Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q3 2025 Earnings Presentation
17 slides from Advanced Drainage Systems's earnings presentation, Feb 6, 2025
Slide 1: Q3 Fiscal 2025 Financial Results
[ISDS Q3 Fiscal 2025 Financial Results February 6, 2025
Slide 2: Management Presenters
Management Presenters Scott Barbour President and Chief Executive Officer Scott Cottrill Executive Vice President, Chief Financial Officer 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: CEO Highlights
CEO Highlights Q3 Fiscal 2025 Revenue Q3 Fiscal 2025 Profitability Sal ' Adjusted EBITDA Margi ales * Construction market volume and es reroytes ieee + Profitability impacted by eo pricing overall in line with 30.8% unfavorable price/cost and mix SeDE See 120% expectations. impact of Orenco. | $104
Slide 5: Secular Tailwind from Changing Climate Patterns
Secular Tailwind from Changing Climate Patterns /IDS Supporting Resilient Communities ‘Aquifer Flooding Recharging Food Security Water Scarcity IDS. Billion Dollar Storm Events in the U.S. 1980 to 2024 J 5 ,d | ih | | ly ] Hal i 1 eale tl 0 SANT eRONXTESMBONYTEMRONYEL WSO BSFSSSSSSISISSSSSSRERSRSES
Slide 6: Stormwater Awareness Increasing Among Americans
Stormwater Awareness Increasing Among Americans ADS | The Harris Poll | 2024 Stormwater Survey Results How concerned are you about the stormwater In general, how much of a negative impact does infrastructure where you live? stormwater have on your community? +9 64% percentage of Americans Points vs.
Slide 7: Orenco has a Robust Suite of Solutions for Decentralized Wastewater Management
Orenco has a Robust Suite of Solutions for Decentralized Wastewater Management Advanced Treatment Systems Collection Systems AdvanTex® Prelos® Control Panels Modular Pressurized Standard and wastewater liquid-only sewer custom control treatment systems technology panels and alarm systems Advanced se
Slide 8: Please Join Us: Investor Day June 6, 2025
Please Join Us Advanced Drainage Systems Investor Day June 26, 2025 ADS Engineering and Technology Center Hilliard, OH
Slide 9: Q3 Fiscal 2025 Financial Performance
Q3 Fiscal 2025 Financial Performance Revenue Revenue Performance (USD, inmitons) By Business - ADS Legacy - Pipe + Allied Products + Infiltrator Q3 FY24 Q3 FY25 Adj. EBIT 2082 —— (310) bps (1%) (3%) +4% +30% ($21.8) Domestic Markets + Construction 47% wy Non-Residential Th + Residential +9% -__ Infr
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 December 31, 0 2024 Term Loan Facility $
Slide 11: Disciplined Approach to Capital Allocation
Disciplined Approach to Capital Allocation YTD Fiscal 2025 YTD Fiscal 2024 E> Organic Capital Expenditures SI66M S136M Acquisitions $255M i Subtotal: Cash reinvested in business $416M $i36M Dividends $37M $33M Share Repurchases $70M $178M Subtotal: Cash returned to shareholders $107M $21iM Total Cas
Slide 12: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance Fiscal 2025 Expectations Key Metric FY 2024 FY 2025 Y-o-Y Change Net Sales Net Sal $2,874 $2,900 - $2,975 +1% to +4% Adj. EBITDA $923 $880 - $920 (5%) to flat (in Millions) (120) to (180) Adj. EBITDA Margin 321% 30.3% - 30.9% basi ; asis points IDS. 12
Slide 13: Q&A
Slide 14: Appendix
Appendix /IBDS
Slide 15: YTD Fiscal 2025 Financial Performance
YTD Fiscal 2025 Financial Performance Revenue YTD FY24 YTD FY25 Revenue Performance (USD, in milion) Adj. EBIT! (190) bps - [Pl YTD FY24 YTD FY25, By Business Domestic Markets + ADS Legacy H% + Construction 45% - Pipe (1%) + Non-Residential 44% + Allied Products 45% + Residential +6% + Infittrator +
Slide 16: Reconciliations
Reconciliations 16 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 356,010 $ (12,607) $ 343,403 $ 360,733 $ (11,629) $ 349,104 Infiltrator Water Technologies 152,384 (17,083) 135,301 131,144 (
Slide 17: Reconciliations Notes
Reconciliations 17 Notes: a) Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, the proportionate share of interest, income taxes, depreciation and amortization related to the South American Joint Venture, which is acc
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