Loading...
•
Dec 31, 2025
ADS Q3 2026 Earnings Report
Advanced Drainage Systems announced its financial results for the third quarter ended December 31, 2025, reporting increases in net sales, net income, diluted EPS, and Adjusted EBITDA.
Key Takeaways
Advanced Drainage Systems (ADS) delivered a strong third quarter for fiscal 2026, with net sales increasing by 0.4% to $693.4 million and net income rising by 14.3% to $94.0 million. Diluted EPS grew by 14.4% to $1.19, and Adjusted EBITDA saw a 9.3% increase to $209.2 million, reflecting improved profitability and strategic portfolio shifts towards higher-margin products. The company also announced a new $1 billion stock repurchase authorization and updated its fiscal 2026 guidance.
Net sales increased by $2.8 million (0.4%) to $693.4 million, demonstrating continued growth despite a mixed demand environment.
Net income rose significantly by $11.7 million (14.3%) to $94.0 million, driven by favorable price/cost dynamics and a strategic shift to higher-margin products.
Adjusted EBITDA increased by $17.7 million (9.3%) to $209.2 million, with the Adjusted EBITDA margin reaching 30.2% for the quarter.
The company announced a new $1 billion stock repurchase authorization, bringing the total authorization to $1.148 billion, reinforcing its commitment to returning capital to shareholders.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Advanced Drainage Systems updated its Fiscal 2026 guidance, expecting net sales between $2.990 billion and $3.040 billion, and Adjusted EBITDA between $930 million and $960 million. Capital expenditures are projected to be approximately $250 million.
Positive Outlook
- Strong year-to-date performance provides a solid foundation for the updated guidance.
- The recent acquisition of NDS is expected to contribute positively to the remaining fiscal year results.
- Continued strategic shift towards higher-margin products is expected to enhance profitability.
- Ongoing commitment to returning capital to shareholders through a new $1 billion stock repurchase authorization.
- Well-positioned to drive market conversion and accelerate organic and inorganic growth.
Challenges Ahead
- The end market outlook for the remainder of Fiscal 2026 reflects a challenging macroeconomic environment.
- Mixed end market demand is anticipated to persist.
- Uncertainties surrounding the integration and realization of anticipated benefits of acquisitions, including NDS.
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
Loading earnings performance data...
Loading earnings reaction data...