ADVANCED DRAINAGE SYSTEMS, INC.WMS
ADVANCED DRAINAGE SYSTEMS, INC. Segments Disclosure
BUSINESS SEGMENT INFORMATION
ADS operates its business in three distinct reportable segments: “Pipe”, “International” and “Infiltrator”, which are primarily organized based on products. “Allied Products & Other” represents the Company’s Allied Products and all other segments. The Chief Operating Decision Maker (“CODM”) for ADS is the Chief Executive Officer (“CEO”). The CEO reviews financial information and makes operational decisions based on Net sales and a measure of operating profit, Segment Adjusted Gross Profit. A measure of assets is not applicable, as segment assets are not regularly reviewed by the CODM for evaluating performance or allocating resources.
Pipe - The Pipe segment manufactures and markets high performance thermoplastic corrugated pipe throughout the United States. The Company maintains and serves these markets through product distribution relationships with many of the largest national and independent waterworks distributors, buying groups and co-ops, major national retailers as well as an extensive network of hundreds of small to medium-sized distributors. Products include single wall pipe, N-12 HDPE pipe sold into the storm sewer, infrastructure and agriculture markets, high performance polypropylene pipe sold into the Storm sewer, Infrastructure and sanitary sewer markets. Products are designed primarily for stormwater management in the construction and infrastructure marketplace across a broad range of end markets and applications, including non-residential, residential, agriculture and infrastructure.
Infiltrator - Infiltrator is a leading national provider of plastic leachfield chambers and systems, septic tanks and accessories, primarily for use in residential applications. Infiltrator products are used in onsite septic wastewater treatment systems in the United States and Canada.
International - The International segment manufactures and markets pipe and allied products in certain regions outside of the United States, including Company owned facilities in Canada, subsidiaries that distribute to Europe and the Middle East, exports and through the Company’s joint ventures with local partners in Mexico and South America. The Company’s Mexican joint venture, ADS Mexicana, primarily serves the Mexican and Central American markets, while its South American Joint Venture, Tigre-ADS, is the primary channel to serve the South American markets. The Company’s International product lines include single wall pipe, N-12 HDPE pipe, high performance PP pipe and certain geographies also purchase the Company’s broad line of Allied Products & Other for sales internationally. The Company aggregates operating segments within the International reportable segment. None of the operating segments within the International reportable segment exceed the quantitative thresholds for separate segment reporting.
Allied Products & Other - Allied Products & Other manufactures and markets products complementary to Pipe products throughout the United States. Products include StormTech, Nyloplast, ARC Septic Chambers, Inserta Tee, Cultec, water quality filters and structures, Fittings, and FleXstorm. The Company aggregates operating segments within the Allied Products & Other segment disclosure. None of the operating segments within Allied Products & Other exceed the quantitative thresholds for separate segment reporting.
Net Sales - The following tables set forth reportable segment information with respect to the amount of Net sales for the fiscal years ended March 31:
| 2025 | |||||||||||||||||
| (Amounts in thousands) | Net Sales | Intersegment Net Sales | Net Sales from External Customers | ||||||||||||||
| Pipe | $ | 1,557,247 | $ | (53,870) | $ | 1,503,377 | |||||||||||
| Infiltrator | 596,212 | (79,916) | 516,296 | ||||||||||||||
