities laws of any other jurisdiction. The Notes and the related guarantees may not be offered or sold within the United States or to United States persons, except to persons reasonably believed to be qualified institutional buyers in reliance on an exemption from registration provided by Rule 144A under the Securities Act and to certain non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act.


This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy the Notes or the related guarantees, nor will there be any sale of the Notes, or the related guarantees in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. This press release does not constitute a notice of redemption with respect to ADS’ 5.000% senior notes due 2027. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.


About the Company


Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite wastewater solutions that manage the world’s most precious resource: water. ADS, along with NDS and Infiltrator Water Technologies, provides superior stormwater drainage and onsite wastewater products used across commercial, residential, infrastructure, and agricultural applications, while delivering unparalleled customer service. ADS operates the industry’s largest company-owned fleet, an expansive sales team and a vast manufacturing network. As one of the largest plastic recycling companies in North America, ADS keeps millions of pounds of plastic out of landfills each year. Founded in 1966, ADS’ water management solutions are designed to last for decades.


Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: disruption or volatility in general business and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions and the ability to do so within anticipated time frames, including our ability to successfully complete the acquisition of NDS and to integrate NDS into our business; risks that the acquisition of NDS may involve unexpected costs, liabilities or delays, risks that the cost savings and synergies from the acquisition of NDS may not be fully realized, the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effect of global climate change; our ability to protect against cybersecurity incidents and disruptions or failures of our IT systems; our ability to assess and monitor the effects of artificial intelligence, machine learning, and robotics on our business and operations; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; our ability to appropriately address any environmental concerns that may arise from our activities; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211552365/en/
For more information, please contact:

Michael Higgins

VP, Corporate Strategy & Investor Relations

(614) 658-0050

Michael.Higgins@adspipe.com


Original: Advanced Drainage Systems Announces Proposed $500 Million Senior Notes Offering

Advanced Drainage Systems Announces Third Quarter Fiscal 2026 Results, Increases Stock Repurchase AuthorizationFebruary 5, 2026 6:40 AM
Business Wire
Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite wastewater industries today announced financial results for the fiscal third quarter ended December 31, 2025.


Third Quarter Fiscal 2026 Results



Net sales increased $2.8 million or 0.4% to $693.4 million



Net income increased $11.7 million or 14.3% to $94.0 million



Net income per diluted share increased $0.15 or 14.4% to $1.19



Adjusted EBITDA (Non-GAAP) increased $17.7 million or 9.3% to $209.2 million



Adjusted Earnings per share (Non-GAAP) increased $0.18 or 16.5% to $1.27



Year-to-Date Fiscal 2026 Results



Net sales increased $85.1 million or 3.7% to $2.4 billion



Net income increased $18.8 million or 5.0% to $394.6 million



Net income per diluted share increased $0.25 or 5.2% to $5.02



Adjusted EBITDA (Non-GAAP) increased $62.4 million or 8.8% to $774.9 million



Adjusted Earnings per share (Non-GAAP) increased $0.34 or 7.0% to $5.20



Scott Barbour, President and Chief Executive Officer of ADS commented, "We delivered our third consecutive strong quarter in a demand environment that is both challenging and mixed by geography. The Infiltrator business and Allied products portfolio grew significantly above-market as we continue to introduce new products, distribution and customer programs. Notably, profitability increased across all facets of the business, including pipe, Allied products and the Infiltrator business. We continue to strategically shift our portfolio mix towards higher margin products, which strengthens the resiliency of our business. This mix shift, in conjunction with favorable price/cost dynamics, resulted in an Adjusted EBITDA margin of 30.2% for the quarter."


"Earlier this week, we closed the acquisition of NDS, a leading U.S. supplier of residential stormwater and irrigation products. NDS’ products are highly complementary to ADS’ stormwater capture portfolio and enhance our offering in both the distribution and retail channels. The combination of Advanced Drainage Systems, Infiltrator, and NDS furthers our leading, diversified brand platform in stormwater and onsite wastewater. Given the business’ strong cash generation and effective capital management strategy, we were able to complete the acquisition primarily using cash on hand."


