Advanced Drainage Systems Q1 sales beat expectations

Advanced Drainage Systems

07/08/2025 11:47

Overview

Advanced Drainage Systems fiscal Q1 net sales rose 1.8%, beating analyst expectations

Adjusted EPS for fiscal Q1 exceeded analyst estimates, despite a decline in net income

Company acquired River Valley Pipe, enhancing market presence and operational flexibility

Outlook

Company confirms fiscal 2026 net sales between $2.825 bln and $2.975 bln

Company expects fiscal 2026 adjusted EBITDA between $850 mln and $910 mln

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

Company notes wet weather and high interest rates as challenges

Result Drivers

ACQUISITIONS - Sales growth primarily driven by acquisitions, including Orenco Systems, Inc.

WEATHER DELAYS - Wet weather in May and June delayed project installations, impacting results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$829.88 mln
$804.20 mln (9 Analysts)
Q1 Adjusted EPS
Beat
$1.95
$1.75 (6 Analysts)
Q1 EPS
$1.84
Q1 Net Income
Beat
$144.09 mln
$137.50 mln (6 Analysts)
Q1 Adjusted EBITDA
Beat
$278.20 mln
$255.90 mln (8 Analysts)
Q1 Operating Income
Beat
$205.75 mln
$200.80 mln (7 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $137.50, about 17.2% above its August 6 closing price of $113.91

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw59qsKHa

(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.)