| International | 206,337 | (11,707) | 194,630 | ||||||||||||||
| Total Reportable Segments | 2,359,796 | (145,493) | 2,214,303 | ||||||||||||||
| Allied Products & Other | 707,276 | (17,334) | 689,942 | ||||||||||||||
| Intersegment Eliminations | (162,827) | 162,827 | — | ||||||||||||||
| Total Consolidated | $ | 2,904,245 | $ | — | $ | 2,904,245 | |||||||||||
| 2024 | |||||||||||||||||
| (Amounts in thousands) | Net Sales | Intersegment Net Sales | Net Sales from External Customers | ||||||||||||||
| Pipe | $ | 1,586,618 | $ | (42,328) | $ | 1,544,290 | |||||||||||
| Infiltrator | 531,236 | (82,209) | 449,027 | ||||||||||||||
| International | 222,002 | (14,233) | 207,769 | ||||||||||||||
| Total Reportable Segments | 2,339,856 | (138,770) | 2,201,086 | ||||||||||||||
| Allied Products & Other | 684,329 | (10,942) | 673,387 | ||||||||||||||
| Intersegment Eliminations | (149,712) | 149,712 | — | ||||||||||||||
| Total Consolidated | $ | 2,874,473 | $ | — | $ | 2,874,473 | |||||||||||
| 2023 | |||||||||||||||||
| (Amounts in thousands) | Net Sales | Intersegment Net Sales | Net Sales from External Customers | ||||||||||||||
| Pipe | $ | 1,758,961 | $ | (41,772) | $ | 1,717,189 | |||||||||||
| Infiltrator | 523,643 | (81,363) | 442,280 | ||||||||||||||
| International | 239,068 | (19,215) | 219,853 | ||||||||||||||
| Total Reportable Segments | 2,521,672 | (142,350) | 2,379,322 | ||||||||||||||
| Allied Products & Other | 700,319 | (8,520) | 691,799 | ||||||||||||||
| Intersegment Eliminations | (150,870) | 150,870 | — | ||||||||||||||
| Total Consolidated | $ | 3,071,121 | $ | — | $ | 3,071,121 | |||||||||||
Reconciliation of Gross Profit to Segment Adjusted Gross Profit - The Company calculates Segment Adjusted Gross Profit as net sales less costs of goods sold excluding depreciation and amortization, stock-based compensation and certain other expenses. The following table reconciles the Segment Adjusted Gross Profit to Gross Profit:
| (Amounts in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Reconciliation of Segment Adjusted Gross Profit: | |||||||||||||||||
| Total Gross Profit | $ | 1,094,241 | $ | 1,145,949 | $ | 1,118,408 | |||||||||||
| Depreciation and amortization | 120,818 | 96,251 | 84,048 | ||||||||||||||
| Stock-based compensation expense | 5,232 | 4,708 | 2,579 | ||||||||||||||
| Inventory step-up related to Orenco acquisition | 2,260 | — | — | ||||||||||||||
| Total Segment Adjusted Gross Profit | $ | 1,222,551 | $ | 1,246,908 | $ | 1,205,035 | |||||||||||
Significant Segment Expenses - The Company has identified Cost of Goods Sold as a significant expense category. The following tables set forth reportable segment information with respect to significant segment expenses and the reconciliation of Net Sales to Adjusted Gross Profit for the fiscal years ended March 31:
| 2025 | |||||||||||||||||||||||
| (Amounts in thousands) | Net Sales | Cost of Goods Sold | Depreciation, Amortization and Other (a) | Adjusted Gross Profit | |||||||||||||||||||
| Pipe | $ | 1,557,247 | $ | 1,194,571 | $ | (85,868) | $ | 448,544 | |||||||||||||||
| Infiltrator | 596,212 | 304,401 | (27,831) | 319,642 | |||||||||||||||||||
| International | 206,337 | 156,285 | (6,512) | 56,564 | |||||||||||||||||||
| Total Reportable Segments | 2,359,796 | 1,655,257 | (120,211) | 824,750 | |||||||||||||||||||
| Allied Products & Other | 707,276 | 317,748 | (8,099) | 397,627 | |||||||||||||||||||
| Intersegment Eliminations | (162,827) | (163,001) | — | 174 | |||||||||||||||||||
| Total Consolidated | $ | 2,904,245 | $ | 1,810,004 | $ | (128,310) | $ | 1,222,551 | |||||||||||||||
| 2024 | |||||||||||||||||||||||
| (Amounts in thousands) | Net Sales | Cost of Goods Sold | Depreciation, Amortization and Other | Adjusted Gross Profit | |||||||||||||||||||
| Pipe | $ | 1,586,618 | $ | 1,138,432 | $ | (67,258) | $ | 515,444 | |||||||||||||||
