Overview

* Advanced Drainage Systems ( WMS ) fiscal Q1 net sales rose 1.8%, beating analyst expectations

* Adjusted EPS for fiscal Q1 exceeded analyst estimates, despite a decline in net income

* Company acquired River Valley Pipe, enhancing market presence and operational flexibility

Outlook

* Company confirms fiscal 2026 net sales between $2.825 bln and $2.975 bln

* Company expects fiscal 2026 adjusted EBITDA between $850 mln and $910 mln

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

* Company notes wet weather and high interest rates as challenges

Result Drivers

* ACQUISITIONS - Sales growth primarily driven by acquisitions, including Orenco Systems, Inc.

* WEATHER DELAYS - Wet weather in May and June delayed project installations, impacting results

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Beat $829.88 $804.20

mln mln (9

Analysts

)

Q1 Beat $1.95 $1.75 (6

Adjusted Analysts

EPS )

Q1 EPS $1.84

Q1 Net Beat $144.09 $137.50

Income mln mln (6

Analysts

)

Q1 Beat $278.20 $255.90

Adjusted mln mln (8

EBITDA Analysts

)

Q1 Beat $205.75 $200.80

Operatin mln mln (7

g Income Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $137.50, about 17.2% above its August 6 closing price of $113.91

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

(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.)