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Business Segments Information | 3 Months Ended
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Jun. 30, 2026
Segment Reporting [Abstract] |
Business Segments Information | BUSINESS SEGMENT INFORMATION The Company operates its business in two distinct reportable segments: “Stormwater” and “Wastewater”, which are primarily organized based on products. The 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 EBITDA, a non-GAAP financial measure. Certain selling and general and administrative expenses are not allocated to the segments, including non-operating functions such as legal, facilities management, and investor relations. A measure of assets is not applicable, as segment assets are not regularly reviewed by the CODM for evaluating performance or allocating resources. The Company does not aggregate operating segments to form reportable segments. The following table sets forth reportable segment information with respect to the amount of Net sales contributed by each class of similar products for the periods presented:
| Three Months Ended June 30, 2026
(Amounts in thousands) | Stormwater |  | Wastewater |  | Intersegment Eliminations |  | Total
Net sales: |  |  |  |  |  |  |
Net sales from external customers | $ | 809,376 |  |  | $ | 191,736 |  |  | $ | — |  |  | $ | 1,001,112 |
Intersegment net sales | 11,566 |  |  | 17,184 |  |  | (28,750) |  |  | — |
Net sales | 820,942 |  |  | 208,920 |  |  | (28,750) |  |  | 1,001,112 |
Significant segment expenses: |  |  |  |  |  |  |
Costs of goods sold | 518,812 |  |  | 104,600 |  |  | (30,347) |  |  | 593,065 |
Selling, general and administrative expenses | 100,681 |  |  | 17,650 |  |  | — |  |  | 118,331 |
Other segment items(a) | (72,252) |  |  | (8,789) |  |  | — |  |  | (81,041) |
Segment Adjusted EBITDA(b) | $ | 273,701 |  |  | $ | 95,459 |  |  | $ | 1,597 |  |  |
Corporate and other costs(c) |  |  |  |  |  |  | 12,487 |
Total consolidated Adjusted EBITDA |  |  |  |  |  |  | $ | 358,270 |
Reconciliation of total reportable segment Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net |  |  |  |  |  |  | 27,040 |
Interest income |  |  |  |  |  |  | (1,291) |
Depreciation and amortization |  |  |  |  |  |  | 62,157 |
Stock-based compensation expense |  |  |  |  |  |  | 13,274 |
Loss (gain) on disposal of assets and costs from exit and disposal activities |  | 2,621 |
Transaction costs(d) |  |  |  |  |  |  | 3,244 |
Inventory step up related to acquisition of NDS |  |  |  |  |  | 14,197 |
Other adjustments(e) |  |  |  |  |  |  | 8,068 |
Income before income taxes |  |  |  |  |  |  | 228,960 |
Income tax expense |  |  |  |  |  |  | 53,689 |
Equity in net income of unconsolidated affiliates |  | (1,297) |
Net income from continuing operations |  |  |  |  |  |  | $ | 176,568 |
(a)Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs. (b)The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses. (c)Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA. (d)Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions. (e)Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, restructuring and realignment expense, and executive retirement expense (benefit).
| Three Months Ended June 30, 2025
(Amounts in thousands) | Stormwater |  | Wastewater |  | Intersegment Eliminations |  | Total
Net sales: |  |  |  |  |  |  |
Net sales from external customers | $ | 651,527 |  |  | $ | 178,353 |  |  | $ | — |  |  | $ | 829,880 |
Intersegment net sales | 9,076 |  |  | 16,609 |  |  | (25,685) |  |  | — |
Net sales | 660,603 |  |  | 194,962 |  |  | (25,685) |  |  | 829,880 |
Significant segment expenses: |  |  |  |  |  |  |
Costs of goods sold | 427,119 |  |  | 97,251 |  |  | (24,928) |  |  | 499,442 |
Selling, general and administrative expenses | 73,782 |  |  | 18,344 |  |  | — |  |  | 92,126 |
Other segment items(a) | (43,793) |  |  | (7,897) |  |  | — |  |  | (51,690) |
Segment Adjusted EBITDA(b) | $ | 203,495 |  |  | $ | 87,264 |  |  | $ | (757) |  |  |
Corporate and other costs(c) |  |  |  |  |  |  | 11,835 |
Total consolidated Adjusted EBITDA |  |  |  |  |  |  | $ | 278,167 |
Reconciliation of total reportable segment Adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net |  |  |  |  |  |  | 23,029 |
Interest income |  |  |  |  |  |  | (5,405) |
Depreciation and amortization |  |  |  |  |  |  | 50,228 |
Stock-based compensation expense |  |  |  |  |  |  | 8,404 |
Loss (gain) on disposal of assets and costs from exit and disposal activities |  | 7,024 |
Transaction costs(d) |  |  |  |  |  |  | 807 |
Other adjustments(e) |  |  |  |  |  |  | 4,658 |
Income before income taxes |  |  |  |  |  |  | 189,422 |
Income tax expense |  |  |  |  |  |  | 46,674 |
Equity in net income of unconsolidated affiliates |  | (1,343) |
Net income from continuing operations |  |  |  |  |  |  | $ | 144,091 |
(a)Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs. (b)The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses. (c)Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA. (d)Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions. (e)Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, inventory step-up costs, restructuring and realignment expense, and executive retirement expense (benefit). The following sets forth certain financial information attributable to the reportable segments for the periods presented:
| Three Months Ended June 30, |  |
(In thousands) | 2026 |  | 2025 |  |  |  |
Depreciation and Amortization |  |  |  |  |  |  |
Stormwater | $ | 40,504 |  |  | $ | 28,896 |  |  |  |  |
Wastewater | 18,867 |  |  | 19,254 |  |  |  |  |
Other | 2,786 |  |  | 2,078 |  |  |  |  |
Total | $ | 62,157 |  |  | $ | 50,228 |  |  |  |  |
Capital Expenditures |  |  |  |  |  |  |
Stormwater | $ | 42,504 |  |  | $ | 40,602 |  |  |  |  |
Wastewater | 14,356 |  |  | 5,735 |  |  |  |  |
Other | 291 |  |  | 6,261 |  |  |  |  |
Total | $ | 57,151 |  |  | $ | 52,598 |  |  |  |  |

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