Strong Residential and Infrastructure Market Growth
Sales in the residential end market increased 6%, driven by 11% growth in the infiltrator segment and 8% growth in legacy ADS sales. Infrastructure market sales also increased 7% due to strength in roadway and airport projects.
Infiltrator Segment Success
Infiltrator sales increased 11% with active treatment sales up 40% and above-market growth in tank sales. The segment continues to take share from traditional materials, driven by prior investments.
Orenco Acquisition and Integration
The acquisition of Orenco Systems, a leader in advanced treatment for on-site septic wastewater management, is expected to contribute $40 million to $50 million in revenue in fiscal 2025. The acquisition accelerates growth in the advanced treatment segment.
Capital Investments Paying Off
Capital spending increased 36% year-over-year, aimed at productivity, automation, and engineering advancements. These investments are yielding improved operational efficiency and profitability.
Resilient Profitability
Adjusted EBITDA margin was 31.4%, showcasing the resilience of the ADS business model despite market challenges.