Advanced Drainage Reports Mixed Q1 2026 Results, Infiltrator Segment Grows 21%

Advanced Drainage Systems (ADS) reported mixed financial results in the first and second quarters of fiscal 2026, with modest revenue growth but declines in earnings compared to the previous year. Q1 revenue rose 1.8% to approximately $830 million, driven primarily by a 21% increase in the Infiltrator segment, while other segments like ADS Legacy and Pipe products saw declines. The company experienced solid growth in non-residential and residential construction markets but faced a substantial 17% decline in infrastructure, reflecting uneven demand recovery. Despite operational challenges such as weather delays and manufacturing cost pressures, ADS maintained a strong adjusted EBITDA margin around 33.5% and robust free cash flow. The company continues to focus on cost management, product innovation in water quality segments, and strategic geographic growth, including new products like the Arcadia hydrodynamic separator and EcoStream biofiltration solution. Additionally, ADS confirmed its full-year 2026 net sales guidance between $2.825 billion and $2.975 billion and announced a 13% increase in its quarterly dividend, signaling confidence in its financial position amid market headwinds.