Slides
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Q2 Fiscal 2027 Financial Results November 5, 2026
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Management Presenters 2 Scott Barbour President and Chief Executive Officer Scott Cottrill Executive Vice President, Chief Financial Officer Craig Taylor President, Infiltrator Water Technologies Mike Higgins Senior Vice President, Corporate Strategy & Investor Relations
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Forward Looking Statements and Non - GAAP Financial Metrics 3 Forward Looking Statements Certain statements in this press release may be deemed to be forward - looking statements. These statements are not historical fac ts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “c ould,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “confident” and similar expressions are used to identify the se forward - looking statements. Factors that could cause actual results to differ from those reflected in forward - looking statements relating to our operations and business include: fluctuations in the price and ava ilability of resins and other raw materials, new tariff and international trade policies, and our ability to pass any increased costs of raw materials and tariffs on to our customers in a timely manner; di sru ption or volatility in general business, political and economic conditions in the markets in which we operate; cyclicality and seasonality of the non - residential and residential construction markets and infrast ructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions and the ability to do so within the intended time frame, including our ability to successfully complete the acquisition of StormTrap and to integrate NDS and/or StormTrap into our business; risks that the acquisition of NDS and/or StormTrap may involve unexpected costs, liabilities or delays, risks that the cost savings and synergies from the acquisition of NDS and/or StormTrap may not be fully realized; the effect of any claims, litigation, investigations or proceedings; the effect of weather or seas on ality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our opera tio ns through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effects of global climate change and any related regulatory re spo nses; our ability to protect against cybersecurity incidents and disruptions or failures of our IT systems; our ability to assess and monitor the effects of artificial intelligence, machine learning, and r obo tics and blockchain or other new approaches to data mining on our business and operations; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; our abi lity to appropriately address any environmental, social or governance concerns that may arise from our activities; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties eme rge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward - looking statements contained in this press release. In light of the significant uncertainties inherent in the forward - looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward - looking statements and the Company undertakes no obligation to publicly update or revise any forward - looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non - GAAP Financial Measures This presentation includes references to Adjusted EBITDA and Free Cash Flow, non - GAAP financial measures. These non - GAAP financi al measures are used in addition to and in conjunction with results presented in accordance with GAAP. These measures are not intended to be substitutes for those reported in accordance with GA AP. Adjusted EBITDA and Free Cash Flow may be different from non - GAAP financial measures used by other companies, even when similar terms are used to identify such measures. EBITDA and Adjusted EBITDA are non - GAAP financial measures that comprise net income before interest, income taxes, depreciation and amortization, stock - based compensation, non - cash charges and certain other expenses. The Company’s definition of Adjusted EBITDA may differ from similar measures used by other companies, ev en when similar terms are used to identify such measures. Adjusted EBITDA is a key metric used by management and the Company’s board of directors to assess financial performance and evaluate t he effectiveness of the Company’s business strategies. Accordingly, management believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as the Company’s management and board of directors. In order to provide investors with a meaningful reconciliation, the Company has provided reconciliations of Adjusted EBITDA to net income . Free Cash Flow is a non - GAAP financial measure that comprises cash flow from operating activities less capital expenditures. Free Cash Flow is a measure used by management and the Company’s board of directors to assess the Company’s ability to generate cash. Accordingly, management believes that Free Cash Flow provides us efu l information to investors and others in understanding and evaluating our ability to generate cash flow from operations after capital expenditures.