"Today, we updated our Fiscal 2026 guidance to reflect the strong year-to-date performance as well as the inclusion of NDS results for the two months remaining in the fiscal year. The end market outlook for the remainder of Fiscal 2026 reflects a challenging macroeconomic environment and mixed end market demand. We also announced a new $1 billion stock repurchase authorization, bringing our total authorization to $1.148 billion, reflecting our ongoing commitment to returning capital to shareholders in the context of our overall capital allocation strategy."


Barbour concluded, "We are well positioned to continue executing on the value proposition, driving market conversion, and accelerating organic and inorganic growth while also generating free cash flow that enables the Company to invest in the business and return capital to shareholders."


Third Quarter Fiscal 2026 Results


Net sales increased $2.8 million, or 0.4%, to $693.4 million, as compared to $690.5 million in the prior year quarter. Domestic pipe sales decreased $12.9 million, or 3.8%, to $326.7 million. Domestic allied products & other sales increased $14.1 million, or 9.4%, to $164.7 million. Infiltrator sales increased $2.9 million, or 1.9%, to $152.9 million, primarily due to growth in tanks and advanced treatment products. The overall increase in domestic net sales was primarily driven by growth in the Company's core non-residential construction end market. International sales decreased $1.3 million, or 2.5%, to $49.1 million.


Gross profit increased $17.6 million, or 7.3%, to $259.2 million as compared to $241.6 million in the prior year. The increase in gross profit is primarily driven by volume growth, favorable price/cost, and favorable mix of Allied products and Infiltrator.


Selling, general and administrative expenses increased $8.0 million, or 7.9% to $108.7 million, as compared to $100.8 million. As a percentage of sales, selling, general and administrative expense was 15.7% as compared to 14.6% in the prior year. The increase was primarily driven by transaction costs associated with the acquisition of National Diversified Sales ("NDS"), as described below.


Net income per diluted share increased $0.15, or 14.4%, to $1.19, as compared to $1.04 per share in the prior year quarter, primarily due to the factors mentioned above.


Adjusted EBITDA (Non-GAAP) increased $17.7 million, or 9.3%, to $209.2 million, as compared to $191.5 million in the prior year, primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 30.2% as compared to 27.7% in the prior year.


Segment sales results are based on Net sales to external customers. Reconciliations of GAAP to Non-GAAP financial measures for Adjusted EBITDA, Free Cash Flow and Adjusted Earnings per Share have been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”


Year-to-Date Fiscal 2026 Results


Net sales increased $85.1 million, or 3.7%, to $2,373.6 million, as compared to $2,288.5 million in the prior year. Domestic pipe sales decreased $17.1 million, to $1,155.3 million. Domestic allied products & other sales increased $40.6 million, or 7.9%, to $551.1 million. Infiltrator sales increased $70.0 million, or 15.9%, to $511.0 million. Excluding the acquisition of Orenco, Infiltrator organic revenue increased 5.4%. The overall increase in domestic net sales was primarily driven by growth in the core non-residential and residential construction end markets. International sales decreased $8.4 million, or 5.1%, to $156.2 million.


Gross profit increased $61.7 million, or 7.1%, to $929.7 million as compared to $868.0 million in the prior year. The increase in gross profit is primarily driven by favorable volume, price/cost and mix of construction market and Infiltrator sales, partially offset by unfavorable fixed cost absorption as well as the mix impact from the inclusion of Orenco.


Selling, general and administrative expenses increased $43.0 million, or 14.9% to $331.9 million, as compared to $289.0 million. As a percentage of sales, selling, general and administrative expense was 14.0% as compared to 12.6% in the prior year. The increase was primarily driven by the acquisition of Orenco, as well as transaction costs associated with the acquisition of NDS, as described below.


Net income per diluted share increased $0.25, or 5.2%, to $5.02, as compared to $4.77 per share in the prior year, primarily due to the factors mentioned above.


