Recent Updates — WMS

Advanced Drainage Systems has entered into a definitive agreement to acquire StormTrap Investments LLC, an industry leader in large volume, space-constrained stormwater solutions. The transaction values the target at approximately $530 million, or roughly $450 million after adjusting for expected tax benefits, representing about 10x trailing adjusted EBITDA. StormTrap generated approximately $165 million in revenue and $40 million in adjusted EBITDA over the last twelve months ending July 2026. The deal is funded by cash on hand and existing credit line capacity, with expected closure in the fourth quarter of 2026 subject to regulatory approvals. Advanced Drainage Systems manufactures innovative stormwater and onsite wastewater solutions for commercial, residential, infrastructure, and agricultural applications.

Advanced Drainage Systems reported first-quarter fiscal 2027 net sales of $1.0 billion, a 20.6% increase driven by the NDS acquisition and organic growth. Diluted EPS rose 22.8% to $2.26, while Adjusted EBITDA expanded 28.8% to $358.3 million with margins reaching 35.8%. The company confirmed its full-year fiscal 2027 guidance of $3.35 billion to $3.55 billion in net sales and $1.0 billion to $1.05 billion in Adjusted EBITDA. Concurrently, the Board declared a quarterly cash dividend of $0.20 per share, payable September 15, 2026, to shareholders of record on September 1, 2026. Advanced Drainage Systems manufactures innovative stormwater and onsite wastewater solutions for commercial, residential, infrastructure, and agricultural applications.