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Mar 31
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%).
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
Domestic Markets Revenue
CapyFin.comInternational Revenue
CapyFin.com 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.
- Pricing/cost remained in line with expectations but did not offset the impact of unfavorable volume in the fourth quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income