Advanced Drainage reports Q4 EPS $1.21, consensus $1.01

Reports Q4 revenue $653.8M, consensus $610.83M. CEO Scott Barbour commented, “FY24 was ADS’ ninth consecutive year of record profitability. Adjusted EBITDA increased 2% to $923M due to the effective management of price/cost and strong operational execution. In addition, Adjusted EBITDA margin increased 270 basis points to 32.1%, the highest annual profit margin in the company’s history. The profitability results for the year are especially impressive given the weaker demand environment in the first half of the year, which drove a 6% overall decrease in net sales to $2.9B…The Q4 net sales and Adjusted EBITDA results came in above our guidance due to favorable volume growth in our core construction and agriculture markets, as well as productivity improvements from previous capital investments and continuous improvement programs. Adjusted EBITDA margin increased to a new Q4 record of 29.2%, 140 basis points above the prior year. In FY25, we expect to see favorable demand drive volume growth in the residential and infrastructure markets, and stability in the non-residential construction market. Improved fixed cost absorption, increasing contributions from previous capital investments as well as effective management of price/cost should lead to healthy Adjusted EBITDA margins that at least equal Fiscal 2024 levels with potential for margin expansion…”