| Infiltrator | 531,236 | 272,171 | (22,612) | 281,677 | |||||||||||||||||||
| International | 222,002 | 164,397 | (4,973) | 62,578 | |||||||||||||||||||
| Total Reportable Segments | 2,339,856 | 1,575,000 | (94,843) | 859,699 | |||||||||||||||||||
| Allied Products & Other | 684,329 | 298,679 | (6,116) | 391,766 | |||||||||||||||||||
| Intersegment Eliminations | (149,712) | (145,155) | — | (4,557) | |||||||||||||||||||
| Total Consolidated | $ | 2,874,473 | $ | 1,728,524 | $ | (100,959) | $ | 1,246,908 | |||||||||||||||
| 2023 | |||||||||||||||||||||||
| (Amounts in thousands) | Net Sales | Cost of Goods Sold | Depreciation, Amortization and Other | Adjusted Gross Profit | |||||||||||||||||||
| Pipe | $ | 1,758,961 | $ | 1,282,366 | $ | (55,956) | $ | 532,551 | |||||||||||||||
| Infiltrator | 523,643 | 310,400 | (20,337) | 233,580 | |||||||||||||||||||
| International | 239,068 | 182,647 | (5,260) | 61,681 | |||||||||||||||||||
| Total Reportable Segments | 2,521,672 | 1,775,413 | (81,553) | 827,812 | |||||||||||||||||||
| Allied Products & Other | 700,319 | 329,094 | (5,074) | 376,299 | |||||||||||||||||||
| Intersegment Eliminations | (150,870) | (151,794) | — | 924 | |||||||||||||||||||
| Total Consolidated | $ | 3,071,121 | $ | 1,952,713 | $ | (86,627) | $ | 1,205,035 | |||||||||||||||
(a) Depreciation, Amortization and Other are included to reconcile to Adjusted Gross Profit and include Depreciation and Amortization, Stock-based compensation expense and Inventory step-up related to the Orenco acquisition.
Other Segment Information - The following sets forth certain financial information for the fiscal years ended March 31:
| (Amounts in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Depreciation and amortization | |||||||||||||||||
| Pipe | $ | 81,201 | $ | 62,909 | $ | 53,263 | |||||||||||
| Infiltrator | 25,119 | 22,327 | 20,187 | ||||||||||||||
| International | 6,468 | 4,966 | 5,260 | ||||||||||||||
| Total Reportable Segments | 112,788 | 90,202 | 78,710 | ||||||||||||||
Allied Products & Other(a) | 70,493 | 64,701 | 66,439 | ||||||||||||||
| Total | $ | 183,281 | $ | 154,903 | $ | 145,149 | |||||||||||
| Capital expenditures | |||||||||||||||||
| Pipe | $ | 147,457 | $ | 112,919 | $ | 100,939 | |||||||||||
| Infiltrator | 13,733 | 17,882 | 42,166 | ||||||||||||||
| International | 5,733 | 7,053 | 5,854 | ||||||||||||||
| Total Reportable Segments | 166,923 | 137,854 | 148,959 | ||||||||||||||
Allied Products & Other(a) | 46,021 | 45,958 | 17,954 | ||||||||||||||
| Total | $ | 212,944 | $ | 183,812 | $ | 166,913 | |||||||||||
(a) Includes depreciation and amortization and capital expenditures not allocated to a reportable segment.
Geographic Sales and Assets Information - Net sales are attributed to the geographic location based on the location of the customer. The table below represents the Net sales and long-lived asset information by geographic location for each of the fiscal years ended March 31:
| (Amounts in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Net Sales | |||||||||||||||||
| United States | $ | 2,709,615 | $ | 2,666,704 | $ | 2,851,268 | |||||||||||
| Canada | 119,492 | 126,050 | 134,504 | ||||||||||||||
| Other | 75,138 | 81,719 | 85,349 | ||||||||||||||
| Total | $ | 2,904,245 | $ | 2,874,473 | $ | 3,071,121 | |||||||||||
| (Amounts in thousands) | 2025 | 2024 | |||||||||
Long-Lived Assets (a) | |||||||||||
| United States | $ | 1,016,681 | $ | 843,344 | |||||||
| Canada | 30,655 | 23,679 | |||||||||
| Other | 39,529 | 38,081 | |||||||||
| Total | $ | 1,086,865 | $ | 905,104 | |||||||
(a) For segment reporting purposes, long-lived assets include Investments in unconsolidated affiliates, Central parts and Property, plant and equipment.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | May 15, 2025 | Showing above |
| 2017 | May 30, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.