Advanced Drainage Systems Trading Volume Surges to $256 Million, Ranked 387th Despite Stock Price Decline

Market BriefThursday, May 15, 2025 7:21 pm ET
1min read

On May 15, 2025,

(WMS) experienced a significant increase in trading volume, with a turnover of $256 million, marking a 68.21% rise from the previous day. This surge placed the company at the 387th position in terms of trading volume for the day. However, the stock price of Systems (WMS) declined by 3.40%, marking the second consecutive day of decline, with a total decrease of 4.86% over the past two days.

Advanced Drainage Systems, Inc. recently announced its financial results for the fourth quarter and fiscal year 2025. The company reported a 5.8% decrease in net sales to $615.8 million for the fourth quarter. Net income also saw a significant decline, dropping 19.6% to $76.8 million. Diluted net income per share decreased by 18.2% to $0.99. Adjusted EBITDA (Non-GAAP) for the quarter decreased by 7.6% to $176.7 million.

For the full fiscal year 2025, net sales increased by 1.0% to $2,904.2 million. However, net income decreased by 11.8% to $452.6 million. Diluted net income per share decreased by 10.7% to $5.76. Adjusted EBITDA (Non-GAAP) for the year decreased by 3.7% to $889.2 million. Cash provided by operating activities decreased by $136.4 million to $581.5 million, and free cash flow (Non-GAAP) decreased by $165.6 million to $368.5 million.

Scott Barbour, President and Chief Executive Officer of ADS, highlighted the company's performance in the domestic construction market, where sales increased by 3%. The company's material conversion strategy in the stormwater and onsite wastewater markets continued to drive above-market performance. Organic sales in the Infiltrator and Allied Products segments increased by 4.6% and 2.5%, respectively, contributing to a collective 44% of revenue. The company's Adjusted EBITDA margin for the year was 30.6%, demonstrating resilience despite market challenges.

In the fourth quarter, net sales decreased by 6% overall due to higher interest rates and economic uncertainty. Unfavorable winter weather conditions also impacted demand. However, pricing and cost remained in line with expectations, and manufacturing, transportation, and SG&A costs were favorable compared to the prior year. Looking ahead to fiscal 2026, the company reported positive year-over-year orders, although the end market outlook remains sluggish. The company's diversified regional exposure and material conversion strategy position it well for growth opportunities in new product segments such as data centers and infrastructure.