Overview

• US water management solutions provider's Q4 net sales rose 9.9%, beating analyst expectations

• Q4 adjusted EPS and adjusted EBITDA both beat analyst expectations

• Company closed NDS acquisition and returned $155.4 mln to shareholders in fiscal 2026

Outlook

• Company expects fiscal 2027 net sales between $3.35 bln and $3.55 bln

• Company targets fiscal 2027 adjusted EBITDA of $1.0 bln to $1.05 bln

• ADS says demand outlook is cautious due to geopolitical and economic uncertainty

Result Drivers

• NDS ACQUISITION - Q4 sales growth was driven by the contribution from the NDS acquisition, closed during the quarter

• ALLIED PRODUCTS GROWTH - Strong growth in Allied products contributed to higher sales and a favorable product mix

• FAVORABLE VOLUME AND PRICE/COST - Adjusted EBITDA growth was supported by higher volumes and favorable price/cost

Company press release: ID:nBwbNcHlsa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Beat	$676.76 mln	$649.17 mln (10 Analysts)
Q4 Adjusted EPS	Beat	$1.07	$0.95 (7 Analysts)
Q4 EPS		$0.43
Q4 Net Income		$34.15 mln
Q4 Adjusted EBITDA	Beat	$188 mln	$178.60 mln (9 Analysts)
Q4 Operating Income		$53.34 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Advanced Drainage Systems Inc is $190.00, about 38.9% above its May 20 closing price of $136.83

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

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