STOCK TITAN
  1. Home
  2. Sec-filings
  3. WMS
  4. [8-K] ADVANCED DRAINAGE SYSTEMS, INC. Reports Material Event

Advanced Drainage Systems (NYSE: WMS) recasts segment results

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Advanced Drainage Systems, Inc. has realigned its reporting structure and provided unaudited recast historical segment financial information. Following the acquisition of National Diversified Sales, management now evaluates performance using two reportable segments, Stormwater and Wastewater, and has changed the segment profitability measure to Adjusted EBITDA.

The company states the segment realignment does not change previously reported consolidated net sales, income from operations, net income attributable to ADS, or earnings per share. Quarterly segment net sales and Adjusted EBITDA for fiscal 2026, 2025 and 2024 have been recast and furnished in Exhibit 99.1 for informational and supplemental purposes only, and are not amendments or restatements of prior financial statements.

Positive

  • None.

Negative

  • None.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Total net sales $829,880 thousand Three months ended June 30, 2025, consolidated
Consolidated Adjusted EBITDA $278,167 thousand Three months ended June 30, 2025
Net income from continuing operations $144,091 thousand Three months ended June 30, 2025
Consolidated Adjusted EBITDA $287,532 thousand Three months ended September 30, 2025
Net income from continuing operations $156,500 thousand Three months ended September 30, 2025
Consolidated Adjusted EBITDA $187,990 thousand Three months ended March 31, 2026
Net income from continuing operations $35,235 thousand Three months ended March 31, 2026
Total net sales $815,336 thousand Three months ended June 30, 2024, consolidated
Segment Realignment financial
"following the acquisition of National Diversified Sales (“NDS”) we realigned our reportable segments"
Adjusted EBITDA financial
"we changed the measure used to evaluate segment profitability from adjusted gross profit to Adjusted EBITDA"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Chief Operating Decision Maker financial
"align with the manner in which the Chief Operating Decision Maker (“CODM”) assesses performance"
The chief operating decision maker is the person or small group inside a company who has the authority to decide how to allocate resources and judge the performance of the business, effectively choosing which projects, products, or divisions get priority and funding. For investors, identifying this decision maker matters because their choices drive strategy, shape where profits and risks come from, and affect how management’s results and segment information should be interpreted—similar to knowing a ship’s captain when assessing navigation choices.
Regulation FD Disclosure regulatory
"Item 7.01 Regulation FD Disclosure As previously reported"
Regulation FD disclosure requires public companies to share important, market-moving information with everyone at the same time instead of tipping off analysts or large investors first. Think of it as making sure all players on a field hear the same announcement simultaneously; that fairness helps investors trust that stock prices reflect the same information and reduces the risk of sudden, unfair trading advantages or regulatory penalties for selective leaks.
Net income from continuing operations financial
"Net income from continuing operations | $ | 144,091"
Net income from continuing operations is the profit a company earns from its ongoing, day-to-day business after paying costs, interest and taxes, excluding results from businesses it has sold or closed and one-time gains or losses. Investors care because it shows the company's recurring earning power—like comparing a regular paycheck to a one-off bonus—and gives a clearer picture of sustainable profits used to value the business and judge management performance.
Other segment items financial
"Other segment items include depreciation, amortization recorded within cost of goods sold"
Understanding 8-K Material Events →
0001604028Falseiso4217:USD00016040282026-05-212026-05-210001604028wms:StormwaterSegmentMember2025-04-012025-06-300001604028wms:WastewaterSegmentMember2025-04-012025-06-3000016040282025-04-012025-06-300001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2025-04-012025-06-300001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2025-04-012025-06-300001604028us-gaap:IntersegmentEliminationMember2025-04-012025-06-300001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2025-04-012025-06-300001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2025-04-012025-06-300001604028wms:StormwaterSegmentMember2025-07-012025-09-300001604028wms:WastewaterSegmentMember2025-07-012025-09-3000016040282025-07-012025-09-300001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2025-07-012025-09-300001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2025-07-012025-09-300001604028us-gaap:IntersegmentEliminationMember2025-07-012025-09-300001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2025-07-012025-09-300001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2025-07-012025-09-300001604028wms:StormwaterSegmentMember2025-10-012025-12-310