Adjusted EBITDA (Non-GAAP) increased $62.4 million, or 8.8%, to $774.9 million, as compared to $712.5 million in the prior year, primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 32.6% as compared to 31.1% in the prior year.


NDS Acquisition


On February 2, 2026, the Company announced that it completed the previously disclosed acquisition of the water management business of Norma Group SE (DAX: NOEJ), known as National Diversified Sales ("NDS"). Following the closing of the acquisition, the Company’s trailing-twelve-month leverage ratio was approximately 1.5 times. For more information, visit the Investor Relations section of the Company's website.


Stock Repurchase Authorization


In the nine months ended December 31, 2025, the Company did not repurchase shares of its common stock. As of December 31, 2025, approximately $147.7 million of common stock may be repurchased under the Company's existing stock repurchase authorization.


Today, the Company announced a new $1 billion stock repurchase authorization for open market share repurchases, bringing the total existing stock repurchase authorization to $1.148 billion.


Repurchases of shares of common stock under the stock repurchase program will be made in the open market and in accordance with applicable securities laws. The stock repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or terminated at any time at the Company’s discretion.


Balance Sheet and Liquidity


Net cash provided by operating activities was $779.1 million, as compared to $540.3 million in the prior year. Free cash flow (Non-GAAP) was $582.4 million, as compared to $373.9 million in the prior year. Net debt (total debt and finance lease obligations net of cash) was $437.5 million as of December 31, 2025, a decrease of $524.9 million from March 31, 2025.


ADS had total liquidity of $1,598.1 million, comprised of cash of $1,008.2 million as of December 31, 2025 and $589.9 million of availability under committed credit facilities. As of December 31, 2025, the Company’s trailing-twelve-month leverage ratio was 0.5 times Adjusted EBITDA.


Fiscal 2026 Outlook


Based on results to date, current visibility, backlog of existing orders and business trends, the Company updated its financial targets for fiscal 2026. Net sales are expected to be in the range of $2.990 billion to $3.040 billion and Adjusted EBITDA is expected to be in the range of $930 million to $960 million. Capital expenditures are expected to be approximately $250 million.


Conference Call Information


Webcast: Interested investors and other parties can listen to a webcast of the live conference call by logging in through the Investor Relations section of the Company's website at https://investors.ads-pipe.com/events-and-presentations. An online replay will be available on the same website following the call.


Teleconference: To participate in the live teleconference, participants may register at https://events.q4inc.com/attendee/961178744. After registering, participants will receive a confirmation through email, including dial in details and unique conference call codes for entry. Registration is open through the live call. To ensure participants are connected for the full call, please register at least 10 minutes before the start of the call.


About the Company


Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite wastewater solutions that manage the world’s most precious resource: water. ADS, along with NDS and Infiltrator Water Technologies, provides superior stormwater drainage and onsite wastewater products used across commercial, residential, infrastructure, and agricultural applications, while delivering unparalleled customer service. ADS operates the industry’s largest company-owned fleet, an expansive sales team and a vast manufacturing network. As one of the largest plastic recycling companies in North America, ADS keeps millions of pounds of plastic out of landfills each year. Founded in 1966, ADS’ water management solutions are designed to last for decades. To learn more, visit the Company’s website at www.adspipe.com.


Forward Looking Statements


Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “confident” and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials, new tariff and international trade policies, and our ability to pass any increased costs of raw materials and tariffs on to our customers; disruption or volatility in general business, political and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions or doing so within the intended timeframe, including our ability to successfully integrate NDS into our business; risks that the acquisition of NDS may involve unexpected costs, liabilities, risks that the cost savings and synergies from the acquisition of NDS may not be fully realized; the effect of any claims, litigation, investigations or proceedings; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effects of global climate change and any related regulatory responses; our ability to protect against cybersecurity incidents and disruptions or failures of our IT systems; our ability to assess and monitor the effects of artificial intelligence, machine learning, robotics and blockchain or other new approaches to data mining on our business and operations; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; our ability to appropriately address any environmental, social or governance concerns that may arise from our activities; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


