Core Insights - Advanced Drainage Systems, Inc. (WMS) reported disappointing fourth-quarter results for fiscal 2025, with adjusted earnings and net sales falling short of expectations and declining year-over-year due to higher interest rates and economic uncertainties [1][3] - The company’s outlook for fiscal 2026 remains sluggish, but its diversified market exposure and innovative strategies may help it navigate market challenges [2] Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter were $1.03, missing the Zacks Consensus Estimate of $1.09 by 5.5%, and down from $1.23 in the same quarter last year [3] - Net sales for the quarter were $615.8 million, missing the consensus mark of $659 million by 6.5% and declining 5.8% year-over-year, primarily due to weather-related demand weakness in construction and agriculture [3] - Gross profit decreased 10.2% to $226.3 million, influenced by unfavorable volume and price mix, while SG&A expenses as a percentage of net sales contracted 70 basis points year-over-year to 14.8% [4] Segment Performance - The Pipe segment's net sales fell 11.3% year-over-year to $318.1 million, while Infiltrator Water Technologies saw a 15.3% increase in net sales to $122.3 million [6] - The International segment's net sales dropped 17.6% to $30 million, and the Allied Products & Other segment's net sales decreased 4.8% to $145.4 million [7] Annual Overview - For fiscal 2025, WMS generated net sales of $2.9 billion, a slight increase of 1% from fiscal 2024, with adjusted EPS decreasing from $6.39 to $5.89 [8] - Adjusted EBITDA for the year fell 3.7% to $889.2 million, with an adjusted EBITDA margin of 30.6%, down 150 basis points year-over-year [9] Liquidity and Capital Management - As of March 31, 2025, WMS had total liquidity of $1.1 billion, including cash of $463.3 million, and long-term debt slightly decreased to $1.25 billion [10] - During fiscal 2025, the company repurchased 0.4 million shares for $69.9 million, with $147.7 million remaining under its share repurchase authorization [11] Fiscal 2026 Guidance - WMS expects net sales for fiscal 2026 to range between $2.825 billion and $2.975 billion, with adjusted EBITDA projected between $850 million and $910 million, and capital expenditures around $275 million [12]

Core Insights - Mueller Water Products (MWA) reported revenue of $364.3 million for the quarter ended March 2025, marking a year-over-year increase of 3.1% and a surprise of +4.67% over the Zacks Consensus Estimate of $348.05 million [1] - The earnings per share (EPS) for the same period was $0.34, compared to $0.30 a year ago, resulting in an EPS surprise of +6.25% against the consensus estimate of $0.32 [1] Financial Performance Metrics - Net Sales for Water Management Solutions were $148.10 million, slightly below the two-analyst average estimate of $153.50 million, reflecting a year-over-year change of +0.3% [4] - Net Sales for Water Flow Solutions reached $216.20 million, exceeding the two-analyst average estimate of $194.50 million, with a year-over-year change of +5.1% [4] - Adjusted operating income for Corporate was reported at -$15.50 million, worse than the -$14.50 million estimated by analysts [4] - Adjusted operating income for Water Management Solutions was $31.30 million, slightly above the $31 million estimated by analysts [4] - Adjusted operating income for Water Flow Solutions was $54.10 million, surpassing the $52.50 million estimated by analysts [4] Stock Performance - Shares of Mueller Water Products have returned +17% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]