001604028wms:WastewaterSegmentMember2025-10-012025-12-3100016040282025-10-012025-12-310001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2025-10-012025-12-310001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2025-10-012025-12-310001604028us-gaap:IntersegmentEliminationMember2025-10-012025-12-310001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2025-10-012025-12-310001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2025-10-012025-12-310001604028wms:StormwaterSegmentMember2026-01-012026-03-310001604028wms:WastewaterSegmentMember2026-01-012026-03-3100016040282026-01-012026-03-310001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2026-01-012026-03-310001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2026-01-012026-03-310001604028us-gaap:IntersegmentEliminationMember2026-01-012026-03-310001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2026-01-012026-03-310001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2026-01-012026-03-310001604028wms:StormwaterSegmentMember2024-04-012024-06-300001604028wms:WastewaterSegmentMember2024-04-012024-06-3000016040282024-04-012024-06-300001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2024-04-012024-06-300001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2024-04-012024-06-300001604028us-gaap:IntersegmentEliminationMember2024-04-012024-06-300001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2024-04-012024-06-300001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2024-04-012024-06-300001604028wms:StormwaterSegmentMember2024-07-012024-09-300001604028wms:WastewaterSegmentMember2024-07-012024-09-3000016040282024-07-012024-09-300001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2024-07-012024-09-300001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2024-07-012024-09-300001604028us-gaap:IntersegmentEliminationMember2024-07-012024-09-300001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2024-07-012024-09-300001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2024-07-012024-09-300001604028wms:StormwaterSegmentMember2024-10-012024-12-310001604028wms:WastewaterSegmentMember2024-10-012024-12-3100016040282024-10-012024-12-310001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2024-10-012024-12-310001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2024-10-012024-12-310001604028us-gaap:IntersegmentEliminationMember2024-10-012024-12-310001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2024-10-012024-12-310001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2024-10-012024-12-310001604028wms:StormwaterSegmentMember2025-01-012025-03-310001604028wms:WastewaterSegmentMember2025-01-012025-03-3100016040282025-01-012025-03-310001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2025-01-012025-03-310001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2025-01-012025-03-310001604028us-gaap:IntersegmentEliminationMember2025-01-012025-03-310001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2025-01-012025-03-310001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2025-01-012025-03-310001604028wms:StormwaterSegmentMember2023-04-012023-06-300001604028wms:WastewaterSegmentMember2023-04-012023-06-3000016040282023-04-012023-06-300001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2023-04-012023-06-300001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2023-04-012023-06-300001604028us-gaap:IntersegmentEliminationMember2023-04-012023-06-300001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2023-04-012023-06-300001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2023-04-012023-06-300001604028wms:StormwaterSegmentMember2023-07-012023-09-300001604028wms:WastewaterSegmentMember2023-07-012023-09-3000016040282023-07-012023-09-300001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2023-07-012023-09-300001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2023-07-012023-09-300001604028us-gaap:IntersegmentEliminationMember2023-07-012023-09-300001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2023-07-012023-09-300001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2023-07-012023-09-300001604028wms:StormwaterSegmentMember2023-10-012023-12-310001604028wms:WastewaterSegmentMember2023-10-012023-12-3100016040282023-10-012023-12-310001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2023-10-012023-12-310001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2023-10-012023-12-310001604028us-gaap:IntersegmentEliminationMember2023-10-012023-12-310001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2023-10-012023-12-310001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2023-10-012023-12-310001604028wms:StormwaterSegmentMember2024-01-012024-03-310001604028wms:WastewaterSegmentMember2024-01-012024-03-3100016040282024-01-012024-03-310001604028us-gaap:IntersegmentEliminationMemberwms:StormwaterSegmentMember2024-01-012024-03-310001604028us-gaap:IntersegmentEliminationMemberwms:WastewaterSegmentMember2024-01-012024-03-310001604028us-gaap:IntersegmentEliminationMember2024-01-012024-03-310001604028us-gaap:OperatingSegmentsMemberwms:StormwaterSegmentMember2024-01-012024-03-310001604028us-gaap:OperatingSegmentsMemberwms:WastewaterSegmentMember2024-01-012024-03-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 21, 2026
 
