Loading...
•
Mar 31, 2025
ADS Q4 2025 Earnings Report
Advanced Drainage Systems announced financial results for the fourth quarter and fiscal year ended March 31, 2025.
Key Takeaways
Advanced Drainage Systems reported a decrease in financial results for the fourth quarter of fiscal year 2025, with net sales declining 5.8%, net income decreasing 19.6%, and diluted EPS falling 18.2%, largely influenced by unfavorable weather and the lingering impact of higher interest rates on construction markets.
Net sales decreased by 5.8% to $615.8 million in the fourth quarter compared to the prior year.
Net income decreased by 19.6% to $76.8 million, and diluted net income per share fell 18.2% to $0.99.
Adjusted EBITDA decreased by 7.6% to $176.7 million, resulting in an Adjusted EBITDA margin of 28.7%.
Domestic pipe sales decreased 11.3%, while Infiltrator sales increased 15.3% (though organic Infiltrator revenue decreased 4.5%).
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For fiscal year 2026, the company expects net sales to be in the range of $2.825 billion to $2.975 billion and Adjusted EBITDA to be between $850 million and $910 million.
Positive Outlook
- Orders are positive year-over-year entering fiscal 2026.
- Company's diversified regional exposure, end market, and product mix are unique strengths.
- Material conversion strategy remains strong with significant market opportunity.
- Opportunities for growth with new products into fast-growing segments like data centers and infrastructure.
- Confidence in the ability to grow and increase market share during the period of market uncertainty.
Challenges Ahead
- The end market outlook remains sluggish.
- Demand continues to be impacted by higher interest rates.
- Demand continues to be impacted by economic uncertainty.
- Fiscal 2025 Q4 had unfavorable winter weather conditions compared to favorable weather in the prior year.
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...