Advanced Drainage Systems, Inc. (ADS) will unveil its fiscal 2030 outlook and growth projections today during its 2026 Investor Day in Hilliard, OH. The event, held at the company's new ADS Engineering and Technology Center, will provide updates on its pure play water exposure, differentiated growth story, and resilient profit platform. Attendees will include in-person guests participating in a walking tour of the facility, which serves as a hub for innovation and new product development.

The leadership team will present updates on the company's strategic direction, followed by a panel discussion titled "Innovation and the Future of Water Management Solutions." The presentation is scheduled to begin at 9:00 a.m. ET and will be webcast live. A replay of the session will be available on the company's website following the conclusion of the event.

Event Details

About Advanced Drainage Systems

Advanced Drainage Systems is a manufacturer of stormwater and onsite wastewater management products and solutions. The company provides products for commercial, residential, infrastructure, and agricultural applications. Along with its subsidiaries NDS and Infiltrator Water Technologies, ADS operates an expansive sales team, a vast manufacturing network, and the industry's largest company-owned fleet. The company is also one of the largest plastic recycling companies in North America.

Advanced Drainage Systems reported a 10% increase in fourth-quarter revenue to $677 million, achieving an adjusted EBITDA margin of 27.8% for the period ended fiscal year 2026. The company successfully integrated the NDS acquisition, which contributed $49 million to Stormwater revenue, and announced it is ahead of schedule on achieving $25 million in annual cost synergies by year three.

Financial Performance

The company's growth was primarily fueled by its Stormwater segment, where revenue rose by 12%. This increase was bolstered by a 43% surge in Allied product sales and the contribution from the NDS acquisition. Wastewater revenue also grew by 4%, driven by strong activity in the Southeast region. For the full fiscal year 2026, the company generated $569 million in free cash flow, an increase from the prior year, and returned $155 million to shareholders through dividends and repurchases.

Segment Results

Fiscal Year 2027 Outlook

Looking ahead, Advanced Drainage Systems provided guidance for fiscal year 2027, projecting revenue between $3.35 billion and $3.55 billion. The company forecasts adjusted EBITDA to be in the range of $1 billion to $1.05 billion. This guidance includes approximately $300 million of revenue from NDS for the full fiscal year and assumes flat organic volume growth due to inflationary pressures on input materials and transportation costs.

Operational Strategy

Management highlighted the company's ability to mitigate cost pressures through recycling initiatives and internal logistics strategies. The company noted that its private fleet, which covers roughly 70% of legacy business revenue, provides a competitive advantage during periods of high diesel and common carrier rate inflation. Additionally, the company announced an 11% increase in its dividend, demonstrating its commitment to returning capital to shareholders while investing in growth capabilities.