Financial Statements


ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)




 






Three Months Ended




December 31,






 






Nine Months Ended




December 31,








(In thousands, except per share data)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Net sales






$






693,354






 






 






$






690,538






 






 






$






2,373,615






 






 






$






2,288,484






 








Cost of goods sold






 






434,202






 






 






 






448,944






 






 






 






1,443,893






 






 






 






1,420,495






 








Gross profit






 






259,152






 






 






 






241,594






 






 






 






929,722






 






 






 






867,989






 








Operating expenses:






 






 






 






 






 






 






 








Selling, general and administrative






 






108,742






 






 






 






100,778






 






 






 






331,927






 






 






 






288,962






 








Loss (gain) on disposal of assets and costs from exit and disposal activities






 






87






 






 






 






(477






)






 






 






(8,815






)






 






 






432






 








Intangible amortization






 






13,500






 






 






 






14,429






 






 






 






40,746






 






 






 






38,140






 








Income from operations






 






136,823






 






 






 






126,864






 






 






 






565,864






 






 






 






540,455






 








Other expense:






 






 






 






 






 






 






 








Interest expense






 






22,579






 






 






 






23,094






 






 






 






68,724






 






 






 






69,074






 








Interest income and other, net






 






(8,499






)






 






 






(4,792






)






 






 






(23,216






)






 






 






(18,864






)








Income before income taxes






 






122,743






 






 






 






108,562






 






 






 






520,356






 






 






 






490,245






 








Income tax expense






 






30,557






 






 






 






27,091






 






 






 






129,630






 






 






 






117,897






 








Equity in net income of unconsolidated affiliates






 






(1,851






)






 






 






(818






)






 






 






(3,902






)






 






 






(3,437






)








Net income






 






94,037






 






 






 






82,289






 






 






 






394,628






 






 






 






375,785






 








Less: net income attributable to noncontrolling interest






 






411






 






 






 






1,058






 






 






 






1,063






 






 






 






2,770






 








Net income attributable to ADS






$






93,626






 






 






$






81,231






 






 






$






393,565






 






 






$






373,015






 








 






 






 






 






 






 






 






 








Weighted average common shares outstanding:






 






 






 






 






 






 






 








Basic






 






77,815






 






 






 






77,540






 






 






 






77,736






 






 






 






77,541






 








Diluted






 






78,447






 






 






 






78,115






 






 






 






78,336






 






 






 






78,196






 








Net income per share:






 






 






 






 






 






 






 








Basic






$






1.20






 






 






$






1.05






 






 






$






5.06






 






 






$






4.81






 








Diluted






$






1.19






 






 






$






1.04






 






 






$






5.02






 






 






$






4.77






 








Cash dividends declared per share






$






0.18






 






 






$






0.16






 






 






$






0.54






 






 






$






0.48






 







ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)




 






As of








(Amounts in thousands)






December 31, 2025






 






March 31, 2025








ASSETS






 






 






 








Current assets:






 






 






 








Cash






$






1,008,190






 






 






$






463,319






 








Receivables, net






 






237,594






 






 






 






333,221






 








Inventories






 






431,245






 






 






 






488,269






 








Other current assets






 






28,065






 






 






 






39,974






 








Total current assets






 






1,705,094






 






 






 






1,324,783






 








Property, plant and equipment, net






 






1,153,550






 






 






 






1,051,040






 








Other assets:






 






 






 








Goodwill






 






725,200






 






 






 






720,223






 








Intangible assets, net






 






410,286






 






 






 






448,060






 








Other assets






 






150,181






 






 






 






146,254






 








Total assets






$






4,144,311






 






 






$






3,690,360






 








LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY






 






 






 








Current liabilities:






 






 






 








Current maturities of debt obligations






$






6,458






 






 






$






9,934






 








Current maturities of finance lease obligations






 






36,664






 






 






 






33,143






 








Accounts payable






 






168,884






 






 






 






218,024






 








Other accrued liabilities






 






193,865






 






 






 






137,295






 








Accrued income taxes






 






