Advanced Drainage reported second-quarter results that beat Wall Street expectations, with revenue of $1.00 billion versus analyst estimates of $981.5 million and adjusted EPS of $2.49 versus $2.12. The company reconfirmed full-year revenue guidance of $3.45 billion at the midpoint and EBITDA guidance of $1.03 billion at the midpoint, in line with analyst expectations. During the earnings call, analysts questioned management about margin cadence, NDS integration, input cost timing, and recycled content goals. CFO Scott Cottrill said margins will fall sequentially next quarter due to resin and freight cost headwinds, while CEO Scott Barbour said the company aims to reach 50% recycled content as fast as possible.
Advanced Drainage Systems IncQ2 beat but CFO guides margins down sequentially on resin and freight cost headwinds, pressuring outlook.
