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Dec 31, 2020
ADS Q3 2021 Earnings Report
ADS experienced substantial growth and profitability in Q3 2021.
Key Takeaways
Advanced Drainage Systems reported a strong third quarter in fiscal year 2021, marked by a 23.6% increase in net sales, reaching $486.1 million, and a 128.4% surge in net income, totaling $54.0 million. The company's adjusted EBITDA also saw a significant rise of 52.1%, amounting to $138.9 million. These results reflect the company's successful execution of its material conversion strategy and its ability to capitalize on favorable demand across various markets and geographies.
Net sales increased by 23.6% to $486.1 million, driven by growth in both residential and non-residential sectors.
Net income surged by 128.4% to $54.0 million, highlighting improved profitability.
Adjusted EBITDA rose by 52.1% to $138.9 million, reflecting efficient operational performance and synergy benefits.
The company is optimistic about its business outlook, with a favorable order book and backlog.
Revenue by Segment
Forward Guidance
ADS anticipates net sales to be in the range of $1.915 billion to $1.950 billion and Adjusted EBITDA to be in the range of $550 to $565 million for fiscal year 2021.
Positive Outlook
- Favorable order book
- Project tracking
- Book-to-bill ratio
- Growing residential development
- Horizontal construction
Challenges Ahead
- Pandemic impact on business
- Fluctuations in resin prices
- Raw material availability
- Volatility in economic conditions
- Cyclicality of construction markets
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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