Advanced Drainage reports Q4 EPS 99c, consensus $1.10

Reports Q4 revenue $615.8M, consensus $653.22M. CEO Scott Barbour commented, “In FY25, domestic construction market sales increased 3% as we continued to drive above market performance through our material conversion strategy in the stormwater and onsite wastewater markets. Importantly, organic sales in our most profitable segments, Infiltrator and Allied Products, increased 4.6% and 2.5%, respectively, and the onsite wastewater and Allied products now represent a collective 44% of revenue. The resiliency demonstrated by this year’s 30.6% Adjusted EBITDA margin is due in part to our strategy to grow these more profitable products to be a higher mix of the overall sales. In Q4, net sales decreased 6% overall as demand continues to be impacted by higher interest rates and economic uncertainty. In addition, the fourth quarter had unfavorable winter weather conditions this year against an already difficult comparison of very favorable weather in the prior year…Turning to FY26, orders are positive year-over-year, though the end market outlook remains sluggish…Long-term, we will continue to drive profitable, above market growth in the highly attractive stormwater and onsite wastewater markets.”