Scott Barbour: 'Demand in the construction market was strong for both ADS and Infiltrator with growth across the non-residential, residential and infrastructure markets.'
— Scott Barbour
03Detailed Report
WMS
Advanced Drainage Systems Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 21, 2026
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Executive Summary
In the first quarter of fiscal year 2025, Advanced Drainage Systems Inc. (WMS) reported revenue of $690.5 million, marking a year-over-year increase despite headwinds in specific product segments, notably the agricultural market. The demand across non-residential, residential, and infrastructure markets showcased resilience, notably a 19% growth in the infrastructure segment supported by federal funding initiatives. However, the overall profitability reflected a contraction in year-over-year earnings, largely due to increasing costs, including transportation expenses and a challenging agricultural market. Management expressed confidence in growth prospects and reaffirmed full-year guidance, focusing on strategic capital investments to enhance capacity and operational efficiency.
Key Performance Indicators
Revenue
Decreasing
690.54M
QoQ: 0.00% | YoY: -15.31%
Gross Profit
Decreasing
241.59M
34.99% margin
QoQ: 0.00% | YoY: -24.63%
Operating Income
Decreasing
126.86M
QoQ: 0.00% | YoY: -43.99%
Net Income
Decreasing
81.23M
QoQ: 0.00% | YoY: -49.67%
EPS
Decreasing
1.05
QoQ: 0.00% | YoY: -49.52%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue surged to $690.5 million, a 5% increase year-over-year; Gross profit margin was 34.9%, down from 36.2% a year ago; Operating income reached $126.9 million, representing an operating margin of 18.4%, down from prior year; Net income decreased by 49.7% to $81.2 million with an adjusted EBITDA margin of 33.8%. The company demonstrated a solid cash position with $541.6 million at the end of the quarter. The current ratio stands at 3.21, reflecting good liquidity, while the net debt to adjusted EBITDA ratio is a conservative 0.9x, illustrating a healthy balance sheet to support future growth.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
690.54M
-15.31%
0.00%
Gross Profit
241.59M
-24.63%
0.00%
Operating Income
126.86M
-43.99%
0.00%
Net Income
81.23M
-49.67%
0.00%
EPS
1.05
-49.52%
0.00%
Key Financial Ratios
Gross Profit Margin
Fair
35.00%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
18.40%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
11.80%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.26%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.25%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
3.21
Current ratio indicates excellent liquidity and financial flexibility