ADVANCED DRAINAGE SYSTEMS, INC.
(Exact name of Registrant as Specified in Its Charter)
 
Delaware001-3655751-0105665
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
   
4024 Green Stripe Lane
 43026
Hilliard,
Ohio
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, Including Area Code: (800) 733-7473
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class 
Trading
Symbol(s)
 Name of each exchange on which registered
Common Stock, $0.01 par value per share WMS New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 7.01    Regulation FD Disclosure 
As previously reported in the Form 10-K and the Form 8-K filed on May 21, 2026 for the fiscal year ended March 31, 2026 by Advanced Drainage Systems, Inc. (the “Company”) or (“ADS”), following the acquisition of National Diversified Sales (“NDS”) we realigned our reportable segments to align with the manner in which the Chief Operating Decision Maker (“CODM”) assesses performance and makes resource allocation decisions (the “Segment Realignment”). Our revised reportable segments consist of Stormwater and Wastewater (formerly referred to as the “Infiltrator” reportable segment). Further, we changed the measure used to evaluate segment profitability from adjusted gross profit to Adjusted EBITDA.
Segment results for the historical periods presented in these consolidated financial statements have been recast to reflect these changes. The Segment Realignment had no impact on our previously reported consolidated net sales, income from operations, net income attributable to ADS or earnings per share.
ADS provided certain recast historical financial information for quarterly periods within fiscal 2026, 2025 and 2024 attached hereto as Exhibit 99.1 to this Current Report on Form 8-K. The information included in this Current Report on Form 8-K is unaudited and presented for informational purposes only in connection with the matters described above and does not amend or restate any of the Company’s previously issued financial statements. This Current Report on Form 8-K should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2026. The recast financial information furnished in Exhibit 99.1 hereto is included for supplemental purposes only. The information furnished in this Item 7.01, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.














Item 9.01    Financial Statements and Exhibits.
(d)Exhibits
The following exhibits are being furnished as part of this report:
99.1
Recast of Historical Segment Information
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ADVANCED DRAINAGE SYSTEMS, INC.
Date: May 21, 2026By:/s/ Scott A. Cottrill
Name:Scott A. Cottrill
Title:EVP, CFO & Secretary

