Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q2 2027 Earnings Presentation
17 slides from Advanced Drainage Systems's earnings presentation, Nov 5, 2026
Slide 1: Q2 Fiscal 2027 Financial Results
Q2 Fiscal 2027 Financial Results November 5, 2026
Slide 2: Management Presenters
Management Presenters 2 Scott Barbour President and Chief Executive Officer Scott Cottrill Executive Vice President, Chief Financial Officer Craig Taylor President, Infiltrator Water Technologies Mike Higgins Senior Vice President, Corporate Strategy & Investor Relations
Slide 3: Forward Looking Statements and Non-GAAP Financial Metrics
Forward Looking Statements and Non - GAAP Financial Metrics 3 Forward Looking Statements Certain statements in this press release may be deemed to be forward - looking statements. These statements are not historical fac ts but rather are based on the Company’s current expectations, estimates and pro
Slide 4: CEO Highlights
CEO Highlights 4 1H Fiscal 2027 Revenue 1H Fiscal 2027 Profitability 33.8% 32.2% Q2 FY26 Q2 FY27 Adjusted EBITDA Margin (160 bps) • Continued favorable price/cost performance , with price covering material and transportation cost inflation in Q2 and 1H. • Continued execution on Adjusted EBITDA margi
Slide 5: Q2 Fiscal 2027 Financial Performance
Q2 FY26 Volume Price / Mix, Materials Mfg / Trans SG&A and Other Q2 FY27 Q2 Fiscal 2027 Financial Performance 5 33.8% 32.2% Q2 FY26 Q2 FY27 $850 $889 Q2 FY26 Q2 FY27 (160 bps) (USD, in millions) +5% Domestic Markets + Construction +7% + Non - Residential +3% + Residential +14% - Infrastructure (12%)
Slide 6: Free Cash Flow and Capital Structure
Free Cash Flow and Capital Structure 6 FY 2027 FY 2026 ∆ Consolidated Adjusted EBITDA $645 $566 $79 Working capital (2) (54) 4 (58) Cash tax (44) (56) 12 Cash interest – paid (52) (45) (7) Cash interest – received 3 13 (10) Transaction costs (3) (10) (10) 0 Other (30) 38 (68) Consolidated cash flow
Slide 7: Disciplined Approach to Capital Allocation
Disciplined Approach to Capital Allocation 7 Organic Capital Expenditures Acquisitions* Dividends Share Repurchases 1 2 3 4 Fiscal YTD 2027 Fiscal YTD 2026 $99M $0M $31M $375M $111M $19M $28M $0M $505M $158MTotal Capital Allocated 1.6x 0.7xLeverage Subtotal: Capital reinvested in business $99M $130M
Slide 8: Fiscal Year 2027 Guidance
Fiscal Year 2027 Guidance 8 Fiscal 2027 Expectations Key Metric FY 2026 Original FY27 Guidance Updated FY27 Guidance Net Sales (in Millions) $3,050 $3,350 - $3,550 $3,300 - $3,400 Adj. EBITDA (in Millions) $963 $1,000 - $1,050 $1,000 - $1,030 Adj. EBITDA Margin 31.6% 29.6% - 29.9% ~30.3%
Slide 9: Q&A
Q&A
Slide 10: YTD Fiscal 2027 Financial Performance
YTD FY26 Volume Price / Mix, Materials Mfg / Trans SG&A and Other YTD FY27 YTD Fiscal 2027 Financial Performance 10 33.7% 34.1% YTD FY26 YTD FY27 $1,680 $1,891 YTD FY26 YTD FY27 +40 bps (USD, in millions) +13% Domestic Markets + Construction +14% + Non - Residential +10% + Residential +21% - Infrast
Slide 11: Updated Fiscal 2027 Market Expectations
Updated Fiscal 2027 Market Expectations 11 End Market % of Revenue Assumption Commentary Non - Residential 45% Flat • Interest rates and economic/geopolitical uncertainty weighing on market • Large project activity still going well Residential 39% Down high - single digits • Interest rates and econo
Slide 12: Appendix
Appendix /IBDS
Slide 13: Reconciliations
Reconciliations 13 a.) Other segment items include depreciation, amortization recorded within cost of goods sold, stock - based compensation expense, inventory step - up costs, restructuring and realignment expense, and transaction costs. b.) The Company calculates Segment Adjusted EBITDA as net inc
Slide 14: Reconciliations
Reconciliations 14 a.) Other segment items include depreciation, amortization recorded within cost of goods sold, stock - based compensation expense, inventory step - up costs, restructuring and realignment expense, and transaction costs. b.) The Company calculates Segment Adjusted EBITDA as net inc
Slide 15: Reconciliations
Reconciliations 15 a.) Other segment items include depreciation, amortization recorded within cost of goods sold, stock - based compensation expense, inventory step - up costs, restructuring and realignment expense, and transaction costs. b.) The Company calculates Segment Adjusted EBITDA as net inc
Slide 16: Reconciliations
Reconciliations 16 a.) Other segment items include depreciation, amortization recorded within cost of goods sold, stock - based compensation expense, inventory step - up costs, restructuring and realignment expense, and transaction costs. b.) The Company calculates Segment Adjusted EBITDA as net inc
Slide 17: Reconciliations
17 Reconciliations a.) Includes costs associated with closure of facilities, as well as professional fees incurred in connection with supporting ent erp rise - wide restructuring and realignment initiatives. Excludes gain on sale of properties previously held - for- sale and equipment. b.) Includes
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