Advanced Drainage Q3 revenue beats estimates; new $1 bln buyback

Advanced Drainage Systems

05/02/2026 11:48

Overview

Water management firm's Q3 revenue rose slightly, beating analyst expectations

Adjusted EPS for Q3 exceeded analyst estimates

Company announced new $1 bln stock repurchase authorization

Outlook

Company expects fiscal 2026 net sales between $2.990 bln and $3.040 bln

Company anticipates fiscal 2026 adjusted EBITDA between $930 mln and $960 mln

Company sees challenging macroeconomic environment impacting fiscal 2026

Result Drivers

PRODUCT MIX SHIFT - Co's strategic shift towards higher-margin products and favorable price/cost dynamics contributed to increased profitability

INFILTRATOR AND ALLIED PRODUCTS - Growth in Infiltrator business and Allied products portfolio drove sales increase

NDS ACQUISITION - Recent acquisition of NDS expected to enhance product offerings and distribution channels

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$693.35 mln
$685.35 mln (9 Analysts)
Q3 Adjusted EPS
Beat
$1.27
$1.11 (6 Analysts)
Q3 EPS
$1.19
Q3 Net Income
$94.04 mln
Q3 Adjusted EBITDA
Beat
$209.20 mln
$194.20 mln (8 Analysts)
Q3 Operating Income
$136.82 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 $178.00, about 11.1% above its February 4 closing price of $160.26

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBw45VcWwa

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.)