ADS Q3 2023 Earnings Report
Key Takeaways
Advanced Drainage Systems reported a decrease in net sales by 8.4% to $655.2 million, but net income increased by 11.7% to $83.2 million. The company managed costs effectively, maintained favorable price/material cost, and generated significant cash flow, resulting in an expanded Adjusted EBITDA margin and increased free cash flow.
Net sales decreased 8.4% to $655.2 million.
Net income increased 11.7% to $83.2 million.
Adjusted EBITDA decreased 3.6% to $169.7 million.
Free cash flow increased $440 million, or 370% over the prior year.
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ADS Revenue by Segment
Forward Guidance
The Company updated its financial targets for fiscal 2023. Net sales are now expected to be in the range of $2.975 billion to $3.050 billion. Adjusted EBITDA is now expected to be in the range of $850 to $890 million. Capital expenditures are expected to be approximately $175 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income