Exhibit 99.1
The following tables set forth Net sales, significant segment expenses, and Adjusted EBITDA for each of the Company’s reportable segments for the periods presented:
Three Months Ended June 30, 2025
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$651,527 $178,353 $— $829,880 
Intersegment net sales9,076 16,609 (25,685)— 
Net sales660,603 194,962 (25,685)829,880 
Significant segment expenses:
Costs of goods sold427,119 97,251 (24,928)499,442 
Selling, general and administrative expenses73,782 18,344 — 92,126 
Other segment items(a)
(43,793)(7,897)— (51,690)
Segment Adjusted EBITDA(b)
$203,495 $87,264 $(757)
Corporate and other costs(c)
11,835 
Total consolidated Adjusted EBITDA$278,167 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense23,029 
Interest income(5,405)
Depreciation and amortization50,228 
Stock-based compensation expense8,404 
Loss (gain) on disposal of assets and costs from exit and disposal activities7,024 
Transaction costs(d)
807 
Other adjustments(e)
4,658 
Income before income taxes189,422 
Income tax expense46,674 
Equity in net income of unconsolidated affiliates(1,343)
Net income from continuing operations$144,091 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended September 30, 2025
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$670,665 $179,716 $— $850,381 
Intersegment net sales9,346 16,652 (25,998)— 
Net sales680,011 196,368 (25,998)850,381 
Significant segment expenses:
Costs of goods sold435,834 100,525 (26,110)510,249 
Selling, general and administrative expenses88,979 18,861 — 107,840 
Other segment items(a)
(55,420)(11,204)— (66,624)
Segment Adjusted EBITDA(b)
$210,618 $88,186 $112 
Corporate and other costs(c)
11,384 
Total consolidated Adjusted EBITDA$287,532 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense23,116 
Interest income(7,340)
Depreciation and amortization54,693 
Stock-based compensation expense8,577 
Loss (gain) on disposal of assets and costs from exit and disposal activities(15,926)
Transaction costs(d)
9,317 
Other adjustments(e)
6,904 
Income before income taxes208,191 
Income tax expense52,399 
Equity in net income of unconsolidated affiliates(708)
Net income from continuing operations$156,500 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended December 31, 2025
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$540,473 $152,881 $— $693,354 
Intersegment net sales9,174 14,785 (23,959)— 
Net sales549,647 167,666 (23,959)693,354 
Significant segment expenses:
Costs of goods sold372,861 84,381 (23,040)434,202 
Selling, general and administrative expenses79,359 16,107 — 95,466 
Other segment items(a)
(51,356)(7,451)— (58,807)
Segment Adjusted EBITDA(b)
$148,783 $74,629 $(919)
Corporate and other costs(c)
13,276 
Total consolidated Adjusted EBITDA$209,217 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense22,579 
Interest income(8,450)
Depreciation and amortization51,522 
Stock-based compensation expense8,835 
Loss (gain) on disposal of assets and costs from exit and disposal activities87 
Transaction costs(d)
7,172 
Other adjustments(e)
4,729 
Income before income taxes122,743 
Income tax expense30,557 
Equity in net income of unconsolidated affiliates(1,851)
Net income from continuing operations$94,037 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended March 31, 2026
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$534,749 $142,012 $— $676,761 
Intersegment net sales8,870 13,534 (22,404)— 
Net sales543,619 155,546 (22,404)676,761 
Significant segment expenses:
Costs of goods sold377,356 85,806 (24,065)439,097 
Selling, general and administrative expenses106,709 15,690 — 122,399 
Other segment items(a)
(80,625)(7,323)— (87,948)
Segment Adjusted EBITDA(b)
$140,179 $61,373 $1,661 
Corporate and other costs(c)
15,223 
Total consolidated Adjusted EBITDA$187,990 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense25,145 
Interest income(3,805)
Depreciation and amortization59,818 
Stock-based compensation expense6,538 
Loss (gain) on disposal of assets and costs from exit and disposal activities28,026 
Transaction costs(d)
23,509 
Other adjustments(e)
9,327 
Income before income taxes39,432 
Income tax expense5,358 
Equity in net income of unconsolidated affiliates(1,161)
Net income from continuing operations$35,235 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended June 30, 2024
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$668,034 $147,302 $— $815,336 
Intersegment net sales9,319 16,840 (26,159)— 
Net sales677,353 164,142 (26,159)815,336 
Significant segment expenses:
Costs of goods sold430,226 77,535 (24,879)482,882 
Selling, general and administrative expenses72,420 10,504 — 82,924 
Other segment items(a)
(30,189)(6,907)— (37,096)
Segment Adjusted EBITDA(b)
$204,896 $83,010 $(1,280)
Corporate and other costs(c)
11,128 
Total consolidated Adjusted EBITDA$275,498 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense22,824 
Interest income(6,565)
Depreciation and amortization41,098 
Stock-based compensation expense6,977 
Loss (gain) on disposal of assets and costs from exit and disposal activities292 
Transaction costs(d)
10 
Other adjustments(e)
355 
Income before income taxes210,507 
Income tax expense49,886 
Equity in net income of unconsolidated affiliates(1,701)
Net income from continuing operations$162,322 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended September 30, 2024
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$639,012 $143,598 $— $782,610 
Intersegment net sales8,885 13,923 (22,808)— 
Net sales647,897 157,521 (22,808)782,610 
Significant segment expenses:
Costs of goods sold439,031 71,812 (22,174)488,669 
Selling, general and administrative expenses74,133 10,956 — 85,089 
Other segment items(a)
(38,938)(6,803)— (45,741)
Segment Adjusted EBITDA(b)