7,506






 






 






 






—






 








Total current liabilities






 






413,377






 






 






 






398,396






 








Long-term debt obligations, net






 






1,275,701






 






 






 






1,251,589






 








Long-term finance lease obligations






 






126,847






 






 






 






131,000






 








Deferred tax liabilities






 






216,786






 






 






 






190,416






 








Other liabilities






 






82,583






 






 






 






83,171






 








Total liabilities






 






2,115,294






 






 






 






2,054,572






 








Mezzanine equity:






 






 






 








Redeemable common stock






 






78,252






 






 






 






92,652






 








Total mezzanine equity






 






78,252






 






 






 






92,652






 








Stockholders’ equity:






 






 






 








Common stock






 






11,707






 






 






 






11,694






 








Paid-in capital






 






1,329,164






 






 






 






1,277,694






 








Common stock in treasury, at cost






 






(1,226,454






)






 






 






(1,219,408






)








Accumulated other comprehensive loss






 






(30,197






)






 






 






(37,178






)








Retained earnings






 






1,844,101






 






 






 






1,492,634






 








Total ADS stockholders’ equity






 






1,928,321






 






 






 






1,525,436






 








Noncontrolling interest in subsidiaries






 






22,444






 






 






 






17,700






 








Total stockholders’ equity






 






1,950,765






 






 






 






1,543,136






 








Total liabilities, mezzanine equity and stockholders’ equity






$






4,144,311






 






 






$






3,690,360






 







ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)




 






Nine Months Ended December 31,








(Amounts in thousands)






 






2025






 






 






 






2024






 








Cash Flow from Operating Activities






 






 






 








Net income






$






394,628






 






 






$






375,785






 








Adjustments to reconcile net income to net cash provided by operating activities:






 






 






 








Depreciation and amortization






 






156,443






 






 






 






133,671






 








Deferred income taxes






 






25,054






 






 






 






510






 








(Gain) loss on disposal of assets and costs from exit and disposal activities






 






(8,815






)






 






 






432






 








Stock-based compensation






 






25,816






 






 






 






21,758






 








Amortization of deferred financing charges






 






1,300






 






 






 






1,533






 








Fair market value adjustments to derivatives






 






569






 






 






 






383






 








Equity in net income of unconsolidated affiliates






 






(3,902






)






 






 






(3,437






)








Other operating activities






 






1,755






 






 






 






(1,849






)








Changes in working capital:






 






 






 








Receivables






 






100,183






 






 






 






83,059






 








Inventories






 






62,615






 






 






 






(179






)








Prepaid expenses and other current assets






 






900






 






 






 






(2,564






)








Accounts payable, accrued expenses, and other liabilities






 






22,587






 






 






 






(68,838






)








Net cash provided by operating activities






 






779,133






 






 






 






540,264






 








Cash Flows from Investing Activities






 






 






 








Capital expenditures






 






(196,737






)






 






 






(166,410






)








Proceeds from disposal of assets






 






32,254






 






 






 






831






 








Acquisitions, net of cash acquired






 






(18,558






)






 






 






(237,310






)








Other investing activities






 






(3,531






)






 






 






—






 








Net cash used in investing activities






 






(186,572






)






 






 






(402,889






)








Cash Flows from Financing Activities






 






 






 








Payments on syndicated Term Loan Facility






 






(5,250






)






 






 






(5,250






)








Payments on Equipment Financing






 






(2,623






)






 






 






(3,909






)








Proceeds from commercial loan agreement






 






27,200






 






 






 






—






 








Payments on finance lease obligations






 






(31,237






)






 






 






(17,820






)








Repurchase of common stock






 






—






 






 






 






(69,922






)








Cash dividends paid






 






(42,099






)






 






 






(37,324






)








Proceeds from noncontrolling interest holder






 






3,342






 






 






 






—






 








Proceeds from exercise of stock options






 






5,058






 






 






 






8,927






 








Payment of withholding taxes on vesting of restricted stock units






 






(7,046






)






 






 






(10,646






)








Other financing activities






 






