Advanced Drainage Systems Inc
NYSE:WMS
Advanced Drainage Systems Inc
In the intricate world of water management and environmental solutions, Advanced Drainage Systems Inc. stands out as a key player. Founded in 1966 and headquartered in Hilliard, Ohio, the company pioneered the use of corrugated plastic pipes, revolutionizing how stormwater is managed across various landscapes. Its innovative products, such as N-12 HDPE pipes and StormTech chambers, are integral to infrastructure projects, including agriculture, commercial, and residential developments. The company has adeptly positioned itself in the marketplace by aligning with environmentally conscious builders and municipalities seeking sustainable solutions, often highlighting the long-term savings and durability of its products compared to traditional materials.
Creating a ripple effect of efficiency, Advanced Drainage Systems prospers through a robust network of manufacturing sites and distribution centers strategically located across North America. Their revenue streams are bolstered not only by the sale of its engineering-based products but also through services that support their implementation — ensuring systems are optimally designed and installed. The company's growth is further fueled by its commitment to recycling, transforming millions of pounds of plastic into drainage solutions each year. This not only supports its sustainability ethos but also positions it as a cost-effective player in a competitive marketplace. Through a combination of innovative product offerings and strategic operations, Advanced Drainage Systems effectively engineers solutions for today's escalating environmental challenges.
In the intricate world of water management and environmental solutions, Advanced Drainage Systems Inc. stands out as a key player. Founded in 1966 and headquartered in Hilliard, Ohio, the company pioneered the use of corrugated plastic pipes, revolutionizing how stormwater is managed across various landscapes. Its innovative products, such as N-12 HDPE pipes and StormTech chambers, are integral to infrastructure projects, including agriculture, commercial, and residential developments. The company has adeptly positioned itself in the marketplace by aligning with environmentally conscious builders and municipalities seeking sustainable solutions, often highlighting the long-term savings and durability of its products compared to traditional materials.
Creating a ripple effect of efficiency, Advanced Drainage Systems prospers through a robust network of manufacturing sites and distribution centers strategically located across North America. Their revenue streams are bolstered not only by the sale of its engineering-based products but also through services that support their implementation — ensuring systems are optimally designed and installed. The company's growth is further fueled by its commitment to recycling, transforming millions of pounds of plastic into drainage solutions each year. This not only supports its sustainability ethos but also positions it as a cost-effective player in a competitive marketplace. Through a combination of innovative product offerings and strategic operations, Advanced Drainage Systems effectively engineers solutions for today's escalating environmental challenges.
Profitability: ADS reported one of its most profitable third quarters ever, achieving a 30.2% adjusted EBITDA margin, up 250 basis points versus last year, despite flat revenue.
Revenue Guidance: Fiscal 2026 revenue guidance was raised to a midpoint of $3.015 billion, including $40 million from the newly acquired NDS business.
NDS Acquisition: The acquisition of NDS closed this week, expanding ADS's product portfolio and is expected to contribute approximately $40 million in revenue and a 20% EBITDA margin in fiscal Q4.
Cash Flow: Year-to-date cash from operations reached $779 million, up 44% year-over-year, converting over 100% of adjusted EBITDA into cash.
Market Conditions: Nonresidential end-market demand guidance was revised to down low- to mid-single digits, reflecting slightly weaker activity, while residential remains under pressure except for stronger results in Infiltrator and Allied Products.
Margin Outlook: Adjusted EBITDA margin guidance for fiscal 2026 was raised, now expected to be between 31.1% and 31.6%, supported by favorable mix and self-help cost initiatives.
Capital Allocation: Announced a new $1 billion share repurchase authorization and stated a continued focus on organic growth and tuck-in M&A.
Innovation: New product launches in Allied and Infiltrator are driving tens of millions of dollars in incremental revenue, with continued acceleration expected.
