Water management solutions company Advanced Drainage Systems’ net income was up 128.4% year-over-year in Q3 2021.
During the three month period ended Dec. 31, 2020, the company posted a net income of $54 million. Net sales were $481.1 million, a 23.6% increase. Adjusted EBITDA for the company was $138.9 million, representing a lift of 52.1%.
President and CEO Scott Barbour described the quarter as a “record.” The increase in sales was driven by 17% non-residential sales growth and 36% residential sales growth. Key demand growth areas were the south and southeast regions of the U.S., while demand returned to previous levels in the western and northeast regions.
Sales in the agriculture market increased by 33%, which Barbour says is driven by programs put in place around “organizational changes” as well as new product introductions. Barbour added that the company is “optimistic” about the outlook, and for the fiscal year 2021 – which, for ADS, ends March 31 – net sales are expected to land somewhere between $1.92 billion and $1.95 billion.