NYSE$WMS

Advanced Drainage Systems Inc. · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

ADS's financial performance remained stable with slight revenue growth and managed profitability amidst market fluctuations.

Advanced Drainage Systems reported flat net sales of $782.6 million compared to the prior year, with net income decreasing by 4.3% to $131.2 million. The company maintained a robust Adjusted EBITDA margin of 31.4% despite headwinds from unfavorable pricing and material costs and significant storm events.

  • Net sales were $782.6 million, consistent with the prior year.
  • Net income decreased 4.3% to $131.2 million.
  • Adjusted EBITDA remained flat at $245.6 million.
  • The company acquired Orenco Systems, Inc. to expand in the wastewater treatment space.

Headline financials

Total Revenue

$783M

Previous: $780M+0.3%
EPS

$1.67

Previous: $1.71-2.3%
Capital Expenditures

-$112M

Previous: $40.5M-376.7%
Free Cash Flow

$18.2M

Previous: $174M-89.6%
Net Income

$130M

Previous: $137M-4.8%
Operating Income

$187M

Previous: $198M-5.4%
Gross Profit

$294M

Previous: $303M-2.9%
Cash & Equivalents

$613M

Previous: $470M+30.3%
Total Assets

$3.54B

Previous: $3.14B+12.7%
Stock-Based Comp

$6.98M

Previous: $9.33M-25.2%

Revenue & EPS history

ADS · Revenue · Quarterly

$783M

Q2 2025+0.3%vs Q2 2024
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

ADS · $3.09B total across 4 segments · Q4 2026

  • Domestic Pipe
    $1.5B
  • Domestic Allied Products
    $750M
  • Wastewater
    $653M
  • International
    $188M

Forward guidance

The company updated its financial targets for fiscal 2025 based on current visibility, backlog, and business trends.

Tailwinds

  • Net sales are expected to be in the range of $2.900 billion to $2.975 billion.
  • Adjusted EBITDA is expected to be in the range of $880 million to $920 million.
  • The company is focused on organic capital investments.
  • Strategic M&A activities are a key focus.
  • The acquisition of Orenco Systems will accelerate growth in the advanced wastewater treatment space.

Headwinds

  • The guidance reflects year-to-date performance.
  • The guidance reflects the impact from weather.
  • The guidance reflects recent and forward-looking trends in underlying core markets.
  • Continued choppiness in the non-residential end market impacted revenue from both pipe and allied products
  • Significant storm events had a negative short-term impact

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 2025

Historical avgQ2 2025

+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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