Business Description

Advanced Drainage Systems, Inc. is a leading manufacturer of thermoplastic corrugated pipe and related water management products. Headquartered in Hilliard, Ohio, the company provides stormwater and onsite wastewater solutions for commercial, residential, infrastructure, and agricultural applications. It is notable for being the largest maker of high-density polyethylene pipe in the United States and heavily utilizing recycled plastics in its manufacturing processes.

Financial Statements

In thousands, USD
FY 2026FY 2025FY 2024FY 2023
Total Revenues3,050,3762,904,2452,874,4733,071,121
Cost of Sales1,882,9901,810,0041,728,5241,952,713
Gross Profit1,167,3861,094,2411,145,9491,118,408
Selling, General & Administrative Expenses469,549380,378370,714339,504
Depreciation & Amortization Expenses59,42452,56951,46955,197
Other Operating Expenses19,2113,858(8,365)4,397
Operating Profit619,202657,436732,131719,310
Interest Expense(59,414)(67,971)(65,378)(62,210)
Total Non-Operating Income(59,414)(67,971)(65,378)(62,210)
Income Before Provision for Income Taxes559,788589,465666,753657,100
Provision for Income Taxes134,988141,063158,998150,589
Consolidated Net Income424,800448,402507,755506,511
Net Income Attributable to Minority Interests and Other(2,755)(1,770)(2,160)(575)
Net Income Attributable to Discontinued Operations(1,090)
Net Income Attributable to Common Shareholders426,465450,172509,915507,086
Basic EPS5.485.816.526.16
Diluted EPS5.445.766.456.08
Basic Weighted Average Shares Outstanding77,75677,54978,25282,315
Diluted Weighted Average Shares Outstanding78,38378,18879,01783,336
Shares Outstanding72,65477,56677,55078,947
FY 2026FY 2025FY 2024FY 2023
Cash and Cash Equivalents223,012463,319490,163217,128
Total Cash and Cash Equivalents223,012463,319490,163217,128
Accounts Receivable390,536333,221323,576306,945
Total Trade Receivables390,536333,221323,576306,945
Inventories543,381488,269464,200463,994
Other Current Assets73,90039,97422,02829,422
Total Current Assets1,230,8291,324,7831,299,9671,017,489
Net Property, Plant & Equipment1,217,1651,051,040876,351733,059
Net Intangible Assets848,527448,060352,652407,627
Goodwill1,042,716720,223617,183620,193
Other Long-Term Assets166,386146,254122,760122,757
Total Assets4,505,6233,690,3603,268,9132,901,125
Accounts Payable237,706218,024254,401210,111
Accrued Expenses212,623137,295155,336145,457
Current Portion of Long-Term Debt5,8659,93411,87014,693
Current Portion of Leases38,13633,14318,0158,541
Other Current Liabilities15,139
Total Current Liabilities509,469398,396439,622378,802
Long-Term Debt1,605,9581,251,5891,259,5221,269,391
Leases121,935131,00061,66132,272
Other Long-Term Liabilities312,297273,587227,409225,800
Total Long-Term Liabilities2,040,1901,656,1761,548,5921,527,463
Total Liabilities2,549,6592,054,5721,988,2141,906,265
Common Stock11,71011,69411,67911,647
Treasury Stock(1,325,713)(1,219,408)(1,140,578)(920,999)
Additional Paid-in Capital1,342,0911,277,6941,219,8341,134,864
Accumulated Other Comprehensive Income(32,290)(37,178)(29,830)(27,580)
Retained Earnings1,862,9361,492,6341,092,208626,215
Total Common Shareholders' Equity1,858,7341,525,4361,153,313824,147
Minority Interests and Other97,230110,352127,386170,713
Total Shareholders' Equity1,955,9641,635,7881,280,699994,860
Total Liabilities and Shareholders' Equity4,505,6233,690,3603,268,9132,901,125
FY 2026FY 2025FY 2024FY 2023
Net Income428,773452,573513,291511,353
Depreciation & Amortization216,261183,281154,903145,149
Share-Based Compensation Expense32,35426,58131,98621,659
Other Adjustments58,6221,230(8,412)(3,729)
Changes in Trade Receivables(2,288)1,414(14,590)37,487
Changes in Inventories30,609(15,749)59430,224
Changes in Accounts Payable53,960(63,856)40,431(29,037)
Changes in Other Operating Activities(1,417)(3,983)(275)(5,296)
Cash from Operating Activities819,054581,491717,928707,810
Capital Expenditure(249,766)(212,944)(183,812)(166,913)
Payments for Business Acquisitions(991,064)(237,310)(48,010)
Proceeds from Business Divestments32,54127,498
Other Investing Activities(3,531)2,388650446
Cash from Investing Activities(1,211,820)(447,866)(155,664)(214,477)
Issuance of Short-Term Debt75,500123,200
Repayments of Short-Term Debt(75,500)(237,500)
Net Issuance / (Repayments) of Short-Term Debt0(114,300)
Issuance of Long-Term Debt1,127,200500,000
Repayments of Long-Term Debt(766,187)(11,897)(14,738)(19,532)
Net Issuance / (Repayments) of Long-Term Debt361,013(11,897)(14,738)480,468
Issuance of Common Shares6,8509,9716,4545,700
Repurchases of Common Shares(91,958)(69,922)(207,308)(575,027)
Net Issuance / (Repurchases) of Common Shares(85,108)(59,951)(200,854)(569,327)
Common Share Dividends Paid(56,124)(49,737)(43,995)(39,612)
Other Financing Activities(63,464)(36,142)(24,756)(53,507)
Cash from Financing Activities156,317(157,727)(284,343)(296,278)
Effect of Exchange Rate Changes on Cash and Cash Equivalents1,145(2,475)799(52)
Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash(235,304)(26,577)278,720197,003

Key Metrics & Ratios

MetricValue
Market Cap$9.96B
P/E25.21x
P/S3.27x
EV/EBITDA13.90x
Return on Equity23.7%
Return on Invested Capital14.0%
Current Ratio2.42x
Dividend Yield0.5%
Free Cash Flow Margin18.7%

Margins

Gross margin
38.3%
Operating margin
20.3%
Net margin
14.0%

Quarterly Trend

QuarterRevenueYoY growthOperating marginOperating income
Q1 2027 $1.00B +20.6% 25.4% $255M
Q4 2026 $677M +9.9% 7.9% $53M
Q3 2026 $693M +0.4% 19.7% $137M
Q2 2026 $850M +8.7% 26.3% $223M
Q1 2026 $830M 24.8% $206M
Q4 2025 $616M 19.0% $117M
Q3 2025 $691M 18.4% $127M
Q2 2025 $783M 23.9% $187M

More on Advanced Drainage Systems, Inc.

Figures compiled from public company filings.

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