Advanced Drainage Systems Declares Dividend and Highlights Buybacks

The latest announcement is out from Advanced Drainage Systems ( (WMS) ).

Advanced Drainage Systems reported strong results for the first quarter of fiscal 2027 ended June 30, 2026, with net sales rising 20.6% to $1.0 billion and net income from continuing operations up 22.5% to $176.6 million, driven by organic growth, the February acquisition of NDS and robust non-residential demand. Adjusted EBITDA increased 28.8% to $358.3 million, margins expanded in both stormwater and wastewater segments, and domestic construction sales climbed 20%, although management signaled caution on demand trends even as it reaffirmed full-year guidance for net sales of $3.35 billion to $3.55 billion and Adjusted EBITDA of $1.0 billion to $1.05 billion.

On August 6, 2026, the board approved a cash dividend of $0.20 per share, payable on September 15 to shareholders of record as of September 1, while the company also disclosed first-quarter share repurchases of 1.6 million shares for $228.5 million, leaving $822.5 million under its authorization. Operating cash flow reached $260.4 million, free cash flow was $203.2 million, net debt rose modestly to $1.60 billion with a leverage ratio of 1.5 times Adjusted EBITDA, and management highlighted the NDS acquisition’s role in expanding residential stormwater, landscape irrigation and allied products offerings as ADS consolidates its position as a pure-play water management provider.