Advanced Drainage Q2 revenue growth beats estimates, helped by acqusitions

Advanced Drainage Systems

06/11/2025 11:47

Overview

Advanced Drainage Systems Q2 revenue grows 8.7%, beating analyst expectations

Adjusted EPS for Q2 beats consensus, driven by acquisitions and market growth

Company announces acquisition of NDS to enhance product offerings and market reach

Outlook

Company expects fiscal 2026 net sales between $2.900 bln and $2.990 bln

Adjusted EBITDA for fiscal 2026 expected between $900 mln and $940 mln

Capital expenditures for fiscal 2026 projected between $200 mln and $225 mln

Result Drivers

ACQUISITIONS - Inorganic growth from Orenco and River Valley Pipe contributed 3.6% of the Q2 revenue increase

PRODUCT MIX - Favorable price/cost and product mix resulted in a resilient Adjusted EBITDA margin of 33.8%

INFILTRATOR GROWTH - Infiltrator sales increased 25.2% due to Orenco acquisition and growth in tanks and advanced treatment products

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$850.38 mln
$801.39 mln (9 Analysts)
Q2 Adjusted EPS
Beat
$1.97
$1.67 (6 Analysts)
Q2 EPS
$1.99
Q2 Net Income
$156.50 mln
Q2 Adjusted EBITDA
Beat
$287.50 mln
$249.50 mln (8 Analysts)
Q2 Operating Income
$223.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "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 $159.00, about 15.3% above its November 5 closing price of $134.73

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw8DsKT0a

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