Advanced Drainage Systems Q1 sales beat expectations
Overview
Advanced Drainage Systems 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/Miss | Actual | Consensus Estimate |
Q1 Sales | Beat | $829.88 mln | $804.20 mln (9 Analysts) |
Q1 Adjusted EPS | Beat | $1.95 | $1.75 (6 Analysts) |
Q1 EPS | $1.84 | ||
Q1 Net Income | Beat | $144.09 mln | $137.50 mln (6 Analysts) |
Q1 Adjusted EBITDA | Beat | $278.20 mln | $255.90 mln (8 Analysts) |
Q1 Operating Income | Beat | $205.75 mln | $200.80 mln (7 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 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:
