WMS: Investor Day Recap: F2030 Targets of +8% Org Growth, +30% Margins, and $5 Bil to Deploy

Research evidence excerpt

WMS: Investor Day Recap: F2030 Targets of +8% Org Growth, +30% Margins, and $5 Bil to Deploy

GR exceeded our +6%-7%

expectation, driven by material conversion, faster growth at Allied Product Revenue Q1 Q2 Q3 Q4

and Wastewater/Infiltrator, and modest market growth. The company 2026 829.9A 850.4A 693.4A 676.8A

2027 982.6E 926.1E 791.0E 726.9E confirmed +30% EBITDA margins are sustainable through the planning 2028 1,031.7E 994.8E 841.0E 772.9E

period, supported by product mix, recycling, logistics, and automation EPS, Adj Diluted

investments that provide structural cost advantages. Management also 2026 1.95A 1.97A 1.27A 1.07A

targets +70% operating cash flow to EBITDA through F2030, funding + 2027 2.12E 1.91E 1.33E 1.00E

2028 2.27E 2.22E 1.55E 1.21E $5 billion of deployable capital for M&A and shareholder returns. NDS

integration is on track with $25 million in cost synergies and management All values in USD unless otherwise noted.

sized a $50 million cross-selling opportunity. The tour of the Engineering Priced as of prior trading day's market close, EST (unless otherwise noted).

and Technology Center showed off the company's state-of-the-art facility,

offering ADS the ability to test and improve everything from resin

formulation to end use, improving the time-to-market for new products.

Biggest surprise: The +8% organic growth target was the upside surprise,

landing above our 6%-7% expectation. The +10% total revenue CAGR

assumes just ~$2 billion of the $5 billion of available M&A capital is

deployed, suggesting total growth could approach ~13% if the full capacity

were utilized. We believe the growth algorithm has upside optionality.

Implications/read-across: Management's assumption of LSD%-MSD%

underlying market growth through F2030 is a constructive signal for