Advanced Drainage Q1 sales and adjusted EPS beat estimates

Advanced Drainage Systems

06/08/2026 11:49

Overview
U.S. water management firm's fiscal Q1 sales rose, beating analyst expectations
Adjusted EPS for fiscal Q1 beat consensus, driven by organic growth and NDS acquisition
Company repurchased $228.5 mln of common stock in the quarter

Outlook
Company expects fiscal 2027 net sales between $3.35 bln and $3.55 bln
Company sees fiscal 2027 adjusted EBITDA between $1.0 bln and $1.05 bln
Company remains cautious on overall demand environment for the remainder of the year

Result Drivers
NDS ACQUISITION - Co said acquisition of NDS contributed meaningfully to stormwater segment sales and expanded reach in residential stormwater management and landscape irrigation
PRICE ACTIONS - Co said price increases to cover inflationary cost pressure on transportation and materials led to some pull-forward of sales from Q2 and impacted order patterns and seasonality
NON-RESIDENTIAL DEMAND - Co said favorable volume was driven by strength in the non-residential market and customer purchases ahead of pricing actions

Company press release: ID:nBw6l7c9Ma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$1.001 bln
$990.99 mln (11 Analysts)
Q1 Adjusted EPS
Beat
$2.49
$2.11 (8 Analysts)
Q1 EPS
 
$2.26
 
Q1 Net Income
 
$170.92 mln
 
Q1 Adjusted EBITDA
Beat
$358.30 mln
$311.71 mln (10 Analysts)
Q1 Operating Income
 
$254.55 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Advanced Drainage Systems Inc is $175.00, about 17% above its August 5 closing price of $149.59
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads
Aug 5 - Watts Water Q2 sales beat estimates on higher volumes, favorable price realization
Aug 5 - Mueller Water Q3 sales, profit beat estimates on higher prices, lower costs
Aug 4 - DuPont narrows annual sales forecast on water business weakness, shares down

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)