Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q4 FY2025 Earnings Presentation
19 slides from Advanced Drainage Systems's earnings presentation, May 15, 2025
Slide 1: Q4 Fiscal 2025 Financial Results
[IDS Q4 Fiscal 2025 Financial Results May 15, 2025
Slide 2: Management Presenters
Management Presenters Scott Barbour President and Chief Executive Officer Scott Cottrill Executive Vice President, Chief Financial Officer Craig Taylor President, Infiltrator Water Technologies Mike Higgins Vice President, Corporate Strategy & Investor Relations /IBDS
Slide 3: Forward Looking Statements and Non-GAAP Financial Metrics
Forward Looking Statements and Non-GAAP Financial Metrics Forward Looking Statements Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company's current expectations, estimates and projection
Slide 4: Fiscal Year 2025 Results
Fiscal Year 2025 Results Key Metric FY 2025 Guidance FY 2025 Results Net oales $2,900 - $2,975 $2,904 (in Millions) Adj. EBITDA (in cca $880 - $920 $889 Adj. EBITDA Margin 30.3% - 30.9% 30.6% Revenue by End Market International Sales Results 7% Aateulure ea) Non-Residential Construction b% Non-Resid
Slide 5: Diversified Product Mix Shifting to High Margin Categories
Diversified Product Mix Shifting to High Margin Categories FY25 . Allied Products Pipe Allied FY16 56% Products - fo 3 + Stormwater capture, storage Pipe Allied 26% 56.29 and treatment products 74% Products Secent * Growth criven by regulatory 9g advancement, market 26% Adjusted Gross Margin technol
Slide 6: Large Addressable Market with Significant Conversion Opportunity
Large Addressable Market with Significant Conversion Opportunity $2B Onsite Wastewater Market $5.5B Stormwater Pipe Market $i5B Total Addressable Market $7.5B Allied Products Markets HIDSDIS varket estimates are US only, based on management research.
Slide 7: How We Win: The ADS Value Proposition
How We Win: The ADS Value Proposition Best-In-Class CG» Lifecycle of a Raindrop XS: ‘e a Product 4 SI . Rain Event Lakes & _— Bortfche L = rr > Capture > Conveyance * Storage > Treatment Approvals Proven 300+ Go-to-Market —. .ronatonaland + ~>8700endneering_—*- 7800 waterworks sronane = F eiganga St
Slide 8: Spotlight: Infiltrator Fiscal 2025 Performance
Spotlight: Infiltrator Fiscal 2025 Performance Revenue Revenue by Product FY25 Performance Highlights +15% Cs) Advanced Treatment 7% Leachfield $516 Gi 61% 9 Tanks 22% FY26 FY24 OCrenco +60 bps Ss Y S T EM §S 53.6% 53.0% FY25 FY24 WIS son ios nricine nouns sre si srtoinns ss panei ncn + Infiltrator
Slide 9: Q4 Fiscal 2025 Financial Performance
Q4 Fiscal 2025 Financial Performance Revenue Revenue Performance 9 {USD mine) iG) By Business Domestic Markets $654 - ADS Legacy (10%) ~ Construction ; (4%) - Pipe (12%) + Non-Residential 1% = Allied Products (6%) Be Residential a) 6G ee 15% = Infrastructure (18%) Q4 FY25 Q4 FY24 ~ Agriculture (28%)
Slide 10: Free Cash Flow and Capital Structure
Free Cash Flow and Capital Structure Free Cash Flow “) Consolidated Adjusted EBITDA Working capital) Cash tax Cash interest Transaction costs) Other Consolidated cash flow from operations Capital expenditures Consolidated Free Cash Flow Debt & Capital Leases March 31, 2025 Term Loan Facility $ 413 F
Slide 11: Fiscal Year 2026 Guidance
Fiscal Year 2026 Guidance Fiscal 2026 Expectations Key Metric FY 2025 FY 2026 Y-o-Y Change Net Sales $2,904 $2,825 - $2,975 (3%) to +2% fal, BEIT $889 $850 - $910 (4%) to +2% Adj. EBITDA Margin 30.6% 301% - 30.6% (50) bps to flat IDS. ul
Slide 12: Fiscal 2026 End Market Expectations
End Market Non-Residential Residential Infrastructure Agriculture International IDS. Assumption Flat to down low-single digits Down low- to mid-single digits Up low-single digits Down double digits Down double digits Warehouses appear to have bottomed Fiscal 2026 Market Expectations Commentary Inter
Slide 13: Slide 13
Slide 14: Appendix
Appendix /IBDS
Slide 15: Secular Tailwind from Changing Climate Patterns
Secular Tailwind from Changing Climate Patterns Billion Dollar Storm Events in the U.S. HDDS 1980 to 2023 Supporting Resilient Communities 20 25 ‘ 20 Aquifer Flooding blk | Recharging 6 | ] 10 Tl | iaiit i| batt at WH : | | alll ly ili o Meldate UotdANEM ONAN Food Security Water Scarcity ogtenontowm
Slide 16: Fiscal 2025 Financial Performance
Fiscal 2025 Financial Performance Revenue Revenue Performance H% (USD, ln millons) . - By Business Domestic Markets Soe ~ ADS Legacy (2%) 4 COTTON) cars someouuaentote - Pipe (8%) + Non-Residential +3% + Allied Products 43% ® Beskiential 49% + Infittrator +15% ® Infrastructure ia FY26 FY24 = Agricul
Slide 17: Reconciliations
Reconciliations 17 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 329,959 $ (11,898) $ 318,061 $ 369,316 $ (10,656) $ 358,660 Infiltrator Water Technologies 140,108 (17,823) 122,285 124,875 (
Slide 18: Reconciliations Notes
Reconciliations 18 Notes: a) Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions. b) Includes derivative fair value adjustments, foreign currency transaction (gains) losses, the proportionat
Slide 19: Reconciliations
19 Reconciliations (Amounts in thousands) 2025 Net income $ 30,567 Depreciation and amortization 71,009 Interest expense 18,460 Income tax expense 23,498 EBITDA 143,534 Derivative fair value adjustments 2,163 Foreign currency translation (gains) losses 697 (Gain) loss on disposal of assets and costs
Advanced Drainage Systems — Q4 FY2025 Earnings Presentation on 6ix