Advanced Drainage Systems, Inc. (NYSE: WMS) announced its financial results for the fourth quarter and fiscal year ending March 31, 2025. The company reported a 5.8% decrease in net sales for the fourth quarter, totaling $615.8 million. Net income for the quarter also declined by 19.6% to $76.8 million, leading to a decrease in diluted net income per share by 18.2% to $0.99. Adjusted EBITDA for the quarter fell by 7.6% to $176.7 million. For the fiscal year 2025, ADS experienced a slight increase in net sales by 1.0%, reaching $2.904 billion. However, net income decreased by 11.8% to $452.6 million, with diluted net income per share dropping by 10.7% to $5.76. The company noted a reduction in cash provided by operating activities, which decreased by $136.4 million to $581.5 million, and free cash flow decreased by $165.6 million to $368.5 million. Despite these declines, ADS highlighted a 3% growth in domestic construction market sales, driven by its material conversion strategy in stormwater and onsite wastewater markets. Organic sales in the Infiltrator and Allied Products segments increased by 4.6% and 2.5%, respectively, making up 44% of total revenue. Adjusted EBITDA margin for fiscal 2025 was 30.6%, reflecting the company's strategy to focus on more profitable product segments.