Earnings Releases·Nov 5, 2026, 6:58 AM ET

Advanced Drainage Systems — Second Quarter Fiscal 2027 Earnings Summary

Net sales rose 4.6% year-over-year to $889.4 million for the quarter and 12.5% to $1.89 billion year-to-date, while Adjusted EBITDA margin expanded to 34.1% year-to-date; diluted EPS decreased 11.0% to $1.77 for the quarter but increased 5.0% to $4.02 year-to-date.
Fiscal 2027 net sales guidance was lowered to $3.300–$3.400 billion due to softer demand from higher interest rates and geopolitical uncertainty, though Adjusted EBITDA guidance remains unchanged at $1.000–$1.030 billion.
The company announced a proposed acquisition of StormTrap and completed the NDS acquisition, which contributed $77.3 million to Q2 sales; capital expenditures are projected at approximately $200 million for the full year.
Capital return activity included $375.1 million in share repurchases and $0.40 per share in dividends year-to-date, with $677.3 million remaining under the existing authorization.
Net debt increased $71.0 million to $1.62 billion, resulting in a trailing-twelve-month leverage ratio of 1.6 times Adjusted EBITDA, supported by $891.8 million in total liquidity.