$173,671 $81,556 $(634)
Corporate and other costs(c)
9,043 
Total consolidated Adjusted EBITDA$245,550 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense23,156 
Interest income(7,368)
Depreciation and amortization44,807 
Stock-based compensation expense6,983 
Loss (gain) on disposal of assets and costs from exit and disposal activities617 
Transaction costs(d)
2,685 
Other adjustments(e)
3,494 
Income before income taxes171,176 
Income tax expense40,920 
Equity in net income of unconsolidated affiliates(918)
Net income from continuing operations$131,174 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended December 31, 2024
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$540,525 $150,013 $— $690,538 
Intersegment net sales8,913 10,063 (18,976)— 
Net sales549,438 160,076 (18,976)690,538 
Significant segment expenses:
Costs of goods sold384,562 85,105 (20,723)448,944 
Selling, general and administrative expenses73,739 17,196 — 90,935 
Other segment items(a)
(40,110)(10,559)— (50,669)
Segment Adjusted EBITDA(b)
$131,247 $68,334 $1,747 
Corporate and other costs(c)
9,843 
Total consolidated Adjusted EBITDA$191,485 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense23,094 
Interest income(4,545)
Depreciation and amortization47,766 
Stock-based compensation expense7,798 
Loss (gain) on disposal of assets and costs from exit and disposal activities(477)
Transaction costs(d)
5,924 
Other adjustments(e)
3,363 
Income before income taxes108,562 
Income tax expense27,091 
Equity in net income of unconsolidated affiliates(818)
Net income from continuing operations$82,289 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended March 31, 2025
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$478,799 $136,962 $— $615,761 
Intersegment net sales8,530 11,205 (19,735)— 
Net sales487,329 148,167 (19,735)615,761 
Significant segment expenses:
Costs of goods sold329,009 80,013 (19,513)389,509 
Selling, general and administrative expenses62,585 16,530 — 79,115 
Other segment items(a)
(34,371)(7,488)— (41,859)
Segment Adjusted EBITDA(b)
$130,106 $59,112 $(222)
Corporate and other costs(c)
12,301 
Total consolidated Adjusted EBITDA$176,695 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense22,729 
Interest income(5,007)
Depreciation and amortization49,610 
Stock-based compensation expense4,823 
Loss (gain) on disposal of assets and costs from exit and disposal activities3,426 
Transaction costs(d)
672 
Other adjustments(e)
1,222 
Income before income taxes99,220 
Income tax expense23,166 
Equity in net income of unconsolidated affiliates(734)
Net income from continuing operations$76,788 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended June 30, 2023
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$637,429 $140,617 $— $778,046 
Intersegment net sales7,737 11,081 (18,818)— 
Net sales645,166 151,698 (18,818)778,046 
Significant segment expenses:
Costs of goods sold387,377 77,232 (18,023)446,586 
Selling, general and administrative expenses65,138 9,916 — 75,054 
Other segment items(a)
(30,193)(6,171)— (36,364)
Segment Adjusted EBITDA(b)
$222,844 $70,721 $(795)
Corporate and other costs(c)
11,457 
Total consolidated Adjusted EBITDA$281,313 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense21,712 
Interest income(3,489)
Depreciation and amortization37,240 
Stock-based compensation expense6,903 
Loss (gain) on disposal of assets and costs from exit and disposal activities(13,304)
Transaction costs(d)
1,972 
Other adjustments(e)
2,991 
Income before income taxes227,288 
Income tax expense55,058 
Equity in net income of unconsolidated affiliates(1,675)
Net income from continuing operations$173,905 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended September 30, 2023
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$648,757 $131,463 $— $780,220 
Intersegment net sales7,479 11,473 (18,952)— 
Net sales656,236 142,936 (18,952)780,220 
Significant segment expenses:
Costs of goods sold427,291 68,450 (18,198)477,543 
Selling, general and administrative expenses69,785 9,622 — 79,407 
Other segment items(a)
(29,375)(5,923)— (35,298)
Segment Adjusted EBITDA(b)
$188,535 $70,787 $(754)
Corporate and other costs(c)
12,318 
Total consolidated Adjusted EBITDA$246,250 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense21,941 
Interest income(5,137)
Depreciation and amortization36,721 
Stock-based compensation expense9,331 
Loss (gain) on disposal of assets and costs from exit and disposal activities123 
Transaction costs(d)
52 
Other adjustments(e)
(383)
Income before income taxes183,602 
Income tax expense47,476 
Equity in net income of unconsolidated affiliates(901)
Net income from continuing operations$137,027 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended December 31, 2023
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$543,895 $118,472 $— $662,367 
Intersegment net sales7,883 20,029 (27,912)— 
Net sales551,778 138,501 (27,912)662,367 
Significant segment expenses:
Costs of goods sold358,306 69,978 (25,766)402,518 
Selling, general and administrative expenses66,324 9,776 — 76,100 
Other segment items(a)
(29,566)(6,080)— (35,646)
Segment Adjusted EBITDA(b)
$156,714 $64,827 $(2,146)
Corporate and other costs(c)
15,189 
Total consolidated Adjusted EBITDA$204,206 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense22,331 
Interest income(6,515)
Depreciation and amortization38,053 
Stock-based compensation expense7,402 
Loss (gain) on disposal of assets and costs from exit and disposal activities2,512 
Transaction costs(d)
1,030 
Other adjustments(e)
3,686 
Income before income taxes135,707 
Income tax expense30,131 
Equity in net income of unconsolidated affiliates(1,304)
Net income from continuing operations$106,880 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).