5






 






 






 






—






 








Net cash used in financing activities






 






(52,650






)






 






 






(135,944






)








Effect of exchange rate changes on cash






 






1,721






 






 






 






(2,526






)








Net change in cash






 






541,632






 






 






 






(1,095






)








Cash and restricted cash at beginning of period






 






469,271






 






 






 






495,848






 








Cash and restricted cash at end of period






$






1,010,903






 






 






$






494,753






 








 






 






 






 








RECONCILIATION TO BALANCE SHEET






 






 






 








Cash






$






1,008,190






 






 






$






488,859






 








Restricted cash






 






2,713






 






 






 






5,894






 








Total cash and restricted cash






$






1,010,903






 






 






$






494,753






 







Selected Financial Data


The following tables set forth net sales by reportable segment for each of the periods indicated.




 






Three Months Ended








 






December 31, 2025






 






December 31, 2024(a)








(In thousands)






Net Sales






 






Intersegment Net Sales






 






Net Sales from External Customers






 






Net Sales






 






Intersegment Net Sales






 






Net Sales from External Customers








Pipe






$






339,175






 






 






$






(12,462






)






 






$






326,713






 






$






352,236






 






 






$






(12,607






)






 






$






339,629








Infiltrator






 






167,666






 






 






 






(14,785






)






 






 






152,881






 






 






160,076






 






 






 






(10,063






)






 






 






150,013








International






 






 






 






 






 






 






 






 






 






 






 








International - Pipe






 






35,453






 






 






 






(1,274






)






 






 






34,179






 






 






36,909






 






 






 






(2,860






)






 






 






34,049








International - Allied Products & Other






 






15,030






 






 






 






(118






)






 






 






14,912






 






 






16,372






 






 






 






(58






)






 






 






16,314








Total International






 






50,483






 






 






 






(1,392






)






 






 






49,091






 






 






53,281






 






 






 






(2,918






)






 






 






50,363








Allied Products & Other






 






168,050






 






 






 






(3,381






)






 






 






164,669






 






 






154,295






 






 






 






(3,762






)






 






 






150,533








Intersegment Eliminations






 






(32,020






)






 






 






32,020






 






 






 






—






 






 






(29,350






)






 






 






29,350






 






 






 






—








Total Consolidated






$






693,354






 






 






$






—






 






 






$






693,354






 






$






690,538






 






 






$






—






 






 






$






690,538








 






 






 






 






 






 






 






 






 






 






 






 








 






Nine Months Ended








 






December 31, 2025






 






December 31, 2024(a)








(In thousands)






Net Sales






 






Intersegment Net Sales






 






Net Sales from External Customers






 






Net Sales






 






Intersegment Net Sales






 






Net Sales from External Customers








Pipe






$






1,194,801






 






 






$






(39,501






)






 






$






1,155,300






 






$






1,214,367






 






 






$






(41,972






)






 






$






1,172,395








Infiltrator






 






558,996






 






 






 






(48,046






)






 






 






510,950






 






 






481,739






 






 






 






(40,826






)






 






 






440,913








International






 






 






 






 






 






 






 






 






 






 






 








International - Pipe






 






111,702






 






 






 






(3,584






)






 






 






108,118






 






 






125,281






 






 






 






(10,150






)






 






 






115,131








International - Allied Products & Other






 






48,467






 






 






 






(346






)






 






 






48,121






 






 






49,664






 






 






 






(174






)






 






 






49,490








Total International






 






160,169






 






 






 






(3,930






)






 






 






156,239






 






 






174,945






 






 






 






(10,324






)






 






 






164,621








Allied Products & Other






 






562,071






 






 






 






(10,945






)






 






 






551,126






 






 






522,939






 






 






 






(12,384






)






 






 






510,555








Intersegment Eliminations






 






(102,422






)






 






 






102,422






 






 






 






—






 






 






(105,506






)






 






 






105,506






 






 






 






—








Total Consolidated






$






2,373,615






 






 






$






—






 






 






$






2,373,615






 






$






2,288,484






 






 






$






—






 






 






$






2,288,484









(a)








In the first quarter of fiscal 2026, the Company realigned certain products used in wastewater applications to the Infiltrator reportable segment. The Company transitioned its ARC Septic Chambers from Allied Products & Other and certain pipe products used in wastewater applications from Pipe. Prior period segment information for fiscal 2025 has been recast to conform to the fiscal 2026 presentation.







