*"The strength of our market position and resiliency of the ADS business model give us confidence in the long-term business outlook as we benefit from the secular tailwinds of changing climate patterns."* - Scott Barbour, CEO
— Scott Barbour
03Detailed Report
WMS
Advanced Drainage Systems Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 18, 2026
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Executive Summary
In Q4 2024, Advanced Drainage Systems Inc (WMS) reported stellar financial results, achieving a record revenue of $782.6 million, beating expectations and marking a 19.7% year-over-year increase. Net income surged to $130.4 million, reflecting a robust profitability measure with an EPS of $1.68. The quarter underscored the resilience of the ADS business model as management navigated a challenging market landscape, especially in residential and infrastructure sectors, which saw growth rates of 8% and 14% respectively in the second half of fiscal 2024. The company’s strategic investments in technology and market positioning have set a solid foundation for continued growth in upcoming fiscal periods, despite acknowledging potential headwinds from fluctuating commodity prices and interest rate impacts on housing starts.
Key Performance Indicators
Revenue
Increasing
782.61M
QoQ: 0.00% | YoY: 19.69%
Gross Profit
Increasing
293.94M
37.56% margin
QoQ: 0.00% | YoY: 24.12%
Operating Income
Increasing
187.38M
QoQ: 0.00% | YoY: 36.09%
Net Income
Increasing
130.38M
QoQ: 0.00% | YoY: 37.50%
EPS
Increasing
1.68
QoQ: 0.00% | YoY: 37.70%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Metrics:
- Revenue: $782.6 million, up 19.7% YoY (Q3 2024: $815.3 million)
- Net Income: $130.4 million, net income margin of 16.6%
- EPS: $1.68, up 37.7% YoY
- EBITDA: $239.1 million, EBITDA margin of 30.5%
- Free Cash Flow: $112.4 million, capital expenditures of $54.5 million
- Total Assets: $3.54 billion, Total Liabilities: $2.04 billion, Total Equity: $982.3 million
- Current Ratio: 3.19, Quick Ratio: 2.15
- Debt to Equity Ratio: 0.938
Overall, these figures demonstrate a healthy financial trajectory, with notable improvements in both income and margins amidst operational efficiencies and effective cost management strategies, despite a revenue decline for the year due to a weak start in early 2024.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
782.61M
19.69%
0.00%
Gross Profit
293.94M
24.12%
0.00%
Operating Income
187.38M
36.09%
0.00%
Net Income
130.38M
37.50%
0.00%
EPS
1.68
37.70%
0.00%
Key Financial Ratios
Gross Profit Margin
Fair
37.60%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
23.90%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
16.70%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Fair
3.69%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
8.84%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
3.19
Current ratio indicates excellent liquidity and financial flexibility
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