Advanced Drainage Systems (6DA) Q2 2027 Earnings Report
DE:6DA Q2 2027 EPS Results
- Actual EPS
- EUR 1.67
- Consensus EPS
- EUR 1.60
- Beat/Miss
- Beat by +EUR 0.07
- One Year Ago EPS
- EUR 1.75
DE:6DA Q2 2027 Revenue Results
- Actual Revenue
- EUR 790.27M
- Expected Revenue
- EUR 819.04M
- Beat/Miss
- Missed by -EUR 28.78M
- YoY Revenue Growth
- +4.59%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 11/05/2026
- Time
- Before Open
- Conference Call
- Thursday, November 5, 2026
Advanced Drainage Systems's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
The call was broadly positive. ADS reported strong first-half revenue growth, a record Adjusted EBITDA margin, favorable price-cost execution, robust free cash flow, progress at NDS, continued product and material-conversion gains, and a strategic StormTrap acquisition. These strengths outweighed the acknowledged challenges from weak residential demand, elevated resin and transportation costs, revenue pulled forward into the first quarter, and mixed agriculture and infrastructure activity.
For fiscal year 2027, revenue guidance was adjusted by 3% at the midpoint to $3.35 billion, while Adjusted EBITDA guidance was adjusted by 1% at the midpoint to $1.015 billion, resulting in a margin of 30.3%; at the midpoint, full-year guidance implies the second half of the year grows low single digits organically, with stable pricing that will offset the year-over-year inflation on material and transportation costs in the second half of the year. Updated guidance is not inclusive of StormTrap; following the acquisition, net leverage is expected to be approximately 2.0 times, within the preferred leverage range of 1.5 to 2 times, and the transaction is expected to be accretive to adjusted earnings per share in the first quarter.
- Strong First-Half Revenue GrowthYear-to-date revenue increased 13%, driven by new product introductions, material conversion, strategic partnerships, distributor programs, and disciplined acquisitions. Organic consolidated revenue increased 2% in a challenging demand environment, including 6% organic growth in Allied Products and 3% growth in Infiltrator.
- Record First-Half Adjusted EBITDA MarginAdjusted EBITDA margin was 34.1% for the first half of the year, the highest in the company's history. Pricing actions successfully outpaced inflationary pressure on material and transportation costs during the first half.
- Second-Quarter Revenue and EBITDA GrowthSecond-quarter revenue increased approximately 5% to $889 million, while Adjusted EBITDA was $287 million, producing a 32.2% Adjusted EBITDA margin.
- Non-Residential and Project GrowthNon-residential revenue increased 10% year-to-date, or 8% organically. The company generated double-digit growth on large projects such as data centers and warehouses, as well as in general commercial construction.
- Residential Growth Including NDSResidential sales increased 21% year-to-date, reflecting the strategic acquisition of NDS. The company began cross-selling in the second fiscal quarter and reported encouraging early customer response and meaningful opportunities across irrigation, retail, and broader water management applications.
- Innovation and New Products Driving RevenueInnovation and new products contributed over $260 million to the top line in the first half of the year. The company is continuing to invest in new products, material science, blending capabilities, automation, and productivity.
- Aquabox Partnership GrowthRevenue from the Aquabox plastic crate line for retention and detention systems was four times higher year-to-date than in the prior-year period.
- NDS Contribution and Synergy ProgressNDS contributed $172 million to revenue year-to-date. Management said NDS was performing above plan, with revenue slightly ahead and profitability more significantly ahead of plan. NDS synergies were tracking ahead of the year-one plan and were expected to be additive to the previously stated $25 million target.
- StormTrap Acquisition Expands Product PortfolioADS announced an agreement to acquire StormTrap, an industry leader in large-volume, space-constrained, and highly engineered stormwater solutions. The approximately $530 million purchase price, or approximately $450 million adjusted for the net present value of expected tax benefits, represents approximately 10 times trailing-twelve-month Adjusted EBITDA inclusive of expected run-rate cost synergies. The transaction is expected to be accretive to adjusted earnings per share in the first quarter and is expected to close in the fourth quarter of calendar 2026.
- Strong Cash Flow and Balance Sheet FlexibilityYear-to-date free cash flow was $359 million. The company ended the quarter with leverage of 1.6 times and expects net leverage to be approximately 2.0 times following the StormTrap acquisition, within its preferred leverage range of 1.5 to 2 times.
- Significant Capital Deployment and Shareholder ReturnsFollowing the proposed StormTrap acquisition, ADS will have deployed over $1 billion of capital during the year, including $406 million returned to shareholders. Management said strong cash generation supports continued organic investment, strategic acquisitions, quarterly dividends, and opportunistic share repurchases.
- Material Conversion and Allied Products OutgrowthManagement said the material-conversion strategy remained intact, with continued uptake of polypropylene pipe and no concerns about taking market share from concrete pipe. Allied Products outgrowth was supported by selling the full package, new chamber sizes, capture products, water-quality products, and other new offerings.
- Price-Cost Execution and Fleet AdvantagePricing remained favorable to material and transportation costs. Management said ADS has successfully covered inflation with pricing, is holding the pricing, and benefits from owning its own transportation fleet, which helps mitigate transportation costs and supports competitiveness.
- Updated Outlook Maintains Organic Growth and Margin ResilienceFiscal 2027 revenue guidance was reduced by 3% at the midpoint to $3.35 billion, primarily because raw-material inflation is expected to be lower than initially anticipated. Adjusted EBITDA guidance was adjusted at the midpoint to $1.015 billion, resulting in a 30.3% margin. The midpoint implies low single-digit organic growth in the second half, stable pricing, and pricing that offsets year-over-year material and transportation inflation.
DE:6DA Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 04, 2027 | 2027 (Q3) | 1.00- | 1.13 | ― | ― |
| Nov 05, 2026 | 2027 (Q2) | 1.601.67 | 1.75 | -4.57% (-0.08) | |
| Aug 06, 2026 | 2027 (Q1) | 1.872.21 | 1.73 | 27.69% (+0.48) | |
| May 21, 2026 | 2026 (Q4) | 0.830.95 | 0.92 | 3.88% (+0.04) | |
| Feb 05, 2026 | 2026 (Q3) | 0.981.13 | 0.97 | 16.51% (+0.16) | |
| Nov 06, 2025 | 2026 (Q2) | 1.461.75 | 1.51 | 15.88% (+0.24) | |
| Aug 07, 2025 | 2026 (Q1) | 1.551.73 | 1.83 | -5.34% (-0.10) | |
| May 15, 2025 | 2025 (Q4) | 0.940.92 | 1.09 | -16.26% (-0.18) | |
| Feb 06, 2025 | 2025 (Q3) | 1.060.97 | 1.22 | -20.44% (-0.25) | |
| Nov 08, 2024 | 2025 (Q2) | 1.681.51 | 1.52 | -0.58% (-0.01) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
