h3 Advanced Drainage Systems Reports Fiscal First Quarter 2025 Earningsh3p Advanced Drainage Systems
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Advanced Drainage Systems Reports Fiscal First Quarter 2025 Earnings
Advanced Drainage Systems, Inc. (NYSE: WMS) ("ADS" or the "Company") has announced its financial results for the fiscal first quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q1 FY 2025 | Q1 FY 2024 | Quarter-over-Quarter Change | Consensus Estimate | Actual vs. Estimate |
|---|---|---|---|---|---|
| Total Revenue | $815.3M | $778.0M | +4.8% | $830.3M | -1.8% |
| Net Income | $162.3M | $174.0M (approx.) | -6.7% | - | - |
| Earnings per Share (EPS) | $2.06 | $2.18 | -5.5% | $2.08 | -0.96% |
| Adjusted EBITDA | $275.5M | $281.3M | -2.1% | - | - |
| Adjusted EPS (Non-GAAP) | $2.06 | $2.06 | Flat | - | - |
Interpretation : Despite a 4.8% increase in total revenue, ADS missed the consensus revenue estimate by 1.8%. Net income and EPS declined by 6.7% and 5.5% respectively, compared to the previous year due to higher costs and a decrease in overall margins. However, adjusted EPS remained flat, indicating stable underlying performance.
Revenue Performance by Segment
| Segment | Q1 FY 2025 Sales | Q1 FY 2024 Sales | Year-over-Year Change |
|---|---|---|---|
| Domestic Pipe | $431.4M | $420.8M (approx.) | +2.5% |
| Domestic Allied Products | $196.0M | $182.1M (approx.) | +7.6% |
| Infiltrator | $130.2M | $122.9M (approx.) | +5.9% |
| International | $57.7M | $52.2M (approx.) | +10.4% |
Interpretation : Revenue growth was bolstered by strong performances in Domestic Allied Products and Infiltrator segments, both exceeding 5% growth. The International segment also showed impressive growth at 10.4%, driven by demand in U.S. construction end markets.
Comments from Company Officers
Scott Barbour, President and CEO, stated, "Revenue growth was led by an 8% increase in Allied product sales and a 6% increase in sales from the Infiltrator business. Our strong profitability this quarter is a testament to the resiliency of our business model, underpinned by volume growth in the non-residential, residential, and infrastructure end markets."
Dividends & Share Repurchase Program
During Q1 FY 2025, the company repurchased 0.3 million shares of common stock at a total cost of $49.2 million. Approximately $167.6 million of common stock repurchase authorization remains available as of June 30, 2024.
Forward Guidance
The company reaffirmed its financial targets for fiscal 2025, projecting: - Net sales: $2.925 billion to $3.025 billion - Adjusted EBITDA: $940 million to $980 million - Capital expenditures: $250 million to $300 million
Stock Price Movement
The stock price experienced a slight decline of -0.0671% following the earnings release.
ADS remains optimistic about its future prospects, focusing on strategic investments and continuing its leadership in the water management solutions market.
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