Advanced Drainage Systems' Q4 sales, adjusted EPS beat; helped by NDS acquisition

Advanced Drainage Systems

21/05/2026 11:48

Overview

US water management solutions provider's Q4 net sales rose 9.9%, beating analyst expectations

Q4 adjusted EPS and adjusted EBITDA both beat analyst expectations

Company closed NDS acquisition and returned $155.4 mln to shareholders in fiscal 2026

Outlook

Company expects fiscal 2027 net sales between $3.35 bln and $3.55 bln

Company targets fiscal 2027 adjusted EBITDA of $1.0 bln to $1.05 bln

ADS says demand outlook is cautious due to geopolitical and economic uncertainty

Result Drivers

NDS ACQUISITION - Q4 sales growth was driven by the contribution from the NDS acquisition, closed during the quarter

ALLIED PRODUCTS GROWTH - Strong growth in Allied products contributed to higher sales and a favorable product mix

FAVORABLE VOLUME AND PRICE/COST - Adjusted EBITDA growth was supported by higher volumes and favorable price/cost

Company press release: ID:nBwbNcHlsa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$676.76 mln
$649.17 mln (10 Analysts)
Q4 Adjusted EPS
Beat
$1.07
$0.95 (7 Analysts)
Q4 EPS
$0.43
Q4 Net Income
$34.15 mln
Q4 Adjusted EBITDA
Beat
$188 mln
$178.60 mln (9 Analysts)
Q4 Operating Income
$53.34 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "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 $190.00, about 38.9% above its May 20 closing price of $136.83

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

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.)