Advanced Drainage reports Q2 adjusted EPS $1.97, consensus $1.64

Reports Q2 revenue $850.4M, consensus $800.68M. CEO Scott Barbour commented, “We delivered strong results in Q2, a testament to the key sales strategies we have executed to drive growth in core markets. Revenue from both Infiltrator and Allied products increased double digits compared to the prior year. This growth, in conjunction with favorable price/cost, end market and product mix resulted in a highly-resilient Adjusted EBITDA margin of 33.8%…In light of better-than-expected results in the first half of the fiscal year, we have updated our guidance for FY26. The end market outlook for the remainder of FY26 remains unchanged, reflecting a challenging macroeconomic environment from high interest rates, tepid market demand and depressed construction activity. Moving into the second half of the year, ADS is well positioned to continue executing on its value proposition, driving market conversion, and accelerating organic and inorganic growth while also generating free cash flow that enables the company to invest in the business and return capital to shareholders.”