NYSE$WMS

Advanced Drainage Systems Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

ADS achieved record revenue and Adjusted EBITDA in the second quarter of fiscal year 2023.

Advanced Drainage Systems reported a 25.2% increase in net sales, reaching $884.2 million, and a 101.0% increase in net income, totaling $153.4 million for the second quarter of fiscal year 2023. The company experienced growth in both construction and agriculture end markets, driven by favorable pricing and strong volume growth in Allied Products.

  • Net sales increased by 25.2% to $884.2 million.
  • Net income increased by 101.0% to $153.4 million.
  • Adjusted EBITDA increased by 59.7% to $263.2 million.
  • The company is lowering its fiscal year revenue guidance to the original Fiscal 2023 guidance of $3.100 billion to $3.200 billion.

Headline financials

Total Revenue

$884M

Previous: $706M+25.2%
EPS (adj)

$1.80

Previous: $0.88+104.5%
Adjusted EBITDA

$263M

Previous: $165M+59.7%
Capital Expenditures

-$39.4M

Previous: -$38.2M-3.0%
Free Cash Flow

$113M

Previous: $37.1M+203.3%
Net Income

$152M

Previous: $75.4M+101.7%
Operating Income

$218M

Previous: $112M+95.0%
Gross Profit

$320M

Previous: $200M+59.9%
Cash & Equivalents

$457M

Previous: $14M+3165.7%
Total Assets

$3.18B

Previous: $2.51B+26.8%
Stock-Based Comp

$7.46M

Previous: $17.6M-57.7%

Revenue & EPS history

ADS · Revenue · Quarterly

$884M

Q2 2023+25.2%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

ADS · $867M total across 4 segments · Q2 2023

  • Domestic Pipe
    $490M+27.5%
  • Domestic Allied Products
    $200M+37.0%
  • Wastewater
    $128M-12.1%
  • International
    $49.1M-2.0%

Forward guidance

The company updated its financial targets for fiscal 2023. Net sales are now expected to be in the range of $3.100 billion to $3.200 billion. Adjusted EBITDA is unchanged and expected to be in the range of $900 to $940 million. Capital expenditures are expected to be approximately $175 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+3.7%

Avg return

Earnings day

+4.4%

Avg return

5 days after

+4.3%

Avg return

30 days after

71%

34 / 48 earnings

Positive

+18.1%

Q4 2018

Best reaction

-26.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+1.4%+1.0%+7.7%
Q3 2026+6.1%+9.2%-8.8%
Q2 2026+8.9%+9.7%+10.5%
Q1 2026+17.3%+20.1%+30.3%
Q4 2025-3.4%-2.7%-7.1%
Q3 2025+1.4%+9.5%-1.0%
Q2 2025-14.6%-16.3%-18.3%
Q4 2024-1.2%+1.7%-3.0%
Q3 2024+17.4%+14.4%+17.1%
Q2 2024+4.1%+3.5%+16.0%
Q1 2025+4.2%+7.2%+4.2%
Q4 2023+8.9%+8.3%+24.6%
Q3 2023-10.9%-8.4%-13.8%
Q2 2023-26.7%-25.0%-16.0%
Q1 2023+16.0%+16.0%+10.8%
Q4 2022+5.7%+7.6%-17.6%
Q3 2022+5.7%+1.9%+5.2%
Q2 2022+10.6%+18.4%+11.9%
Q1 2022-5.2%-4.2%-4.6%
Q4 2021+5.9%+8.8%-3.3%
Q3 2021+16.5%+15.0%+19.4%
Q2 2021-5.1%-7.8%+11.5%
Q1 2021+11.2%+11.5%+11.2%
Q4 2020+7.1%+6.1%+17.6%
Q3 2020+6.6%+7.6%+4.2%
Q2 2020+0.0%+1.4%+1.6%
Q1 2020+1.8%+1.7%-4.7%
Q4 2019+9.2%+6.5%+13.7%
Q3 2019-5.9%-3.7%-6.2%
Q2 2019-3.7%-8.4%-11.0%
Q1 2019+7.8%+10.8%+14.0%
Q4 2018+18.1%+15.0%+11.6%
Q3 2018+11.9%+21.7%+21.5%
Q2 2018+10.1%+11.1%+21.4%
Q1 2018+0.3%+13.1%-0.8%
Q4 2017-4.4%-8.3%-7.4%
Q3 2017+1.2%-2.5%-9.8%
Q2 2017+5.1%+1.1%+7.5%
Q1 2017-6.0%-2.5%-18.4%
Q2 2016+9.5%+7.9%+11.1%
Q4 2016+9.5%+7.9%+11.1%
Q1 2016+0.4%-1.6%+11.2%
Q3 2016+3.8%+5.6%+10.7%
Q4 2015+9.4%
Q3 2014-1.5%
Q3 2015-0.0%
Q2 2015+10.8%
Q1 2015+3.2%
Q4 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013

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