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CEO Highlights 4 1H Fiscal 2027 Revenue 1H Fiscal 2027 Profitability 33.8% 32.2% Q2 FY26 Q2 FY27 Adjusted EBITDA Margin ( 160 bps) • Continued favorable price/cost performance , with price covering material and transportation cost inflation in Q2 and 1H. • Continued execution on Adjusted EBITDA margin target >30%. Note: Sales based on net sales to external customers. Business Updates • Estimated $40 - $50 million of revenue pulled into Q1 from Q2 (previously ~$30 million). • Repurchased $375 million or 2.7 million shares year - to - date. • Announced the proposed acquisition of StormTrap Investments LLC (“ StormTrap ”), a leader in large volume, space - constrained, highly engineered stormwater solutions. • Launched a new high - flow stormwater filtration system, AquaLux , designed for under ground installation within a smaller footprint. $651 $809 $671 $712 $1,322 $1,521 FY26 FY27 Stormwater $178 $192 $180 $177 $358 $369 FY26 FY27 Wastewater Q1 Q2 • Stormwater organic revenue +2% year - to - date, with 6% organic growth in Allied products. • Stormwater revenue includes $77 million (Q2) and $172 million (1H) from NDS acquisition. • Wastewater revenue +3% year - to - date, driven by growth in tanks and residential advanced treatment. +15% +6% +3% ( 1%) 33.7% 34.1% 1H FY26 1H FY27 +40 bps Detention System StormTrap • Expands addressable market in stormwater storage. • Enhances go - to - market capabilities with spec - driven commercial model. • Cross - selling opportunities in Non - Residential and Infrastructure markets. • Growth opportunities linked to secular and regulatory tailwinds and expanded customer relationships.
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Q2 FY26 Volume Price / Mix, Materials Mfg / Trans SG&A and Other Q2 FY27 Q2 Fiscal 2027 Financial Performance 5 33.8% 32.2% Q2 FY26 Q2 FY27 $850 $889 Q2 FY26 Q2 FY27 (160 bps) (USD, in millions) +5% Domestic Markets + Construction +7% + Non - Residential +3% + Residential +14% - Infrastructure (12%) - Agriculture (19%) Revenue Performance By Business + Stormwater +6% - Pipe (8%) + Allied Products +35% - Wastewater (1%) $288 ($9) $31 ($8) $287 Revenue Adj. EBITDA ($15) Note: Revenue performance is based on net sales to external customers.
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Free Cash Flow and Capital Structure 6 FY 2027 FY 2026 ∆ Consolidated Adjusted EBITDA $645 $566 $79 Working capital (2) (54) 4 (58) Cash tax (44) (56) 12 Cash interest – paid (52) (45) (7) Cash interest – received 3 13 (10) Transaction costs (3) (10) (10) 0 Other (30) 38 (68) Consolidated cash flow from operations $458 $510 $(52) Capital expenditures (99) (111) 12 Consolidated Free Cash Flow $359 $399 $(40) Free Cash Flow ( ¹ ) Note: all figures in USD, $mm. Figures may not add due to rounding. 1. Operating Cash Flow less capital expenditures 2. Inventory, Trade Receivables, Accounts Payable 3. Legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions (in millions) September 30, 2026 March 31, 2026 Term Loan Facility $ 599 $ 600 Senior Notes 1000 1000 Revolving Credit Facility - - Finance Leases & Other Debt 192 190 Total debt $ 1,791 $ 1,790 Leverage 1.6x 1.6x Debt & Capital Leases (in millions) September 30, 2026 Unrestricted Cash $ 153 Availability under Revolving Credit Facility 739 Total Liquidity $ 892 Liquidity
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Disciplined Approach to Capital Allocation 7 Organic Capital Expenditures Acquisitions* Dividends Share Repurchases 1 2 3 4 Fiscal YTD 2027 Fiscal YTD 2026 $99M $0M $31M $375M $111M $19M $28M $0M $505M $158M Total Capital Allocated 1.6x 0.7x Leverage Subtotal: Capital reinvested in business $99M $130M Subtotal: Capital returned to shareholders $406M $28M * StormTrap acquisition expected to close in Calendar Q4 2026 $530M proposed acquisition of StormTrap
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Fiscal Year 2027 Guidance 8 Fiscal 2027 Expectations Key Metric FY 2026 Original FY27 Guidance Updated FY27 Guidance Net Sales (in Millions) $3,050 $3,350 - $3,550 $3,300 - $3,400 Adj. EBITDA (in Millions) $963 $1,000 - $1,050 $1,000 - $1,030 Adj. EBITDA Margin 31.6% 29.6% - 29.9% ~30.3%
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Q&A
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YTD FY26 Volume Price / Mix, Materials Mfg / Trans SG&A and Other YTD FY27 YTD Fiscal 2027 Financial Performance 10 33.7% 34.1% YTD FY26 YTD FY27 $1,680 $1,891 YTD FY26 YTD FY27 +40 bps (USD, in millions) +13% Domestic Markets + Construction +14% + Non - Residential +10% + Residential +21% - Infrastructure (2%) - Agriculture (2%) Revenue Performance By Business + Stormwater +15% + Pipe +0% + Allied Products +47% + Wastewater +3% $566 $66 $65 ($26) $645 Revenue Adj. EBITDA ($26) Note: Revenue performance is based on net sales to external customers.