Non-GAAP Financial Measures


This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). ADS management uses non-GAAP measures in its analysis of the Company’s performance. Investors are encouraged to review the reconciliation of non-GAAP financial measures to the comparable GAAP results available in the accompanying tables.


Reconciliation of Non-GAAP Financial Measures


This press release includes references to Adjusted EBITDA, Free Cash Flow and Adjusted Earnings per Share, non-GAAP financial measures. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These measures are not intended to be substitutes for those reported in accordance with GAAP. Adjusted EBITDA and Free Cash Flow may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures.


EBITDA and Adjusted EBITDA are non-GAAP financial measures that comprise net income before interest, income taxes, depreciation and amortization, stock-based compensation, non-cash charges and certain other expenses. The Company’s definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Adjusted EBITDA is a key metric used by management and the Company’s board of directors to assess financial performance and evaluate the effectiveness of the Company’s business strategies. Accordingly, management believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as the Company’s management and board of directors. In order to provide investors with a meaningful reconciliation, the Company has provided a reconciliation of Adjusted EBITDA to net income.


Free Cash Flow is a non-GAAP financial measure that comprises cash flow from operating activities less capital expenditures. Free Cash Flow is a measure used by management and the Company’s board of directors to assess the Company’s ability to generate cash. Accordingly, management believes that Free Cash Flow provides useful information to investors and others in understanding and evaluating our ability to generate cash flow from operations after capital expenditures. In order to provide investors with a meaningful reconciliation, the Company has provided a reconciliation of cash flow from operating activities to Free Cash Flow.


Adjusted Earnings per Share excludes (gains) losses on disposals of assets or business, restructuring and realignment expenses, impairment charges and transaction costs. Adjusted Earnings per Share is a measure used by management and may be useful for investors to evaluate the Company's operational performance.


The following tables present a reconciliation of EBITDA and Adjusted EBITDA to Net Income, Free Cash Flow to Cash Flow from Operating Activities, and Adjusted Earnings per Share to Diluted Earnings per Share, the most comparable GAAP measures, for each of the periods indicated.


Reconciliation of Adjusted Gross Profit to Gross Profit




 






Three Months Ended




December 31,






 






Nine Months Ended




December 31,








(Amounts in thousands)






 






2025






 






 






2024(a)






 






 






2025






 






 






2024(a)








Segment Adjusted Gross Profit






 






 






 






 






 






 






 








Pipe






$






97,100






 






 






$






89,220






 






$






366,510






 






 






$






342,792








Infiltrator






 






89,778






 






 






 






83,813






 






 






300,228






 






 






 






268,714








International






 






11,629






 






 






 






12,071






 






 






43,108






 






 






 






49,179








Allied Products & Other






 






98,519






 






 






 






88,995






 






 






333,496






 






 






 






301,963








Intersegment Elimination






 






(919






)






 






 






1,844






 






 






(1,564






)






 






 






234








Total Segment Adjusted Gross Profit






 






296,107






 






 






 






275,943






 






 






1,041,778






 






 






 






962,882








Depreciation and amortization






 






35,141






 






 






 






30,754






 






 






106,672






 






 






 






88,502








Stock-based compensation expense






 






1,814






 






 






 






1,335






 






 






5,384






 






 






 






4,131








Inventory step up related to Orenco acquisition






 






—






 






 






 






2,260






 






 






—






 






 






 






2,260








Total Gross Profit






$






259,152






 






 






$






241,594






 






$






929,722






 






 






$






867,989









(a)








In the first quarter of fiscal 2026, the Company realigned certain products used in wastewater applications to the Infiltrator reportable segment. The Company transitioned its ARC Septic Chambers from Allied Products & Other and certain pipe products used in wastewater applications from Pipe. Prior period segment information for fiscal 2025 has been recast to conform to the fiscal 2026 presentation.







