Overview

* Advanced Drainage Systems ( WMS ) Q2 revenue grows 8.7%, beating analyst expectations

* Adjusted EPS for Q2 beats consensus, driven by acquisitions and market growth

* Company announces acquisition of NDS to enhance product offerings and market reach

Outlook

* Company expects fiscal 2026 net sales between $2.900 bln and $2.990 bln

* Adjusted EBITDA for fiscal 2026 expected between $900 mln and $940 mln

* Capital expenditures for fiscal 2026 projected between $200 mln and $225 mln

Result Drivers

* ACQUISITIONS - Inorganic growth from Orenco and River Valley Pipe contributed 3.6% of the Q2 revenue increase

* PRODUCT MIX - Favorable price/cost and product mix resulted in a resilient Adjusted EBITDA margin of 33.8%

* INFILTRATOR GROWTH - Infiltrator sales increased 25.2% due to Orenco acquisition and growth in tanks and advanced treatment products

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $850.38 $801.39

mln mln (9

Analysts

)

Q2 Beat $1.97 $1.67 (6

Adjusted Analysts

EPS )

Q2 EPS $1.99

Q2 Net $156.50

Income mln

Q2 Beat $287.50 $249.50

Adjusted mln mln (8

EBITDA Analysts

)

Q2 $223.30

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

* Wall Street's median 12-month price target for Advanced Drainage Systems Inc ( WMS ) is $159.00, about 15.3% above its November 5 closing price of $134.73

* The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)