Author's note: I present an update my best small and mid-cap stock ideas that insiders are buying only to subscribers of my exclusive marketplace, The Insiders Forum. Our model portfolio has more than doubled the return of its benchmark, the Russell 2000, since its launch. To join our community and gain access to our market beating returns, just click on our logo below.Today, I am putting Advanced Drainage Systems, Inc. (NYSE: WMS ) in the spotlight. The stock of this building related concern is down some 4 ...

Advanced Drainage Systems, Inc. WMS reported worse-than-expected fourth-quarter financial results and issued FY26 sales guidance below estimates on Thursday.Advanced Drainage Systems reported quarterly earnings of $1.03 per share which missed the analyst consensus estimate of $1.10 per share. The company reported quarterly sales of $615.76 million which missed the analyst consensus estimate of $653.22 million.Scott Barbour, President and Chief Executive Officer of ADS, said, “In Fiscal 2025, domestic constr ...

Advanced Drainage Systems, Inc. (WMS) reported dismal results for the fourth quarter of fiscal 2025. Its adjusted earnings and net sales lagged the Zacks Consensus Estimate and tumbled on a year-over-year basis.The gloomy quarterly performance reflects unfavorable impacts from higher interest rates and ongoing economic uncertainties. Moreover, adverse winter weather conditions this year against a favorable scenario in the year-ago quarter made comparisons weak, thus adding to the headwinds.Moving into fisca ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NO.: 001-36557 ADVANCED DRAINAGE SYSTEMS, INC. (Exact name of registrant as specified in its charter) | Delaware 51-0105665 | | | | --- | --- | --- | | (State ...

Advanced Drainage Systems (WMS) Q4 2025 Earnings Call May 15, 2025 10:00 AM ET Company Participants Michael Higgins - Vice President of Corporate Strategy and Investor RelationsScott Barbour - President and CEOCraig Taylor - Executive VP - Infiltrator Water TechnologiesScott Cottrill - Executive VP, CFO & SecretaryGarik Shmois - Managing DirectorJeffrey Hammond - Managing DirectorTrey Grooms - Managing DirectorCollin Verron - Director Conference Call Participants Michael Halloran - Senior Research Analyst - ...

Financial Data and Key Metrics Changes - The company reported net sales of $2.9 billion for fiscal year 2025, representing a 1% increase over the prior year [5] - Adjusted EBITDA margin for the year was 30.6%, marking the second most profitable year in the company's history, although it was down modestly from peak levels due to pricing and material cost headwinds [6][7] - Free cash flow generated during fiscal 2025 was $581 million, showcasing strong cash flow generation even in a challenging macro environment [29] Business Line Data and Key Metrics Changes - Organic sales in the Infiltrator and Allied Products segments increased by 53% respectively, with On-site Wastewater and Allied Products now representing 44% of total revenue [7] - Infiltrator reported sales of $516 million, a 15% increase over the prior year, driven by double-digit growth in septic tanks and advanced treatment products [22] - Adjusted gross margins for Infiltrator increased by 50 basis points to 53.6%, aided by favorable pricing and manufacturing efficiencies [24] Market Data and Key Metrics Changes - Domestic construction market sales increased by 3%, with strong growth observed in Florida and Texas, particularly in pipe and infiltrator products [5][6] - The infrastructure market is expected to grow low single digits next year, benefiting from IIJA funds, while agriculture and international markets are anticipated to decline by double digits [34] Company Strategy and Development Direction - The company has strategically diversified its product, geography, and end market mix over the past ten years to enhance profitability and resilience [8][10] - Focus on higher-margin Allied Products has resulted in a 10% CAGR over the past decade, outpacing the core pipe business [9] - The company plans to continue investing in innovation, customer service, and technology to drive long-term shareholder value [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving above-market growth in core domestic construction markets despite a challenging demand environment [21] - The current economic uncertainty has led to the postponement of the Investor Day, with plans to reschedule for later in the year when a clearer three-year outlook can be provided [8][54] - Management highlighted the importance of ongoing investments in production capacity and innovation to maintain competitive advantage [30][31] Other Important Information - The company announced a 13% increase in its annual dividend to $0.72 per share [33] - Capital spending for fiscal 2025 was $212 million, with projections to increase to $275 million for fiscal 2026 [30][88] Q&A Session Summary Question: Clarification on pricing trends and pressures - Management indicated that pricing has been relatively stable, with expectations for price-cost neutrality throughout the year, particularly in the first quarter [39][40] Question: Revenue cadence and year-over-year growth implications - Management expects the first half of the year to account for 55% to 60% of total revenue, with a slightly easier year-over-year comparison in the first quarter [48][49] Question: Postponement of Investor Day - Management postponed the Investor Day to ensure a solid three-year plan can be presented, citing current market conditions as a reason for the delay [54] Question: Order rates and market trends - Order rates are trending positively, supporting guidance for the first half of the year, although management remains cautious about the second half due to economic uncertainty [59][60] Question: Integration of recent acquisitions - Management confirmed a target of 1,000 basis points margin expansion from the Orenco acquisition over the next three to five years, emphasizing growth opportunities [62][63] Question: SG&A expense outlook for 2026 - Management is implementing initiatives to manage SG&A expenses, with a focus on procurement and cost control measures [93][94] Question: Geographic performance insights - Strong performance noted in Florida and Texas, with continued focus on growing market share in these regions despite competitive pressures [96][100]

Advanced Drainage Systems (WMS) came out with quarterly earnings of $1.03 per share, missing the Zacks Consensus Estimate of $1.09 per share. This compares to earnings of $1.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.50%. A quarter ago, it was expected that this maker of water drainage systems and pipes would post earnings of $1.17 per share when it actually produced earnings of $1.09, delivering a surprise of -6.84 ...