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Updated Fiscal 2027 Market Expectations 11 End Market % of Revenue Assumption Commentary Non - Residential 45% Flat • Interest rates and economic/geopolitical uncertainty weighing on market • Large project activity still going well Residential 39% Down high - single digits • Interest rates and economic/geopolitical uncertainty weighing on market • Advanced Treatment market growing • Retail market (DIY) choppy Infrastructure 6% Flat • Slowdown in local infrastructure spending Agriculture 4% Down double - digits • Rising input costs • Agriculture economy is soft International 6% Flat • Outlook stable in Canada and Mexico
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Appendix 12
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Reconciliations 13 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, de pre ciation 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 busines s o r asset acquisitions and dispositions. e.) Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, restructuring an d realignment expense, and executive retirement expense (benefit). (Amount in thousands) Net Sales: Stormwater Wastewater Intersegment Eliminations Total Net sales from external customers $ 712,063 $ 177,343 $ - $ 889,406 Intersegment net sales 11,034 20,232 (31,266) - Net Sales 723,097 197,575 (31,266) 889,406 Significant segment expenses: Cost of goods sold 471,745 100,644 (28,838) 543,551 Selling, general and administrative expenses 100,386 16,556 - 116,942 Other segment items (a) (62,256) (8,324) - (70,580) Segment Adjusted EBITDA(b) $ 213,222 $ 88,699 $ (2,428) Corporate and other costs (c) 12,675 Total consolidated Adjusted EBITDA $ 286,818 Interest expense 27,515 Interest income (1,407) Depreciation and amortization 63,685 Stock-based compensation expense 11,257 Loss on disposal of assets and costs from exit and disposal activities 1,302 Transaction costs (d) 6,383 Other adjustments (e) 1,587 Income before income taxes $ 176,496 Income tax expense 44,206 Equity in net income of unconsolidated affiliates (1,333) Net income from continuing operations $ 133,623 Three Months Ended September 30, 2026 Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
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Reconciliations 14 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, de pre ciation 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 busines s o r asset acquisitions and dispositions. e.) Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, restructuring an d realignment expense, and executive retirement expense (benefit). (Amount in thousands) Net Sales: Stormwater Wastewater Intersegment Eliminations Total Net sales from external customers $ 670,665 $ 179,716 $ - $ 850,381 Intersegment net sales 9,346 16,652 (25,998) - Net Sales 680,011 196,368 (25,998) 850,381 Significant segment expenses: Cost of goods sold 435,834 100,525 (26,110) 510,249 Selling, general and administrative expenses 88,979 18,861 - 107,840 Other segment items (a) (55,420) (11,204) - (66,624) Segment Adjusted EBITDA(b) $ 210,618 $ 88,186 $ 112 Corporate and other costs (c) 11,384 Total consolidated Adjusted EBITDA $ 287,532 Interest expense 23,116 Interest income (7,340) Depreciation and amortization 54,693 Stock-based compensation expense 8,577 Gain on disposal of assets and costs from exit and disposal activities (15,926) Transaction costs (d) 9,317 Other adjustments (e) 6,904 Income before income taxes $ 208,191 Income tax expense 52,399 Equity in net income of unconsolidated affiliates (708) Net income from continuing operations $ 156,500 Three Months Ended September 30, 2025 Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
