Advanced Drainage Systems Inc

Latest Results (20.12.2024):

Net Sales Performance

In the second quarter of fiscal 2025, Advanced Drainage Systems Inc. reported net sales of $782.6 million, which remained flat compared to the previous year. The company experienced a slight increase in domestic allied products and Infiltrator sales, while domestic pipe sales saw a decrease. International sales also declined, contributing to the overall flat performance in net sales.

Net Income and Earnings

Advanced Drainage Systems Inc. saw a decrease in net income by 4.3% to $131.2 million for the second quarter of fiscal 2025. The net income per diluted share also decreased by 2.3% to $1.67. These declines were primarily attributed to unfavorable pricing and material costs, despite favorable manufacturing costs.

Adjusted EBITDA and Margins

The company's Adjusted EBITDA for the second quarter of fiscal 2025 was $245.6 million, remaining flat compared to the prior year. The Adjusted EBITDA margin was maintained at 31.4%, reflecting the company's ability to manage demand fluctuations and price/cost challenges effectively.

Year-to-Date Financial Highlights

For the year-to-date fiscal 2025, Advanced Drainage Systems Inc. reported a 2.5% increase in net sales to $1.6 billion. However, net income decreased by 5.6% to $293.5 million, and net income per diluted share fell by 4.1% to $3.73. Adjusted EBITDA also saw a slight decrease of 1.2% to $521.0 million.

Fiscal 2025 Outlook

Looking ahead, Advanced Drainage Systems Inc. updated its fiscal 2025 guidance, expecting net sales to range between $2.900 billion and $2.975 billion. The company anticipates Adjusted EBITDA to be between $880 million and $920 million, with capital expenditures projected at approximately $250 million. This outlook reflects the company's current visibility, backlog, and business trends.