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Dec 31, 2024
ADS Q3 2025 Earnings Report
Advanced Drainage Systems' financial performance was reported for Q3 2025, showing increased net sales but decreased net income and adjusted EBITDA.
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
ADS
ADS Revenue by Segment
ADS Revenue by Geographic Location
Revenue by Segment
Pipe Revenue
CapyFin.comInfiltrator Revenue
CapyFin.comInternational Pipe Revenue
CapyFin.comInternational Allied Products & Other Revenue
CapyFin.comAllied Products & Other Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com 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