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Reconciliations 15 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, de pre ciation 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 busines s o r asset acquisitions and dispositions. e.) Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, restructuring an d realignment expense, and executive retirement expense (benefit). (Amount in thousands) Net Sales: Stormwater Wastewater Intersegment Eliminations Total Net sales from external customers $ 1,521,439 $ 369,079 $ - $ 1,890,518 Intersegment net sales 22,600 37,416 (60,016) - Net Sales 1,544,039 406,495 (60,016) 1,890,518 Significant segment expenses: Cost of goods sold 990,557 205,244 (59,185) 1,136,616 Selling, general and administrative expenses 201,067 34,206 - 235,273 Other segment items (a) (134,508) (17,113) - (151,621) Segment Adjusted EBITDA(b) $ 486,923 $ 184,158 $ (831) Corporate and other costs (c) 25,162 Total consolidated Adjusted EBITDA $ 645,088 Interest expense 54,555 Interest income (2,698) Depreciation and amortization 125,842 Stock-based compensation expense 24,531 Loss on disposal of assets and costs from exit and disposal activities 3,923 Transaction costs (d) 9,627 Inventory step up related to acquisition of NDS 14,197 Other adjustments (e) 9,655 Income before income taxes 405,456 Income tax expense 97,895 Equity in net income of unconsolidated affiliates (2,630) Net income from continuing operations $ 310,191 Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes: Six Months Ended September 30, 2026
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Reconciliations 16 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, de pre ciation 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 busines s o r asset acquisitions and dispositions. e.) Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, restructuring an d realignment expense, and executive retirement expense (benefit). (Amount in thousands) Net Sales: Stormwater Wastewater Intersegment Eliminations Total Net sales from external customers $ 1,322,192 $ 358,069 $ - $ 1,680,261 Intersegment net sales 18,422 33,261 (51,683) - Net Sales 1,340,614 391,330 (51,683) 1,680,261 Significant segment expenses: Cost of goods sold 862,953 197,776 (51,038) 1,009,691 Selling, general and administrative expenses 162,761 37,205 - 199,966 Other segment items (a) (99,213) (19,101) - (118,314) Segment Adjusted EBITDA(b) $ 414,113 $ 175,450 $ (645) Corporate and other costs (c) 23,219 Total consolidated Adjusted EBITDA $ 565,699 Interest expense 46,145 Interest income (12,745) Depreciation and amortization 104,921 Stock-based compensation expense 16,981 Gain on disposal of assets and costs from exit and disposal activities (8,902) Transaction costs (d) 10,124 Other adjustments (e) 11,562 Income before income taxes 397,613 Income tax expense 99,073 Equity in net income of unconsolidated affiliates (2,051) Net income from continuing operations $ 300,591 Six Months Ended September 30, 2025 Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:
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17 Reconciliations a.) Includes costs associated with closure of facilities, as well as professional fees incurred in connection with supporting ent erp rise - wide restructuring and realignment initiatives. Excludes gain on sale of properties previously held - for - sale and equipment. b .) Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, and the propor tio nate share of interest, income taxes, depreciation and amortization related to the South American Joint Venture, which is accounted for under the equity method of accounting an d e xecutive retirement expense. (Amounts in thousands) 2026 2025 2026 2025 Net income from continuing operations $ 133,623 $ 156,500 $ 310,191 $ 300,591 Depreciation and amortization 63,685 54,693 125,842 104,921 Interest expense 27,515 23,116 54,555 46,145 Income tax expense 44,206 52,399 97,895 99,073 EBITDA 269,029 286,708 588,483 550,730 Restructuring and realignment expense (a) 3,877 7,171 9,213 15,966 Loss (gain) on disposal of assets 649 (17,644) 1,108 (16,446) Stock-based compensation expense 11,257 8,577 24,531 16,981 Transaction costs 6,383 9,317 9,627 10,124 Inventory step up related to acquisition of NDS - - 14,197 - Interest income (1,407) (7,340) (2,698) (12,745) Other adjustments (b) (2,970) 743 627 1,089 Adjusted EBITDA $ 286,818 $ 287,532 $ 645,088 $ 565,699 Three Months Ended September 30, Six Months Ended September 30,