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Sep 30, 2023

ADS Q2 2024 Earnings Report

ADS experienced a decrease in net sales but demonstrated resilience through margin expansion.

Key Takeaways

Advanced Drainage Systems reported a decrease in net sales by 11.8% to $780.2 million for the second quarter of fiscal year 2024. Despite the revenue decline, the company demonstrated resilience with an expansion in Adjusted EBITDA margin. The company narrowed its revenue target towards the upper end of the previous range and increased the Adjusted EBITDA mid-point guidance for the year.

Net sales decreased by 11.8% to $780.2 million.

Net income decreased by 10.7% to $137.0 million.

Adjusted EBITDA decreased by 6.4% to $246.3 million.

The company updated its financial targets for fiscal 2024 with net sales expected to be in the range of $2.700 billion to $2.800 billion and Adjusted EBITDA expected to be in the range of $800 to $850 million.

Total Revenue
$780M
Previous year: $884M
-11.8%
EPS
$1.71
Previous year: $1.8
-5.0%
Gross Profit
$303M
Previous year: $320M
-5.4%
Cash and Equivalents
$470M
Previous year: $457M
+2.9%
Free Cash Flow
$174M
Previous year: $361M
-51.8%
Total Assets
$3.14B
Previous year: $3.18B
-1.2%

ADS

ADS

ADS Revenue by Segment

Forward Guidance

The Company updated its financial targets for fiscal 2024. Net sales are now expected to be in the range of $2.700 billion to $2.800 billion. Adjusted EBITDA is expected to be in the range of $800 to $850 million. The outlook for capital expenditures is unchanged, expected to be in the range of $200 million to $225 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income