Advanced Drainage Systems Inc

In the second quarter, the nine HVAC and water systems companies tracked by StockStory reported revenues that beat analyst consensus estimates by 4.7% as a group, though their shares have since fallen 5.8% on average. Trane Technologies reported revenues of $6.35 billion, up 10.6% year on year, exceeding expectations by 2.3%, and raised its full-year EPS guidance above analyst forecasts; its stock is up 1.3% since reporting. AAON posted the strongest results, with revenues of $627 million, up 101% year on year, beating estimates by 24.6%, yet its shares dropped 20% after the report. Lennox was the weakest, with revenues of $1.55 billion, up 3% year on year, missing expectations by 1%, and its stock fell 24.9%. CSW reported revenues of $350.7 million, up 33%, beating by 2.4%, and Advanced Drainage reported revenues of $1.00 billion, up 20.6%, beating by 2%, though it gave the weakest full-year guidance among peers.

Advanced Drainage Systems reported second-quarter fiscal 2026 revenue of $1.00 billion, exceeding analyst estimates of $981.5 million and marking a 20.6% year-on-year increase. Adjusted earnings per share came in at $2.49, a 17.4% beat over the consensus estimate of $2.12, while adjusted EBITDA of $358.3 million surpassed expectations by 14.3%. The company reaffirmed its full-year revenue guidance of $3.45 billion and provided EBITDA guidance of $1.03 billion, both in line with analyst projections. Management attributed the strong performance to organic growth, the NDS acquisition, and disciplined pricing amid persistent cost inflation, while highlighting ongoing investments in recycling and automation to offset rising raw material and transportation costs.

The nine HVAC and water systems stocks tracked by StockStory reported a very strong first quarter, with aggregate revenues beating analysts' consensus estimates by 6.9%. CSW Industrials posted all-time record revenue of $309 million, up 34% year on year, while AAON delivered the fastest revenue growth among peers at 54.3% to $496.9 million, exceeding expectations by 29.5%. Lennox reported $1.14 billion in revenue, a 5.8% increase that topped estimates by 6.7%, and Advanced Drainage Systems raised its full-year guidance the most after revenue rose 9.9% to $676.8 million. A. O. Smith was the weakest performer, with revenue down 1.9% to $945.6 million and full-year EPS guidance missing expectations. Share prices across the group have risen 11.3% on average since the latest earnings results.

Advanced Drainage Systems reported fourth-quarter fiscal 2026 net sales of $676.8 million, a 9.9% increase from a year earlier, as demand for stormwater and wastewater infrastructure tied to data center construction boosted results. Stormwater sales rose 11.7% to $534.7 million, and the company’s February 2026 acquisition of National Diversified Sales contributed $48.8 million of that stormwater revenue in the quarter. For the full fiscal year, net sales reached $3.05 billion, up 5%, while wastewater sales increased 13% to $653.0 million. Management highlighted data centers as a key growth market, noting that major site-water infrastructure—including drainage, runoff control, and rainwater management—is required before such campuses can operate. The company’s fiscal 2027 outlook projects net sales between $3.35 billion and $3.55 billion, signaling continued strength in stormwater and wastewater infrastructure demand.

Advanced Drainage Systems will host its 2026 Investor Day today at its new Engineering and Technology Center in Hilliard, Ohio. The event will feature updates from the leadership team on the company's pure play water exposure, differentiated growth story, and resilient profit platform, along with a panel discussion on innovation and the future of water management solutions. The company will also unveil its fiscal 2030 outlook and growth projections. A live webcast of the presentation, which begins at 9:00 a.m. Eastern Time, will be available at investors.ads-pipe.com, with a replay accessible afterward.