ADVANCED DRAINAGE SYSTEMS, INC. 8-K

What Happened

• Advanced Drainage Systems, Inc. (ADS) filed an 8-K on May 21, 2026 disclosing a realignment of its reportable segments following the acquisition of National Diversified Sales (NDS). The company now reports two segments: Stormwater and Wastewater (formerly the “Infiltrator” segment).
• ADS also changed the metric it uses to evaluate segment profitability from adjusted gross profit to Adjusted EBITDA. Historical segment results for quarterly periods in fiscal 2026, 2025 and 2024 have been recast to reflect these changes and are provided as unaudited supplemental information (Exhibit 99.1). The filing is dated May 21, 2026 and was signed by Scott A. Cottrill, EVP, CFO & Secretary.

Key Details

• Revised reportable segments: Stormwater and Wastewater (formerly “Infiltrator”).
• Profitability measure changed: from adjusted gross profit → Adjusted EBITDA.
• Recast historical quarterly segment results provided for fiscal 2024–2026 (attached as Exhibit 99.1); information is unaudited and supplemental.
• The Segment Realignment did not affect consolidated net sales, income from operations, net income attributable to ADS, or earnings per share.

Why It Matters

• For investors, the realignment and metric change affect how segment performance and trends are presented and compared over time. The move to Adjusted EBITDA may make segment margins and profitability easier to compare to peers but requires attention when comparing to prior presentations using adjusted gross profit.
• Because ADS recast prior quarters, investors can review the supplemental Exhibit 99.1 to see comparable segment trends, but should note the recast is unaudited and supplemental. The company states consolidated financial results are unchanged, so this is a presentation change rather than a change to reported consolidated earnings.