ADS Q3 2025 Earnings Report
Key Takeaways
Advanced Drainage Systems (ADS) reported a 4.3% increase in net sales to $690.5 million for the third quarter of fiscal year 2025. However, net income decreased by 23.0% to $82.3 million, and adjusted EBITDA decreased by 6.2% to $191.5 million. The company's Infiltrator business modestly outperformed expectations, driven by double-digit growth in tanks and advanced treatment products.
Net sales increased by 4.3% to $690.5 million compared to the prior year quarter.
Net income decreased by 23.0% to $82.3 million.
Adjusted EBITDA decreased by 6.2% to $191.5 million.
The company acquired Orenco, expanding its offering in decentralized wastewater treatment.
ADS
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ADS Revenue by Segment
Forward Guidance
The Company is confirming its previously issued financial targets for fiscal 2025. Net sales are expected to be in the range of $2.900 billion to $2.975 billion and Adjusted EBITDA is expected to be in the range of $880 million to $920 million. Capital expenditures are expected to be approximately $225 million.
Positive Outlook
- Net sales are expected to be in the range of $2.900 billion to $2.975 billion.
- Adjusted EBITDA is expected to be in the range of $880 million to $920 million.
- Focused on executing sales strategies.
- Driving increased productivity.
- Delivering exceptional service to customers.
Challenges Ahead
- Fluctuations in the price and availability of resins and other raw materials.
- Disruption or volatility in general business and economic conditions.
- Cyclicality and seasonality of the non-residential and residential construction markets.
- Risks of increasing competition in existing and future markets.
- Uncertainties surrounding the integration and realization of anticipated benefits of acquisitions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income