Three Months Ended March 31, 2024
(Amounts in thousands)StormwaterWastewaterIntersegment EliminationsTotal
Net sales:
Net sales from external customers$531,439 $122,401 $— $653,840 
Intersegment net sales7,550 11,014 (18,564)— 
Net sales538,989 133,415 (18,564)653,840 
Significant segment expenses:
Costs of goods sold352,852 68,080 (19,055)401,877 
Selling, general and administrative expenses74,095 11,325 — 85,420 
Other segment items(a)
(33,832)(6,572)— (40,404)
Segment Adjusted EBITDA(b)
$145,874 $60,582 $491 
Corporate and other costs(c)
15,769 
Total consolidated Adjusted EBITDA$191,178 
Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense22,878 
Interest income(6,906)
Depreciation and amortization42,889 
Stock-based compensation expense8,350 
Loss (gain) on disposal of assets and costs from exit and disposal activities2,304 
Transaction costs(d)
390 
Other adjustments(e)
1,117 
Income before income taxes120,156 
Income tax expense26,333 
Equity in net income of unconsolidated affiliates(1,656)
Net income from continuing operations$95,479 
a.Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.
b.The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.
c.Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.
d.Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.
e.Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit).

Source: View Original Filing on SEC EDGAR

FAQ

What did Advanced Drainage Systems (WMS) change in its segment reporting?

Advanced Drainage Systems realigned its reportable segments to Stormwater and Wastewater. The company also changed the segment profitability metric from adjusted gross profit to Adjusted EBITDA, aligning reporting with how its chief operating decision maker assesses performance and allocates resources.

Does the segment realignment affect Advanced Drainage Systems’ overall earnings?

The company states the segment realignment does not affect consolidated results. Previously reported net sales, income from operations, net income attributable to ADS, and earnings per share remain unchanged, with only the internal segment view and profitability measure recast for presentation.

What financial periods did Advanced Drainage Systems (WMS) recast?

Advanced Drainage Systems recast historical segment information for quarterly periods in fiscal 2026, 2025 and 2024. The updated tables cover segment net sales, significant segment expenses, Segment Adjusted EBITDA, and reconciliations to income before income taxes for each of these quarters.

Is the recast segment information for Advanced Drainage Systems audited?

The recast segment information is unaudited and described as supplemental. It is provided for informational purposes in connection with the segment realignment and is furnished, not filed, meaning it does not by itself amend or restate any previously issued financial statements.

How did Advanced Drainage Systems define Segment Adjusted EBITDA in this filing?

Segment Adjusted EBITDA is defined as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges, and certain other gains and expenses. This measure is used to evaluate segment profitability after the reporting realignment.

What example quarterly results did Advanced Drainage Systems disclose in the recast tables?

For the quarter ended June 30, 2025, total net sales were $829,880 thousand and total consolidated Adjusted EBITDA was $278,167 thousand. Net income from continuing operations for that quarter was $144,091 thousand, according to the recast supplemental segment information.

Filing Exhibits & Attachments

5 documents

Press Releases

Other Documents