The following is a summary of the Advanced Drainage Systems, Inc. (WMS) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Advanced Drainage Systems reported Q4 2024 revenue of $2.9 billion, surpassing guidance with adjusted EBITDA at $923 million, marking their ninth consecutive year of record profitability.

• The company saw a revenue decrease of 6% overall for the year, but adjusted EBITDA increased by 2% and adjusted EBITDA margin has risen by 270 basis points to 32.1%.

• Despite a challenging demand environment in the past 18 months, the company managed to maintain strong profitability.

• The company sees a potential price-cost headwind at the beginning of the next year but expects its investment in technology and systems to drive future growth in EBITDA.

• The company's EBITDA is expected to grow from $923 million in fiscal '24 to a midpoint of $960 million in fiscal '25.

Business Progress:

• Advanced Drainage Systems introduced products like the ECOPOD-NX advanced onsite septic treatment product and partnerships like Rainwater Management solutions to address community water challenges.

• The company's world-class engineering and technology center in Hilliard, Ohio will accelerate innovation and speed of commercialization when it opens this summer.

• The company anticipates growth in construction markets in fiscal 2025, particularly in the areas of residential, infrastructure and agriculture.

• The company also foresees share gains with new products like the ECOPOD product and the SC-800 StormTech model contributing to revenue growth and market leadership.

• The company plans to manage residential business headwinds with a keen focus on other growing sectors.

• Advanced Drainage Systems is also working on securing approval for under-participated areas to win bids in these regions.

More details: Advanced Drainage IR

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