Reconciliation of Adjusted EBITDA to Net Income




 






Three Months Ended




December 31,






 






Nine Months Ended




December 31,








(Amounts in thousands)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Net income






$






94,037






 






 






$






82,289






 






 






$






394,628






 






 






$






375,785






 








Depreciation and amortization






 






51,522






 






 






 






47,766






 






 






 






156,443






 






 






 






133,671






 








Interest expense






 






22,579






 






 






 






23,094






 






 






 






68,724






 






 






 






69,074






 








Income tax expense






 






30,557






 






 






 






27,091






 






 






 






129,630






 






 






 






117,897






 








EBITDA






 






198,695






 






 






 






180,240






 






 






 






749,425






 






 






 






696,427






 








Restructuring and realignment expense(a)






 






1,706






 






 






 






—






 






 






 






17,672






 






 






 






—






 








(Gain) loss on disposal of assets






 






(3






)






 






 






(477






)






 






 






(16,449






)






 






 






432






 








Stock-based compensation expense






 






8,835






 






 






 






7,798






 






 






 






25,816






 






 






 






21,758






 








Transaction costs






 






7,172






 






 






 






5,924






 






 






 






17,296






 






 






 






8,619






 








Interest income






 






(8,450






)






 






 






(4,545






)






 






 






(21,195






)






 






 






(18,478






)








Other adjustments(b)






 






1,262






 






 






 






2,545






 






 






 






2,351






 






 






 






3,775






 








Adjusted EBITDA






$






209,217






 






 






$






191,485






 






 






$






774,916






 






 






$






712,533






 









(a)








Includes costs associated with closure of one recycling facility, one offsite storage location and one distribution yard, as well as professional fees incurred in connection with supporting enterprise-wide restructuring and realignment initiatives. Excludes gain on sale of properties previously held-for-sale and equipment..








(b)








Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, and the proportionate share of interest, income taxes, depreciation and amortization related to the South American Joint Venture, which is accounted for under the equity method of accounting and executive retirement expense.







Reconciliation of Free Cash Flow to Cash flow from Operating Activities




 






Nine Months Ended




December 31,








(Amounts in thousands)






 






2025






 






 






 






2024






 








Net cash flow from operating activities






$






779,133






 






 






$






540,264






 








Capital expenditures






 






(196,737






)






 






 






(166,410






)








Free cash flow






$






582,396






 






 






$






373,854






 







Reconciliation of Diluted Earnings per Share to Adjusted Earnings per Share


The following table presents diluted earnings per share on an adjusted basis to supplement the Company's discussion of its results of operations herein.




 






Three Months Ended




December 31,






 






Nine Months Ended




December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Diluted Earnings Per Share






$






1.19






 






 






$






1.04






 






 






$






5.02






 






 






$






4.77






 








Restructuring and realignment expense






 






0.02






 






 






 






—






 






 






 






0.23






 






 






 






—






 








(Gain) loss on disposal of assets






 






—






 






 






 






(0.01






)






 






 






(0.21






)






 






 






0.01






 








Transaction costs






 






0.09






 






 






 






0.08






 






 






 






0.22






 






 






 






0.11






 








Income tax impact of adjustments (a)






 






(0.03






)






 






 






(0.02






)






 






 






(0.06






)






 






 






(0.03






)








Adjusted Earnings per Share






$






1.27






 






 






$






1.09






 






 






$






5.20






 






 






$






4.86






 









(a)







The income tax impact of adjustments to each period is based on the statutory tax rate.







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260205107143/en/
For more information, please contact:

Michael Higgins

VP, Corporate Strategy & Investor Relations

(614) 658-0050

Michael.Higgins@adspipe.com


Original: Advanced Drainage Systems Announces Third Quarter Fiscal 2026 Results, Increases Stock Repurchase Authorization