Advanced Drainage Systems’ acquisition of National Diversified Sales contributed $94.7 million of revenue during the first quarter of fiscal 2027 as the water-management company increased total sales 20.6% and expanded its Adjusted EBITDA margin by approximately 230 basis points.
Total net sales reached $1.001 billion compared with $829.9 million a year earlier. Stormwater sales increased 24.2% to $809.4 million, including the $94.7 million contribution from NDS. Even excluding the acquisition, organic Stormwater sales increased 9.7%, supported by growth in pipe and allied products.
Wastewater sales increased 7.5% to $191.7 million. Overall organic net sales increased 9.2%, demonstrating underlying growth beyond the acquired NDS revenue.
Adjusted EBITDA increased 28.8% to $358.3 million from $278.2 million. Adjusted EBITDA margin expanded to 35.8% from 33.5%, benefiting from NDS, volume growth, disciplined pricing and manufacturing performance.
Management said some demand was pulled forward from Q2 ahead of price increases intended to offset inflationary transportation and materials costs. Volume strength was particularly notable in non-residential markets.
Net income from continuing operations increased 22.5% to $176.6 million, while diluted EPS from continuing operations increased 22.8% to $2.26. ADS also repurchased approximately $228.5 million of common stock during the quarter.
KEY QUOTES:
“Performance for the first quarter of fiscal 2027 unfolded largely as we anticipated, with net sales increasing 21% to $1.0 billion and Adjusted EBITDA increasing 29% to $358.3 million, expanding our Adjusted EBITDA margin 230 basis points to 35.8%.”
“NDS continues to perform well, expanding our reach in residential stormwater management and landscape irrigation while accelerating growth in Allied Products. Importantly, we continue to successfully sell the full solutions package, leveraging Allied Products alongside our core offerings to deliver greater value to customers and drive share gains.”
Scott Barbour, President And Chief Executive Officer Of Advanced Drainage Systems