//ADS. Q4 Fiscal 2025 Financial Results May 15, 2025 2 3 | Key Metric | FY 2025 Guidance | FY 2025 Results | | --- | --- | --- | | Net Sales | $2,900 - $2,975 | $2,904 | | (in Millions) | | | | Adj. EBITDA | $880 - $920 | $889 | | (in Millions) | | | | Adj. EBITDA Margin | 30.3% - 30.9% | 30.6% | 4 Diversified Product Mix Shifting to High Margin Categories FY25 Allied Pipe FY16 Products 56% 26% Allied 56.2% Pipe Products 74% Segment 26% $2.9B Adjusted Gross $1.3B Margin Revenue Revenue Infiltrator 18% Manuf ...

Financial Performance - Net sales for Q4 FY2025 decreased by $38.1 million, or 5.8%, to $615.8 million compared to $653.8 million in the prior year quarter[3] - For FY2025, net sales increased by $29.8 million, or 1.0%, to $2,904.2 million, driven by growth in the Infiltrator business and Allied products portfolio[8] - Net sales for the three months ended March 31, 2025, were $615,761,000, a decrease of 5.8% compared to $653,840,000 for the same period in 2024[24] Profitability - Adjusted EBITDA for Q4 FY2025 decreased by $14.5 million, or 7.6%, to $176.7 million, representing 28.7% of net sales compared to 29.2% in the prior year[7] - Gross profit for FY2025 decreased by $51.7 million, or 4.5%, to $1,094.2 million, primarily due to unfavorable pricing and material costs[9] - Net income attributable to ADS for the three months ended March 31, 2025, was $77,157,000, a decline of 18.7% from $94,822,000 in the prior year[24] - Adjusted EBITDA for the three months ended March 31, 2025, was $176,695, down from $191,178 in the same period of 2024[38] - Net income for the fiscal year ended March 31, 2025, was $452,573, down from $513,291 in 2024, a decline of 11.8%[38] Cash Flow and Debt - Free cash flow for FY2025 decreased by $165.6 million to $368.5 million, compared to $534.1 million in the prior year[13] - The company reported a net cash provided by operating activities of $581,491,000 for the fiscal year ended March 31, 2025, down from $717,928,000 in 2024, a decrease of 19.0%[28] - As of March 31, 2025, the company's net debt was $962.3 million, an increase of $101.4 million from the previous year[13] - Long-term debt obligations, net, were $1,251,589,000 as of March 31, 2025, compared to $1,259,522,000 in 2024, showing a slight decrease of 0.6%[26] Expenses - Selling, general and administrative expenses for FY2025 increased by $9.7 million, or 2.6%, to $380.4 million, representing 13.1% of sales[10] - Operating expenses for the fiscal year ended March 31, 2025, were $380,378,000, slightly higher than $370,714,000 in 2024, reflecting an increase of 2.0%[24] - Interest expense for the fiscal year ended March 31, 2025, was $91,803, slightly up from $88,862 in 2024[38] Capital Expenditures - Capital expenditures for the fiscal year ended March 31, 2025, were $212,944,000, compared to $183,812,000 in 2024, an increase of 15.9%[28] - Capital expenditures for the fiscal year ended March 31, 2025, were $212,944, an increase from $183,812 in 2024[40] Dividends and Shareholder Returns - The company declared cash dividends of $0.16 per share for the three months ended March 31, 2025, up from $0.14 per share in the same period of 2024[24] Acquisition - The company completed the acquisition of Orenco on October 1, 2024, which is expected to enhance its Infiltrator segment[14] Assets - Total assets increased to $3,690,360,000 as of March 31, 2025, compared to $3,268,913,000 as of March 31, 2024, representing a growth of 12.9%[26] - Cash and restricted cash at the end of the fiscal year was $469,271,000, down from $495,848,000 in the previous year, indicating a decrease of 5.4%[28] Earnings Per Share - Diluted earnings per share for the three months ended March 31, 2025, was $0.99, down from $1.21 in 2024, reflecting a decline of 18.2%[42] - Adjusted earnings per share for the fiscal year ended March 31, 2025, was $5.89, compared to $6.39 in 2024, representing a decrease of 7.8%[42]

Core Insights - WMS, in collaboration with AT&T, is enhancing cruise connectivity services, introducing the AT&T International Day Pass™ for seamless cellular connectivity at sea [1][2][4] - The cruise industry is projected to grow significantly, with nearly 40 million passengers expected by 2027, prompting WMS and AT&T to improve connectivity experiences for travelers [5] Group 1: Service Details - The AT&T International Day Pass™ costs $20 per day, providing 500MB of high-speed data daily in international waters, along with unlimited talk and text [3][6] - The pass activates automatically, ensuring travelers remain connected both at sea and on land without incurring additional charges when visiting ports of call [3][4] Group 2: Company Background - WMS is recognized as a leading global provider of cruise wireless connectivity, having pioneered the first wireless network on a cruise ship 20 years ago [7] - AT&T serves over 100 million U.S. customers and nearly 2.5 million businesses, continuously innovating in telecommunications [8]