--- title: "Advanced Drainage | 8-K: FY2027 Q1 Revenue Beats Estimate at USD 1.001 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/295095465.md" datetime: "2026-08-06T11:05:49.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295095465.md) - [en](https://longbridge.com/en/news/295095465.md) - [zh-HK](https://longbridge.com/zh-HK/news/295095465.md) generator: "portal-rs" --- # Advanced Drainage | 8-K: FY2027 Q1 Revenue Beats Estimate at USD 1.001 B Revenue: As of FY2027 Q1, the actual value is USD 1.001 B, beating the estimate of USD 991.41 M. EPS: As of FY2027 Q1, the actual value is USD 2.19, beating the estimate of USD 2.0689. EBIT: As of FY2027 Q1, the actual value is USD 255.84 M. ### Fiscal First Quarter Ended June 30, 2026 Financial Performance #### Segment Revenue - **Total Net Sales**: Advanced Drainage Systems, Inc. reported total net sales of $1,001.1 million for the first quarter of fiscal 2027, an increase of 20.6% from $829.9 million in the prior year quarter. Total revenue was $1,001 million, a 21% increase compared to $830 million in Q1 FY26. - **Organic Net Sales**: Organic net sales increased by 9.2% year-over-year to $906.425 million, compared to $829.880 million in the prior year quarter. - **Stormwater Sales**: Stormwater sales increased by 24.2% to $809.4 million, up from $651.5 million in the prior year quarter. This segment included $94.7 million in revenue from the acquisition of National Diversified Sales (“NDS”). On an organic basis, stormwater sales grew by 9.7%. Stormwater revenue increased by 24% to $809 million from $652 million, which included $95 million from the NDS acquisition. Organic Stormwater revenue grew by 10%, with Allied products growing by 12% and pipe products by 9%. - **Wastewater Sales**: Wastewater sales increased by 7.5% to $191.7 million, compared to $178.4 million in the prior year quarter. Wastewater revenue increased by 8% to $192 million from $178 million, driven by growth in tanks and residential advanced treatment. #### Operational Metrics - **Gross Profit**: Gross profit increased by $77.6 million, or 23.5%, reaching $408.0 million, up from $330.4 million in the prior year. - **Selling, General and Administrative Expenses (SG&A)**: SG&A expenses increased by $26.9 million, or 25.8%, to $130.8 million, compared to $104.0 million in the prior year. As a percentage of sales, SG&A was 13.1% for the current quarter, up from 12.5% in the prior year. Selling, general and administrative expenses were $118,331 thousand in Q1 FY27, an increase from $92,126 thousand in Q1 FY26. - **Income from Operations**: Income from operations was $254.548 million for the quarter, compared to $205.746 million in the prior year. - **Net Income from Continuing Operations**: Net income from continuing operations increased by $32.5 million, or 22.5%, to $176.6 million, up from $144.1 million in the prior year. Net income from continuing operations was $176,568 thousand in Q1 FY27, up from $144,091 thousand in Q1 FY26. - **Adjusted EBITDA (Non-GAAP)**: Adjusted EBITDA increased by $80.1 million, or 28.8%, to $358.3 million, compared to $278.2 million in the prior year. As a percentage of net sales, Adjusted EBITDA was 35.8% for the current quarter, up from 33.5% in the prior year. Adjusted EBITDA for Q1 FY27 was $358 million, an increase of $80 million from $278 million in Q1 FY26. The Adjusted EBITDA Margin improved by 230 basis points to 35.8% in Q1 FY27 from 33.5% in Q1 FY26. - **Net Loss from Discontinued Operations**: The company reported a net loss from discontinued operations, net of taxes, of - $5.653 million for the quarter. - **Net Income Attributable to ADS**: Net income attributable to Advanced Drainage Systems, Inc. was $168.521 million, compared to $143.922 million in the prior year. - **Cost of Goods Sold**: Cost of goods sold totaled $593,065 thousand in Q1 FY27, compared to $499,442 thousand in Q1 FY26. - **Interest Expense**: Interest expense was $27,040 thousand in Q1 FY27, up from $23,029 thousand in Q1 FY26. - **Depreciation and Amortization**: Depreciation and amortization increased to $62,157 thousand in Q1 FY27 from $50,228 thousand in Q1 FY26. - **Stock-based Compensation Expense**: Stock-based compensation expense was $13,274 thousand in Q1 FY27, compared to $8,404 thousand in Q1 FY26. - **Transaction Costs**: Transaction costs were $3,244 thousand in Q1 FY27, up from $807 thousand in Q1 FY26. - **Inventory Step-up**: The company reported an inventory step-up related to the acquisition of NDS of $14,197 thousand in Q1 FY27. #### Cash Flow - **Net Cash Provided by Operating Activities**: Net cash provided by operating activities was $260.4 million, compared to $275.0 million in the prior year. Consolidated cash flow from operations was $260 million for FY2027, a decrease of - $15 million from $275 million in FY2026. - **Free Cash Flow (Non-GAAP)**: Free cash flow was $203.2 million, compared to $222.4 million in the prior year. Consolidated Free Cash Flow was $203 million in FY2027, a decrease of - $19 million from $222 million in FY2026. - **Capital Expenditures**: Capital expenditures were - $57.151 million, compared to - $52.598 million in the prior year. Capital expenditures increased to $57 million in FY2027 from $53 million in FY2026. #### Other Key Financial Indicators - **Net Debt**: Net debt was $1,603.4 million as of June 30, 2026, an increase of $54.5 million from March 31, 2026. Total debt was $1,783 million as of June 30, 2026, down from $1,790 million as of March 31, 2026. - **Total Liquidity**: Total liquidity was $900.9 million as of June 30, 2026, comprising $162.3 million in cash and $738.6 million in availability under committed credit facilities. As of June 30, 2026, Advanced Drainage Systems, Inc. had $162 million in unrestricted cash and $739 million availability under its revolving credit facility, totaling $901 million in liquidity. - **Leverage Ratio**: The company’s trailing-twelve-month leverage ratio was 1.5 times Adjusted EBITDA as of June 30, 2026, compared to 1.6x as of March 31, 2026. - **Stock Repurchases**: Advanced Drainage Systems, Inc. repurchased 1.6 million shares of its common stock for a total cost of $228.5 million during the three months ended June 30, 2026. Approximately $822.5 million remains under the existing stock repurchase authorization. - **Cash Dividends Declared Per Share**: Cash dividends declared per share were $0.20 for the current quarter, up from $0.18 in the prior year. The Board of Directors approved a cash dividend of $0.20 per share, representing an 11% increase over the prior year’s dividend amount, payable on September 15, 2026, to stockholders of record on September 1, 2026. #### Fiscal Year 2027 Outlook Advanced Drainage Systems, Inc. confirmed its financial targets for fiscal 2027. Net sales are expected to be in the range of $3.350 billion to $3.550 billion, representing a year-over-year increase of 10% to 16%. Adjusted EBITDA is projected to range from $1.0 billion to $1.050 billion, reflecting a 4% to 9% increase over the prior year, with capital expenditures anticipated to be approximately $200 million. The Adjusted EBITDA Margin is expected to be between 29.6% and 29.9%, indicating a decrease of -170 to -200 basis points. ### Related Stocks - [WMS.US](https://longbridge.com/en/quote/WMS.US.md) ## Related News & Research - [Assenagon Asset Management S.A. 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