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Jun 30, 2023

ADS Q1 2024 Earnings Report

ADS's financial performance exceeded expectations, driven by strong Infiltrator business and Allied products portfolio performance.

Key Takeaways

Advanced Drainage Systems reported a decrease in net sales by 14.9% to $778.0 million and a decrease in net income by 7.7% to $173.9 million for the first quarter of fiscal year 2024. Despite the decrease in sales, the Adjusted EBITDA margin increased to a quarterly record of 36.2%.

Net sales decreased 14.9% to $778.0 million.

Net income decreased 7.7% to $173.9 million.

Adjusted EBITDA decreased 5.9% to $281.3 million.

Adjusted EBITDA margin increased to a new quarterly record of 36.2%.

Total Revenue
$778M
Previous year: $914M
-14.9%
EPS
$2.04
Previous year: $2.22
-8.1%
Gross Profit
$331M
Previous year: $352M
-5.9%
Cash and Equivalents
$366M
Previous year: $464M
-21.0%
Free Cash Flow
$202M
Previous year: $214M
-5.7%
Total Assets
$3.05B
Previous year: $3.23B
-5.5%

ADS

ADS

ADS Revenue by Segment

Forward Guidance

The Company confirmed its financial targets for fiscal 2024.

Positive Outlook

  • Net sales are expected to be in the range of $2.600 billion to $2.800 billion.
  • Adjusted EBITDA is expected to be in the range of $725 to $825 million.
  • Capital expenditures are expected to be in the range of $200 million to $225 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income