Advanced Drainage Systems Q1 Earnings Call Highlights

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Sun, August 9, 2026 astatine 12:03 PM CDT 6 min read

Key Points

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Record first-quarter performance: Fiscal 2027 nett income reached $1 billion, up 21% twelvemonth implicit year, portion adjusted EBITDA roseate 29% to $358 cardinal and the borderline expanded to 35.8%. Results benefited from integrated growth, the NDS acquisition and $25 million–$30 cardinal of lawsuit purchases pulled guardant up of terms increases.
Demand was mixed crossed markets: Stormwater gross accrued 24%, supported by non-residential construction, information centers, warehouses and retention products, portion integrated residential income were level amid affordability concerns and precocious involvement rates. NDS contributed $95 cardinal successful quarterly sales, though cross-selling benefits stay constricted truthful far.
Outlook unchanged but near-term margins look pressure: The institution maintained fiscal 2027 income guidance of $3.35 billion–$3.55 cardinal and adjusted EBITDA guidance of $1 billion–$1.05 billion. Management expects higher resin and proscription costs to measurement connected second-quarter margins, partially offset by pricing actions, portion continuing investments successful recycling, capableness and shareholder returns.

Advanced Drainage Systems (NYSE:WMS) reported first-quarter fiscal 2027 nett income of $1 billion, up 21% from a twelvemonth earlier, arsenic integrated growth, the publication from NDS and lawsuit purchases up of terms increases supported results. The institution said it recorded much than $1 cardinal successful quarterly gross for the archetypal time.

Organic revenue, excluding NDS, roseate 9%. However, absorption estimated that $25 cardinal to $30 cardinal of gross was pulled into the archetypal 4th from the 2nd 4th arsenic customers sought to acquisition earlier terms increases took effect. Excluding that pull-forward, integrated gross maturation was successful the mid-single digits.

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Adjusted EBITDA accrued 29% to $358 million, producing a 35.8% adjusted EBITDA margin, up 230 ground points from 33.5% a twelvemonth earlier. Chief Financial Officer Scott Cottrill said the borderline was the company's 2nd highest connected record.

Stormwater and wastewater show

Stormwater gross accrued 24% to $809 million, portion integrated stormwater income roseate 10%, driven by tube and allied products. Wastewater gross accrued 8%, supported by double-digit maturation successful tanks and residential advanced-treatment products.

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President and CEO Scott Barbour said non-residential integrated income grew 14%, with resilient enactment successful commercialized operation and ample projects specified arsenic information centers and warehouses. Management besides cited maturation successful organization operation and continued request for water-quality, retention and seizure products.

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