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.